5 Ways AI Is Driving Business Innovation
As advancements in technology have grown, systems and methodologies have pivoted. Businesses and industries are leveraging the current opportunities to innovate and expand, and AI might prove to be at the heart of innovation on many levels.
Below is an overview of current trends and disruptions that AI brings to the business sector.
1. AI-Based Business Model Innovation
As more industries expand and new ones form supply and demand increases, new systems are needed as older systems get reevaluated. According to Jaehun Lee et al., “companies around the globe are seeing their industries disrupted by new technologies that result in business model innovation.”
Additionally, managers who use AI can create important changes within their businesses and effectively change their business models. A case study by Lee et al. proposes how AI can help with talent management:
Company A struggled to hire employees with expertise in manufacturing. However, by implementing AI systems, they were able to track and analyze various employee data streams and find new systems to hire employees. For example, Ziprecruiter enables job postings while having a tracking system for potential applicants. This new implementation could impact the more conservative method of only looking for suitable candidates in one place.
2. Increasing Competitive Advantages
Large companies like Google, Tesla, and Uber have incorporated AI technology, which gives a competitive advantage versus companies that are more conservative in their services and systems. The Neo-Schumpeterian Economics model is used to track the evolution of AI in business. According to Soni, N et al., the “three forces which drive the Neo-Schumpeterian Economics are innovation, knowledge, and entrepreneurship.”
With a vision for innovation in mind, businesses are looking ahead to new technologies that open the doorway to working more efficiently.
3. Smart Production as a Way Forward in Manufacturing
With the inclusion of AI technologies, manufacturing businesses can solve problems and move towards more sustainable manufacturing processes for energy resources, logistics, and supply chain management.
Hendrik Fink, who leads the Sustainability Services at PricewaterhouseCoopers, said the following about smart production: “If we properly incorporate artificial intelligence, we can achieve a revolution with regard to sustainability. AI will be the driving force of the fourth industrial revolution.”
4. AI Education Improves Company Culture
With the expanding inclusion of AI in business, companies may find a need for people who are educated in the field of AI. Computer Scientist and Businessman, Andrew Ng, proposes in-house education.
In-house education refers to teaching current employees how to advance their skills and learn to solve problems more effectively, as opposed to “outsourcing” AI experts for extra money.
5. AI-Based Marketing and Customer Relations
AI is also making headway within the marketing and customer behaviors industries. Thomas Davenport et al. discuss how AI can positively and negatively disrupt marketing within the transportation, sales, and online retailer industries. Examples could include introducing driverless cars, allowing more people to commute to work faster while getting work done en route. AI in telesales could detect when a customer might sound disgruntled, which will allow the salesperson to pivot their call.
Retail-based AI could also predict what customers will buy and then ship products to them. This method is referred to as the shipping-then-shopping online retailer model, which is already implemented by companies like Birchbox and Trendy Butler.
No matter which trend you favor, AI is a tool for enhancing businesses in most industries and can boost supply chains, customer service relations, and cybersecurity for all.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.