AI or Artificial Intelligence is a computer software programmed to analyze vast amounts of data, find patterns, think and even take decisions in areas where quick choices are a must. Implementing AI in business can bring multiple benefits by streamlining operations, logistics and financial decisions.
Benefits of Artificial Intelligence
Now, that you have a fair idea about how AI works, let’s now discuss some of the benefits. Improving Customer Experience. One of the most significant ways that AI helps businesses is by improving customer experience. AI is a means of detecting what customers are looking for, what they are dissatisfied with and giving the necessary recommendations to improve their experience with the company. For instance, for Netflix, personalization of a Netflix video is done using AI. Based on user data from the past few months, the website evaluates the movies and TV shows that a person is watching. It then produces a recommended video for that particular user based on the movie they watched, their viewing habits, interest and even preference for certain genres of movies.
A Brief History of Artificial Intelligence
Artificial intelligence first appeared in 1962 when the computer program, “ ELIZA” was released. Created by Joseph Weizenbaum, ELIZA was an interactive virtual conversational computer program. The main aim of the program was to simulate a conversation with a person. ELIZA would occasionally try to infer the meaning of questions, which would be a step towards the development of AI. ELIZA came to be because psychologists thought that intelligence was associated with language. ELIZA was used in psychotherapy, but it was the questions posed by Eliza that proved that the intelligence of the program was not in a word of text. It was in the behaviour of the system. ELIZA proved that a computer could solve even the most difficult problems in a human-like way.
What is Machine Learning?
Machine learning is a set of technologies that have made it possible for us to harness the power of algorithms, databases and vast amounts of historical data. It can be used to make decisions without human intervention. This technology can be leveraged for various applications from identifying fraud in credit cards, detecting patterns in patient records to fine-tuning AI powered chatbots.
Use Case in Finance and Management
Although an obvious use case, businesses today are increasingly using AI for several tasks in finance and management. From analyzing large volumes of data to helping financial analysts to forecast stock prices, AI has the capability to provide better service and save money. AI powered automation can also reduce the risk of fraud in large financial institutions by spotting suspicious patterns and transactions. Moreover, AI can be used to scan massive data sets to identify patterns in relationships, markets, objects and events and predict future trends and behaviors. AI powered analysis helps organizations achieve deeper insights from large data sets, which can be an alternative to various traditional data analysis methods. This is especially useful for large scale marketing campaigns.
Use Case in Marketing
According to a report by Forrester, AI and big data will combine to create the ultimate experience for the customer. For instance, real-time product recommendations powered by AI are a reality today and driving rapid business growth. This is not just limited to e-commerce platforms but companies in all industries are implementing AI technologies to give customers a much-needed personal experience. Use Case in Logistics All kinds of manufacturing and logistics companies are now using AI to streamline their operations. Predictive scheduling of shipments, logistics monitoring and payment processing, product catalogues, sales forecasting and auto store reservation are some of the examples.
Use Case in Logistics and Supply Chain
Shipping companies and forwarders use APIs in their technology to automate billing, shipping, tracking, accounting and even to manage fleet logistics. But there is still need for their human intervention for the latter. A provider of software to manage their fleet of vehicles is Uber, the ride hailing app. Uber uses a combination of predictive algorithms, machine learning, machine vision and natural language processing. That has enabled the company to anticipate trends, build an audience base and cut down on the human resource cost. This is one example of how AI can be used in logistics. AI Could Take Over Human Employment. If AI doesn’t perform and continues to replace human workforce, it could result in a scenario in which people are completely eliminated from the job market.
Use Case in Operations
Use case of Artificial Intelligence in operations can be found in business activities such as manufacturing, healthcare, travel, retail and many others. Automated systems are being developed which are capable of not only identifying the exact components needed but also predicting the future demand for those components. For example, in the industry of medicine, AI can predict allergies and symptoms of diseases, thereby taking preventive measures and helping the medical professionals in recommending treatments and preventative measures. Use Case in Logistics. Logistics can be an overwhelming task for businesses and systems used in that domain must be in place to handle it effectively. AI is being used to improve the tracking system of a company’s trucks.
While an advanced business can adopt AI-based solutions easily, smaller firms will have a bit more of a challenge with implementation due to costs of programing, processing power and server hosting. However, with a good plan in place, an organization can adopt AI in any aspect of its business. This article was originally published on Franchise India by Tanmay Mohanty, Software Development Manager at IBM.