The introduction of artificial intelligence in business has opened a spectrum of possibilities for business growth.
We engage with Artificial Intelligence on a daily basis and don’t even realize it. Artificial Intelligence is still associated by many with a science-fiction dystopia, but this characterization is fading as it becomes more common in our daily lives.
While the acceptance of Artificial Intelligence (AI) in society is a fairly new phenomenon, it is not an entirely new concept. The modern field of AI came into existence back in 1956. However, it took decades of work to make progress toward developing an AI system.
Especially in the field of commerce, the role of AI in business is extremely significant. Many businesses take up AI technology for reducing operational costs, grow revenue, increase efficiency, and improve the customer experience. The increasing utilization of artificial intelligence in business can make the industry rely on inexpensive, faster, and more precise modes of marketing.
In this blog, we focus on the most common areas of artificial intelligence in business and how it can be further used to improve business processes, and in what way it might be helpful for your business operations.
Why is Artificial Intelligence Important?
Every year, as the technology of artificial intelligence advances significantly, it is projected to be worth $42 billion by 2023. This means that AI will become more common than ever before and will have the capability of taking over a lot of daily tasks.
The importance of artificial intelligence has been known for quite a long time now. AI is significant because it simply makes our lives easier. As per the reports, the global revenues from AI for enterprise applications will grow from 1.62 billion in 2018 to 31.25 billion in 2025.
With its growing demand, AI technology has proved to be an asset for humans which is programmed to reduce human effort as much as possible in different areas. Some of them are:
AI in Medical Sciences
Artificial intelligence has made a significant impact on the medical industry. There have been various machine-learning algorithms and models working efficiently to diagnose critical diseases such as cancer or tumor-based on symptoms and health records. Artificial intelligence in healthcare is another efficient step taken that facilitates providing 24/7 personalized assistance.
AI in Air Transport
Air transport, as the most systematic mode of transport in the world needed to optimize its operations. Artificial Intelligence helps in planning the routes, along with flight landing and take-off charts. The technology is also used in many aircraft for navigation maps and taxing routes along with checking the entire cockpit panel to ensure the correct working of every component.
Artificial Intelligence in Gaming and Entertainment
This is one industry where AI has taken the biggest leap. Thanks to technology, bots are always available to play and therefore you are not required to have a second person to play. The level of personal details and graphics are also possible which takes this industry to a different level.
AI in Banking
The role of artificial intelligence in banking has seen a leap in the last few years. It is being used in the banking industry to scale new heights in customer relationship management. The sector is implementing the technology from a ground level with a principal aim of climbing heights in customer-centric approaches, which includes communicating with them.
What is the Role of AI in Business?
Artificial intelligence is used in a variety of ways in businesses. With an increasingly vast amount of data available today, and the evolving preferences of customers, businesses can no longer rely on traditional business methods. With the introduction of Artificial intelligence technology, a new realm of possibilities has opened up to drive business growth. The role of artificial intelligence in business simply involves intelligent computer software with human-like capabilities. The purpose of AI is to improve customer experience, boost revenue, increase productivity, and drive business growth and transformation.
Why companies should use AI?
In present times, business processes are characterized by high-level complex tasks that are stressful and inefficient to be carried out by humans. Businesses are dominated by the era of data which helps companies in obtaining valuable insights that can radically drive growth.
Being Relevant amid Competition
The need to uniquely understand the needs and preferences of consumers is invaluable in today’s business world. AI applications in business help companies in being relevant in the fierce competition while simultaneously maintaining growth.
Increase in Productivity
Introducing AI in business results in efficiency and productivity gains. The advanced technology handles tasks at a pace and scale at a level that humans can’t match. At the same time as AI removes tedious tasks, it allows workers to move to high-value tasks. As per reports, 54% of the leaders quote artificial intelligence has increased productivity within their business. While 61% of the executives believe that AI has identified opportunities within their datasets that otherwise have been overlooked.
Increase in Customer Engagement
By increasing the role of artificial intelligence in business, companies uniquely understand and engage the customer, automate business processes, and improve revenue while reducing operational expenses.
