Artificial intelligence (AI) is powerful and constantly evolving. In the first, what is AI/ ML? AI in a nutshell basically enables computers to think. It’s an umbrella term that includes multiple technologies, such as machine learning, computer vision (ex: Face ID), natural language processing (NLP) (ex: Siri), machine reasoning, and strong AI. Machine Learning (ML) are a bunch of statistical tools to learn from data. For example, you can teach computers how to determine cats and dogs with ML by offering them lots features to classify.
In other words, AI is a kind of intelligent performance that simulates human beings through computer systems. It is also a goal that humans want to achieve through computer systems. Then, ML is “to let the machine have the ability to learn”, breaking through the traditional programming, show as the Figure 1.
According to a PricewaterhouseCoopers (PwC) report, the global economy can see a potential contribution of $15.7 trillion from AI by the year 2030. The potential of AL/ML to transform business from product design, sales, supply chain and customer service is undeniable. In this era, increasingly items become connected to the Internet and massive data is generated, experts believe that the only way for businesses to properly manage and monitor everything is going to be through automation. AI and ML have been used in the market, especially in the retail, healthcare and even transportation industries.
Based on the survey of Deloitte, they collected 250 surveys from executives who were familiar with their companies’ use cognitive technologies to learn about their goals for AI/ML initiatives, what is the business benefits of AI/ML? The results stated that 51% of enhancing the features, functions, and performance of the company products. Next, 36% of optimize internal business operations and free up workers to be more creative by automating tasks. Also, 35% of the executives pointed that AI/ML can make better decisions for the company, showed as the Figure 2.
What are the top 4 of business benefits of AI/ML?
1. Enhancing the features, functions, and performance of the company products:
For enterprises, the greatest implication of applying AI/ML into digital transformation is the transformation from informationization to automation and intelligence. Automation and intelligence can not only replace the workforce, but also bring many important benefits, such as increased productivity and increased transaction throughput.
2. Optimize internal business operations:
Enterprises have been leveraging the technology to optimize internal business operations through AI/ML. The consumables and customer billing by the company are still mainly based on paper. Enterprises are looking to AI-based systems to speed up procurement processes. AI/ML systems are using natural language processing to recognize important parts of submitted documents, such as the invoice; the amount of the invoice; who is paying the invoice. It also can improve employee engagement and development. AI/ML solutions like Tangowork and Rocketbot, they offer employers internal chatbot solutions that give employees access to human resource department.
3. Free up workers to be more creative by automating tasks:
It is important for employees to have the opportunity to improve their workflow and more creative so that enterprise can continue to innovate more quickly. By automating process-oriented, AI/ML will push us up the skillset ladder into the cross-functional reasoning skills, including creativity and social abilities. By getting employees out of these other tasks, AI/ML will allow them to focus on creativity, customer experience, employee engagement etc. For example, a robot chatbox can independently answer and solve the 80% of queries, then representatives of customer service mainly focus on 20% of the question.
4. Make better decisions:
Decision making remains one of the ultimate challenges of the business executives and decision makers of entrepreneurs. Even experienced leaders with good decision-making records have made an extremely bad decision to some extent, shocking their reputation. There are ways in which AI/ML is set to inevitably affect business decision-making, AI brings with its ML, another technique used in predictive analytics. Then, AI/ML can easily handle multiple inputs without exhaustion or confusion. When business executives and decision makers get reliable data analysis, recommendations and follow-up through AI/ML systems, they can make better choices for their business and employees.
AI/ML can be used to solve problems across the board. These technologies have generated value in a variety of products and services, and companies across industries, see as Figure 3.
According to the research of Price Waterhouse Cooper pointed that AI/ML would be a fundamental technology in the future. This trend has already begun and now some industries have been affected by AI/ML and rely heavily on them to promote and implement in the enterprise. More specifically, AI/ML tools can help enterprises such as:
Looking back at the trend of traditional retail to new retail, it refers to the process from B2B, B2C and C2B. The new retail is based on consumers, through AI/ML and big data analysis, making the manufacturing industry more service-oriented, customized, predicting consumer demand and tailoring products, and accurately marketing and service, making online and offline and logistics integration. For example, intelligent unmanned store is the hot topic in the market, it emphasizes the shopping process without any staff, such as Amazon Go. According to global market insights, retail investment in AI/ML will exceed $8 billion by 2024. AI experts believe that AI/ML technology provides a wide range of applications for the retail industry. In the future, the retail industry will inject more AI-based solutions into its day-to-day operations.
