Written By Chris Murphy
Artificial Intelligence (AI) is no longer a futuristic technology only imagined in science fiction movies. It is present in our world today, and businesses leverage their capabilities daily to improve their operations.
Companies across all sectors leverage Artificial Intelligence (AI) to automate business processes, from enhancing cybersecurity measures to improving customer experience on e-commerce platforms.
In fact, you’re probably already using AI to automate processes in your business, whether or not you know it. For instance, warehouses use AI to suggest actions like quicker replenishment of nearly out-of-stock items and inventory positioning for better logistics.
The AI impact on management is something to consider as well. Specifically, automating workflow management – the use of software systems designed to automate workflow within an organization. Think of scheduling meetings, processing payroll, and so forth.
Given the pace of technological advancements today, there’s no doubt that AI will only continue to become a more significant part of our daily lives – both at work and in our personal lives.
If you’re looking for ways to use AI in your business, this post will introduce real-world examples of how businesses leverage it successfully.
But at a core level, what is AI?
Understanding the basics of artificial intelligence.
The world has been fascinated with Artificial Intelligence (AI) since the term was first coined by John McCarthy in 1956, and for good reason. The ability to simulate human intelligence is no longer a far-off dream but an everyday reality.
AI is defined as a branch of computer science that deals with creating intelligent machines that work and react like humans.
In other words, it is when we teach a machine how to do things that normally would require a human. For example, you can ask your phone to schedule an appointment for you, and it will do it. You can also ask Siri or Alexa to play music for you, and they will do it.
In the early days of AI, scientists tried to teach computers how to play games like checkers and chess (which they still do today). They did this by writing rules (code) for the computer to follow.
But they realized some things were too difficult for the computer to figure out just by using rules.
So they came up with something called machine learning. With machine learning, an algorithm allows the machine to identify data and make predictions. For example, chatbots are for quick online support to customers. Chatbots work with machine learning concepts by feeding them basic questions and answers based upon frequently asked queries. The chatbot will answer promptly whenever a customer asks a question.
How businesses use artificial intelligence.
E-commerce
AI has many applications in e-commerce, including personalization and search results. Sellers use AI to identify fraudulent transactions and protect consumer data, making it easier for businesses to comply with privacy laws.
You need to know what customers want to ensure they get the best possible experience on your website or app. One way to do this is by offering them product recommendations based on their preferences, increasing their likelihood of completing a purchase.
For example, suppose someone buys a t-shirt available in multiple colours with different designs like cats or dogs. Artificial intelligence will identify this pattern and suggest other items the buyer might be interested in, like a pair of pants with similar features.
Cybersecurity
AI is incredibly useful for the detection and prevention of cyber attacks. For example, if a user attempts to access a system with a blocked IP address, then you know they’re trying to get in illegally – and the AI can flag and further prevent access attempts.
Another way AI can detect an attack is by analyzing log files and comparing them against other logs from past breaches or attacks. If there are similarities between those logs and this one, you know something suspicious is happening on your network, which needs further investigation. Once detected, AI sends out alerts about these attacks so people can take action.
By using predictive analytics with machine learning algorithms, businesses predict when there is malicious activity on their network. These predictions use previous data points like time of day, week, month, year, the device used (computer vs. phone), and the web browser.
Customer service
Replacing humans with artificial intelligence in customer service is another example of AI in business. With the advent of chatbots, customers can now interact with companies in real-time to resolve complaints, place orders, triage requests, and do almost anything that customers would require from talking to a customer care representative.
These automated tools can help you integrate your company’s resources and offer intelligent insights to assist customers effectively, creating a more efficient process than before with an agent on the phone or in person when they’re not truly needed.
Changes created by AI in business are slowly alleviating the need for humans in customer interaction, reducing business costs, and improving customer care accessibility.
Targeted marketing
The importance of AI in marketing cannot be understated. Knowing the wants of consumers and how to market them is key to increasing company revenue. With data obtained from customers’ online activities, companies now use AI to predict and target who is most likely to purchase a particular product. This increases the chances of sales and overall effectiveness of marketing—and at the same time, can dramatically reduce marketing costs.
So, how do you leverage AI in marketing?
AI automates decisions based on data collection, analysis, and additional observations of audience or economic trends that may impact marketing efforts. AI is often adopted by those who need assistance performing tasks that require less judgment or creativity from humans, like honing customer profiles. They’re tailored appropriately at every step of the buyer’s journey
Human resources
AI-based applications can help with screening candidates, finding the right match, and scheduling a face-to-face interview – thus ensuring the candidate with the right potential reaches the office.
There are many ways to leverage AI for human resources (HR). Perhaps the most widely-used application is automating repetitive tasks like screening resumes and scheduling interviews – which frees up a lot of time for HR professionals, allowing them to focus on other tasks.
Artificial intelligence provides significant benefits in helping HR professionals make better data-driven decisions, by analyzing data sets and providing insights that would otherwise be difficult to obtain. Everything from identifying training and development needs to predicting future turnover, AI allows HR to be more proactive and efficient.
Can artificial intelligence improve business performance?
Undoubtedly, AI is rapidly evolving and growing more sophisticated every day. According to McKinsey’s research, 50% of companies have adopted at least one function powered by AI to improve their efficiency.
Here are some of the improvements that we’re sure AI impacts:
1. Improves productivity and efficiency
One of the most significant advantages of AI is its ability to boost productivity and efficiency across all areas of a business. According to SnapLogic, 61% of workers say they have a more efficient and productive work day using AI.
From automating repetitive tasks to providing employees with real-time feedback and guidance, AI is helping businesses do more in less time.
2. Improves decision-making
AI is helping businesses automate decision-making, freeing up time and resources for other tasks. It allows companies to gain insights into their data and customers that they would otherwise be unable to obtain.
3. Enhances performance
Repetitive tasks and hours spent doing non-complex tasks are challenges that companies face that are solvable through AI. The main advantage of this technology is its contribution to automating processes and optimizing resources.
4. Saves money
Automating processes helps businesses save money while providing better customer service by automating tasks such as customer support and order fulfillment.
5. Competitive advantage
Every edge counts in today’s competitive business landscape. AI offers businesses a significant competitive advantage by helping them make better decisions.
For example, AI sees trends and learns consumer behaviour, offering businesses an advantage over the competition and allowing them to create more relevant content for their customer.
The future of AI in business
There is no doubt that AI is rapidly evolving and growing more sophisticated every day. Leveraging AI is a powerful way to improve efficiency and productivity. AI helps companies automate tasks, improve decision-making, and predict customer behaviour when used correctly.
However, as with any new technology, a learning curve is associated with it. Businesses must take the time to understand how it works and how to use it to their advantage. With the proper education and execution, businesses can utilize AI to take their operations to the next level.