Technology

Why companies should embrace, invest in AI

image

In computer scienceartificial intelligence (AI), sometimes called machine intelligence, is intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans. Colloquially, the term "artificial intelligence" is used to describe machines/computers that mimic "cognitive" functions that humans associate with other human mind, such as "learning" and "problem solving"

Artificial intelligence (AI), in the simplest terms, refers to systems or machines that mimic human intelligence to perform tasks and can interactively improve themselves, based on the information they collect.

Today, when asked about AI, many people still hink that it is a concept, something that is going to happen tomorrow. But organisations in every sector are already embracing and investing in AI tools and techniques to boost their business.

In reality, AI is already part of our lives. We use AI every day. It is not only on smartphones, laptops and cars, it is everywhere.

In the past, only the largest corporations could afford to invest in AI technology, but things are changing fast. In fact, the high-speed growth of AI makes it more likely that startups and younger businesses will be able to embrace the technology earlier than their corporate colleagues.

According to a PricewaterhouseCoopers (PwC) report, the global economy can see a potential contribution of $15.7 trillion from AI by the year 2030. China and North America will receive almost 70 per cent of this potential global GDP growth.

Some of the reasons businesses should embrace AI include.

Increased productivity 

AI can be used to solve problems across the board. It can help businesses increase sales, detect fraud, improve customer experience, automate work processes and provide predictive analysis.

Industries like health care, automotive, financial services and logistics have a lot to gain from AI implementations. Artificial intelligence can help health care service providers with better tools for early diagnostics. The autonomous cars are a direct result of improvements in AI.

Financial services can benefit from AI-based process automation and fraud detection. Logistics companies can use AI for better inventory and delivery management. The retail business can map consumer behavior using AI. Utilities can use smart meters and smart grids to decrease power consumption.

The rise of chatbots and virtual assistants are also a result of artificial intelligence. Amazon’s Alexa, Google’s Home, Apple’s Siri and Microsoft’s Cortana are all using AI-based algorithms to make life better. These technologies will take more prominent roles in dictating future consumer behavior. Most of your future transactions will be completed with the help of an AI-based chatbot or virtual assistant.

Customer experience

According to research, customer experience will overtake price and product as the key brand differentiator by 2020. The centrality of customer experience in today’s business landscape has motivated many companies to adopt a more holistic approach to customer experience improvement.

Artificial intelligence can help businesses craft highly-personalized customer experiences. Artificial intelligence can ingest and aggregate all of the various touch-points a customer has with a brand and determine what’s driving customers behavior. Are they eager to buy more? Why? Are they on the verge of churning to a key competitor? Why? Armed with this information, business operations teams are afforded unprecedented insight into the end-to-end customer experience, far beyond that which can be gleaned from customer feedback surveys. According to Salesforce, 50 per cent of consumers are likely to switch brands if a company doesn’t anticipate their needs.  By providing the right messages and marketing prescriptions to customers at the right time, artificial intelligence promises to help organizations better understand customers and anticipate their needs.

Enhancing the hiring process

Strategic talent acquisition is central to business operations. Yet the hiring process is fundamentally flawed. The recruitment and interview process is rife with bias and is largely driven by first impressions.

AI is already helping businesses transform their hiring operations and processes. It can help businesses cast a wider net by scanning large volumes of resumes and other talent sources to pinpoint highly qualified candidates for specific jobs. It can review job descriptions, interview transcripts, and call logs to uncover and correct hidden biases in the hiring process and accurately assess candidates. Several tools already exist on the market. IBM Watson Candidate Assistant, for example, is a talent management solution that helps match potential candidates with the specific jobs that they will thrive in. When implementing AI recruiting tools, it’s critical that we ensure that tools are not prone to the same biases that humans fall victim to.

Newsletter