The Rise of Artificial Intelligence (AI)
In the abstract everyone has heard of AI and the potential impact it will have on our work, but only a few really know how to apply it to their benefit. One can assume that AI is yet to significantly impact our daily lives and that it is only widely used by some sects. Well, that’s totally untrue; a larger amount of us have experienced Artificial intelligence at work. From that very minute you wake up to check your smartphone to watching that new movie recommended by Netflix, AI has made its way into our daily lives.
What exactly has AI got to offer us?
We have come so far that 100 years ago we did not understand the significance of literacy, back in 1950, little more than half of all adults in the world could read and write. But now we can see the spread of literacy and how it has contributed to the demand for a better life. As technological innovation advances, Artificial Intelligence begins to play a significant role in our daily lives.
How then does Artificial Intelligence help us?
In general Artificial intelligence is seen as a supporting tool that has the potential to meaningfully impact and improve our work and lives rather than serving as a replacement for human intelligence. Organizations can leverage the power of AI and machine learning to identify business needs, consumer behaviour, and market trends to drive revenue.
McKinsey reports show that around 22% of companies using AI claimed the technology contributed more than 5% of their earnings before interest and taxes in 2019. Furthermore, most businesses utilizing AI technologies saw an increase in revenue over the years. With that being said, let’s take a deep dive into How Artificial Intelligence is changing the business landscape.
“AI system are good at spotting patterns, trends and analyzing the effects of previous actions when given access to the right data. To this leveraging the power of data has become more crucial than ever in today’s fast-paced world”.
The Use of AI to Understand Trends in Business.
Businesses generate massive amounts of data every day, and less than one percent of all data is ever used, let alone used to make decisions
The use of AI systems can unaidedly extract insights and patterns from large data sets and make predictions based on that data given access. For instance, in the retail sector AI is being used to improve retail operations like forecasting demand for products, optimizing inventory, reducing overhead costs, enhancing customer satisfaction, and more.
Through the adoption of Artificial Intelligence systems, businesses can make sense of large amounts of data generated to extract meaningful insights through automated analysis to enhance decision making.
Also in market research, this technology is being used in predicting customer behaviour, market trends, and improving marketing strategies, AI algorithms can analyze large amounts of data and recognize patterns and relationships more effectively than traditional research methods.
AI Empowers Business to Provide Intelligent and Personalized Services.
This is also linked to the above point because interestingly the insights generated are often used to provide personalized services to consumers. Think of Netflix, Amazon, and even most e-commerce platforms AI systems are used to collect insights and data from customers via websites and apps to automatically recommend the best products to them. When companies understand their customers better, they can offer intelligent services.
Smarter and more Intelligent Products are Built
We are now in an era where AI is being used to make products smarter. Like AI built into our smartphones, wristwatches, TVs, cars, and even toothbrushes with sensors to see how well you have brushed your teeth. Interestingly, in the coming years, we will see that products without this intelligence will simply struggle to match up with the competition.
Key takeaway: “Individuals who use AI as a supporting tool to render more advanced services will be more relevant in the business world.”
According to Next Move Strategy Consulting, the market for artificial intelligence is estimated to show robust growth in the coming decade. As artificial intelligence becomes more advanced and relevant, businesses have enormous opportunities to improve their operations, enhance customer satisfaction, and ultimately drive growth.
Here are Other Ways Business Benefits from AI Include:
- Increased efficiency through process automation.
- Improving the speed and consistency of service, for instance, AI-powered chatbots used by businesses to offer 24/7 service.
- Uncovering opportunities for new products and services.
Consequently, these are the areas where companies should consider adopting the use of AI systems, to recognize patterns, and trends more effectively, make smarter decisions, provide intelligent services and more innovative products, and ultimately streamline business operations.