What Are The Benefits of AI In Business?
Artificial Intelligence (AI) is an emerging technology that isn’t as malicious as old sci-fi movies might suggest. Today’s AI is a combination of devices and machines that can interpret instructions and perform routine tasks that don’t require a high level of critical thought. As Interesting Engineering states, the degree to which AI has advanced in a short space of time is staggering, being able to do facial recognition and even have conversations with human subjects. Companies are seeing the inherent benefits of employing machines to do most of their repetitive tasks for them as well.
What Is Artificial Intelligence?
Science Daily defines modern AI as the study or design of intelligent systems, that are tasked with perceiving its environment and taking actions, which increases its chance of successfully completing a given task. Information Age furthers that definition by presenting business-level AI as a system that can take inputs and deliver useful decisions based on that data. While the laboratory definition of AI is helpful in the general concept of the technology, within the business environment, the latter definition more closely resembles what businesses see as AI.
AI Disruption in Industry
The implementation of AI has seen widespread adoption even at this early stage of the technology’s development. Andrew Ng from Stanford University describes AI along the same lines as electricity – so ubiquitous that, within a hundred years, one would be hard-pressed to understand an industry that hasn’t utilized it. Already, according to Entrepreneur, industries such as real estate, retail, and insurance are using the technology to improve their service delivery to customers.
The growth of Ai is expected to continue as more and more industries start realizing the value of the technology. Tractica Research proposes that as early as 2025, the AI market is expected to hit the $36.8 billion mark. As more companies start to adopt AI to fuel their business analytics, the market is likely to grow to meet that demand.
One would be remiss in exploring the artificial intelligence field without mentioning machine learning. Machine learning, according to Emerj, is a method of getting machines to start acting like humans and making more human decisions. It’s the next step in the evolution of AI, allowing the system to learn from its mistakes and correct its future application. The better machine learning gets, the more human-like the decisions AI is likely to make.
The Benefits of Implementing AI
The implementation of AI in business can bring about several benefits. Inc. notes that some of the most significant ways companies can utilize AI to help them include:
- Data Collection and Analysis: Through AI, small businesses can set up a pool of Big Data that it can run analytics on to gain insights that will help them learn more about their customers’ tastes or sales information.
- Logistics: Through careful implementation, AI can improve workflows and enable companies to be more organized with their internal processes.
- Better Customer Service: AI chatbots already exist that allow for close interaction with the consumer to deliver superior customer service.
- Recruitment: AI can help narrow down the most competent applicants for a job, saving personnel time and the business money by creating a more efficient generation of shortlisted candidates.
- Personalized Marketing: Targeted marketing through demographic information controlled by AI agents is the best way for small businesses to reach out to the most viable customers on a social media platform.
The Drawbacks of AI Implementation
As with all new technology, there are always a few problems that remain to be worked out. AI development is expensive and requires a department all on its own. While this has been dealt with for the most part by AI manufacturing companies, a purchased solution will never fit the business entirely. AI agents can never truly replicate humans in their decision-making process.
Additionally, once AI is trained, they don’t learn from their experiences. Machine learning has the potential to address both of these problems, but the solution may be decades off. Finally, AI has been viewed with concern from employees because it could lead to loss of jobs. Statistics, like the one Fortune offers about AI replacing up to 40% of employment within fifteen years, have done little to quell the feeling of uneasiness from the workforce.
What is the Future of AI in Business?
Artificial intelligence has already been integrated successfully into many industries. The increased competitiveness it offers smaller businesses makes it an integral part of scaling up a company to meet higher demand. Going into the future, AI is likely to take up more key positions within a business. Whether it impacts the bottom line of companies remains to be seen, but as with all technology, as the demand for the technology goes up, the costs of production go down. Soon, even the smallest businesses may be able to afford AI tech to help drive their success.
Why Choose AI for Business?
The indicators of AI becoming a core technology in all walks of the industry are evident. Businesses that invest in AI now set themselves up to capitalize on significant technological advancement. In business competition, having the edge could mean the difference between surviving or folding. AI may not fit all businesses just yet, but with the development of complementary technologies, AI will likely become one of the most ubiquitous events of the early twenty-first century.