Digital Transformation - Is there any link with Artificial Intelligence?

From Steam Engines to the Internal Combustion Engine to the Desktop Computer, the leaps in technology were revolutionary. Each leap brought new-found discoveries, improvements in living standards, solved many problems, brought the world ‘closer’ together and facilitated new methods of engagement and interaction. ?Each leap of the Industrial Revolution (1….3) has opened the eyes of humanity to new ways of working and existence.

With the world amid the 4th Industrial Revolution or 4IR, we have witnessed significant changes in how the world has once again seen significant changes in industries blurring the lines between the physical, digital and biological worlds. Machines are gaining ‘intelligence’ through automation. Automation and incorporation of technology in the industry are assisting in improving how businesses operate.

With the digitisation of the conventional world as we know it, we are witnessing significant if not radical changes in how the world operates. This Digital Transformation (DX/DT) can be seen as a broad business strategy that is aimed at solving traditional business challenges and creating new opportunities using technology. Digital Transformation is, in essence, a ‘rewiring’ of how the business operates and delivers values. Incorporating digital technology in all areas of business operations leads to huge changes in the functioning of the business which could alter customer satisfaction and product quality.

This new way of working requires acceptance of letting go of old ways to enhance the delivery of value to customers.

Along comes AI or Artificial Intelligence. AI is the science and engineering of making intelligent machines, especially intelligent computer programs. AI has been gaining traction rapidly across all industry sectors influencing how the transformation of the world as we used to know it to the world we are getting to know, digitally. Digital transformation can no longer work in isolation of Artificial Intelligence. The reasons are many…

AI has shown great potential. With its rapid growth, the global AI market is worth over $200 billion (Source: Statista). The market for AI technologies and related applications is expected to exceed $ 1,8 trillion by 2030, through its transformative applications in the areas of data analytics, ?and the increasingly popular field of Generative AI.

AI keeps evolving resulting in newer and better applications. As we grow our understanding of the capabilities of Artificial Intelligence, we can apply AI to new environments, applications and problems. Through the use of machine learning, deep learning, natural language processing (NLP), computer vision, robotics and more, the applications and problem-solving opportunities for AI are endless. The advent of Generative AI has opened up new avenues for the application of AI in Digital Transformation. Generative AI refers to programs/models that can, as the name suggests, generate text, images, audio, synthetic data and music.

With the application and incorporation of Artificial Intelligence (AI) in Digital Transformation, AI has emerged as a crucial component that is reshaping the landscape.

As businesses become more technologically orientated, driven by the need to adapt and adopt the benefits of the advancements in technology, AI is proving to become an integral part of this adoption for the enhancements of operational efficiency, superior if not exceptional customer service coupled with the ability to extract value from the vast amounts of data (‘big data’).

Business processes are key to any organisation. Their relevance to how information flows coupled with the management of risk and the implementation of controls all work in synchronisation. Through the use of AI in business processes, organisations can drive changes in thinking. This allows organisations to redefine their operational strategies, value propositions and even their customer interactions, leading to a new era in Digital Transformation.

Organisations can also streamline operations and increase productivity to elevate customer experiences and relook at their business models in a new non-conventional way (different from past practices).

Integrating AI into Digital Transformation is by no means a straightforward ‘copy and paste’ exercise. It does attract varying levels of difficulty and complexity. Successful implementation requires a thorough comprehension of both AI and Digital Transformation. This is similar to a lawyer who specialises in cases with a focus on medical malpractice requiring a thorough understanding of law and the dynamics of medicine. ?

AI is not the replacement of humans by machines but involves sophisticated algorithms tailored to specific tasks with well-defined inputs.

AI in Digital Transformation would require predetermined parameters to produce a specific output (s). AI thrives on complex challenges or situations requiring large data (‘big data’) and serious computing power. When given a set of inputs, AI can analyse the data and propose or automatically execute the optimal course of action, depending on the context. AI through its ability to ‘learn’ from both success and failure can self-correct and adopt a proactive analysis of data to anticipate challenges.