What are Some Benefits of Artificial Intelligence in Businesses
As businesses continue to deploy the latest artificial intelligence technologies within their operations, they experience tangible benefits, including material gains. With AI’s ability to process vast amounts of data, it is able to boost key performance metrics such as productivity, revenue, efficiency, digital transformation, and business growth.
For the greatest benefits, businesses should look at putting the full range of smart technologies. It includes machine learning, natural language processing, and more into their processes and products.
Here are important points explaining how artificial intelligence for business can be beneficial:
Opportunity for Business Model Expansion
One of the significant benefits of artificial intelligence in business is that it provides a great opportunity for the expansion of business models. As data and analytics are deployed into enterprises, it opens up new opportunities for businesses to participate in different areas. For instance, autonomous vehicle companies with the help of data could identify new revenue streams related to insurance. On the other hand, an insurance company could apply AI to its vast data stores to get into fleet management.
Improved Quality and Reduction in Human Error
With AI applications in business, organizations can expect a reduction in errors as well as strong adherence to established standards. When AI and machine learning are integrated with a technology that automates repetitive, rules-based tasks, the combination not only speeds up the process but also reduces errors. The automated routine tasks accomplished by AI also free up the employees to focus on more creative and strategic work.
Better AI Services to Customers
In the current times, delivering a positive customer experience has become a price of doing business. Businesses have been trying to embody everything about the consumers, their needs, solutions, and competition in the market. However, AI can do all that and more. It facilitates more customized and personalized interactions between the organizations and each individual customer.
Helps in Improving Speed of Business
As fast as businesses move in this digital age, artificial intelligence helps it in moving even faster. AI in business enables shorter development cycles. Artificial Intelligence cuts the time it takes to move from design to commercialization, and that shortened timeline delivers better.
Artificial intelligence can have a profound impact on businesses. By implementing the technology, businesses can enhance their cybersecurity measures. Artificial intelligence in business will facilitate detection and response to threats more quickly and effectively.
Risks of Artificial Intelligence in Businesses & How to Address Them
Businesses have constantly been looking for ways to improve their performance, productivity, and business results with the help of AI services. However, it is important to consider certain risks of artificial intelligence in business and to figure out how to mitigate their impact.
A mistake while crafting an AI strategy for the business can set the stage for other downstream problems. Unfortunately, the strategy is often in the hands of those who don’t have a thorough understanding of AI capabilities. It includes the risk of uncoordinated policies, lack of executive support, and overestimation of AI potential. In this, the most obvious mitigation strategy is to have an alignment between AI leadership and the executive team on the strategy and risks associated with it.
One of the most common risks of artificial intelligence in business but often talked about is the cost of model development. There is an uncertainty factor with AI work which means that in comparison with software development, the process will always be experimental and non-linear. There is a possibility that even after all the expensive development, the end result is not always positive. The financial leadership must understand this and not treat it just as another project.
Lack of Trust
The risk of trust emerges when the end-users of the AI-powered applications are hesitant to use or adopt the model. The reason could be the poor performance of the model under certain conditions, lack of help when questions arise, and poor user experience, among others. This leads to a difficult question of what companies should opt for model performance or its adoption by the intended users.
Compliance and Regulatory Risk
Artificial Intelligence can cause major headaches for use cases or verticals that need to comply with risks or regulations. If no action is taken, the competitor may get too far ahead. In case the action is taken, unforeseen consequences such as fines by regulators must be taken into consideration. In this case, the risk management teams must be well aware of the AI work and its implications.
Examples of Artificial Intelligence in Business
Smart assistants like Siri and Alexa or vacuum clean without your help are just a few examples of how AI is changing lives both at home and in business. From marketing to customer experience, AI is seemingly everywhere and is impacting how business is done. As different businesses are embracing this new technology, check below some common AI in business examples:
Chatbots are defined as a computer program that is designed to simulate human conversation. It is important to note that no actual human is behind the chatbot, but the technology mimics real-life conversation. As per the estimates, chatbots can slash operational costs by up to 30%, and 85% of human interactions will be handled without humans in the coming years.
