Written by: Zuleka Kaysan, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Artificial intelligence (AI) is no longer a concept of the future. It's already transforming how businesses operate, and its impact will only continue to grow in the coming years. From automating repetitive tasks to providing valuable insights through data analysis, AI has become an indispensable tool for organisations of all sizes and industries. But what does this mean for business owners?
Nowadays, you rarely go about your day without reading about AI and how it's transforming most aspects of our lives, but what does it mean for business owners? If the business value of AI will reach $5.1 billion by 2025, how can you leverage AI to transform your business?
While AI is most known to the general consumer for generative purposes, most famously through ChatGPT, its application varies widely. At its core, AI uses advanced analysis and logic-based techniques such as machine learning (ML). AI algorithms can be further developed for different purposes, something as simple as automating processes or as advanced as generating insights from complex data sets.
However, there is a distinct difference between AI and ML. Whereas ML analytically processes data, AI can advance to deep learning, which involves layering algorithms to solve problems. This is where the real potential for the business application of AI lies.
So, is integrating AI into processes across the organisation the next step for agile and innovative businesses?
The benefits of using AI in business
While AI is a controversial topic and its widespread application is being questioned, there are undoubtedly advantages to be gained from using AI. Many fears around AI usage, such as generating irrelevant answers from data processing or perpetuating bias due to reliance on the imputed dataset, can be overcome with continued development and refinement.
Scalability through reducing intense manual tasks
Complex datasets and datasets of a high volume are not easy to process manually. All the data needs to be sorted, analysed and interpreted to draw conclusions and determine action. AI streamlines this process so people can commit to what people do better, for example, refining AI processes and implementing AI-produced decisions. Both humans and machines are in optimal roles.
Speed & responsiveness even when handling complex data
In a time of constant and rapid change, those who act quickly stay ahead. The only way to stay ahead of the curve is to collect real-time data and efficiently process and make conclusions from the data, enabling swift decision-making and action-taking. Agility is a success-determining factor made possible by AI.
Find patterns & better solutions
The human and machine perspectives have merits, so when combined, businesses have the best chance of success. Human error is always a risk factor in business processes; this risk is only increased by complex and large datasets. Such a risk isn't a concern with AI-powered programmes. In fact, AI can increase accuracy by finding correlations and patterns that uncover potential issues or solutions that would have otherwise been missed.
4 ways AI could transform the way we do business
AI technology is functional at a large scale, so it can be used as the foundation for significant improvements in local and global organisations. It is a starting point for the changes business leaders could make to leverage AI technology. The following is, however, by no means an exhaustive list of how AI could be applied to achieve business growth.
Automation
AI can be programmed to respond to specific inputs and contexts by triggering a set action. This is already used for marketing purposes in the form of personalised advertising, abandoned cart emails and so on.
Thanks to recent advancements, AI automation can now be applied to more complex processes. Take the problem of unpredictable and fragile supply chains, which has caused widespread disruption and shortages in the past few years. Businesses are looking to secure their supply chains by becoming more agile. AI automation can support this by automatically rerouting supplies in transit when blockages occur. In this case, AI helps businesses to more easily achieve set goals.
Decision-making
Not all business processes are set in stone. Business leaders must constantly make new decisions as they face rapid developments and situational changes. AI can support decision-making by efficiently coming to an objective conclusion after analysing the situation.
The problem-solving ability of AI is helpful on the ground in the business as well as when strategising at a leadership level. For example, in manufacturing, the maintenance of equipment is vital. Maximising the lifespan of critical assets in the manufacturing process is cost-effective and environmentally conscious. AI can monitor the condition of these assets and intervene with predictive maintenance that prevents issues from occurring or escalating.
Recommendations
Realistically, not all decisions can be left to machines. The data-driven analytical perspective can be helpful for the people making the final decision, but human intervention is required at some points. In these cases, AI can come up with recommendations for action that could be taken based on the data and context.
Marketing is a business process that can't be fully outsourced to AI. It can generate marketing materials considering patterns of what has been successful previously. However, few marketing teams would feel comfortable publishing materials that a human hasn't reviewed; they'd want to ensure it resonates with their customer base and has a unique value that captures attention.
Evaluation & insights
The insights AI provides can be very advanced. Beyond pattern identification and information summaries, AI can provide insights into innovations by evaluating problems and suggesting solutions. It can also be fed hypothetical scenarios to develop potential outcomes that must be considered.
As well as applying this capability to marketing and operational development, this could be particularly useful for product development. Innovative product ideas can be generated by feeding AI information about customer wants and needs, such as usage data and customer complaints. This is then evaluated to come up with insights into new potential products.
The transformation AI is having on business processes is layered. From automating repetitive and lengthy manual tasks to evaluating broader context to suggest new paths for growth, AI can support both business operations and innovations.
How to make the most of AI in your business
While AI is not entirely new to consumers and business leaders, much of its widespread usage stays within the boundaries of automation. To maximise AI's competitive advantage, business leaders should think beyond that to adaptive AI developed enough to refine its own code.
The advanced capabilities of AI today mean implementers shouldn't just teach AI what humans already know but work alongside AI. This is because the human-machine interaction creates the most progressive results. Companies who have successfully integrated AI at scale make investments in three areas: algorithms (10% of investment), technologies (20% of investment) and business processes and agile working (70% of investment).
The impact of AI on businesses can be summarised by this quote from Erick Brethenoux, a Distinguished VP Analyst at Gartner:
"Not all artificial intelligence (AI) and machine learning strategies are created equal, but they are becoming critical for differentiation and sometimes survival."
Zuleka Kaysan, Executive Contributor Brainz Magazine
Spurred by her 18-year career delivering business transformation and change in fast-moving corporations with ambitious mandates, Zuleka Kaysan founded The Cornerstone Advisory – to empower tech and service-based businesses at each stage of their growth. She helps visionary leaders elevate their performance through an integrated approach; enhanced customer experience, innovative service design, and a fit-for-purpose culture. Her mission: to bring ideas to life.
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