Application Of Artificial Intelligence In Business Operations (2024 And Beyond)
by Soumava Goswami Business Planning & Opportunities 12 February 2024
The use of artificial intelligence in business operations is increasing as it has become a major force for the transformation of business. AI in business has become mainstream, as many organizations are using AI either as a standalone technology or embedding it with their software systems. This helps not only with their core business processes but also in production, supply chain management, and security.
In this article, you will learn about some of the major applications of AI in business operations. However, before that, we will discuss why businesses consider AI a game changer and what changes businesses are looking to make as they make use of AI. Finally, you will also learn about the application of AI in businesses soon. Hence, to learn more, read on through to the end of the article.
Artificial Intelligence In Business Operations: A Brief Overview
According to Business News Daily,
“In business, artificial intelligence has a wide range of uses. In fact, most of us interact with AI in some form or another on a daily basis. From the mundane to the breathtaking, artificial intelligence is already disrupting virtually every business process in every industry. As AI technologies proliferate, they are becoming imperative to maintain a competitive edge.”
As the development and usage of AI becomes commonplace in people’s everyday lives, businesses are also not holding back on their usage. Furthermore, individuals and businesses are also accepting AI as a mainstream tool, and this is turning out to be a new phenomenon.
However, this does not mean that AI is new. Artificial intelligence has been around for more than sixty years. Nevertheless, it took a significant amount of time and work to make progress toward making the current system, which has made this technology accessible.
Today, AI has become a broad term for any computer-based software system that performs human-like activities. This might include learning, problem-solving, planning, or even anticipating based on available evidence.
Hence, it is important for organizations to understand various technologies in AI before they embark on an AI initiative. Therefore, it becomes essential for businesses to learn a good deal about the major applications of artificial intelligence in business operations. There are many companies that waste their valuable time and finances by pursuing and implementing the wrong technology for business operations.
However, if businesses have a good understanding of the various AI technologies they have, they will benefit a lot. Having such knowledge will give those businesses a better position to evaluate their needs and how to implement AI. For businesses to acquire this understanding, they will need to invest in research and education, most specifically in IT and innovation.
What Are The Types Of Artificial Intelligence In Business Operations?
According to an article in the Harvard Business Review,
“It is useful for companies to look at AI through the lens of business capabilities rather than technologies. Broadly speaking, AI can support three important business needs: automating business processes, gaining insight through data analysis, and engaging with customers and employees.”
Here are the different types of AI that a business needs to evaluate before it wants to implement AI in business:
1. Machine Learning
The most common type of AI that businesses are developing for operations is machine learning. This technology helps to process a large amount of data quickly. These functions happen with the help of algorithms embedded in computer programs. One of the most interesting aspects of these machine learning algorithms is that they can learn and adapt over time.
If you add more data to a machine learning algorithm, it will improve itself. This AI technology is very useful for putting large amounts of data. The connected devices and IoTs capture these chunks of data and convert them into digestible data for humans.
2. Deep Learning
Deep learning relies on neural networks to make non-linear reasoning as humans do. Businesses can use deep learning to perform advanced tasks like fraud detection or anticipate frauds and scams in the future. Here, the function can analyze different ranges of factors in a single instance.
The use of deep learning in business can lead to a lot of applications in the future. Hence, businesses are focused on developing deep learning to use it more often, for example, in self-driving cars. One of the best things about deep learning algorithms is that they can improve their performance if they get data.
Major Applications Of Artificial Intelligence In Business Operations
Currently, businesses are looking at AI as a supporting tool rather than as a replacement for human intelligence and ingenuity. However, AI technologies are still in the developing stage in many areas. Hence, they still cannot fully complete real-world common-sense tasks. Despite that, they are quite capable of processing and analyzing large chunks of data, as compared to human beings.
AI software systems can also return with better synthesis of action courses and present them accordingly to the human user. This way, AI helps businesses get an idea of the possible consequences of a particular action. This further helps in the business decision-making process.
TechTarget.com states –
“The use of artificial intelligence in business is now mainstream, with many organizations using AI as a standalone technology for specialized use cases or embedding it within common enterprise software systems that handle core business processes. […] Enterprise leaders said data security, process automation and customer care are the top areas where their companies have been applying AI.”
The following are some of the major applications of artificial intelligence in business operations that you need to learn about:
1. Machine Learning
The application of machine learning is for those systems that deal with large amounts of data. For example, it has huge applications in the world of eCommerce, where systems collect data from various eCommerce and retail transactions and customer purchases.
