Artificial Intelligence (AI) is slowly but surely becoming the cornerstone of business strategy in the evolving landscape across all industries. With the increasing adoption of AI, it is evident that many organisations are leveraging the technology for driving their decision making, optimising processes, and preparing their environments for the new normal–an AI enabled business ecosystem.
This article explores the various aspects of AI in terms of the changing dynamics and the impact this technology is having across industries.
Strategic planning with predictive analytics
With the rising adoption of AI, huge amounts of data can now be analysed rapidly and with great precision, making strategic planning a snap. According to McKinsey, firms made demonstrable use of analytics for predictive purposes and increased productivity by 5-6% and profitability by 4-5%. AI enables identification of various patterns, where future results can be predicted. This helps organisations across industries make data driven decisions, manage their supply chain or cash flow, and, as a result, minimise costs and bring in more efficiency.
In the coming years, the responsibility of applying AI in strategic planning will increase even more, especially when organisations start using more complex predictive analytics techniques to help identify trends in the market and new opportunities.
Personalised customer engagement
AI improves customer understanding through recommended and tailored key engagement plans. Gartner reveals that AI-based personalisation can contribute to a 20% improvement in customer satisfaction and up to 15% boost in sales conversions. AI can be applied in the calculation of customer-related data to segment the audience and modify marketing campaigns, improving customer contact.
In the future, even the ability to create an amplified version of individual customisation is going to be one of the primary ways AI brings an organising principle to bear on business. Sophisticated AI platforms will learn from live feeds to change customer engagements on the fly, thereby bonding with their clients and making them loyal.
Operational efficiency through automation
The use of AI in automating tasks enhances operational productivity dramatically. In different industries, AI helps schedule appointments, manage large amounts of data, and organise workflows. This is an added advantage since it will cut the costs of having many administrators and, at the same time, employ more people in other key areas.
As AI technology develops, its impact on operations will only become bigger. Future AI systems will be more closely embedded into the business environment and support more and more complex decisions, automating many processes.
Scenario simulation for informed decision-making
AI enables rational decisions while weighing various potentialities. McKinsey points out that such businesses employing AI in modeling contexts are sevenfold more likely to generate cost savings. These simulations allow for business planning and customising contingency planning in the face of various occurrences, thus improving business preparedness.
In the future, the use of AI for the simulation of some possible scenarios will be more detailed and more enabled with accurate data and stringer mathematical models. This will serve to help businesses prepare for disruptions and threats, as well as identify and grab opportunities as they emerge.
Democratising AI for SMEs
Gartner believes that by 2025, businesses that embrace AI as part of their operations will enjoy a 15% boost in operating margins. The use of AI enhances efficiency by cutting costs, for instance, through the use of chatbots in the provision of customer services to SMEs or AI-run inventory management systems.
The usage of AI is bound to grow for SMEs as this technology becomes more accessible. Future AI solutions will be more specific and adjusted to smaller firms as they will likely satisfy their requirements for affordable and easily scalable solutions.
Overcoming challenges in AI integration
AI integration for decision-making within businesses has some hurdles to steer through. It means a change of mind, attitude, and organisational learning processes that can open up for change. From this, organisations need to invest significantly in developing and training their employees to ensure they are ready to harness the value that appears to be stored within AI. Further, another important factor that needs to be developed is culture – the culture of innovation and agility to realise as much of the potential as possible AI offers.
In conclusion, a strong emphasis should be placed on the ethical aspects of AI usage in the sphere of enterprise. For AI to become the core fabric of technology in any enterprise, it is imperative to have transparency, accountability, and fairness in the algorithms.
(Sameet Gupte is the Co-founder and CEO of EvoluteIQ, an enterprise automation leader)
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)
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