The benefits of AI for business
We live in a time of technological disruption. It is therefore not unexpected that the excitement around artificial intelligence (AI) will also profoundly impact all aspects of business.
Fortunately, as businesses start to embrace AI in their daily operations, they are beginning to realise the tangible benefits. Some of these are:
Productivity and efficiency
Over the past several years, businesses have endeavoured to automate as much of their processes as possible. Using machine-learning algorithms and other digital tools, businesses can automate repetitive and mundane tasks, such as data entry, customer service and inventory management.
This can often lead to significant cost savings and improved efficiency. AI facilitates the process further by automating operations with equipment for knowledge-intensive labour. Complex business processes can be automated using AI. The overall benefit is that working hours and costs can be reduced significantly.
There are numerous AI applications and conversational bots that can be used by business to enhance their workflow, thus allowing business leaders to spend their time on more important strategic matters.
AI is also rapidly automating routine cognitive processes. Smart algorithms are increasingly being used in business and are playing a vital role in many industries like retail, the hospitality industry and financial firms.The algorithms are efficient and can work around the clock without a break.
AI has proven valuable in the screening of candidates for a position. The AI software can check the abilities and matching skills of candidates and prepare a ranked shortlist of the most suitable candidates. Sophisticated video software can analyse the interview with the candidate and generate a detailed report based on the interview. AI-enabled processes can save companies in talent management costs and also impact workforce productivity
The tasks are handled at a pace and scale that humans cannot match, and it allows workers to move to higher-value tasks and minimise the costs related to mundane, repeatable tasks that can be performed by technology.
Improved customer service
A positive customer experience has become the holy grail of business. It is, therefore, important to understand the needs and preferences of the customer in order to match them with the products or services offered by the company.
We live in an age where behavioural data surplus has become valuable to a business. Market dynamics are often influenced by consumer sentiment. It is, therefore, important to understand consumer conversations and sentiments. It is possible for companies to use their customer conversations to identify the personality types of customers, with the use of AI, so that the customers can be offered compatible services.
Unfortunately, due to the number of customers, a thorough analysis by human beings is not possible. AI, however, can analyse masses of data, including social media, in a short time to ensure customised and personalised interactions between the organisation and each customer.
Customer service can further be automated and improved through the implementation of virtual chatbots, customer intent prediction, multichannel communication tailored to customer preferences, and the rerouting of business-consumer interactions to the correct departments.
Improved quality
Without a doubt, even the most professional and experienced employee makes mistakes from time to time. AI machines, however, do not make mistakes and can thus help to reduce human error and ensure a stronger adherence to established standards.
The use of AI in financial reconciliation, for example, would deliver error-free results whereas when handled by an employee, the reconciliation is prone to mistakes.
Self-learning neural networks can assist with the analysis of user behaviour and identify suspicious transactions. AI algorithms can thus be used to prevent financial losses, make the system less vulnerable and improve trust.
When AI and machine learning are integrated with robotic process automation to automate repetitive, rule-based tasks, the combination accelerates processes, reduces errors and can be trained to improve upon itself and take on more complex tasks.
AI has become so reliable that it can manage operations independently. It certainly maintains better quality.
Improved decision-making
Data has become one of the most important assets of companies. Unfortunately, companies are not properly analysing or using the data, because there is a lack of data analysis expertise and resources. AI can alleviate the important task, through its ability to analyse data across multiple functionalities, fraud detection and high-class customer relationship management, thus assisting businesses to obtain a competitive advantage.
Through the analysis of vast amounts of data, AI can detect patterns, trends and make predictions that humans might not have noticed. One of the exciting benefits of AI is its ability to identify new market trends and opportunities and to optimise its operations. This helps businesses make more informed decisions and improve overall efficiency.
Embracing AI
AI has become an increasingly important technology in modern business and has many applications that can benefit businesses of all sizes. If businesses want to remain competitive in today’s fast-paced digital world, it has become increasingly important to embrace AI.
Professor Louis C H Fourie is an extraordinary professor in Information Systems of the University of the Western Cape.
BUSINESS REPORT