Over the years, Artificial Intelligence (AI) technology has increasingly become a part of our daily lives. With search engine suggestions and vehicle cruise control to auto-focus in smartphones, AI is everywhere around us. For businesses, integrating AI can help in optimizing processes which ultimately provides them a competitive edge and accelerates business growth.
According to Global AI Survey by McKinsey & Co. in 2020, 22% of companies that used AI said 5% of their earnings in 2019 were due to the technology. Moreover, for majority of businesses using AI, revenue increased year over year due to this technology.
Let’s look at 10 key benefits of implementing Artificial Intelligence in businesses.
Increased Efficiency and Productivity
AI technology can manage tasks at a faster pace, resulting in more efficient and productive business processes. It also enables workers to engage in other high-value tasks that technology cannot do. This helps businesses minimize their costs resulting from performing repeated, mundane tasks and using their human capital on more productive ones.
Furthermore, automated systems not only lead to higher rates of production but also allow efficient use of raw materials, better product quality, and lesser lead time.
Smart Decision Making
AI has always been used for smart decision making. By using machine learning to analyze trends, AI can provide market forecasts to make better decisions for the business. Until AI is not programmed with human emotions, its decision-making process will remain to be unbiased and only based on consistent data to help make the right decisions.
Improved Customer Experience
With AI-powered solutions, businesses can respond better to customer complaints and queries and efficiently address the situations. Chatbots use AI along with Natural Language Processing technology to generate personalized messages for customers to help them find the best answers to their queries. AI tools also help reduce strain from customer services staff, allowing them to be more productive in areas that require a human resource.
Data Analysis and Research
Combined with Machine Learning technology, AI can analyze data to create predictive algorithms and models for data processing. This helps to understand potential outcomes of different scenarios and trends, and helps businesses make decisions such as product demand and supply, new product launch, etc.
Complex Problem Solving
AI technology has made it capable for businesses to solve complex problems such as fraud detection, weather forecasting, medical diagnosis, etc. AI helps businesses across various industries to find the right solutions for addressing their challenges adequately. Improved complex problem solving has allowed businesses to reduce their expenses and increase productivity.
AI-based forecasting not only helps businesses in making important sales decisions but also prepares them for potential disasters to ensure business continuity. It can help businesses respond proactively to crisis and create effective risk management strategies.
Automation of Repetitive Tasks
Conducting repetitive tasks not only consumes most of your time but also reduces employee productivity over time. Robotic Process Automation is an AI-powered system that automates the interaction of business systems by imitating human actions. It can be used to carry out tasks in the HR, marketing, IT, and sales departments.
Artificial Intelligence tools help minimize the chance of manual errors. Automated tools that perform redundant tasks are less likely to cause errors as compared to humans performing the same tasks repeatedly. This is particularly beneficial for business processes that have little or no room to make errors to succeed.
By taking in and processing large amounts of data in real time, businesses can monitor processes in real time to be able to get alerted with issues, recommend actions and also initiate appropriate response. For instance, with the help of AI, you can get information about issues with devices in a factory and what maintenance they need. This would prevent costly breakdowns and reduce costs of maintaining the machinery before it completely breaks down.
Capability to Expand Business Model
Top company executives can use AI to expand their business model and participate in different business areas. For example, a vehicle company can look into the insurance business with the tons of data it collects, whereas an insurance business could use AI and research to enter the fleet management business.
AI technology is steadily evolving, with applications and potential to grow further in many sectors. With the benefits it provides us, it is certain that it will continue to grow as our everyday lives become increasingly dependent on the technology.
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