3 big ways that AI is changing the future of business

We often don’t realize how much of our daily life depends on artificial intelligence (AI). From smart homes to smart workplaces, AI and machine learning (ML) have changed modern living and how we do business. According to consultancy firm PwC, the AI industry will contribute $15.7 trillion to the global economy by 2030, 14 percent higher than the output of India and China combined.  

Businesses are taking advantage of AI’s potential to boost results, especially when AI solutions are customized. A study by capital firm MMC Ventures estimates that 67 percent of large corporations will have AI projects in 2021, compared with just 14 percent in early 2019.

What is artificial intelligence/machine learning?

AI is made of different codes and technologies that allow devices and systems to be intuitive and to mimic human intelligence. From virtual assistants to friendly chatbots, machines are able to adapt to customers’ needs and wants through AI.

AI primarily uses a method called machine learning (ML). By feeding computers large amounts of data and algorithms, AI can anticipate how humans think and react. In particular, feedback loops, or the way users engage with an ML output, is essential in tweaking AI effectiveness. This is how custom AI solutions can be continuously adjusted to complement business objectives. ML is also an important part of data science, which uses data mining to predict outcomes to help businesses strategize.

There are two approaches to ML “ supervised and unsupervised learning. Supervised learning occurs when the data used are labeled. Labeled datasets train machines to classify output accurately by referring to identified input and output. Unsupervised learning, on the other hand, uses uncategorized datasets, which allow the algorithms to discover patterns without human involvement and restrictions.

How does AI benefit businesses?

AI/ML enables companies to do more with less effort. Repetitive tasks can be automated, and customer behavior patterns can be analyzed by AI solutions, especially if these solutions are tailored to the needs of a business. Let’s take a look at three significant ways that AI contributes to a company‘s success.

1. Creating unique customer experiences

Personalization is a key component where AI is breaking new grounds. A 2020 study conducted by cloud-based software company Salesforce on more than 15,000 global consumers and buyers showed 62 percent expect personalized products and services, up from 49 percent in 2019. The sports apparel industry is a good example of how personalization can set a business apart. In 2020, Under Armour updated its UA HOVR running shoes line by digitally connecting the shoes with its health and fitness app, MapMyFitness. The app tracks the shoes’ movements and adjusts the cushioning/foam to fit each user and train them to run better. Using data collected from the 2020 model, UA launched an updated version in 2021.

2. Offering intuitive customer support/service

AI is re-inventing customer service and relationship management. Through big data, AI can provide real-time solutions, including self-serve options like chatbots and intuitive interfaces like messenger apps offering sentence suggestions. Automation has allowed companies to support even more customers by managing repetitive/basic tasks. AI is even being used for inbound call center services to match call center customers with agents that are best suited to manage their personality types. In particular, an emerging trend is the use of robots to assist and manage customers in the leisure and hospitality industry. Hilton Hotels, for example, launched its first robot concierge named Connie in 2016 to recommend tours and activities to guests.

3. Using big data to generate leads and expand customer groups

AI’s main advantage is its capacity to analyze large amounts of data to predict customer behavior. Aside from using chatbots to field queries and get contact information from potential customers, AI can use lead conversion data to create accurate lead scoring. This means that AI can determine which online behavior generates the most conversion and then find potential online customers that exhibit these patterns. An example is the motorcycle company Harley-Davidson, which used a self-learning digital marketing platform called Albert in its New York City branch in 2017. Within a week, the branch increased its sales leads by a whopping 3,000 percent.

There’s still so much to learn about AI and how it can further disrupt business models. However, what is clear right now is that companies who embrace this powerful technology have much to gain. First is automation, which increases productivity and customer reach. The second is analysis backed by solid numbers, which removes the guesswork from decision-making. And third is customized, real-time solutions, which address challenges and opportunities promptly. In today’s highly connected society, having an AI as an ally can make a world of difference.