Imagine a world where you can watch movies and shows that are tailored to your preferences, where you can get instant answers and solutions to your queries and problems, where you can learn new skills and languages at your own pace, where you can work with smart machines that enhance your productivity and creativity, and where you can access new products and services that meet your needs and desires. This is not a fantasy, but a reality that is being shaped by artificial intelligence (AI).
AI is the use of computer systems to perform tasks that normally require human intelligence, such as understanding language, recognizing images, learning from data, and making decisions. AI is not a new concept, but it has become a powerful force in recent years, thanks to the advances in computing power, data availability, and algorithmic innovation. AI is transforming every industry, from health care to manufacturing, from entertainment to education, from finance to retail. AI has the potential to improve quality, speed, functionality, and even drive top-line revenue growth for businesses.
In this article, we will explore five game-changing ways AI is disrupting the business landscape, and how businesses can leverage AI to gain a competitive edge and create value for themselves and their customers.
AI enhances customer experience and personalization
AI can help businesses deliver better customer experience and personalization by analyzing customer behavior, preferences, and feedback, and providing tailored recommendations, offers, and support. For example, Netflix uses AI to recommend movies and shows based on each user’s viewing history and ratings. Amazon uses AI to suggest products based on each user’s browsing and purchase history. Spotify uses AI to create personalized playlists based on each user’s listening habits and preferences.
AI can also help businesses improve customer service by automating responses to common queries and requests, and escalating complex issues to human agents. For example, ChatGPT1 is a new AI tool from OpenAI that can tell stories and write code. It can also be used to answer customer service inquiries, write news reports, and create legal documents.
AI automates and optimizes business processes
AI can help businesses automate and optimize business processes by performing repetitive, routine, and complex tasks faster and more accurately than humans. For example, the Hong Kong subway system employs AI to automate and optimize the planning of workers’ engineering activities, building on the learning of experts2. Uber and Lyft use AI to match drivers with riders, optimize routes, and adjust prices based on demand and supply1.
AI can also help businesses improve efficiency and reduce costs by detecting errors, anomalies, and frauds, and providing alerts and solutions. For example, chipmaker Intel employs a predictive algorithm to segment customers into groups with similar needs and buying patterns. It then uses this information to prioritize its sales efforts and tailor promotions2.
AI generates insights and innovations
AI can help businesses generate insights and innovations by analyzing large amounts of data from various sources, such as social media, sensors, cameras, and transactions. AI can uncover patterns, trends, correlations, and causations that are not obvious or accessible to human analysts. For example, Google uses AI to analyze billions of search queries and web pages to improve its search engine ranking algorithm. IBM uses AI to analyze millions of medical records and research papers to provide diagnosis and treatment recommendations for doctors.
AI can also help businesses create new products, services, and solutions by combining existing knowledge with novel ideas. For example, DeepMind uses AI to create new games by learning from existing ones. Autodesk uses AI to design new structures by exploring different combinations of materials and shapes.
AI empowers employees and teams
AI can help businesses empower employees and teams by augmenting their skills, capabilities, and productivity. AI can provide guidance, feedback, coaching, and training for employees to improve their performance and satisfaction. For example, LinkedIn uses AI to suggest skills and courses for users to enhance their professional development. Duolingo uses AI to provide personalized language learning for users based on their goals and progress.
AI can also help businesses enhance collaboration and communication among employees and teams by facilitating information sharing, knowledge management, and decision making. For example, Slack uses AI to organize conversations into channels and topics for easy access and search. Zoom uses AI to transcribe meetings and highlight action items for follow-up.
AI creates new business models
AI can help businesses create new business models and opportunities by enabling new ways of delivering value to customers and stakeholders. AI can help businesses create new sources of revenue by offering new products and services, or enhancing existing ones with additional features and benefits. For example, Tesla uses AI to offer self-driving capabilities for its cars, which customers can purchase as a subscription service. Spotify uses AI to offer personalized music streaming for its users, which generates revenue from advertising and premium subscriptions.
AI can also help businesses create new markets and customer segments by reaching out to untapped or underserved populations, or creating new needs and demands. For example, Airbnb uses AI to create a global marketplace for home-sharing, which connects hosts and guests who otherwise would not have met. Netflix uses AI to create original content based on user preferences and feedback, which attracts and retains more subscribers.
AI is disrupting the business landscape in game-changing ways, by enhancing customer experience and personalization, automating and optimizing business processes, generating insights and innovations, empowering employees and teams, and creating new business models and opportunities. Businesses that embrace AI can gain a competitive edge and create value for themselves and their customers. Businesses that ignore AI risk falling behind and losing relevance.
references used in the article:
- Agrawal, A., Gans, J., & Goldfarb, A. (2022). ChatGPT and How AI Disrupts Industries. Harvard Business Review. Retrieved from https://hbr.org/2022/12/chatgpt-and-how-ai-disrupts-industries
- Deloitte. (2015). Artificial Intelligence Disruption. Retrieved from https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/artificial-intelligence-disruption.html
- Bloomberg. (2016). Artificial intelligence: Disruption era begins. Retrieved from https://www.bloomberg.com/professional/blog/artificial-intelligence-disruption-era-begins/