What Will Be The Impact Of The Role Of Artificial Intelligence In Business?

Table of content

• Introduction

• Application of AI in industries

• AI to turn companies into intelligent organizations

• Benefits of AI in different sectors

• Conclusion

 

Introduction

Artificial intelligence (AI) refers to computer systems that process a large amount of information, recognize patterns and make independent decisions. They can either solve problems or support us with everyday tasks. Examples of artificial intelligence are vacuum cleaner robots, face recognition programs, self-driving cars and voice assistants such as Siri or Alexa. They all mimic human behaviour and function in a similar way to our brain. However, they cannot yet completely replace it. 

 

Application of AI in industries

Artificial intelligence is a sub-area of computer science; knowledge in the subjects of biology, computational linguistics, mechanical engineering, Psychology and neuroscience. This is where artificial intelligence comes into play. There are many areas in which artificial intelligence can be used. Medicine is a very important one: Robots help with complex operations. 

 

They are able to cut with millimetre precision - as precisely as a surgeon can hardly achieve. But artificial intelligence can also help in the evaluation of medical results, for example to identify cancer precursors.

 

The manufacturing industry also benefits from AI. In the automotive industry, for example, robots have taken on a large part of the tasks on the production line. They work almost flawlessly and can, above all, take on work that is hazardous to health, such as painting and welding. Artificial intelligence is even used in sports, for example to evaluate moves and make suggestions for optimization.

 

AI to turn companies into intelligent organizations

Since the internet and mobile technologies appeared, the amount of data has grown exponentially. Digital content increased, and so did the human ability to harness that data to gain and discover new insights, develop new perspectives, and make better decisions.

 

Also Read | How Artificial intelligence Shape Healthcare Industry?

This data revolution would not have been possible without:

• The decrease in storage costs by technologies such as the cloud  

• The professionalization of data management 

• The increase in processing power and technological architecture 

• The existence and creation of algorithms hungry for huge incremental amounts of data to solve complex problems and automate tasks.

 

The mixture of all these factors led to the emergence of artificial intelligence (AI), which seeks to turn companies into intelligent organizations, generating endogenous value creation capabilities, from the automation of tasks and skills of the human team to make it more efficient, as well as make the other resources of the companies more productive.

 

In this context, AI has increasingly become the backbone of the value creation chain of companies, which is why incorporating and managing AI in them is the greatest challenge faced by managers and executives of companies of today to steadily increase the economic value of their companies.

 

Precisely, AI is becoming more indispensable in companies with increasingly less competitive products and with an increasingly less efficient capacity to reach their customers. In these cases, the AI would serve to reverse the cash flows and the falling growth, rescuing the economic value of the companies and their brands, as well as improving the negative perception of risk on the part of the market.

 

In companies that are going through this situation, an AI project could allow them to increase their sales, achieve a shorter cash conversion cycle and reduce their costs and expenses, all these improvements impacting a substantial increase in EBIT at levels around of 1.35x, generating greater economic value for customers and shareholders, due to the greater value delivered and increased return on capital, respectively.

 

Benefits of AI in different sectors

AI projects generate value in companies by automating the tasks and skills performed by the human team, managing to establish computer-person and computer-computer relationships that, based on continuous learning, allow to automatically execute actions (descriptive, predictive or prescriptive tasks) and / or produce valuable information for decision making.

 

In outward-facing business processes, AI can even make computers interact with (human) customers in such a way that they do not distinguish whether they are acting with a machine (computer) or with another human being, which it would avoid the perception that AI “dehumanizes” the interaction between companies and clients, especially in the provision of some goods or services that are sensitive to the human relationship.

 

The health, financial, real estate, retail, commerce, education and agricultural sector services are among the sectors that have implemented AI with the greatest success, being robotics, virtual or augmented reality, cloud computing and nanotechnology, among others, some of the most innovative applied tools.

 

Also Read | How Artificial Intelligence Redefine the Banking Sector?

Among the capabilities that companies that applied AI have been able to develop include, among others, the following:

• Increased user experience by enabling analytics and offering smart advice and support.

 

• Increased productivity and operational efficiency.

 

• Improved prediction of customer preferences and the chances of offering them a better and personalized experience.

 

• Saving time and money in automation and optimization of routine processes and tasks.

 

• Reduction of errors and "human errors", when AI systems are configured correctly.

 

• Increase in income, identifying and maximizing sales opportunities.

 

• Improved time to make business decisions based on results from cognitive technologies.

 

• More efficient access to a large amount of data to generate quality leads and grow the customer base.

 

With AI, the greatest economic value of companies is achieved by ensuring that technology manages tasks at a rate and scale that humans could not match, at the same time that unnecessary tasks are eliminated, without risk and that do not add value.

 

Conclusion

The potential of what AI can do in companies will be further expanded by the growth of the Internet of Things (IoT), which is an inexhaustible source of data that AI can take full advantage of. By combining AI and IoT, it will be possible to simulate intelligent behaviours and make decisions with full knowledge of the facts and with minimal or no human intervention, thus optimizing efficiency and productivity in companies and thereby increasing their economic value.

 

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