Today Artificial Intelligence (AI) is transforming every sector of the business world. It is used on
a large scale in various industries and in different manners. Organisations are leveraging AI,
keeping in mind the high efficiency, better insight, increased productivity, and improved
profitability, AI brings with itself in the work. AI is used to analyse voluminous data in
industries and make data-driven decisions without any human error, human bias or human preference.
On one hand, where AI takes care of all this, businessmen, on the other hand, are able to focus on
more complicated and strategic tasks in business which can be resolved by a human mind only. AI,
thus, has opened the way to new capabilities and business expansion these days. AI is also
responsible for providing personalised customer services for example in the case of Netflix. In
addition to this, with the help of AI, businessmen get better monitoring to identify problems and
patterns in their businesses and fix them as soon as possible. Other than this, AI is helping people
to be more creative and innovative by providing them with the required inspiration.
But
what is AI?
The origin of AI can be traced back to 1950. The term ‘Artificial Intelligence’ was coined in a
workshop at Dartmouth College in 1956, which was organised to discuss the possibility of creating
machines that could mimic human intelligence. In the beginning, AI’s progress was slower because of
the limited computing power and data available at the time. AI faced many periods of a lack of
interest known as AI winters. Similarly, AI has faced periods with increased data and advanced
computing power called the AI boom.
AI is actually the simulation of human intelligence processes by machines, especially computer
systems. Such systems are able to perform cognitive functions which are generally associated with
human minds such as perceiving, reasoning, learning, interacting with the environment and
problem-solving etc. Examples of AI programs are self-driving cars, robots, artificially created
images, ChatGPT, and other AI chatbots.
Current trends of AI
in Business
- Enhanced customer
experience: AI is responsible for transforming businesses and to enhance customer
experience because it has changed the way companies interact with customers. Today, AI-powered
chatbots and virtual assistants in companies provide personalized recommendations and 24/7
instant support to customers. This has transformed the customer experience in businesses. How is
it possible? It is possible via NLP (Natural language processing). Natural language processing,
such as in openAI’s chatGPT, Google’s Bard, Microsoft’s AI-powered Bing and IBM’s Watson
assistant, allows chatbots to understand customer queries in natural language and fix their
problems instantly. AI can also respond to customer reviews, feedback and social media mentions
by identifying areas of improvement for companies. Similarly, AI, on the basis of analysis of
historical data predicts customer needs leading to customer loyalty.
- Personalisation and
targeted marketing: AI has the capability to identify a particular customer segment.
After identification, it tailors the content and offers personalised content, product
recommendations and targeted advertisements to the targeted customers according to their
individual preferences and behaviours. But how? By analyzing the customer data! This results in
an increase in user engagement and conversion rates. AI, thus, is responsible for customer
retention, establishing stronger customer relationships and fostering brand loyalty in business.
By the way, personalisation does not stop here. It extends to various marketing channels like
email marketing, social media marketing and online advertising. But leveraging customer data
also has raised issues of data privacy and other potential ethical issues. It has made balancing
the personalisation of user experiences and respecting user privacy very crucial for AI in
transforming businesses and policymakers.
- Supply chain
optimization: AI optimizes a supply chain with its AI-driven advanced algorithm.
AI-driven advanced algorithm helps companies in analyzing data in real time, forecasting the
demand, improving inventory management and minimizing delivery time. This lets businesses reduce
costs and increase overall efficiency in supply chain operations. Moreover, AI can also be used
to optimize the delivery route of transportation which ultimately reduces transportation costs
and minimizes the delivery time. Similarly, AI can analyze the data of suppliers and their
performance metrics to choose the best suppliers, allowing better partnerships and cost savings
in the company.
- Robotic Process
Automation (RPA): Robotic Process Automation (RPA) has become more efficient,
intelligent and adoptable by integrating with Artificial Intelligence. It can understand and
process human language enabling the automation of tasks where interactions with users or
understanding text-based information are required. Also, AI, in businesses has taken over
repetitive or rule-based tasks such as data entry, finance, and back office processes so that
humans can focus on other more critical tasks. AI performs such tasks without any human error
and with greater efficiency. This automation saves time and costs for businesses.
- Data analysis and
insights: The capability of AI to process and analyze vast amounts of customer data
helps companies with various tasks. Companies can predict customer preferences, patterns, and
correlations in the data. They can identify new market opportunities and customer segments and
make more informed decisions. This helps them to stay ahead of the competition in the market. AI
thus, is being used to generate real-time and practical outcomes.
- AI in human
resources: AI is used to streamline the hiring process in companies. It can be used to
automate candidate screening and analyze employee performance, allowing HR and business
professionals to make better decisions related to hiring, compensation, and employee
development. AI facilitates HR professionals to make unbiased and objective decisions, thus
enhancing the overall productivity of the organization. AI can also be used to recommend
employees for key roles, promotions and training programs.
