Artificial intelligence (AI) is playing an increasingly significant role in business, not only for major corporations but also for smaller companies that are eager to leverage machine learning-based tools. Let’s explore how AI can be used in business and why it’s worth doing so.
What Can AI Be Used for in Business?
AI primarily aims to help business owners:
- Save time and money,
- Automate routine tasks,
- Improve processes,
- Enhance efficiency and productivity.
How can you leverage AI in your business? Let’s look at a few examples.
To start, artificial intelligence can assist you in managing customer relationships. Through chatbots, you can streamline customer support without the need to involve employees in every customer interaction.
AI can also boost the average shopping cart value through product recommendation systems. Based on a customer’s behavior on your website, AI programs can suggest additional products that might interest them.
Another way to use AI in business is by segmenting audiences using AI programs. This allows you to create advertising campaigns with tailored messages for specific target groups.
Additionally, AI in business is effective for optimizing supply chain operations. AI programs can predict material prices and shipping costs, enabling you to plan inventory when it’s most cost-effective. Furthermore, AI helps drivers find the fastest routes, reducing delivery times.
Basics of Implementing AI in Business
In theory, AI can be applied to any business. However, in practice, it’s not so straightforward. Why? To make AI programs truly useful, you need:
- High-quality data,
- Sufficient data volume,
- Domain knowledge.
Let’s take a closer look at these requirements.
In the case of AI, the saying “garbage in, garbage out” often holds true. It means that with low-quality data, you’ll get equally poor results. So, if the data you have is polluted, biased, outdated, or incomplete, using AI to solve a specific problem may be impossible.
In addition to high-quality data, you also need an adequate amount of data. Why? Because AI-based computer programs rely on large datasets to learn specific patterns and draw conclusions based on them. Without a sufficiently large database, an algorithm may lack the necessary information to perform tasks it was designed for.
What about domain knowledge? Domain knowledge allows for the correct interpretation of obtained results and the detection of any errors made by AI. Furthermore, having domain knowledge enables you to ask AI the right questions and issue appropriate commands.
Examples of AI Applications in Various Industries and Popular AI Tools
Let’s explore how AI can be applied depending on the industry.
- Financial and insurance industry: Forecasting financial data, automating accounting and investment processes, fraud detection, risk assessment, underwriting, claims management.
- Logistics: Supply chain management, transport route planning, and optimization of warehousing.
- Manufacturing: Automation of production processes, resource management, demand forecasting.
- Marketing: Analyzing customer data and behavior, aiding in content marketing.
As for popular AI tools, ChatGPT is widely used for generating content and providing information for marketing activities. For creating unique content, Compose AI comes in handy, and for generating images, MidJourney is a useful tool. For online customer service, LivePerson AI is a valuable option.
When Can You Skip AI in Business?
As you can see, AI-based programs can be utilized in various industries and endeavors. However, sometimes it’s worth opting for simpler and more cost-effective solutions. So, when can you skip AI? Here are some examples:
- When AI can be replaced by straightforward automation, such as sending SMS reminders for appointments instead of using a voice bot to call clients.
- When AI can be replaced by basic data analysis, like predicting the best time to post on Instagram.
- When the risk of AI errors is too high, as in disease diagnosis or treatment planning.
- When immediate responses are required, such as in high-frequency trading.
- For ethical reasons, if the collected data could be used for manipulation or discrimination.
The benefits of AI in business are substantial. However, to fully harness them, you need an adequate amount of high-quality data and knowledge of how to use AI effectively. It’s also important to consider that sometimes simpler and more cost-effective solutions may be preferable to AI-based programs. Nevertheless, in many cases, the capabilities offered by artificial intelligence can effectively save time and money for business owners through the automation of routine tasks, streamlining crucial processes, and increasing efficiency.