As organizations increase their use of artificial intelligence technology within their operations, they are reaping tangible benefits that promise to deliver significant economic value.
According to research firm Frost & Sullivan's Global State of AI, 2022 report, 87% of organizations believe AI and machine learning can help increase revenue, improve operational efficiency, and improve customer experience.
These are just some of the benefits that AI brings.
Here are 12 benefits this technology brings to organizations across various industry sectors.
1. Better decision making
Organizations are increasingly using AI to gain insights about data, or in today's business parlance, to make “data-driven decisions.” In doing so, they begin to realize that they can actually make better and more accurate decisions, rather than decisions based on personal instincts and intuitions contaminated by personal biases and preferences.
As an example, Kavita Ganesan, AI advisor, strategist, and founder of consultancy Opinosis Analytics, points to one company that leveraged AI to classify survey responses from its 42,000 employees. This technology analyzes narrative responses and presents summarized results. This approach allows company personnel to effectively understand what employees want most, rather than offering options ranked by checkbox choices.
2. Increased efficiency and productivity
Adnan Masood, chief AI architect at digital transformation solutions company UST, says two other big benefits organizations can get from using AI are increased efficiency and productivity.
Masoud said organizations can use AI to perform specific business processes, whether it's using AI for search, analyzing data for insights, or writing software code. He said that even in the most severe cases, it will be possible to process tasks at a volume and speed that humans simply cannot match.
Masoud said AI not only works at a scale beyond human capabilities, but also increases productivity by removing time-consuming manual tasks from workers and empowering them to perform higher-level tasks that only humans can perform. I pointed out that it will be possible to do so. He cited the use of AI in software development as a good example, highlighting the fact that AI can create test data to check code, freeing up developers to focus on more interesting tasks.
This allows organizations to maximize the use of human capital talent while minimizing the costs associated with performing routine, repeatable tasks that can be performed through technology.
3. Speed up your business
As fast as business is moving in this digital age, AI will help make it even faster, says author Seth Early. Companies powered by AI CEO of Early Information Science. “It's all about speeding up the corporate clock,” he says. AI fundamentally enables cycle shortening, reducing the time it takes to move from one stage to the next, such as from design to commercialization. The result is a shorter timeline and a better and more immediate ROI.
4. Expanding new features and business models
Experts said executives can leverage AI to extend business models, noting that organizations are finding new opportunities as they bring data, analytics and intelligence into the enterprise.
For example, self-driving car companies can use the large amounts of data they collect to identify new revenue streams related to insurance, and insurance companies can apply AI to their vast data stores to manage fleets. can participate in.
5. Personalized customer service and experience
Brian Jackson, principal research director at Info-Tech Research Group, said AI analyzes and learns from data to create highly personalized and customized experiences and services.
He said the most obvious example of this comes from the consumer world, where streaming services such as Netflix and retailers use intelligent systems to analyze purchasing patterns, individual consumer data, and larger datasets. He said he researches and determines what each customer prefers at the time. Tailor it to their personal style, interests, and needs.
However, AI enables that personalization in many other areas, such as in the medical field to customize treatments and in work environments to support the individual requirements of employees.
6. Service improvement
Mike Mason, chief AI officer at consultancy ThoughtWorks, said AI will make interactions with technology easier, more intuitive, and more accurate, making it better overall.
He gave the example of a real estate site that employs generative AI to help users refine their search for real estate listings through conversational queries rather than clicking boxes.
“AI understands unstructured queries, it understands unstructured data,” Mason explained. In other words, this technology can analyze user requests even when they are given in plain conversational language. Analyze all descriptive elements within each property, including descriptive notes added by real estate agents. It then presents the user with a finely tuned and highly accurate list of properties that meet the user's requirements.
7. Improved monitoring
Experts say AI's ability to ingest and process large amounts of data in real time will enable organizations to implement near-instantaneous monitoring capabilities that alert them to problems, recommend actions, and even initiate a response. Masu.
For example, AI can use information collected by devices in factory equipment to identify problems and predict required maintenance. This prevents disruptive breakdowns and costly maintenance tasks that are performed out of necessity rather than planned.
AI's monitoring capabilities can also be effective in other areas, such as corporate cybersecurity operations, where large amounts of data need to be analyzed and understood.
8. Improve quality and reduce human error
When organizations add AI technology to their processes, they can expect to reduce errors and increase adherence to established standards. Additionally, when AI and machine learning are integrated with technologies such as robotic process automation that automate repetitive, rule-based tasks, the combination not only speeds up the process and reduces errors, but also improves itself. You can also train them to take on challenges. broader tasks.
As a result of its error reduction and quality improvement, “AI improves the value proposition.”[osition]'' said Early.
For example, using AI for financial reconciliations almost always yields error-free results, but when the same reconciliations are even partially processed by human employees, they are prone to mistakes.
9. Improving human resource management
Companies are leveraging AI to improve various aspects of talent management, from streamlining the hiring process to eradicating bias in corporate communications. Additionally, AI-enabled processes can not only save companies on recruitment costs but also impact employee productivity by successfully sourcing, screening, and identifying top candidates. As natural language processing tools improve, companies are also increasingly using chatbots to provide personalized experiences for job seekers and coach employees. In addition, AI tools can measure employee sentiment, identify and retain top performers, determine fair pay, and reduce the requirements of boring, repetitive tasks to create more personalized and We can provide you with an engaging work experience.
10. More innovation
As workers at all levels become more comfortable and confident working with AI, professionals are starting to use AI tools to help them become more creative and innovative. said.
In his book, Ganesan explains that a restaurant chain used the technology to power its mobile app, allowing customers to create their own cocktails based on their mood and food choices that day, and using the tool to He explained how to create a recipe and send it to a human bartender to mix. And serve.
Other industries are using AI to support research and development activities, such as the healthcare sector for drug discovery efforts and the consumer goods sector for new product development.
11. Improving profitability
As organizations use AI in more areas of their enterprises, from personalizing services to helping manage risk to supporting innovation, they can increase productivity, reduce costs, increase efficiency, and perhaps even generate new growth. You will get the opportunity.
Taken together, these can lead to higher profitability, said Sreekar Krishna, U.S. AI leader at professional services firm KPMG. “In terms of revenue, the potential is exponential. As long as you're delivering value to your customers, you can continue to grow.”
12. Industry-specific improvements
In addition to the benefits listed above, AI can drive the following industry-specific improvements:
- Retailers can use AI to better target marketing efforts, develop more efficient supply chains, and better price calculations for optimal profits. For retail companies, AI can help predict customer requirements and appropriate staffing levels.
- The pharmaceutical industry can use this technology to analyze and make predictions about drug discovery data that are not possible with traditional techniques.
- The financial industry can use AI to enhance fraud detection efforts.
It's important to remember that while companies are finding ways to use AI to gain competitive advantage, they're also grappling with challenges. Concerns include bias against AI, government regulation of AI, managing the data needed for machine learning projects, and lack of talent. Additionally, if the talent and infrastructure to implement AI are not in place, economic benefits may be difficult to achieve.