These days we hear a lot about robots taking over human work, AI coming into the power. But what is all that about? What is AI and why is it so important for your business?
Artificial Intelligence (AI) is a branch of computer science dealing with the simulation of intelligent behavior in computers. It 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.
So how AI can bring a change? Here are top seven 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 you should be 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.
Do you want be a part of this growth explosion and increase the revenues? If so, note that
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. Innovation diffusion
Entrepreneurs and small businesses operate on shoe-string budgets and face a challenge of innovating products while keeping the costs low.
AI applications help in reducing costs, increasing revenues and thereby accelerating innovation. Including AI in the business workflow, is not meant only for tech giants but also for start-ups looking to boost innovation.
4. 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.
5. Optimization of resources
The use of AI helps companies to achieve their business or production goals. Predictive Data Analytics results in reducing waste, optimizing production, and increasing sales. For instance, in manufacturing, controlling parameters such as temperature, pressure, and properties of the raw materials are critical.
Thanks to AI you are able to tweak the production process on time when any abnormalities are detected. This results in optimization of available resources and thereby optimizing production.
6. Labor and capital augmentation
In many companies, AI is used not to replace humans but to augment them. The tasks that are repetitive or dangerous are delegated to machines, thereby keeping labor force safe. In industries such as manufacturing, equipment downtime results in the loss of capital. AI helps in preventive and predictive maintenance of equipment and thereby helps in preserving capital.
7. 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.
Many business managers believe that adopting AI is a strategic priority for their businesses today. However, only about 50% have taken the necessary steps.
To take advantage of AI it is worthwhile to seek advice from a data science consulting. Specialists will help you to define business goals, develop AI applications and launch them.
The future holds a promise for AI-powered businesses, but we need to include AI into businesses today.