As of recent years, it has come to nobody’s surprise how far AI (Artificial intelligence) has advanced, from simply being able to recreate the voice of a person to full-fledged self-driving technology progressing at a rapid age, we are living in one hell of an era.
Many of us wonder how something like this will impact businesses/enterprises in the coming future. The astronomical growth of this new phenomenon is evident across numerous industries.
According to the World Economic Forum (WEF), it is believed that by 2030, it is estimated that up to 30% of jobs globally could be impacted by AI and automation. This includes both jobs that are fully automated and roles that are significantly transformed by technology. A rough estimate of 85 million jobs will be displaced by AI, of course there is some good news to the story as around 97 million roles could emerge into the spotlight primarily focusing on AI and other tech-related fields.
Today we shall be discussing a few key areas where AI can provide the most value to businesses in all the main sectors where the impact is most relevant.
Key statistics that highlight AI’s impact on business include, but are not limited to:
Market Growth: In 2023 the AI market was valued at $142.3 billion and is expected to scale to a whopping 37.3% CAGR (Compound annual growth rate) roughly estimated to peak at $1.8 trillion by 2030!
Automation and Workforce Impact: With AI and automation in the spotlight, it is highly likely that the global GDP will skyrocket to an estimated $15.7 trillion according to PwC (PricewaterhouseCoopers) primarily by driving productivity gain and stimulating consumer demand.
AI in Customer Service: Chatbots and AI-driven customer service systems are expected to lead 95% of all customer interactions by the year 2025, saving companies well over $8 billion annually on customer support costs. 80% of businesses are planning to use AI-powered chatbots by the end of 2024 to enhance the quality of their service and to consistently deliver satisfaction.
1. Automating Routine Processes
AI has already been a blessing for many businesses because of the access they have to AI automation which gradually reduces manual tasks and keeps expenses down as they do not need to hire people as much. AI can handle repetitive, time-consuming tasks that typically require human intervention, freeing employees to focus on higher-level, creative, or strategic work.
Below are some examples:
Manufacturing: In factories, AI is utilized for predictive maintenance to predict the amount of power a machine would have before failing and then being rendered as useless. This approach ensures a stop to costly breakdowns.
Finance: AI automates many routine tasks such as data entry and report generation. An example of this being that AI is capable of classifying transactions, reconciling accounts, and generating financial reports, eliminating the need for manual data input.
Human resources: AI now being capable of quickly shifting through thousands of resumes during job applications to find the ideal candidate on a predefined criterion reducing the time it takes for the company to do a task like this on an astronomical level.
2. Enhancing Customer Experience
Customer service is now at an all-time peak since AI has taken over the job market. All the way from retail with AI recommending products with dynamic pricing ensuring customers feel like they have more freedom of choice, AI chatbots that serve as virtual assistance offering 24/7 support being able to discuss any issues or complaints you may have and instantly coming up with solutions to satisfy said customer.
3. Data-Driven Decision Making
The world of entrepreneurship has entered its most risk-free era yet with AI. With AI now able to give constructive and actionable insights to help businesses solve problems and make better decisions, AI is seen as a blessing.
How does AI do it? AI transforms raw data into actionable insights by automating data collection, cleansing, and analysis. It identifies patterns, predicts trends, and provides real-time insights that help businesses make faster, data-driven decisions. AI also offers prescriptive analytics, recommending the best actions to achieve desired outcomes. Through visualization tools, AI simplifies complex data, enabling leaders to quickly understand and act on key insights. This allows businesses to improve efficiency, optimize operations, and stay competitive in dynamic markets.
4. Improving Product and Service Development
AI helps provide assistance with its own constructive ways of coming up with competitor strategies as it can analyze market trends, consumer preferences and competitor strategies. AI uses historical and real-time data to predict emerging market trends, helping businesses anticipate shifts and stay ahead of industry changes. AI helps to identify patterns in market behaviour, such as seasonal demand fluctuations or the rise of new industries, guiding businesses on where to focus their innovation efforts.
In order to succeed in this sector however, you will need to have an understanding of consumer preferences which is another thing that AI analyzes, such as purchase history, online interactions and feedback to identify preferences and predict future trends. By understanding customer needs, businesses can innovate with personalized products or services, improving customer satisfaction and loyalty.
5. Transforming Marketing and Sales
AI automates and optimizes marketing efforts by analyzing vast amounts of consumer data, allowing businesses to create hyper-targeted campaigns. By personalizing ads based on individual preferences, browsing behaviour, and purchase history, AI ensures that the right message reaches the right audience at the right time. This level of precision leads to higher engagement and significantly improves conversion rates. Additionally, AI automates repetitive tasks like email marketing, ad placement, and customer segmentation, freeing marketers to focus on strategy and creativity while maximizing campaign efficiency.