Applications of Artificial Intelligence in Business
The ongoing development of business and the most recent advances in Artificial Intelligence (AI) allow for many business practices to be improved by the capacity to establish new forms of collaboration, which is a significant competitive advantage. This rapidly developing technology enables the offer of brand services and even some new forms of business interactions with consumers and personnel. The digitalization of AI concurrently emphasizes for businesses that they need to concentrate on their present strategies while also routinely and early pursuing new chances in the market.
A recent study by MIT Sloan Management Review found that more than 80% of organizations see AI as a strategic opportunity, and almost 85% see AI as a way to achieve a competitive advantage. However, despite the growing interest in AI, many companies struggle to realize value from AI. The expected benefits of AI may be absent even though companies invest time, effort, and resources into the adoption process.
The benefits of applying AI in Business
The benefits of using AI in business are several and are additionally arising with the development of Industry 4.0 and also with an increase in AI use. By collecting and creating large amounts of data, organizations can, through the usage of AI, conduct different kinds of simulations which can lead to identifying future trends as well as the needs of stakeholders in the organizational environment. On the other hand, AI can be used to conduct risk analysis as well as provide simulations of the possible measures aimed at risk-reducing.
Despite concerns about AI usage, according to a Forbes Advisor survey in 2023, 65% of consumers still trust businesses that employ AI technology. This suggests that when businesses use AI responsibly and transparently, they can maintain consumer confidence and even harness AI’s potential to improve customer experiences.
AI Applications categorized by different Domains
Although the field of AI has been studied academically and scientifically since the 1950s, the technology has only just begun to achieve significant traction. The current boom in AI research, funding, and practical commercial applications is unparalleled. Applications of AI not only promise to produce better commercial outcomes but also enhance the overall human experience.
- Healthcare
According to Statista, the AI healthcare market, valued at $11 billion in 2021, is projected to be worth $187 billion in 2030. That massive increase means we will likely continue to see considerable changes in how medical providers, hospitals, pharmaceutical and biotechnology companies, and others in the healthcare industry operate.
It is crucial for the industry that technological behemoths like Microsoft, Google, Apple and IBM contribute to the healthcare sector. AI is now being used for a variety of healthcare services, including medical imaging, medication management, drug development, and data mining for pattern recognition and treatment.
IBM Watson (an AI tool) may be used to analyze a patient’s medical record to find prospective treatments after determining the meaning and context of a combination of structured and unstructured data that may be important for choosing a treatment plan.
- Retail and Online shopping
Perhaps the only industry where the majority of end-consumers can see the deployment of AI in action is retail and e-commerce. Retail businesses always search for methods to identify trends in customer behavior in order to better align their strategy and outwit rivals in this highly competitive industry.
Moreover, AI-powered shopping enhances the customer experience by making every transaction easier, more efficient, and deeply personalized.
Amazon’s purchase recommendations and voice shopping: Amazon uses AI to help customers voice shop and get purchasing recommendations, among other services. Amazon’s AI technology is also used for facial recognition, estimating home prices, visual search, autonomous driving and more.
- Financial and Banking services
In order to enhance the customer experience and develop insurance plans and solutions based on consumer data, AI-based chatbots are also being used in the insurance industry. The processing of claims has been sped up greatly thanks to the introduction of AI-based tools, benefiting both customers and insurance providers.
Fraud detection is a crucial use of AI in the banking industry. For instance, Mastercard analyses multiple data points to identify fraudulent transactions using AI-based Decision Intelligence technology.
JPMorgan Chase is the bank that uses key fraud-detecting applications, including implementing an algorithm to detect fraud patterns. Details of credit card transactions are sent to data centers, which decide whether the transactions are fraudulent.
- Transportation and Logistics
The logistics and transportation sector is about to undergo a transformation powered by AI. Supply chain management has already undergone significant change and become a smooth operation thanks to the application of machine learning and predictive analytics. The fastest shipping route and last-mile delivery are two more tasks that are increasingly supported by AI algorithms. Self-driving cars will surely be the next big thing in the transportation sector.
Tesla cars are equipped with AI-powered Autosteer and lane-keeping features. These systems allow the car to stay within the lane and navigate through curves, even on highways. The AI technology monitors lane markings and other vehicles to ensure safe and precise navigation.
- Gaming and Entertainment
Entering the entertainment sector, AI is assisting broadcasters and program makers in determining which shows or programs they should suggest to certain consumers based on their behavior. Machine learning algorithms are frequently used to analyze user behavior, and these algorithms are getting smarter over time to the point where they can now tell whether a user is buying something for themselves or as a gift, or whether different family members have different viewing preferences.
Large organizations in the music sector, such as Apple and Spotify, employ AI to comprehend user interaction patterns and provide the appropriate music to the appropriate listeners at the right time.
Netflix delivers customized content suggestions by using AI algorithms to assess users’ watching patterns. This has resulted in a 30% boost in user retention and a surprising 40% increase in watching hours. Customers are becoming more involved, spending more time on the site, and promoting Netflix to their friends and family.
3. Conclusion
It should be highlighted that possibilities of usage of AI are determined by organizational competence, most importantly technical and technological competence. Furthermore, the organization for the usage of AI must conduct a digital transformation of business. Digital transformation is aimed at changing the business model (transforming the traditional way of doing business and turning organizations into the virtual sphere). Besides changing the business paradigm, the organization significantly increases the efficiency and effectiveness of the processes.
If you are considering applying AI in your business, feel free to contact us via email sale@investidea.tech, we are more than just a partner!
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References:
- Artificial Intelligence and Business Value: A Literature Review | Information Systems Frontiers
- Application of Artificial Intelligence in the Business
- Applications of artificial intelligence in business management, e-commerce and finance - ScienceDirect
- Role of Artificial Intelligence in Business Transformation
- Rise of Artificial Intelligence in Business and Industry
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