Artificial Intelligence: The Invisible Hand Revolutionizing Business Processes

AI is everywhere

Almost imperceptibly, AI has woven itself into many aspects of our lives and industries, keeping pace with other rapid advances in science and technology. According to the IBM Global AI Adoption Index 2023 , 42% of large organizations (those with over 1,000 employees) now actively use AI in their operations. Back in 2017, only 20% of companies of all sizes had integrated AI into their products and business processes; fast forward only seven years, and that number has skyrocketed to 72% .

As AI technology continues to evolve, businesses are discovering new ways to incorporate it into their daily operations. I introduced to the students three industries that are highly relevant to our lives and to the global movement of both goods and people: agriculture, automotive, and aviation. All three are undergoing significant transformations and adopting AI across business processes, which is most certainly impacting all our lives.

AI is transforming the agriculture industry

According to a meta analysis of 57 global food security projections and studies for the time from 2010 till 2050, by 2050, we will need to produce 35% - 56% ?more food than we did in 2010 to feed a world population of 9.3 billion . Given the industry’s current challenges, achieving this simply by optimizing traditional farming methods could be quite difficult.

At the forefront of modern agriculture – often referred to as agri-food technology – are AI tools that are driving innovation and efficiency to tackle real-world problems. Here are a few examples:

• Precision farming: This technology uses sensors, visual inspection and GPS to optimize planting, watering, and fertilizing, thus tailoring these processes to the specific needs of different crop sections. Machine-learning models and data analytics help to calculate the right quantity of resources to use at the right times and places, increasing crop yields and reducing waste.
• Crop and soil health monitoring: Data from in-ground sensors, farm machinery, drones, and satellites is used to analyze soil conditions, including moisture content, nutrient levels, and the presence of pathogens. This analysis helps to predict water needs and thus automate irrigation systems.
• Predictive analytics for crop management: By collecting and analyzing data, farmers can be provided with predictive insights about weather patterns and their potential impact on crops. This enables proactive management, reduces the risk of crop failure due to adverse weather, and improves the planning of planting and harvesting.

We will certainly see very different agriculture in the future, with hi-tech drones collecting data to allow precision farming and fleets of fully automated robots and harvesters moving through the fields.

?AI is reshaping the automotive industry

According to Precedence Research, the global automotive AI market was valued at USD 3.22 billion in 2023 and is projected to reach USD 35.71 billion in 2033 .

One of the most notable examples is self-driving cars (I have previously shared my thoughts on the development of self-driving cars in China ). As an industry that already relies heavily on AI, car manufacturers are incorporating it into nearly every aspect of the car-making process:

• Robot-assisted assembly: Smart robots are not only used to build cars more efficiently and accurately. Since decades, robots handle tasks like welding and assembling parts, which streamlines the entire process and increases precision. The next step is the introduction of safe, fence-less robots, that can interact with one another, move around and overall allow reducing the footprint of those factories significantly.
• Predictive maintenance: AI-monitored sensors are employed to anticipate when machinery in factories might fail. By addressing potential issues before they occur, car manufacturers save both time and money.
• Quality control: AI systems check car parts for errors or defects. Using computer vision and machine-learning algorithms, they can analyze images of parts to identify any issues.
• Virtual simulations: Manufacturers are creating virtual models of their cars to test their performance before building physical prototypes. This accelerates the product development cycle and reduces the need to construct as many expensive prototype vehicles.

The automotive industry has set a new pace in the adoption of AI, moving rapidly from AI-augmented driving to fully AI-driven vehicles. China and the US are now fighting for leadership in the technology that will allow fully automated cars, while Europe is trying to figure out the risks and challenges.

?AI is accelerating the aviation industry

AI is already deeply integrated into various aspects of airline operations, including flight planning, crew management, maintenance, and customer service. This growing adoption is evident in the market’s expansion; the global aviation AI market was valued at USD 2.1 billion in 2023 and is projected to reach USD 84 billion by 2036 .

As AI services continue to penetrate the aviation sector, their impact is going beyond just daily operations:

• Revenue management: AI algorithms analyze data to predict demand and adjust ticket prices, leading to increased overall revenue.
• Air safety and airplane maintenance: Safety is being enhanced by using AI to analyze data from various sources, including aircraft sensors, flight data recorders, and weather information.
• Messaging automation: AI-powered solutions, like chatbots, can streamline communication with passengers. They provide automatic updates on flight times, gate changes, and other important information, saving time and keeping travelers informed. Nevertheless, these are pilots, not all communication can be taken over by an Large Language Model (LLM) - driven chatbot.
• Crew management: AI can ensure that the right crew members with the appropriate skills and experience are assigned to each flight. This not only reduces delays but also improves safety and enhances the overall travel experience.
• Fuel efficiency optimization: By analyzing factors such as weather, flight routes, aircraft performance, and passenger load, AI algorithms can optimize fuel consumption.

One day, we may see fully automated, AI-driven, pilot-less flying. Until then, AI will mainly make flying safer, more efficient, and simply more comfortable for passengers. Everyone using planes will benefit from these developments, and the investments from both airlines and airports are immense.

A glimpse into the future….

AI has brought significant changes across all industries, and its impact is set to grow even further in the coming years. From greater convenience to reduced emissions and increased energy efficiency, AI has already started to transform how we live and work. With AI “co-pilots” at work, recommendation engines for online shopping, and large language models answering every question posed to them, AI has certainly arrived. But – we also have to acknowledge the limitations…. – but the limitations of AI and LLMs and AI powered processes is probably a topic for a different discussion.

In a world where algorithms are constantly evolving, it is essential to remember that technology should primarily serve to improve our lives and foster social progress rather than just be a race for the latest innovations. In the industries I evaluated in the seminar – with the help of new insights from industry experts – I believe that AI will help to reduce carbon footprints, increase safety, and improve customer experiences. Thus, without us being always aware about its role, AI will indeed change our life.

One thing I still haven’t found an answer to is how economically weaker countries can benefit in the same way. AI is a costly, energy-hungry technology that uses some of the most powerful computers on Earth. Will it increase global inequalities? This is a challenge we all have to work on: participation will be key to avoiding increasing disparities.

Nevertheless, without a doubt, the agriculture, automotive, and aviation industries will share their AI benefits with every farmer, driver, and passenger on this planet at some point. These are exciting times!

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(Disclaimer: The ideas, views, and opinions expressed in my LinkedIn posts, articles, videos, and profiles represent my own views and not those of my current or previous employers or any organizations with which I am associated. Additionally, any and all comments on my posts from respondents/commenters to my postings belong to, and only to, the responder posting the comment.)

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