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3 Basic Ways That Artificial Intelligence Can Affect Businesses (No Technical Knowledge Required)
By admin July 3, 2019

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The word ‘Artificial Intelligence’ or ‘AI’ has increasingly been a spotlight of the business world since early 2010. According to Statista, global revenues from AI for enterprise applications is projected to grow from $1.6 billion in 2018 to 31.2 billion in 2025. The growth in AI investment is a global trend: The UK announced approximately $94.2 million in funding for AI and robotics research in 2017 and China is spending $2.1 billion to build an AI research industrial park.

Many technical experts may say that AI is just a buzzword which is way too broad. In reality, the term that has been more frequently used in business operations is ‘Machine Learning.’ So, why Machine Learning? The answer is predictable and simple: the machine can learn by itself. The machine is set to autonomously learn from the input data, through its algorithm(s), and as a result predict something called feedback data. Thus, ‘Prediction Machine’ is another familiar nickname of Machine Learning. The prediction machine can predict possible outcomes which assists the company’s managers or board executives to deliver the best judgment. AI introduces flexibilities into solutions. That’s why it is so powerful. But, is it really powerful for every business out there?

Given that Machine Learning could be transformative, the Prediction Machine has become the backbone of several big tech giants such as Facebook, Amazon and Microsoft, yet many people do not know exactly how Machine Learning could transform business operation, not to mention a country’s economy.

Here are 3 basic ways that AI can affect business.

  1. Customer Experience

Machine Learning can enhance customers experience by eliminating all of the minor annoyances such as waiting long in line to get services, scrolling up and down the webpage to see interesting products, and getting frustrated by tedious payment methods. The Prediction Machine drastically shortens the time that the customers need to wait in line; for example, many of the chat bots run by machine learning predict what should be the best answer to the customers’ questions. The Machine Learning also helps suggest the products that the customers are likely to purchase based on their previous transactions. Therefore, improving customer experience is at the root of digital transformation.

  1. Operational system

AI helps automate certain tasks that were previously managed by humans, especially within the warehouse of big-name retail businesses like Amazon and Walmart. The warehouse automated machines are codified by prediction; as a result, the machines can quickly and accurately make decisions on some routine tasks—without humans’ involvement. Walmart was reported implementing Machine Learning, the Internet of Things (IoT) and Big Data to enhance its supply chain operation. Moreover, a giant supermarket with over 1,100 physical stores throughout the US is investing in a tech incubator called ‘Store No. 8’ in Silicon Valley to work closely with startups, venture capitalist and educational identities to build its own autonomous robotics, Machine Learning and other AI technologies.

  1. Products and Services

Apple just appointed its head of AI, John Giannandrea in April 2018. This confirms that AI is a main tool of Apple’s product development. The new head of AI is managing the development of Apple’s Siri system and its new Machine Learning framework, which relates directly to computer vision and natural language processing of the macOS system. Product development is a very difficult part of the business from product planning, product building, budgeting and everything in between. Often times that product building fails, and there are a variety of element contributing to the unfortunate result. AI will help provide possible outcomes of each product development by codifying the data system. The rest will depend on the managers’ best judgement whether he/she will implement the predicted outcomes or not. The better product lines will lead to actually solving the product development team’s shortfalls and not just developing a cool technology feature.

Business is a complex identity involving strategies, brands, executives, people, customers, competitors and regulators. Before investing in the modern technologies like AI or Machine Learning, there is a need to understand how Machine Learning will create value to the company. AI is becoming more pervasive every day. However, every business has a different focus. Therefore, a need to examine whether the business really requires Machine Learning or not should be the very first question a company asks.

For more information:

https://www.forbes.com/sites/danielnewman/2019/04/16/5-ways-ai-is-transforming-the-customer-experience/#72cb2b6c465a

https://www.zdnet.com/article/ai-is-transforming-product-management/

https://www.apple.com/leadership/john-giannandrea/


Thanks for sharing !


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