The Role of AI in Modern Business

Artificial intelligence (AI) is the simulation of human intelligence by machines, which allows computers to perform advanced tasks. It is a powerful tool with huge potential, but comes with serious ethical considerations.

Recently the use of AI has become more mainstream, with many people familiar with AI tools like ChatGPT and Microsoft Copilot. AI is now a daily part of company operations across industries. AI is used in automation of routine tasks, data analysis, customer interactions, product development, strategic decision making and cyber security.

Automation of routine tasks

AI is rapidly evolving, but for now, one of the most significant ways it’s impacting the workplace is by automating routine tasks. Tasks suitable for automation tend to be repetitive, time-consuming and have set parameters, with little creativity needed. Many of these tasks are common across various industries and business types, including the following.

• Data entry
• Customer service emails and chatbots
• Invoice processing
• Inventory management
• Financial analysis

Having AI automatically complete routine tasks creates more time for staff to focus on creative or strategic work and tasks that require human interactions, such as client meetings, pitches, product development and staff training. 

With the assistance of AI automation, companies can produce a greater quantity of work and increase productivity. AI is also less likely to make errors, improving the accuracy and efficiency of the work output.

AI and data analysis

Some businesses are employing AI to revolutionise how they process and analyse datasets. AI can process and analyse significant amounts of data in real time, far exceeding human capabilities. Using predictive analytics, it can detect patterns and anomalies that an analyst may miss.

Amazon uses AI to derive actionable insights from data that benefit the business. AI-driven analytics improve supply chain management efficiency by forecasting demand, optimising inventory, and streamlining delivery. This results in reduced shipping costs and delivery times, and products are more likely to be in stock for customer orders, boosting profits and customer satisfaction.

Enhancing customer experience

One key aspect of a business that can increase customer loyalty is the quality of its customer experience. AI programs can enhance that experience and create goodwill and positive sentiment towards the brand.

Personalisation

Certain AI programs can use algorithms to analyse the actions of an individual and identify patterns of behaviour. It then uses that information to personalise product recommendations, display targeted advertisements, enhance the customer experience at the checkout and tailor content to the individual. Companies such as Netflix, AirBnb, Amazon and Spotify use similar methods to leave customers satisfied with their experience. 

Chatbots

Customers generally need support outside of business hours, and, for many, their problems can be solved by interacting with an AI-powered chatbot. Cheaper for companies than maintaining a 24/7 customer support team, the chatbots can handle simple, repetitive queries such as answering frequently asked questions, providing tracking information, checking account balances or offering simple solutions to a problem. Getting answers on demand leads to a better customer experience and a more positive association with the brand.

Stock management

As a consumer, it can be incredibly frustrating to visit a local outlet only to discover the product you went there for is out of stock. To address this, some businesses use AI to analyse trends in individual stores and make recommendations for which products are best to stock. This tailors each store to its key demographic, increasing the likelihood of customers being able to find what they want in-store.

Innovation and product development

Humans are constantly innovating and developing new products. With the advent of AI, businesses are finding ways to integrate it throughout the product development process to improve efficiency and enhance various aspects of the process from start to finish. In practice, this can take several forms.

• Tracking, analysing and optimising project management 
• Supporting software design
• Identifying issues throughout the coding process
• Facilitating effective beta testing, including collecting and analysing feedback
• Automating aspects of the quality assurance process
• Developing product release strategies
• Automating product marketing

There are companies across various industries using AI to assist in the development of new products and services. For example, IBM is using it to develop new technologies for the healthcare industry, and Google uses it to develop and improve their consumer products, including Google Search and YouTube.

AI in decision-making

In business, companies want to make strategic decisions that lead to long-term profitability and growth. AI now assists with the decision-making process by providing data-driven analysis. 

Predicting trends

Using a series of complex algorithms, AI can analyse data to predict future trends that will impact the business. Since it performs a pure data analysis, the predictions are free from any biases humans may apply and often done in less time due to the automated nature of the process. The trend predictions can then be reviewed by the relevant people who can make strategic decisions based in part on that information.

Optimising resources

Through its advanced analytics capabilities, AI can play a key role in determining the most effective way to allocate resources, optimising their use to the business. This can be an ongoing process that’s updated in real time to respond to changing parameters. Using AI to optimise resources can improve efficiency and mitigate the risk of a system failure.

Mitigating risk

Honing in on the concept of risk mitigation, AI can detect potential risks and provide insights into the most effective way to manage that risk. Some risk management areas that AI can help with are fraud detection, workplace safety, cyber security, identifying system weaknesses and maintenance routines.

Cybersecurity and AI 

With the world becoming increasingly reliant on digital technology, cybersecurity management has become a key concern for businesses. AI is enhancing cybersecurity measures by detecting potential threats and acting to prevent them.

IBM is one company developing artificial intelligence cybersecurity management solutions for businesses. IBM Security® is designed to detect threats early, expedite response times and protect user data while updating the human cybersecurity team, which has ultimate control over the system.

PayPal is an example of a company actively using AI to protect its data, with machine learning being used to prevent fraudulent activity and protect customers and merchants who use the system. It helps prevent the use of stolen cards, identities and accounts, assessing whether an individual is a true customer by analysing a range of data, including IP addresses, transaction behaviour, shipping and billing addresses, order sizes and address activity.

Challenges and considerations

When introducing AI tools into a business, certain challenges may arise:

• A lack of in-house expertise
• Uncertainty about how to implement AI
• Outdated infrastructure that can’t effectively support AI integration
• Personalisation of the tools
• Quality of the AI output
• Staff uptake of the introduced tools
• Customer acceptance

There are also ethical considerations for the use of AI including data and privacy concerns, the impact on human staff and intellectual property rights. These considerations need to be given their due thought, so that the best decision for the company, its staff and its customers can be reached.

AI Trends in modern enterprises

These are some of the top trends and advancements that are emerging in AI adoption.

• Predictive tools for industries like retail, healthcare, finance, weather and manufacturing 
• Generative AI to assist in content creation across genres
• Conversational AI for automated customer support
• Data analysis automation for strategic planning and decision-making

Given the vast potential AI has, there are some interesting predictions for the role it may play in the future of business operations. Here are some of the areas in which it may become invaluable.

• Human resource departments to manage staffing, recruitment and talent acquisition
• Increased adoption of deep learning AI 
• Development of digital assistants to enhance the productivity of individuals
• Continued development of the sophistication of generative AI tools
• Introduction of reliable autonomous vehicles for use in supply chains and logistics

Summary

AI is a powerful tool that has already begun to revolutionise the way businesses across all industries operate. Despite the ethical concerns raised by some, its importance will grow as its capabilities and applications develop further.

About the Author: Telicia Campain is a contributing writer for HP Tech Takes. She is a former teacher who currently lives aboard an international sailing vessel. Telicia creates content for a variety of industries including technology, education, finance, and travel.