Use AI to Solve Problems and Gain Market Share
“I hear everyone talking about cutting costs and that AI will replace our jobs. And whilst that is partly true, the main benefit of technology is creating new opportunities and achieving consistent and long-term growth. That, however, requires us to invest in the development of the workforce and use AI to streamline business processes to improve the customer experience,” says Tahira Naeem, Senior AI Business Developer.
Cost cutting is often at the top of the list of desired outcomes of an AI implementation. But a better way to achieve a successful application of technology is to identify and address real business problems. It can be anything from undetected production errors, a traffic jam in the lumber yard on sunny weekends, or slow delivery dispatching.
- There is an infinite number of use cases waiting to be discovered and AI is a new area for most of us. I encourage everyone to move forward with curiosity, says Tahira.
In addition to the desire to cut costs, it is also common for companies to start the AI journey by being impressed by the technology, selecting something cool, and then looking for ways to implement it.
- However, it is not about how impressive or powerful the technology is, but rather how much of a good fit it is for your business challenge and the value it can bring.
Automation for a More Inspiring workday
By using data and analytics, organizations can identify the most profitable use cases for AI and focus their resources where they yield the greatest returns. According to a new report from IBM1, companies that can monetize their organizational data will gain nearly double the ROI from their AI capabilities than their peers.
AI can be used to automate data entry, document management, and support. It can reduce operating costs, improve profitability, and lead to employees having a more rewarding and fulfilling workday with fewer repetitive tasks.
- When I was an intern, one of my typical tasks was to input customer records and send new members an email a week later. Once the process was automated, I could spend my time doing things I felt more passionate about, such as creating content and graphics.
Another piece of low hanging fruit is to use customer data and AI to become more customer centric. That is to anticipate the customer's wants, needs and communication preferences, and build lasting customer relationships by delivering on them. To capture consumer demand today, it is essential for businesses to provide engaging customer experiences quickly and consistently, as well as personalized offers.
- This is no longer a ‘nice to have’ but a ‘must have’ and one of the keys ways organisations can gain competitive advantage using AI.
Creative Use Cases:
Minimize Waste, Increase Customer Satisfaction, Cut Costs, and Improve Society
A recycling company optimized the time-consuming waste sorting process by applying an AI solution. By automating the process, they reduced the error rate and liberated resources, resulting in increased capacity and less recycled material ending up in landfills.
A Japanese insurance company implemented an AI system to assist in evaluating which car parts needed to be replaced following an accident as well as assessing the cost. The solution decreased the risk of fraud and settlement costs dropped by 40 percent. But the solution also had a positive impact on the customer acceptance rate and increased customer satisfaction and retention.
Earlier this year Tahira attended a conference in Barcelona where she listened to a presentation about the German Police Academy and how AI can be used to make emergency call handling more accessible.
- Germany has a diverse population, like many countries today, who speak many different languages. By using AI to enable translation between the caller and receiver, they were able to improve understanding and get the right support needed quickly, says Tahira.
Keys to trustworthy and responsible AI
• Start with a real business problem and use AI to solve it.
• Focus on creating value for the customers rather than cutting costs.
• Companies that can monetize their organizational data will gain nearly double the ROI from their AI capabilities than their peers.
• Implementing AI and streamlining business processes also requires upskilling the workforce.
• AI solutions are quickly becoming a ‘must have’ to deliver satisfactory customer experiences.
[1] IBM Institute for Business Value, 5 trends for 2024: Deep tech requires deep trust.
Tahira Naeem
Senior AI Business Developer
Arrow
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