Artificial intelligence is a term that’s been around for more than 50 years, but it only recently gained prominence as the technology became closer to reality. That’s due to the proliferation of cloud computing and powerful consumer devices.
Now, however, there is growing concern about whether businesses should adopt artificial intelligence (AI) and machine learning capabilities. However, few companies fully understand how artificial intelligence benefits business. By having a clear understanding on what benefits artificial intelligence brings to different industries, they can take advantage of this emerging technology before the competition does. Below are some of the major benefits of artificial intelligence:
1. Understanding consumer behavior
Through analysing huge amounts of data collected from various sources such as call center records and social media activity, artificial intelligence systems can now reveal insights about consumer behavior, which helps marketing and sales teams to build a better understanding of what their customers need. That can lead to more personalized campaigns and deeper customer engagement.
2. Savings on infrastructure costs
Through automation, artificial intelligence systems are able to take care of tasks that usually require human involvement, therefore freeing up time for the employees to focus on higher value activities. Artificial intelligence benefits business by allowing it to operate more efficiently with fewer resources. This is especially beneficial for businesses with high operating costs such as retail chains or banks, which can greatly cut down their spending on physical infrastructure like store location and branches.
3. Faster response times through automation
By taking over mundane tasks such as email responses or social media updates, artificially intelligent chatbots ensure that customers get faster responses.
4. Using ‘big data’ to improve decision making
Artificial intelligence benefits business because it allows a company to use complicated algorithms and processes that lead to better decision making. For example, by analysing large amounts of customer data such as location, tastes, spending habits and personal details to study trends and recommend content or products tailored to the individual consumer’s needs . This provides an edge over their competitors who can’t utilize such data in their marketing strategies.
5. Predictive maintenance
By using historical data about machine failures, along with factors like weather conditions and inventory levels, artificial intelligence systems can predict when machines will need repairs before they break down. That ensures minimal downtime, which is important for companies whose business models depend on their machines.
6. Optimizing customer experience
Accessing and analysing huge amounts of data helps companies provide a more personalized shopping experience for customers across all touch points. For example, artificial intelligence benefits business by personalizing marketing through websites and social media channels, curating relevant product recommendations based on past purchases or even providing virtual fitting rooms that allow shoppers to see how different sizes fit their body type. More importantly, these benefits can be achieved without heavy investments in human capital or physical infrastructure, which makes it an attractive value proposition.