The Artificial Intelligence (AI) and the AI technology market are expected to reach $40 billion by 2025. There has been a lot of talk about the opportunities and risks for management and people.
There are reasons for this high expectation when it comes to AI. The potential consequences of the introduction of AI are enormous. This article gives you an overview of how companies use AI and what they can achieve using AI in business management.
70% of business leaders believe that AI is advantageous to their business, according to a PwC survey. Another 50% thinks that AI can increase productivity, and drive growth. Deploying AI solutions with nearly equal margins goes beyond the potential downsides of employment issues. Companies that implemented AI noticed an increase in productivity.
Some studies warn that artificial intelligence will lead to job losses for large sections of the workforce. A study from Oxford University estimated that by 2033, 40% of jobs will be automated. A recent PwC report predicted that only 30% of jobs are at risk from AI.
No doubt, in the future automation and AI will take over, and it is obvious to get carried away by man and machines comparison. The question is not which jobs will be replaced, but how and what types of jobs will be redefined. But it ignores the main role of HR and business leaders in creating the best jobs and workplaces for the emerging future.
Skills and ways of working always grow together. Solving the job expansion problem requires job division to find jobs, but it also requires “job reorganization” that combines those jobs into new jobs or occupations. It requires new leadership and people skills, which means that a new set of skills can be applied throughout the organization.
Nearly 70% of people surveyed by BCG say they are not afraid of AI automation in their tasks. As many respondents expected AI to take over some of their tedious tasks. But the majority of respondents agree that AI should help employees improve and learn new skills.
How do companies use AI?
Artificial intelligence is the future and will be part of our daily lives. All those statements are correct. It depends on what kind of AI technology you are talking about.
Let’s first look at how people talk about AI today. AI is a large umbrella term that covers terms such as machine learning and deep learning.
AI is a subset of the larger and more significant technologies under the category of digital transformation that furthermore includes Machine Learning, Robotic Process Automation (RPA), Deep Learning, Bots, Cognitive Analytics, and so on. Together, these and the other tools generate artificial intelligence. These are algorithmic capabilities that improve employee performance, automate more complex workloads, and enable the generation of ‘ cognitive agents’ that mimic human thought and commitment.”
AI can help companies develop smart resources that improve customer experience, automate work processes, and support multiple iterative business processes like JP Morgan. They use AI to automate high-volume financing and increase employee productivity. What lawyers typically do in 300,000 hours, machine learning programs do it here in seconds.
Here is how AI is shaping the world:
Facebook announced plans to dive into AI, augmented reality, and virtual reality at its annual F8 conference. Telecom companies are starting to see results in implementing AI. They have seen massive cost reductions in their operations and customer experience.
Reports show Deloitte invested nearly 70 percent of its total investment to implement AI.
Artificial intelligence in business management
Better business insight increases revenue growth and the company’s return on investment. To be effective, business and consumer data from different sources must be analyzed and transformed into meaningful information. The human brain cannot process large amounts of data and convert that information to optimize business processes. This can be done faster using AI through data mining and analysis. This information can be used by business leaders to improve processes.
Pfizer Australia used Complexica’s simulator to test scenarios based on internal and external datasets. It helped them make smarter business decisions.
Boost Sales and Marketing
AI makes salespeople superhumans. On average, sales personnel spend 80% of their time confirming leads and only 20% closing them. They spent most of their time on their phones and emails to find and convert leads. Nevertheless, you can replace humans with machines, and machines can certainly make you smarter.
AI creates routine tasks so sales reps can focus on more critical tasks such as building customer relationships. In other words, the supplier is responsible for applying a human touch while the machine recognizes the prospects.
The case of Epson America
Epson America has significantly benefited from AI, and gave them the opportunity to quickly capitalize on a new sales opportunity. . The company had a limited view of what their sales team was doing with leads. Finally, they realized that the teams primarily focused on named customers and not the leads that the marketing team was sending them.
Epson wanted a consistent process for tracking frames and turned to Conversica. By using a smart virtual assistant to track leads generated by marketing, Epson learned a lot about how to nurture processes and increased its response rate by 240%. The company received approximately 60,000 business leads, and the lead follow-up is passed on to the seller due to insufficient resources to handle all leads with consistent follow-up availability.
Once they implemented the technology, Epson leads are now monitored regularly until the AI assistant receives a response. After raising the lead with an Epson partner, the AI assistant takes care of customer satisfaction., allowing Epson to take advantage of the new pre-competitive sales.
Predictive analytics is something that is closely related to AI assistants. Companies can prioritize sales and grow business without hiring new people or by increasing marketing budgets. It also increases agility by providing quick feedback to organizations instead of waiting several months to evaluate results. Predictive analytics also support sales by:
- Define your profile and your ideal customer segment
- Emphasize behavior-based signals and the ability to prioritize marketing efforts.
- Automating manual tasks.
- Strengthen your account-based strategy
- Expand business to new territories.
- Implement a standardized data-driven decision-making framework.
Today in business management, it’s about creating additional value for the customer. More customer-centric, data-driven, and personalized. As technology advances, so will current skills. Ultimately, organizations adapting to change are a step closer to staying relevant in the face of new technology challenges.
Over the next five years, most businesses expect significant changes to AI. According to AI industry experts, the real impact of AI will be clear in the next 15 years, which means every business today needs an AI plan.