6 mins
How is artificial Intelligence used in business and which are its advantages?
The ability of machines to learn and make decisions based on data and analytics is referred to as artificial intelligence. AI has the potential to significantly alter how we approach our work when used strategically.
Your first thought likely comes to mind when you consider how artificial intelligence is used in business. Although automating tasks that were previously completed by humans is one of the applications of AI, machine learning is capable of much more.
This guide will cover the advantages of artificial intelligence for businesses as well as some use cases where AI, machine learning, or big data can be put to use.
Artificial Intelligence’s Development in the Business Sector
More data than ever before are available to businesses today. Forbes estimates that between 2010 and 2020, the amount of data generated and used will have increased by 5000%. Companies are now able to collect user data that can aid them in making wise business decisions thanks to emerging technologies.
Many businesses have enthusiastically embraced AI over the past few years in an effort to maximize the value of the data they are already gathering. Take into account the following:.
According to Grand View Research, the size of the global AI market was $62 billion in 2020 and is projected to increase at an annual growth rate of 40 point 2 percent from 2021 to 2028.
In McKinsey’s “The state of AI in 2021” survey, 56% of participants report adopting AI, up from 50% of participants in 2020.
According to Accenture’s report on AI, 84% of C-suite executives believe that utilizing AI will help them achieve their growth goals.
These figures demonstrate that AI is no longer an experimental technology used only by a few brands. It has evolved into a crucial aspect of the operations of numerous businesses all over the world.
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How Is Artificial Intelligence Used in Business?
AI has a wide range of applications for businesses, but the majority of them are geared toward promoting expansion. Businesses are figuring out novel ways to boost business performance by embracing AI and machine learning. The following are some business advantages of AI:.
- Automating processes to increase productivity.
- Increasing the service’s consistency or speed.
- Incorporating consumer insights into decision-making.
- Locating possibilities for brand-new goods and services.
Almost any business strategy can incorporate AI. Understanding the role that data gathering and analysis play in artificial intelligence is crucial before beginning any AI project. You can more accurately ascertain how AI might benefit your industry by researching its methodology. Anyone interested in learning more about how AI is changing the business landscape should start with an introductory AI course like Wharton Online’s Artificial Intelligence for Business program.
Examples of Artificial Intelligence in the Workplace
Contrary to popular belief, businesses use AI quite frequently. Applications for artificial intelligence (AI) span a wide range of industries, including marketing, operations, and customer service. The use of artificial intelligence in business is illustrated by a few of the examples below.
Enhancing customer service
Perhaps one of the most typical examples of users interacting with AI directly is when they visit a website and are greeted by a chatbot. Chatbots give businesses the opportunity to automate customer service procedures while freeing up staff members’ time for problems that require more individualized attention. For the most part, chatbots combine natural language processing, machine learning, and AI to comprehend customer requests.
Additionally, chatbot technology can direct customers to a human representative who is best suited to answer their inquiries.
Presenting product recommendations
Businesses can use AI to make recommendations for goods that will match the interests of their customers and keep them interested. You can provide your customers with products that are similar to the ones they have already viewed by monitoring customer behavior on your website. For businesses in the e-commerce industry, this strategy is especially helpful.
Streaming services are another source of personalized recommendations. Streaming services can entice you to use their app for longer periods of time by displaying similar movies and TV shows to those you frequently click on after analysing the genres of content you enjoy.
Segmenting Audiences
Advertising departments can use AI to segment audiences and develop targeted campaigns, similar to how it can recommend products. Getting in front of the right audience is crucial in sectors with fierce competition. Companies use data to determine which users will see which ads, thereby increasing the efficacy of marketing campaigns. AI is used to forecast consumer reactions to particular advertisements.
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Process of analyzing customer satisfaction
Businesses use sentiment analysis, also known as emotion AI, as a strategy to determine how their clients are reacting. Businesses collect information on how consumers feel about their brands using AI and machine learning. This could involve utilizing AI to search through social media comments, reviews, and ratings that mention the brand. The information gleaned from this analysis enables businesses to spot areas that could use improvement.
Fraud identification
AI can also assist businesses in identifying fraud threats and taking appropriate action. There are tools for the financial sector that use machine learning algorithms to detect suspicious transactions. The application halts the transaction and notifies the appropriate parties when a fraud risk is identified.
Improve the operations of the supply chain
AI might be able to assist your business if it is having trouble consistently meeting its delivery deadlines. AI-driven solutions can help businesses by forecasting the cost of materials and shipping as well as determining how quickly goods will be able to move through the supply chain. Supply chain experts can choose the most effective method of product shipping with the aid of these kinds of insights. The use of AI for delivery drivers to find faster routes is possible on a smaller scale.
Learn What Your Organization Can Achieve with AI
Wharton Online’s Artificial Intelligence for Business course was created to give learners insights into the established and emerging developments of AI, machine learning, and big data. Are you ready to adopt artificial intelligence to give your business a competitive advantage?
By the course’s conclusion, you will have a basic understanding of AI and know how to incorporate these cutting-edge technologies into your business strategy. The course’s lessons make use of real-world examples that cross a variety of industries. To learn how AI could assist your company in expanding, request more information right away.
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