The Value of AI?

As a part-time technologist, I love seeing the transformative power of technology. From concept to practice, AI has (for me) gone from professors who were delusional with its potential to Instagram posts on using AI to generate a $10K a month side hustle. Can AI really transform your business, improve your operations, or enhance your customer experience? The answer: maybe. AI has come along way and in banking (my sector) it will change how we do business in the future. In this article, I want to share with you my top five AI disrupters and their cons:

Customer Support and Chatbots:

Implementing web based AI-powered chatbots can significantly reduce the need for human agents, saving labor costs.

Profit Generation: Efficient customer support leads to higher customer satisfaction and retention, thereby increasing sales and profits.

Cons:

Personal Touch: Interactions lack the human touch, this can lead to customer dissatisfaction.

Limited Problem-Solving: Chatbots have limitations in handling complex or unique customer problems. Prolonged interactions lead to human intervention, which could slow down support processes.

Implementation Costs: Setting up AI-powered chatbots can be expensive and time consuming. Initial setup requires knowledge base development and constant maintenance.

Predictive Analytics:

AI algorithms can analyze customer data to predict patterns, enabling businesses to optimize their strategies and target high-value customers

Profit Generation: By predicting accurately, businesses can optimize product offering thereby reducing costs and sell products faster.

Cons:

Data Privacy Concerns: Analyzing customer data raises privacy concerns, necessitating data protection measures and ever changing compliance and regulations.

Data Accuracy: AI rely on the quality of input data. Inaccurate or biased data can lead to flawed predictions-remember, garbage in, garbage out.

Overreliance: Relying on AI predictions might lead to complacency, ignoring human intuition and employee expertise.

Fraud Detection and Prevention:

AI can identify patterns indicative of fraud in real-time, flag customer accounts, and proactively freeze accounts 24/7.

Profit Generation: By preventing fraudulent transactions in real time, businesses can protect customers money, reduce fraud expenses, and gain customer trust.

Cons:

False Positives: AI can generate false positive results, flagging legitimate transactions as fraudulent, leading to potential customer inconveniences and reputation risk.

Personalized Marketing:

AI analyzes customer behavior and preferences to personalize marketing campaigns, leading to higher conversion rates and increased sales.

Profit Generation: Targeted marketing reduces the overall marketing spend by ensuring advertisements are shown to the right audience.

Privacy Concerns: Personalized marketing relies on extensive customer data, raising privacy concerns and the risk of alienating customers if not handled sensitively.

Customer Backlash: Over personalization can make customers uncomfortable, leading to a backlash if they feel their privacy is invaded or if they receive too many targeted advertisements.