How to Use Artificial Intelligence in Business
There are many ways to use artificial intelligence in business. For example, AI can help set product prices, improve research performance, prevent fraud, and enhance customer service. This article will outline how AI is currently being used in business. Ultimately, these artificial technologies will help companies to make better decisions. Here are some practical examples:
AI can be used to set prices-Artificial Intelligence
AI can help companies set prices that maximize profit by using data from surveys, competitor analysis, and operational cost analysis. As a result, companies with a diversified product line can earn big profits by setting optimal product prices. This is a growing trend in business, with more companies relying on AI to manage their pricing strategy. A significant advantage of AI in pricing is that companies no longer have to manually check competitor prices, sales history, or weather conditions to determine the correct costs.
While AI is an excellent tool for helping businesses make more intelligent pricing decisions, humans should always be the final decision-makers. Therefore, it is essential to have a clear pricing strategy that considers the needs of the company and its direction. This will ensure that the firm has a clear vision and understands its pain points.
Retailers can benefit from intelligent AI for dynamic pricing, customer engagement reports, and more. When faced with thousands of products to sell, setting an optimal price can be overwhelming. AI can help retailers make better pricing decisions by utilizing self-learning algorithms to scan vast amounts of data and check out endless pricing scenarios. The AI will then choose the most appropriate price for a specific product based on these factors.
AI can improve research performance.
Associate Partner Brian Goehring leads IBM’s AI business research agenda. He collaborates with clients, academics, and industry experts to develop new ways to apply AI in the business world. Goehring has 20 years of experience in strategy consulting with senior-level clients across various industries. He holds an MS in Engineering and Management from MIT and is a Fellow in the System Design and Management program.
AI is a fast-growing technology, and not every business problem is an ideal candidate for AI implementation. Instead, organizations should determine whether a specific business problem or a broader strategic initiative is a good fit for AI. To do this, companies can start by assessing the data wealth and the particular business challenges. Once that’s determined, AI implementation can begin. The technology can be implemented in many ways, including robotics, sensors from the Internet of Things, and virtual interfaces.
AI has tremendous potential for economic development. One study by PriceWaterhouseCoopers estimates that by 2030, AI could boost global GDP by $15.7 trillion. China’s GDP could grow by $7 trillion, while North America’s GDP could grow by $3.7 trillion. In Northern Europe, it could increase by 1.8 trillion.
AI can reduce fraud-Artificial Intelligence
The efficiency of fraud detection can also be improved with AI. By analyzing data collected from various sources, AI can identify suspicious transactions and alert staff to suspicious activity. This helps prevent the loss of company funds, wasted employee productivity, and the loss of a brand’s reputation. This is especially important since a firm’s credibility ensures repeat business. Furthermore, failing to detect fraud can lead to reduced market share and customer churn, which is far more costly than keeping existing customers.
Using AI to detect and prevent fraud is essential in reducing the costs associated with the copy. Currently, financial fraud can take many forms. For example, identity thieves can use stolen credit cards to make purchases and fly under the radar. While these crimes are expensive, businesses can pass those costs on to customers, which is why fraud prevention is essential to ensure any business’s success. Using AI to detect and prevent fraud helps companies to reduce costs while minimizing customer friction.
When determining whether AI can help companies reduce fraud, it is essential to understand the differences between AI-based and traditional systems. For instance, AI-based fraud detection systems are usually trained using unsupervised learning, which involves giving the algorithm a large amount of data without telling it what to look for. These systems will then attempt to identify patterns and trends in the data.
AI can enhance customer service-Artificial Intelligence
AI has a variety of applications that help businesses improve customer service and experience. For example, AI can send out reminders to customers about sales and essential updates. It can also keep track of due dates and alert customers when they are late with a payment. These features can help companies offer better customer service globally, even if they’re not physically located in the same city.
AI can also help businesses understand and solve customer service problems more quickly. A survey has shown that 71% of customers prefer a company with AI that can help them with their questions. AI can use stored data to make recommendations based on browsing and buying habits. For example, it can draw information from the weather, the stock market, and more to provide helpful information to customers. By focusing on each customer’s purchasing patterns, businesses can send relevant content to each one at the right time through the proper channels.
Besides enhancing customer service, AI can help businesses gain and retain customers. By automating routine tasks, AI can streamline processes and reduce workload, allowing human customer service representatives to focus on more complex interactions. Additionally, AI can speed up responses, analyze data, and route tickets to the appropriate support team. This can lead to higher customer satisfaction and a better business bottom line.
