10 Key Concepts How Artificial Intelligence is Changing Our Way of Doing Business

//10 Key Concepts How Artificial Intelligence is Changing Our Way of Doing Business

One of the processes that are radically transforming the world of work as we know it is the use of Artificial Intelligence technologies for the business. The revolution is already underway and is pushing the top management of many companies to revisit their management models to ride the wave of automation.

Successful examples are numerous, from Amazon, using efficient Kiva robots in its warehouses, reducing operating costs, to General Electric, which uses robots for preventive maintenance of its industrial plants.

It is clear that CEOs should also consider the implications of Introducing Artificial Intelligence within their own companies.

A survey conducted by McKinsey on a 3,073 executive and 160 study cases in 10 countries has identified 10 key factors that CEOs have to consider to undertake a successful implementation.

1. Artificial intelligence numbers in the business world

Although investments are increasing, corporate adoption of AI technologies is still limited. Total investments range from $26 to $39 billion in 2016, with tripled values over 2013.

In spite of the investment levels, the spread is still limited: only 20% of the interviewed sample uses one or more technologies (autonomous vehicles, computer vision, language, virtual agents, automatic learning).

We have come to the point of self-sufficiency. Technologies such as neural-based automatic learning and natural language processing are reaching a stage of maturity, so their value is so clear that they can define the AI for the business.

The telecommunications and financial services leading the game, with players in the sector who plan to increase spending on innovation related to Artificial Intelligence by 15% annually over the next three years.

2. More AI more sales (more data)

The 30% of the sample that has adopted the technology said it had increased its turnover, having gained market share or that it has expanded its products and services.

In addition, the first to adopt Artificial Intelligence say they expect their profit margins to grow up to five points higher than their competitors.

A separate analysis reveals that it is already demonstrated how innovation is boosting profits in the same range of associated digital technologies, such as big data and advanced analytics.

3. The weight of a good example

The poll sample declaring a positive experience with AI for business considers it essential to support leadership for a strategy for applying new technologies.

Support not only from CEOs and IT executives but also from the Board of Directors and top management of the so-called C-suite.

4. Automation and partnership

Partnerships need to be developed to increase skills and competencies. Digital giants like Amazon and Google also sought companies and talents beyond their borders to strengthen their skills. Just think about acquiring DeepMind by Google, who is using automatic learning to improve a top business such as SEO.

The study demonstrates how the first to adopt AI has also acquired the right technology solutions; only a few have developed and implemented in-house solutions.

5. The importance of testing

Building a team that deals only with automation activities is not the best idea. Taking responsibility solely to IT technicians may be unproductive, the risk is to launch a technology without being properly tested.

To be sure of its proper functioning, it must be evaluated both by industry leaders and by digital innovation experts.

6. Set up a strategy

A portfolio strategy can accelerate success. The tools offered by Artificial Intelligence are very varied, from those that can solve problems (for example, detection of preventive maintenance schemes) to that less well-offed but equally useful (e.g., a tool to develop a competitive strategy). This approach allows you to work with short, medium or long-term goals.

7. The machine learning boom

Automatic learning is a remarkable tool, attracts a lot of attention from the media and gets significant gains. It is not suitable for everything.

Although there are many fields of application, machine learning is just one of the innovations that can solve business problems. For example, technologies implemented to improve call center performance can be very different from those used to identify credit card fraud.

It is crucial to look for the right tool to solve the problem of a particular business segment.

8. Digital Transformation

An adequate digital transformation must precede the application of the automation systems. The leaders in the adoption of Artificial Intelligence – such as high tech, telecommunications and automotive – are also the most digitized.

Within individual industries, companies that first adopted AI for the business had already invested in digital skills, including big data and cloud infrastructures.

Referring to the statistics, chances of generating profits using technology are 50% higher for companies that have strong digitization experience.

9. The best defense is the attack

Studies on digital delay show how adopting an offensive strategy is one of the most important factors that enable companies to turn a threat into an opportunity.

An organization with an offensive strategy that develops new business models can build more robust paths than those that preceded digitization.

The same seems to happen for AI: the first to adopt it have a greater profit than those who adopted it later.

10. People and processes, the big challenge

In many cases, incorporating Artificial Intelligence into decision-making processes is more important than the technical implementation itself.

The development of the AI is based on principles such as advanced vision, collaboration, and thought building. The business will have to focus on decision-making, on a culture based on continuous improvement and learning.

Expectations related to the use of Artificial Intelligence within companies are remarkably high, due to the innumerable fields of application of the same, as well as the new technologies with the enormous potential that arise every day.

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By |2017-11-11T02:41:09+00:00November 11th, 2017|Technology|2 Comments

2 Comments

  1. Oswaldo Antonio December 22, 2017 at 7:04 pm - Reply

    Artificial intelligence is an area that has not matured at all. Since John McCarthy first mentioned this year in 1956, countless applications of this new tool have been thought of. Applications that go from the trivial to the formal, from games to health, from war to the rescue of lives. But there are a myriad of areas that have not yet benefited from the advantages of this technology, or have not been used on a large scale. Specifically, the business area is one of them, which offers a wide range and can be read easily by Artificial Intelligence, contributing to the creation of expert systems or functioning as a component of more complex decision-making systems, so that they can be used as invaluable tools by current assets. This article is interesting, these ten points than show us how economy can be affect for the apply of artificial intelligence are the best reference that a business man needs to be guided in. Good post!

  2. Daniel Ogeto O. January 1, 2018 at 5:38 pm - Reply

    The rapid growth of digital technology is transforming businesses every day, and no technology is more poised to revolutionize nearly every industry in the next decade than artificial intelligence (AI). Today it is one of the hottest buzzwords in business and industry. AI technology is a crucial lynchpin of much of the digital transformation taking place today as organizations position themselves to capitalize on the ever-growing amount of data being generated and collected. So how has this change come about? Well partly it is due to the Big Data revolution itself. The glut of data has led to intensified research into ways it can be processed, analyzed and acted upon. Machines being far better suited to humans in this work, the focus was on training machines to do this in as “smart” a way as is possible. One thing is certain: Direct or indirect AI adaptation for businesses and individuals will continue to proliferate. And the journey is going to be exciting, as we continue to unravel what is possible with this promising technology through the many innovative startups dotting the digital landscape. AI-based solutions are already being used to tackle pressing problems in business to change the business world.

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