Artificial Intelligence already significantly influences businesses, and that is why AI should form part of your business planning if it hasn’t already.
Artificial Intelligence is not science fiction nor a dream of the future. AI is all around us, and businesses are using it to stay ahead of the competition.
The sooner you learn how AI can benefit your business and incorporate it into your business planning, the better!
What Is Artificial intelligence?
Artificial intelligence is a broad term, and it refers to any computer software that engages in human-like activities, including learning, planning and problem-solving.
John McCarthy was widely recognized as the father of AI due to his contribution to Computer Science and Artificial Intelligence. In the mid-1950’s, McCarthy coined the term Artificial Intelligence which he defined as “It is the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, but AI does not have to confine itself to methods that are biologically observable.”
AI is such a broad concept making it impossible to describe all of its possibilities in one article. To make AI easier to understand, you could look at it from specific industry fields, like;
AI is important in various businesses today because it gives organizations insights into their operations, allowing for better decision-making and business planning. AI also automates tasks, especially repetitive, detail-oriented tasks.
Make Business Decisions Based on Facts
Knowledge is power, and Artificial Intelligence is powering better and more significant data usage for executives to make more informed business decisions.
Integrated Business Planning tools give businesses a holistic understanding of what’s happening in all areas of their business. Solutions are available that enable end-to-end connectivity for a digital representation of the organization. Data is also turned into knowledge, facilitating better and faster decision-making. The data analysis also allows companies to look at what worked and didn’t, allowing them to adapt better, grow and learn.
Artificial intelligence has many uses in businesses, which include streamlining processes and aggregating business data.
Increase Productivity and Cost-Efficiency
Artificial intelligence is revolutionizing almost every commercial process and sector worldwide, and most of us already have regular interactions with artificial intelligence in one form or another.
Businesses are progressing rapidly from static and labour-intensive methods, adapting new ways to make the workspace more dynamic, collaborative, and intelligent.
Many operational activities can be automated with AI, freeing time to focus on more complicated business issues and decision-making. The other benefit is that AI technology can complete various data analysis tasks that would take humans hours to finish.
It allows businesses to cost reductions on salaries while also increasing revenue. But that’s not the end of improving what people do. Man is a fallible creature; therefore, typically, human errors occur in production or finishing. AI implementation can eliminate them and thus improve quality. Humans also need to supply the context and understand nuanced situations; data science benefits from reduced error, allowing for more accurate predictions and data analytics.
Improve Your Customer Service Offerings
Today the world calls for businesses to have a deeper understanding of their consumers’ wants and preferences. This is where artificial intelligence can harness insights from data and comes into play.
With no time to waste and no patience, a consumer wanting to buy your product has no desire to search through dozens of pages of products they have no interest in. Capturing your customers’ tastes, wants, and needs more accurately enables a personalized offering, which is essential to keep businesses competitive.
Businesses must succeed and remain relevant in today’s competitive marketplace. Organizations today can understand and engage customers using artificial intelligence, automate business processes, and increase productivity and revenue while lowering operational expenditures.
Artificial intelligence can create a competitive advantage for your business over businesses not using AI, and adoption is growing fast.
In a recent McKinsey study, businesses plan to invest even more in AI and the acceleration of all things digital.
The race for success stands to create a divide between the leaders in AI and the companies struggling to capitalize on the technology that threatens slower adopters’ success.
A Harvard Business Review article found that 52% of companies accelerated their plans for adopting AI, with 86% saying that AI is becoming a norm in their business.
Harris Poll found that 55% of companies reported accelerating their AI strategies in 2020, which moved up to 67% accelerating their AI strategies in 2021.
The simple truth is whether you are a consumer products company, an insurance broker, a travel or a pharmaceutical company, technology is your business, and data is always king.
Why Should You Invest in AI?
The importance of AI is ever-growing, and digital transformation is inevitable. AI has significant impacts on businesses, such as:
- Automation & streamlined processes
- A Reduction in operating costs
- Increased productivity
- Improved customer experience and retention
- Increased profitability
Artificial Intelligence can increase organizational productivity and lower costs. More and more companies are implementing AI into their organizations to help them meet their business objectives.
A global survey by McKinsey reported that 50% of their respondents have already adopted AI in at least one business function in 2020.
Don’t Be Left Behind
Artificial Intelligence is transforming companies’ operations and becoming the “new normal”. Companies must have an effective AI strategy aligned with their business objectives and innovative business models to thrive in this digital age.
When businesses apply artificial intelligence to develop more advanced analytics for planning, they are finally on the cusp of a significant transformation in how they operate.
Artificial intelligence is the present and future of your business and should be implemented into your business to increase your competitive advantage, profitability, and customer satisfaction.