Top benefits of introducing AI in business
We’re probably not fully aware of it yet, but AI is the biggest tech disruptor we’ve seen in centuries. Let’s take a brief look at history to try to understand its significance.
If you could travel through time and go back to 5th Avenue in New York in 1900, you would see a lot of people and horse carriages on the street during the Easter parade. You’d maybe see one or two cars in the street. But then Henry Ford launched the first commercial cars that were affordable to common folks.
In 1913, the streets of New York looked completely different. They were packed with cars. You could see only a few carriages. According to Giuseppe Stigliano, an author and entrepreneur, we’re in the midst of another quite similar and massive technological breakthrough happening in a very compressed timeline. That’s artificial intelligence.
Artificial intelligence has pushed the boundaries of what we thought was possible. It’s helping companies save millions of dollars, innovate faster, serve their customers better, and stay competitive. Here’s how you can do it, too.
Increasing efficiency with AI = creating room for innovation
Efficiency is the top benefit associated with AI. In most cases, efficiency is discussed in the context of optimizing resources – saving time and decreasing costs. This is completely valid, and it’s estimated that AI will boost employee productivity by up to 40% by 2035.
Efficiency is definitely a benefit that should nudge companies to consider implementing or further scaling AI. However, the byproduct of eliminating mundane tasks is more time and focus for employees to dedicate to innovation. That’s where the true value lies – especially in terms of generating net new revenue and conquering new markets.
Innovation is about novelty, i.e., about finding a better way to do something. It refers to the creation and implementation of new ideas, products, services, or processes. But isn’t creativity primarily a human domain? How can AI help?
There are two main ways AI can foster innovation: by synthesizing data and by being a thought-sparring partner. In a way, AI is like having an additional pair of eyes that see patterns and rules, whereas humans only see an overwhelming amount of data. It is like a superpower.
Discovering connections can help you draw conclusions. It creates a fruitful ground for great ideas to be born. AI-driven innovation is not only going to help you gain a competitive edge and increase your market share (or create new markets entirely), but it will also fundamentally improve your company culture. How? By making it agile and adaptable.
If you commit to creating innovation ecosystems, you’ll build a flywheel for launching new ideas. AI accelerates this flywheel and acts as a connector, pushing your business forward.
More control over future growth with AI-fueled predictive analytics
With so many uncertainties and shifting consumer trends, any business owner would love a crystal ball to see in the future. Although AI could never be your fortune-teller, it can analyze vast amounts of historical data to identify patterns and correlations – something ordinary humans could never do. The more data you have, the more accurate insights you can extract with AI.
There are plenty of use cases for AI-driven predictive analytics. For example, forecasting allows you to analyze a plethora of business metrics such as sales, demand, and even customer churn.
Let’s say you have a subscription-based software business. If you have a set of criteria indicating decreasing user engagement, AI can empower you to be proactive about at-risk customers. You can focus on re-engaging the customer to make sure they don’t churn.
Additionally, using AI for effective risk management in business is a no-brainer. You can predict likelihood and impact by letting AI analyze past incidents and external factors. For example, if there were market fluctuations or operational failures in the past, AI can contextualize these events and notify you in a timely manner to be proactive if they are likely to happen again.
Predictive analytics are especially useful for resource planning and supply chain optimization. AI can analyze these complex ecosystems effectively and help you decide on your next business move. Not only does this help you save costs, but it also optimizes your revenue growth, i.e. you minimize the risk of leaving any money on the table.
Improving customer experience through personalization
Modern consumers are used to personalized service. It’s not even advertised by companies as a unique selling point because it has become the norm. Just think of Netflix or Spotify, which rely on AI algorithms to recommend movies, TV shows, and music based on user history and preferences.
Of course, it’s not just about curated content or personalizing the experience for a particular user. There are AI-powered sentiment analysis tools that can analyze customer feedback from various sources in real time, allowing you to stay proactive and keep a pulse on what your customers need.
AI can also help you be there for your customers 24/7. Various types of out-of-the-box chatbot solutions can help you deliver an exceptional customer experience by not making them wait to get their problem resolved. Having a chatbot also helps you triage tickets. Sometimes, all customers need is a nudge in the right direction. Instead of having a human agent talk to customers at all times, a chatbot can be implemented to help share articles and solve simple issues on the spot.
Last but not least, AI can help you display relevant offers at the right time, depending on previous customer behavior. This increases the chances of a person buying complementary products or service add-ons because they feel seen and valued. That’s what AI-powered personalization does for a modern consumer.
Dynamic pricing for increased revenue
From Amazon to Airbnb, businesses that operate online use AI-driven dynamic pricing. With the help of powerful algorithms, product prices get adjusted in real time based on demand, competition, and user behavior. It happens in real time through the analysis of millions of data points.
This is something humans could never do. Based on research, the right dynamic pricing strategy can help you increase profits by up to 20%. Agility in pricing is the key to improving competitiveness. AI algorithms can swiftly alter prices based on competitors’ pricing changes. You don’t have to monitor the market manually (nor is that entirely possible). The same goes for optimizing margins: AI can increase prices during peak demand and bring them back when the period is slower.
AI algorithms can discover even the subtlest patterns and correlations that human analysts can’t. This granular understanding can help you and your businesses to segment the customer base more effectively. For example, you can create custom pricing strategies for different demographic or behavioral groups. You can adjust prices accordingly if you identify high-value customers who are less price-sensitive. The same goes for geo-targeting.
Informed decision-making powered by AI
Artificial intelligence can be incredibly valuable for C-level executives who want to feel confident about business decisions. However, the insights you get from AI will depend on the quality of data you feed it with.
You can think of AI as a tool that allows you to make sense of the data that you, as a human being, cannot fully comprehend. It analyzes and synthesizes large amounts of data, searching for patterns and correlations.
This is particularly valuable in healthcare. Modern AI models can analyze patient data, medical history, and information on genetics and create an understandable report for medical professionals. This makes it easier to decide on the optimal treatment for the patient. Other use cases include:
- Predictive maintenance in manufacturing: AI analyzes machinery sensor data to predict and prevent equipment failures
- Fraud detection: AI algorithms monitor transaction data in real-time to detect and prevent fraud
- Crop monitoring and precision agriculture: AI relies on satellite images and sensor data to optimize farming practices and suggest water and fertilizer usage
- Smart grid optimization: AI optimizes energy distribution by analyzing consumption patterns and grid data (this is very important for the environment and sustainability)
The possibilities with AI are endless
Just a decade before, we thought AI could never master creativity, and we held to that belief dearly, thinking only humans could make something from scratch. But then generative AI emerged, and we’ve seen lines of texts appear on the screen after inputting a single prompt. The same goes for images.
AI is not going to put your business out of work, but another company that’s leveraging AI to work smarter just might. We’re just scratching the surface with the potential of AI. Tailor-made solutions can do wonders for organizations, regardless of the vertical they are operating in.
Start with mapping your bottlenecks and problems that are hindering your company's growth. Then, you can explore how AI can help you grow faster. Need some help? We at Vega IT might be the tech partner you’ve been looking for. Get in touch with us today to find out.
