Disruptive Innovation and AI

The world over the application of innovation to disrupt the market has been stalled due to major expansion of AI as the single largest technology driving business innovation and thereby success. In fact it is changing the way businesses are operated. No industry or social sector is going to be able to operate without AI. In such a situation, question arises whether it is a disadvantage to be a non IT organisation and a non AI savvy person? A lot of business leaders today are not very clear and sure about adoption of AI.

While it is true that AI is fast becoming the necessary technology to operate and run businesses better, the fundamentals of business management and operations remain largely the same.

The primary value proposition of AI application in business is that it de-couples prediction from the rest of the decision-making process. Innovation is facilitated through re-imagining the interrelationships of various decisions in a firm with each other. At lower end, the immediate value proposition is that of lowering the operating costs. At higher end, it is the speed and scaling up of creation of more productive systems.

The current estimates for the global market for predictive analytics stand at $44.3 billion in 2030, while the advanced driver assistance systems stand at $28.1 billion in 2026, voice recognition in enterprise, consumer and healthcare is $28 billion in 2027 and NLP at $49.4 billion in 2027. These estimates show an immediate need to prepare for adoption of AI in businesses.

Sustaining innovations focus on incrementally addressing the needs of existing customers and rely predominantly on customer feedback, reducing defects and increasing speed or effectiveness. Disruptive innovations focus on bringing new solutions targeting unserved customers and unserved needs and generally bring in innovation from the lower end and back it up by rapidly improving the service in repeated cycles. AI can play a decisive role by bringing intelligence to tasks that did not have it so far. Improvement through Machine Learning allows solutions to dynamically develop according to the needs of the problem at hand. The cost reduction brings in the second advantage. Finally the predictive analytics optimises processes vastly through use of pattern recognition and analysis.

In immediate future we will see a new rankings emerge among the market leaders in various sectors like Healthcare, BFSI, Customer Service, Supply chain, Aerospace & Defence, Transportation, lifestyle etc.

Today AI is at the beginning of its adoption curve and its full potential and impact is on the way. It will bring in significant changes in our industrial and social behaviour making human life more automated and efficient.