Here, machine-learning algorithms make better use of these large chunks of data and make them comprehensible for the company. As a result, the company’s decision-makers can also understand the market’s needs and demands. This enables them to offer more personalized services.
2. Cybersecurity
When it comes to cybersecurity, one cannot put less emphasis on the indispensability of AI. The usage of AI in financial fraud detection is one of the major applications here. AI helps in finding loopholes in the defenses of computer networks. Furthermore, from existing data and patterns, AI also has the power to recognize a cyberattack or even a cyber threat.
Once the AI system detects a threat or a possible threat, it backtracks through data to find out the main source. This helps in preventing future threats to the organization’s computer network systems. Basically, AI provides extra security to the computer network system. This serves as a major factor that helps in preserving the network infrastructure.
Since the scale and complexity of cybersecurity problems are high, the application of AI becomes inevitable in such cases. Furthermore, with increasing time, the role of AI in this area will only increase.
3. Customer Relationship Management
Business News Daily adds –
“Artificial intelligence is also changing customer relationship management (CRM) systems. Software programs like Salesforce and Zoho require heavy human intervention to remain current and accurate. But when you apply AI to these platforms, a normal CRM system transforms into a self-updating, auto-correcting system that stays on top of your relationship management for you.”
The financial sector is one of the major ones that will benefit from the application of AI. Also, AI integrates well with regular banking operations since it can access a lot of data and patterns. As a result, it can help in better analysis of financial markets better. Furthermore, customers also receive personalized messages and better customer service.
4. Faster Research Through The Internet
As already discussed, AI uses a large amount of data to find patterns in the search behaviors of Internet users. Thereby, users also get access to personalized and relevant information based on their search results. Since AI can analyze large chunks of data faster, it can make it faster for businesses to cater to the needs and demands of their target audience.
With more access to data and information patterns, AI becomes more advanced. Hence, as users use their devices and the Internet more, they receive a more customizable experience. Here, you will not have to expect your target users to constantly search on the Internet. In such cases, AI can help you provide the right information to the right user at the right time.
5. Personal Assistance
Just creating personalized and customizable experiences for your customers is not the only application of AI. Basically, AI helps transform the way your company operates overall. You can implement the usage of AI bots as personal assistants in your company. This helps in managing your emails and maintaining your calendar. Furthermore, these AI bots can also help you with recommendations about how to streamline your business operations.
On the other hand, you can also run programs on those AI assistants so that they can answer questions from customers who chat or call online. As a result, you will be able to focus more on your core business and implement strategies for growth.
What Is The Future Of Artificial Intelligence In Business Operations?
It is hard to fully predict the future of AI in recent years, as it depends on how the technology will develop. With time, AI-based computers are finding it easier to do common-sense tasks. Hence, one can deduce that AI will become useful for humans in the coming years.
Furthermore, the future of AI in supply chains is also bright, as companies are implementing AI to have better security and prevent disasters. Another big application of AI that is already in vogue is driverless cars. With better data accuracy and the introduction of faster GPUs, driverless cars are also on the verge of rapid development.
Moreover, for AI to be successful, it is also important to have faster processing and access to clean data. Also, soon, AI will get out of the 2D screen form and will be part of the physical environment surrounding individuals and businesses.
Artificial Intelligence For Business Operations: What Can Businesses Do?
The HBR article further states –
“Given the scarcity of cognitive technology talent, most organizations should establish a pool of resources—perhaps in a centralized function such as IT or strategy […]. As needs and talent proliferate, it may make sense to dedicate groups to particular business functions or units, but even then a central coordinating function can be useful in managing projects and careers.”
One of the first things that businesses must do is to leverage the capabilities of key employment roles. These include primarily data scientists. These personnel have the necessary skills to deal with big data and statistics. Hence, they can play a big role in the development of AI technologies apart from AI developers. However, the employee’s willingness to learn is also a major factor to consider.
However, if your business lacks n and data analytics infrastructure, you will need to reach out to external service providers. With time, you will need to recruit in-house experts in these roles. This will help you implement AI for the long term.
Furthermore, it is also important for businesses to create updated IT strategies and develop centralized functions to deal with high-end projects. Hence, it is also important, in this regard, to invest in experts who can work in those areas.
Final Thoughts
No one can deny that AI will play a major part in business soon. Hence, businesses must invest heavily in the application of artificial intelligence in business operations. With this technology’s development, there will also be new startups and applications for consumer use. Although it will also lead to displacements of certain jobs, it will surely create new ones.
What are your opinions on the use of AI in business operations? Consider sharing your ideas and opinions with us in the comments section below.
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