2. Media and Entertainment
AI/ML allows media companies to make their content more accessible to consumers, static image recognition and classification is one of the most popular and widely applied use cases for AI/ML today. According to the research of TechEmergence stated that most AI/ML use cases in media and entertainment appear to fall into three major categories, there are marketing and advertising, personalization of user experience and search optimization. AI/ML is often in the background for giving us more engaging experiences, such as AI/ML in sports and video games etc. Deloitte Global predicts that the North American e-sports market will expand by 35% in 2019, driven by e-sports alliance operations, broadcast license issuance and advertising markets. As the trend of e-sports alliances in Asia is not yet mature, the growth rate of the global e-sports market will be slower. After North America launched its first e-sports alliance team in 2018, the overall e-sports revenue grew significantly.
3. Health Care Service
AI/ML provide health care services with better tools for early diagnostics. The healthcare industry makes extensive use of big data and artificial intelligence, it can accurately improve disease diagnosis, human imbalance between medical staff and patients, reduce medical costs, and promote cross-industry partnerships. It could also democratize health care by boosting access for underserved communities and lowering costs. AI/ML can help doctors identify diseases. Some studies have even found that AI/ML is more accurate than doctors in the identification of retina and breast cancer. Due to the high cost associated with healthcare and the significant benefits of better healthcare decisions, the AI/ML exponential increase for healthcare in the coming years.
4. High Tech
AI/ML have become the buzzwords of the leading high-tech industry. When Tesla launched electric cars and iPhone X launched FaceID, let the market experience the unlimited business opportunities of AI chips. Some companies in the high-tech industry that make transformative electronics need to reinvent themselves to have a successful future. They don’t have to start over, but they do need to think about how to change their products, services and businesses to meet consumer demand and overcome disruptive market forces. AI/ML helps to improve business processes. Enterprise through real-time, predictive insights, it helps them clarify internal operations and external market conditions and leverage unforeseen opportunities to reshape products and services. For example, IBM worked with NetApp to design Elio With Watson, it is a virtual assistant based on AI/ML capabilities that enhances the company’s real-time customer service through digital channels, it answers rate faster than traditional methods four times.
5. Transportation and Logistics
According to BCG analysis of 1,096 global companies including transportation and logistics, the analysis stated that the companies use of AI/ML can reduce conversion costs by up to 20%, with higher workforce productivity accounting for up to 70% of the cost reduction. Not only does it reduce costs, but it can help generate more sales by delivering products with a much shorter lead-time. Transportation and logistics companies are using the available technologies to optimize routes and improve traffic navigation. Furthermore, AI/ML helps the enterprise with it more accurate and faster manner. When the company know what the market expects, they can quickly move vehicles to more demanding areas and thereby reducing operating costs. AI/ML also helps to ensure the safety of pedestrians, such as AI/ML predicting the path of cyclists and pedestrians to reduce injuries and traffic accidents. Gaging traffic information allows for reducing overall emissions and various transportation usage.
AI/ML is rapidly reshaping the business landscape of the financial industry. According to Forbes stated that 65% of senior financial management expects positive changes from the use of AI/ML in financial services. The rise of AI/ML in the financial industry proves that even in traditionally conservative areas, it is rapidly changing the business landscape. AI/ML is a powerful ally in finance when analyzing real-time activities in any market or environment, it helps risk management for the company. AI/ML explores new ways to provide additional benefits and comfort to individual users. For example, AI/ML provides support for smart chat bots, it is providing customers with a comprehensive self-service solution while reducing call center workload.
Not just these, AI/ML are even transforming all the industry you can think of, such as education, sport etc. Small and medium-sized companies that embrace AI/ML today will have a competitive advantage in the market. AI/ML can’t turn business’s performance from bad to good, but it can make some aspects of a goof business great. In short, AI may be far off in the future, but ML has already provided tremendous potential.
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