How do AI applications positively impact business strategies?
The term artificial intelligence or AI brings up images of a technologically advanced science fiction world where we are fraternising with robots.
While that scenario is yet to come true, AI in business has been creating waves across the world in practically every industry.
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Today’s business world is being shaped and reshaped every day by applications of artificial intelligence. Corporate giants like Facebook, Google and Microsoft demonstrate the power and influence of AI in business and everyday corporate operations.
An SEM Rush study reports that AI created a positive impact worth $2.9 trillion in the business world directly and indirectly. The report also suggests that the demand for AI technologies will only go up with time.
Artificial intelligence in the business world in 2022
AI has already become an integral part of business operations across the world, if not yet mainstream. From analysing customer data to guide marketing decisions to robotic deliveries of Amazon packages, companies are reaping the benefits of adopting AI-enabled technologies.
The most common use cases of existing artificial intelligence in business include smart home assistants like Alexa, self-driven cars, contactless shopping, personalised movie recommendations and much more.
However, we have barely scratched the surface when it comes to utilising the full potential of AI business technologies.
In order to bring AI into the business domain in a larger way, it is essential to understand how we can incorporate AI technologies in business or strategic management.
What are the different types of AI applications in the business world?
Before we go in-depth into the significant role of artificial intelligence in the business world, it’s important to learn what we mean by the term in 2022.
Essentially, you can define artificial intelligence as any type of programming or computer software that can mimic human logic, reasoning and problem-solving. However, this definition doesn’t cover the specifics of what AI can achieve.
AI applications today include machine learning which is used to process huge reserves of data instantaneously. Machine learning algorithms also keep adding new information to their databases, essentially ‘learning’ from their ‘mistakes.’
Today’s AI applications in business also include deep learning, which is a more specific form of machine learning that mimics the neural networks in the human brain, which are responsible for critical thinking and analysis. Deep learning algorithms are employed for more advanced business functions like fraud detection.
Both types of AI algorithms support a wide range of business activities that you can group under the following categories:
- Process automation
As per Harvard Business Review, AI is most commonly used to automate manual business tasks like back-office administration or finance calculations. Doing these manually can involve the risk of costly errors as well as increase the time taken to complete projects.
Today’s market is flooded with business process automation tools that can handle a wide array of tasks without the scope of errors. Some common tasks include updating records, handling customer communications and transferring data between databases.
- Cognitive insights
Another study conducted by Harvard Business Review found that 38% of AI business applications are used to gain cognitive insights. These kinds of AI tools analyse huge data reserves to detect specific patterns and interpret their meaning.
Some of the common business cognitive insights include predictions of what a specific type of customer would like to buy and identification of potential safety problems in vehicles ahead of time.
- Perspective and engagement
AI business projects that engage with employees and customers using natural language processing are also quite prevalent within the business domain.
This category includes applications like product and service recommendation systems and 24/7 customer service platforms in multiple languages.
What kind of business benefits can you expect from AI applications in the modern world?
Incorporating AI in your business can bring in significant benefits and give a high return on investment. Here are some of the most obvious benefits of using AI applications in your company.
- Significant reduction in expenses: Many business tasks such as data analysis used to require large numbers of employees working on them. This would have been costly for businesses in the past. AI applications can take care of these tasks, which can help companies save money on salaries and other expenditures.
- Reduced time for business operations: Many business operations can be easily automated through AI tools. This can free up time for the associated employees and business leaders who can devote this time towards new innovations, taking the company forward.
- Little to no room for human errors: Human errors are a fact of life in the business world and can often cost a lot in damage to restorations or missed opportunities. AI can ensure much faster results with far more accuracy and precision than what’s possible through human effort.
- Better quality business insights: Business forecasting has really taken off after the introduction of AI applications. These AI tools can predict market shifts, consumer behaviours and other important parameters with a greater degree of accuracy. This can impact businesses positively and boost their revenues.
What are the different business applications of AI in existence today?
Advancements in AI have made them more affordable and accessible to today’s businesses. Apart from boosting the overall performance of the organisation, AI can also help a business expand into new territories, create new product avenues and lower its operational costs.
Here are some of the top applications of AI in business that are used by a wide range of industries.
- AI is used for providing and enhancing customer support and experience
- AI is creating smarter and more efficient supply chains
- AI is enabling business operations to become smarter, safer and faster
- AI-empowered project management tools are assisting in quality control and compliance
- AI is improving our contextual understanding
- AI is strengthening cybersecurity ventures
The dark side of AI in business
AI has achieved what was once considered impossible. While it is difficult to imagine how AI technologies can develop in the future, experts believe that many of the common-sense business tasks might be assigned to AI tools.
However, there are several concerns around this technical revolution within the business domain.
- A significant lack of trust among business employees in AI technology
- A tremendous skill gap among existing employees makes them unequipped to handle the wide stream adoption of AI technologies
- Limitations of existing AI technologies due to the lack of substantial clean data
- The lack of a significant number of supercomputers, technical hardware and enterprise-level computing resources that can efficiently use AI algorithms
It is important to address these issues at the earliest so that they can’t damage the positive experience of AI technologies in the business world.
Is AI proving to be advantageous for workers in the industry?
AI technologies have earned an unfair bad image over the years among the general workers in the business world. Employees often assume that AI technologies will replace their jobs.
A Forbes study reported that 34% of business employees across the world expect AI to take over their jobs. Their intimidation and reluctance to embrace AI is one of the biggest hurdles to AI adoption across the corporate domain.
Contrary to what people believe, AI technology might not be such a bad thing for job prospects in the business industry. While it might replace some jobs based on rote tasks like assembly-line jobs, it offers a lot more potential for more skilled and better-paying jobs.
AI can boost innovation across the industry, which can fuel the creation of new job sectors and more jobs. It can also increase the demand for skilled professionals who can cope with digital transformation efforts across businesses.
What kind of skills can help you make a career as an AI expert in the business domain?
With AI set to become a major part of the business world in the future, technical knowledge about AI technologies and applications might be essential soon.
In addition to technical knowledge, future business leaders must also possess substantial business acumen, good decision-making skills and problem-solving skills.
They must also be able to have a knack for tracking and predicting business trends and the ability to make strategic business decisions on the spot.
The best way to gain this expertise is to pursue a relevant course in data science and digital business. A good MSc artificial intelligence degree can give you a competitive advantage for any role in a future or tech-oriented company.
GISMA Business School in Potsdam near Berlin offers a BSc Data Science, AI and Digital Business programme that ticks all the boxes. You can select a postgraduate degree in the same field from GISMA if you already have a bachelor’s degree.
Both courses offer a unique combination of technology and business perspectives that can help you understand and implement data science and AI applications in your company.
The course curriculum of the masters allows you to explore other digital technologies such as Big Data, Blockchain, and the Internet of Things and their ability to disrupt conventional business models.
Click here to learn about other major advantages of enrolling in the MSc Data Science, AI and Digital Business programme at GISMA.
– This article was written by Sweha Hazari.