Incorporating AI into Digital Transformation brings many benefits that are realised in many ways. Decision-making today cannot, in today’s rapidly changing world that is full of uncertainty, rely solely on intuition or instinct. This even applies to the most experienced leaders who have turned to the benefits of comprehensive data to arrive at optimal conclusions. Indeed, time pressures play on some decisions to be made quickly. Using AI through carefully crafted algorithms can assist with these rapid decision-making requirements on large datasets when needed.

Human judgement, I believe, should remain with humans and not become the ownership of AI or any machine. AI proves to be a highly efficient tool for optimising time-to-value. Everyone is under constant time pressure—new products to market need to get to market sooner. AI in Digital Transformation plays a pivotal role in streamlining product timelines through pre-emptying the identification of product-related issues, conducting product simulations, assisting in ensuring that new products meet multiple product standards and cross-referencing proprietary data to ensure that infringements of copyright do not occur. ?This inevitably results in increased profitability and a reduction in costs.

Customers are the lifeblood of any business.

Understanding the needs of customers is no simple exercise. With open global markets and more educated consumers, businesses must understand their markets so that products and services are designed to not only meet the needs of the markets they serve but often exceed their market expectations as competition is fierce.

Understanding the customer landscape requires data, the lifeblood of the digital world. Data by its nature is constantly evolving. Businesses have large volumes of data that require analysis and understanding. This is where AI-enhanced software and tools come to the assistance of decision-makers to potentially harvest the ‘big data’ thereby improving the understanding of their customers which enables better more informed decision-making.

DATA the lifeblood of the Digital World

Data and computing power are crucial to the success of AI models. With AI in Digital Transformation the processing and analysis of vast data quickly and accurately facilitate the identification of patterns, trends and correlations in the data that conventional analytics tools may not be able to provide.

Using AI in Digital Transformation will also provide deeper insight into the business operations, and the behaviour of customers and identify market trends which will assist in decision-making. ?

AI's impact on Digital Transformation is certainly positive.

Improved data analytics through machine learning programs has assisted in identifying patterns, trends and data correlations quickly and accurately. AI-powered tools like AI Chatbots and AI virtual assistants have been seen to radically improve customer service as these tools do not work ‘9 to 5’. Customer satisfaction improved through the delivery of relevant content and services tailored to individual preferences that were in the past reserved for the very few who could afford such a luxury in tailored services.

AI has and will have a positive impact on automation as machine learning algorithms enable automation systems to adapt from experience. This makes the automation systems more flexible and efficient. Unlike rule-based traditional processes that were rigid and designed for limited automation applications, AI-driven automation facilitates a much wider range of applications which enhance operational workflows, reduce manual intervention and efforts and allow businesses to work towards higher levels of process efficiency thereby driving higher profitability and lower costs.

AI in Digital Transformation also enhances the processes with intelligence by automating complex decision-making tasks and abilities and adapting to the ever-changing conditions businesses are exposed to. Operations become more efficient and reliable as a result.

The ability for AI to continuously analyse large volumes of data in real time facilitates businesses to take advantage of opportunities whilst mitigating risks.

Moving from the old rigid way of the past, the use of AI in Digital Transformation brings a proactive approach to the business as the business and its leadership can rapidly adapt to changes and they have real-time data that has been analysed through AI models at their fingertips.

AI is here and its implications are being felt across many industry sectors. With AI's impact in the world of Digital Transformation, the benefits are apparent. From driving smart automation to improving business efficiencies, ramping up innovation, enhancing the use of data analytics and personalising the customer user experience, the world of business and its processes are being redefined all the time, for the better. AI in Digital Transformation is equipping leadership with the proactive tools for swift decision-making based on intelligence predictive analysis of data.

We are on an interesting journey in the Digital World that incorporates the benefits of Artificial Intelligence that is and will bring forth a new dimension in how business operates, the customer experience, product development and the world of business generally.

Sources:

·?????? Forbes

·?????? HBR

·?????? McKinsey and Co

·?????? CMSWire