How Artificial Intelligence (AI) is Transforming Business Models?

08 Jul How Artificial Intelligence (AI) is Transforming Business Models?

Cognitive technologies like Artificial Intelligence (AI) are now regularly used to solve business problems. A 2018 survey of business executives found that nearly three-fourths of them believe that the use of Artificial Intelligence in Business will transform their companies within three years.

Interestingly, companies are looking at AI technology as a business capability rather than a technology tool. AI in the business domain is primarily being used for 3 business needs namely:

• Automate their business processes.
• Gain valuable data insights.
• Improve customer engagement.

How is AI technology transforming business enterprises? First, let us look at some real-life examples of Artificial Intelligence in Business.

Artificial Intelligence in Business – Examples

Here are some real-life examples of AI and Business:

Digital assistants

AI-powered bots are being deployed as personal assistants for business executives within any company. These digital assistants are useful for managing (or responding) to business emails, managing the daily schedule, and even providing work-related recommendations.

AI-powered chatbots are also capable of answering customer queries during a customer support call. This has reduced business dependency on human agents, who can be used to handle complex tasks.

Customer relationships

Customer relationship management or CRM tools like Zoho and Salesforce are adept at using customer data to improve customer understanding. AI-powered CRM solutions can now improve customer engagement by providing a personalized experience.

For instance, AI can improve customer relationships in the financial sector by providing personalized investment-related recommendations. AI is also being used in regular banking operations like risk assessment and credit-related decisions.

Cybersecurity

Artificial Intelligence has tremendous potential in the field of cybersecurity. AI-based security systems can be trained to detect online threats and malware – and generate immediate alerts. As AI technology is capable of self-learning over time, it can also identify unknown threats and monitor data patterns accurately.

With the growing volume and complexity of cyberattacks, “human” security experts cannot detect and resolve security issues without the help of AI technology.

Consumer behavior

By analyzing huge volumes of consumer data, AI business tools can extract valuable insights from consumers’ online behavior. As more consumers switch to online shopping, marketing companies can analyze how consumers interact with their companies. AI tools can provide insight into every step of the consumer’s online journey and help companies understand consumer behavior.

AI-based predictive analytics are also being used to predict future business outcomes based on the current data patterns.

Next, let us discuss some of the benefits of AI in the business domain.

Benefits of using AI in Business

A 2020 McKinsey survey reports that 22% of companies adopting an AI-based business model said this technology accounted for 5% of their yearly earnings. Most companies using AI plan to increase their AI investments over the next few years.

Here are some of the benefits of using AI solutions for business enterprises:

Improved productivity and efficiency

Business enterprises have improved their overall productivity and work-related efficiency after adopting AI tools. Through automated processes, AI tools can complete daily tasks more efficiently than even experienced human workers. Further, AI-based automation allows workers to focus on high-value tasks. Organizations can leverage their human capital in productive ways by allocating manual and repetitive tasks to AI tools.

Cost reduction

Among the major benefits, AI for small companies can reduce operational costs through automation. For example, AI-enabled chatbots can improve customer communication without the added cost of hiring a full-time customer service agent. Similarly, the use of AI in the hiring processes has saved companies money that they would spend on screening and identifying the right candidates.

Business model transformation

As more organizations adopt AI and related technologies, AI-driven business models are evolving towards new business opportunities and resolving business challenges. AI technology has leveled the “playing field” as small and large enterprises can now leverage data and achieve their business goals. As enterprises collect and analyze more data, they are moving toward leaner operations, loyal customers, and growing profits.

Improved process monitoring

By processing vast volumes of data, AI enables companies to improve their process monitoring capabilities. This empowers companies to detect future problems early and take the necessary action. For instance, retail companies can forecast their product demand, thus enabling them to make accurate decisions and actions. This level of process monitoring and forecasting can be automated, thus reducing the dependence on manual interventions.

Reduced human errors

Through AI-based automation, organizations can benefit from reduced human errors in daily operations. For instance, by integrating AI and machine learning with Robotic Process Automation (RPA), companies can automate repetitive and rule-based tasks, thus delivering improved productivity. For example, AI-based financial reconciliation can deliver high-quality and error-free results (as compared to reconciliations performed by human employees).

Besides these use cases and benefits, AI technology is extending its scope to more business opportunities like driverless cars, talent management, and drug discovery.

Artificial Intelligence in Business – Our perspective

At NuMantra Technologies, we believe that business enterprises can unlock their true potential by tapping into vast volumes of unstructured data. Using our hyperautomation platform, we help organizations in leveraging massive data volumes to develop Machine learning (ML)/ AI models that can accurately analyze hidden patterns and predict future outcomes by providing valuable insights on this data.

Further, we deliver this by combining the capabilities of Business Intelligence (BI) and Artificial Intelligence to our global clients. This enables them to understand the needs of their customers more closely, improve their performance and revenue streams, and identify future sales trends. We deploy process mining tools to help you extract valuable insights from your Big Data.

In conclusion

Our global business customers have benefited from over 20 years of industry experience and technical expertise. We can partner with you in your journey of maximizing your investment in AI and machine learning technologies. Find out how? Just request a product demo today.