5 Ways Artificial Intelligence (AI) can Impact a Business
Artificial Intelligence (AI) is a branch of computer science that enables machines to do cognitive functions such as learning, reasoning, and problem-solving.
Machines with AI are able to apply algorithms to the data received from their environment without being explicitly programmed.
These machine learning (ML) capabilities are transforming businesses across the globe.
The traditional business analysis is slow paced and is not able to keep up with the real-time data. Businesses are embracing ML or other forms of AI such as computer vision (CV) to gain insights from accurate, detailed analysis of large datasets in real time.
Business leaders are curious about the ways in which AI can bring a change. Here are top five ways in which AI can impact your business:
1. Competitive advantage
84% respondent of a recent survey conducted by the Boston Consulting Group and MIT Sloan Management Review report that AI will enable them to sustain a competitive advantage.
Most business leaders believe that their competition will use AI in the next five years. Hence, to stay ahead of the competition many businesses are developing AI capabilities now.
2. Revenue growth
At present, AI market in the US is worth approximately $2.4Billion. It is estimated that by 2025 the AI market will grow and will be worth approximately $59.7Billion. Assuming a threefold ROI, this will add trillions of dollars to the global economy.
Business organizations want to be a part of this growth explosion to increase their revenues. AI enables businesses to understand their customers better and streamline the business processes. AI-based improvements result in revenue growth within a short period of time.
3. New ventures
Tech giants such as Google, Microsoft are venturing into the development AI capabilities. A UK based AI company DeepMind was acquired by Google in 2014 to further develop the deep neural networks technology.
Although initially, it started with gaming applications, now the company is also developing applications in healthcare space. Smaller companies will soon follow the trend and grow into newer domains.
4. Optimization of resources
The use of AI helps companies to achieve their business or production goals such as reducing waste, optimizing production, and increasing sales. For instance, process parameters optimization in manufacturing, controlling parameters such as temperature, pressure, and properties of the raw materials are critical.
A deviation from the normal range of parameters results in a sub-standard or defective product. AI enables floor managers to tweak the production process on time when any abnormalities are detected. This results in optimization of available resources and thereby optimizing production.
5. Reduced churn
AI algorithms allow a company to reduce churn i.e., attrition of customers and personnel. Acquiring new customers is costly and hence, most companies focus on maintaining their customer base.
AI enables companies to track user behaviors to predict churn. For instance, in the telecom sector, the use of data acts as a churn predictor. Similarly, hiring and training new individuals is expensive.
Hence, most companies focus on retaining talent as far as possible. With AI applications, companies track churn in various departments and take necessary steps such as train managers or employees.
A survey reported that 83% of respondents (business executives, managers) believe that adopting AI is a strategic priority for businesses today. However, only about 50% have taken the necessary steps.
It is worthwhile to seek advice from a data science consulting group in case your business is in early stages. A consulting company, like BitRefine Group helps define business goals, develop AI applications and launch them at the client site. T
The collaboration results in a rapid adoption of AI capabilities in the business. The future holds a promise for AI-powered businesses, but we need to include AI into businesses today.
Guest Author
Anka Zielinska is a business consultant and online marketing expert. She works at ZonePDF - online platform offering PDF processing tools for merging, splitting, and converting PDF files. She loves learning all about technologies. In her spare time she is a dedicated triathlete and a board game geek.