How AI Technologies Benefit Businesses Today

?You’ve heard a lot about AI in the news. And you may have heard quite a buzz around it in the enterprise sector. While there is a lot of hype, there are also real advantages, and big companies are investing big money in the hopes of big returns in the future.

AI is not just a technology for the largest organizations; it can give a competitive edge for even small- to medium-sized companies. Becoming versed in AI will help you see how to implement it to increase sales, gain valuable insights on your customers, vendors, and expenses. With it, you can improve operational efficiency, optimize your supply chain, and even see trends that lead to new product offerings and new revenue streams. Wielded properly, AI is a powerful business tool.

What Exactly is AI?

Perhaps the term “AI” makes you think of computers that think like people. Maybe you can even think of a movie or two where such technology got out of control, to mankind’s detriment. However, that’s not what we’re referring to with today’s AI. Put simply, it is a combination of technologies that can acquire knowledge, process it, and make decisions in order to achieve a desired result. It is not a simple application of business rules; rather, it is programmed to adapt according to the data input. And the term continues to evolve and take on new meanings as technology advances.

There are three principles that form the foundation of AI:

• Learning. Algorithms (complex calculations for processing information) are applied to large datasets, turning a sea of statistics into actionable insights.
• Reasoning. Different algorithms or business rules are applied based on the data, or perhaps according to other factors, much in the same way we weigh various factors in making our own decisions.
• Self-correction. AI has the ability to recognize its mistakes (or failure to produce results within parameters) and make corrections in order to achieve success.

Why Does AI Matter?

During the year 2020, some 64.2 zettabytes (that is, 64.2 billion terabytes) of data was generated around the world, according to research firm IDC . And that’s just the beginning – it is expected to increase by 23% year over year. These immense volumes of data contain invaluable information that can be leveraged to predict trends and help businesses to capitalize on opportunities as soon as they become available.

But without AI, it would be impossible to extract those insights from those impossibly large datasets. Related technologies, such as machine learning and deep learning, are employed to discover subtle patterns or trends without human assistance. When programmed properly, it does so without human bias, thus revealing the facts of a matter rather than simply what we want to see.

Business operations continue to accelerate at a frenzied pace, and people are having a hard time keeping up. Customers are demanding faster and more personalized service. Employees struggle under the weight of an expanding list of responsibilities in response to customer demands. We have reached a point where continued growth and innovation require artificial intelligence.

Not to be ignored are the gains in efficiency brought about by AI. More than simply automation, AI is employed to monitor operations and discover more efficient processes. It can even make on-the-fly adjustments based on current variables.

AI is not limited to manufacturing scenarios; it has applications in the medical field, improving the accuracy of diagnoses. In customer service, it assists in processing and routing customer queries and complaints. In cybersecurity, it responds to threats faster than we can, while identifying those that need the human “touch”. Even in banking, AI speeds up loan processing and compliance.

How Does AI Benefit Businesses?

Deploying AI technologies in your organization can be a tall order; many choose an incremental approach to realize the biggest gains in the shortest time and build on that success in subsequent roll-outs. What improvements can you hope to see as AI reaches maturity within your company?

• Customer Service Improvements. AI empowers customer service agents by giving them customer information and insights at their fingertips, and in some cases lightening the load with automation. It makes delivering personalized experiences a natural part of the sales process – making your customers smile and keeping them coming back for more.
• Finding Problems in Real Time. Working in tandem with IoT hardware and machine learning models, AI keeps a finger on the pulse of your business, identifying problems either before or soon after they appear and in some cases, even making automatic adjustments to keep products within parameters and avoiding costly mistakes or downtime.
• Reduced Development Time. AI brings productivity gains to research and product development. Market insights guide the process and keep your team laser-focused, getting your product to market faster and bringing greater return on investment.
• Quality Improvements. AI has proven to be a boon in some areas, such as finance, helping to reduce errors, shorten processing time, and closer adherence to compliance standards.
• Talent Acquisition and Management. AI-driven software solutions help many companies to sort through a sea of applicants and identify those with the most potential for filling the organization’s needs. It reduces friction in the hiring process and aids in creating a more inviting corporate culture by identifying and eliminating bias in corporate communications.
• Identifying New Opportunities. By analyzing industry trends and customer data, AI can help identify unfilled customer needs and current or future product possibilities, allowing you to adapt your business model before the competition, achieve greater market reach and increased profits.

What are the Downsides of AI?

As the saying goes, “nothing’s perfect.” Perhaps the greatest detriment to widespread AI deployment is mistrust. Concerns range from losing the human touch to losing control of the technology and data. Many fear that AI will leave them without a job. Some are simply skeptical of its value.

Overcoming these concerns is crucial to realizing the business gains hoped for by investment in AI. In many cases, AI is deployed to augment, rather than replace, human workers. However, if the operator doesn’t trust the system, or even fights against it, the implementation becomes a failure.

Here are three other pitfalls that can come up with a faulty AI implementation:

• Massive mistakes. Humans do make many mistakes, and we do work slower than machines. However, AI too can err – and at scale. Because of poor-quality data or a faulty algorithm, an AI error can become compounded over millions of transactions in a short period of time.
• Injustice. Let’s face it, AI is programmed by humans, who can build in bias, unfair practices, or simply err in judgment. For example, in some countries, software is used to determine judicial sentencing and bail requirements, and some programs have been shown to have an obvious racial bias. Or a store may use AI to adjust pricing according to the proximity of competitors. However, if a store was located in a poor neighborhood with little competition, would it then make sense (or be fair) to raise prices?
• Skill Erosion. Many have noticed that today’s talent has lost the ability to do their job without the assistance of technology. For example, two crashes of Boeing 737 Max jets worried experts, who cited concerns that pilots could soon lack the necessary skills to manage emergencies when AI-based systems fail.

Steps to an Effective AI Implementation in Your Company

There is no magic formula for a successful AI deployment. AI is a constantly moving target, and we must continue to adapt as the technology evolves. The following points are based on best practices that have worked for many:

1. Learn to use, explore, interpret and visualize data.
2. Define your business goals for AI implementation.
3. Identify areas that will derive the greatest initial benefit.
4. Decide what you can realistically accomplish.
5. Test a single AI project and evaluate the results.
6. Using those results, begin larger, incremental implementations.
7. Continuously improve AI models and processes.

Take Action Today!

Do you have concerns about how to approach AI technologies in your enterprise? We can help.

CogentNext has experience in software implementation across a diverse client base located across the globe, implementing Microsoft ERP and CRM solutions that include AI, as well as custom-developed solutions to meet clients’ detailed requirements.

Entering into the world of AI can be daunting, with many decisions and possible pitfalls. Let us guide you through the process. Contact us today to start on the road to success!

By Chandra Subramanian, CogentNext Technologies