There are three common types of chatbots that can make enterprises efficient:
- Rule-based: The chatbots provide pre-determined answers to the user’s specific questions.
- Intelligence: These bots use machine learning to obtain information from the user. They are trained to understand words and phrases and have the capability to improve over time as they understand more questions.
- Powered by Artificial Intelligence: They are the combination of the first two and can remember the context of the conversation. These AI-powered chatbots use a combination of machine learning, and natural language processing to understand customers.
Facial Recognition Technology
In facial recognition technology, your face is captured in a photo, and facial recognition software read the geometry of your face. The software identifies the facial landmarks and the result is a facial signature which is a mathematical formula that is compared to a database of known faces. The technology is used by many organizations for security reasons.
This is probably one of the most prominent AI applications in business. The most popular smart assistants in the market today include Siri, Alexa, Google Assistant, and Cortana. They offer a variety of skills and services, which enables your voice to:
- Search for information online
- Access personal information
- Make phone calls and send messages
- Make an appointment
- Set up reminders
- Place orders for products and have them delivered
From thermostats to light bulbs, there are smart products in the market that will make your life that is designed to make your life much easier and many are AI equipped. For instance, early robot vacuums were effective but were not able to take directions from humans but now with AI, users can be more specific about what they want.
Travel and Delivery
In present times, consumers often want their products and services to be delivered almost instantly. The introduction of AI in business is successfully helping transform the landscape of delivery and travel. For example, Walmart 2020 launched ‘Express Delivery’ allowing consumers to receive the order in two hours or less. With this kind of delivery option, an AI system, which features resource optimization and vehicle routing, helps in optimizing routes and assigns delivery tips. It also checks the availability of customers who are eligible for two-hour delivery options.
How Artificial Intelligence Will Change the Future of Business?
The latest available data predicts a lucrative near future for the artificial intelligence market. The AI market was projected to grow by 47% in the last two years and this upward trajectory has been forecasted to continue increasing by at least 26% each year until 2025.
The future of AI in business promises simplified experiences and ends the struggle with tedious tasks. There is no doubt that artificial intelligence will alter many industries, with technology taking over jobs and a shift towards more analytic and scientific occupations.
The structure of consumerism will change with new start-ups and applications emerging to take their place. The use of artificial intelligence technology in business has the potential to revolutionize how companies engage with consumers, grow within the market, and compete with each other.
While these advances may not be fully mature in the next 5 to 10 years, they are certainly on their way. With the future of AI set to change the rules of business, companies need to ready themselves for its impact on the workforce and industry to reap its benefits.
What Role Appventurez Can Play in Implementing AI Technology in Business?
Artificial intelligence and machine learning have revolutionized businesses and will remain so for a long time. The use of AI in a commercial environment reduces the time spent on the repetitive process, improves customer experience, and increase staff productivity across IT operations and sale.
It is understandable how AI can help in achieving business goals and as an AI app development company, Appventurez can help you in accomplishing that. The proper utilization of chatbots for the right purpose can eventually lead to an increase in productivity and efficiency.
The well-experienced team of developers at Appventurez can help you in implementing AI Technology in your business app. The team is capable of helping businesses of all sizes to take advantage of AI development services. Connect with us today and experience your vision turning into reality.
What are the advantages of AI in Business?
Artificial Intelligence in business can workflow more efficiently by automating routine operations. AI can also help with market research and make data more understandable for decision-makers.
What is the cost of building an AI-powered business app?
The cost of developing an AI-powered business app will be approximately $35,000 to $70,000. However, the final cost is analyzed based on various factors including the app complexity, app development platform, and third-party integrations.
How is AI used in business?
Implementing artificial intelligence in business can help in cutting down the resources and time spent on repetitive tasks, enhance customer experience, and in improving the productivity of the employees.
One of the Co-founders at Appventurez
Anand specializes in sales and business development as its VP - Sales and Presales. He supervises the pre-sales process by upscaling on establishing client relationships. He skillfully deploys instruments such as cloud computing, automation, data centers, information storage, and analytics to evaluate clients’ business activities.