Divya Parekh of The DP Group covers executive leadership, storytelling, high-impact performance and artificial intelligence.
Artificial intelligence (AI) went from whispers in the back room to a full-blown tool for business and everyday life about as quickly as any advancement in tech. There is a lot of skepticism about integrating AI into a business by those who do not really understand it. When we do not understand something new, it is human nature to fear it.
As fast as the business landscape evolves, owners, CEOs and management have to ask themselves when to bring it into their company, not if they should do so. AI is not a trend but a strategic imperative that any business or organization needs to utilize if they are going to succeed in this decade and beyond.
AI And Business
AI is a technology that imitates human intelligence, such as reasoning, learning and problem-solving. It incorporates various technologies whose applications enable it to automatically do typical assignments like analyzing data, processing résumés for open job positions, responding to customer service calls, etc. The power of AI is such that the surface has only been scratched, and the sky seems to be the limit on its eventual capabilities.
At its core, artificial intelligence can streamline a company’s cost-efficiency for many processes and, by extension, increase profitability. Leveraging AI allows companies to better understand their metrics to a level that never seemed possible without many people-hours put into it. Some examples are that AI can produce better data quickly and regularly on customer trends, market behavior and the cost of all departments within a business—all of which lead to a better profit margin.
Operational Efficiency
Organizations and companies often discover recurring tasks that take up expensive resources and time, bogging them down. AI automating such concerns liberates employees to work on more tactical ideas. Some examples are chatbots dealing with customer questions and software that handles inventory and ordering materials. These systems work with no need for a break or quitting for the day. Working round-the-clock enables businesses to improve their service to be practically 24/7.
Decision-Making Simplified
With so much information available, it is almost impossible to absorb it all, let alone analyze it and see how it affects your company. AI surpasses conventional methods to accumulate vast reservoirs of data at extraordinary speed to provide insights and trends that might stay hidden.
A component of AI is predictive analytics, which can take past data to forecast future developments in whatever area of your business you are analyzing. Making such informed decisions minimizes risk and aids in productive decisions for the company. AI can also be programmed to explore all aspects of marketing so a company can construct tailor-made marketing campaigns to hit the best consumers of the company’s products or services.
Boosting Customer Experiences
One of the best ways any business can distinguish itself is by interacting with its customers. Customer experience is paramount in developing a brand and retaining customers to that brand. AI expertise can increase customer interfaces by providing communication that resonates with the customer.
Customization of e-commerce platforms improves sales and reinforces customer satisfaction by making clients feel understood and valued. Artificial intelligence customer service tools cater to assisting customers when they need it the most. A business also receives feedback from these same customer AI programs to act on data related to their products and delivery and get ideas of what else their customers might be interested in.
Reduce Costs
As noted so far, AI can definitely reduce operational expenditures. Automating routine jobs helps reduce labor costs, and companies can reposition people and resources to other essential business functions and reallocate resources toward more critical business purposes. AI functions, such as monitoring maintenance needs, can reduce the cost of maintaining the physical plant. This can be extended to observe all machinery and hardware used in the company so that the cost of keeping them working at their best is minimized and their life span is increased.
Competitive Advantage
Companies embracing AI will likely find it gives them a competitive advantage, usually beyond what they thought. These businesses are leading the way in technology, customer service, productivity and every other metric that matters. Using AI effectively means new products and services can come to fruition quicker than ever. Companies with this ability also receive more data on how to market those new products and figure out what customers will want next.
Challenges To AI
The benefits of implementing AI are extensive, but company owners must use it responsibly and consider ethical concerns. Consumers today are conscientious of data privacy and security and do not want to be manipulated by algorithmic bias. Companies must observe AI ethical tenants and legal regulations.
Companies must also foster a philosophy of transparency and accountability when using AI. (Honestly, they should govern everything a company does!) This means giving customers exact explanations regarding what the company does with a customer’s data and what steps to take to address any bias concerns. If a business wants to use AI, it needs to build trust with customers regarding the implementation of AI.
Final Thoughts
It is human nature to fear what we don’t understand. At one time, because of ignorance, businesses didn’t know what to do with computers. Those who used them first grew quickly. AI is the same now. It is well worth your while to gather as much information on the subject and how to implement it for your company.
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