Artificial intelligence (AI) is the trend of our time – and still hasn't arrived in many companies yet. However, AI technologies can help enormously to optimize business processes, increase efficiency and profits and to make customers happier. We present three areas in which AI can push your business.
Have you ever bought anything from Amazon about the option "you might like that too"? Or watched a series or movie that Netflix suggested to you? These vendors generate such an individualized selection or recommendation based on numerous behavioral parameters in the form of data. AI makes it happen.
The use of artificial intelligence is constantly increasing and accordingly opens up countless possibilities for companies to profit from. Thanks to AI, yours as well can collect and evaluate data in order to recognize patterns and draw conclusions from that. In fact, it takes relatively little effort to improve the customer experience and consequently increase sales.
It is crucial to identify the areas where AI-based tools and skills can optimize business processes. Three possible use cases:
1. AI enables a new perception
Our brain captures everything that is visible in a picture in a fraction of a second. Machines can simulate this ability with the help of Computer Vision, one of the most exciting areas in applied AI. With the implementation of appropriate tools, companies are able to classify events differently and draw new conclusions from them. Such as automated inspection of machines, automatic recognition of buildings in satellite images or evaluation of radiological scans.
Companies that want to add similar functions to their own applications have different tools at disposal. Amazon’s "Recognition" for example, enables image and video analysis. Users can upload such files to the program. It then identifies the objects, people, texts, scenes and activities they contain and provides an accurate analysis. This can help, among other things, to verify identities or to count participants in order to make applications and events more secure.
2. AI optimizes pattern recognition
AI-based applications allow data sets to be evaluated on a scale that no human being would ever be able to capture and understand. They are able to recognize complex patterns in customer behavior and data in order to draw individual conclusions and derive recommendations for action.
Pattern recognition, for example, enables new customers to submit service or product suggestions depending on their activity and profile. Big players such as niche providers evaluate customer data and purchasing behavior in order to identify articles that consumers will buy. Google and Facebook follow a similar approach to serve ads that users are highly likely to click.
In this context, the timely detection of customers who are likely to churn is elementarily important and possible due to AI. Whether telecommunications provider or online retailer: By evaluating user data, companies can offer targeted discounts or similar attractive offers to satisfy and retain customers individually.
3. AI makes future predictions more precise
Data- and AI-based predictive analytics are a key discipline for data scientists, as they offer a lot of business potential on the one hand and pose several challenges on the other. It is because such predictions are based on intrinsic unknowns as the classic example of the stock market illustrates:
"If you can predict how individual securities will develop, you can earn a lot of money," it is said. However, stock markets make an accurate forecast impossible. (At least since "The Black Swan" we know why.) Still, the prospect of big profits drives people to collect the largest data records of all kinds for the smallest information advantage. Current example is the market intelligence platform Numerai – a crowdfunded hedge fund whose investment strategies are based on data scientists' predictions.
How do you start your AI application?
All three of the application areas demonstrate that AI can be used differently and in various ways. So what to do? Where do you start?
Our tip: Clarify at first in which of the mentioned areas your company needs the most support. To start your own AI strategy it pays off to select one or two pilot projects and to gain an understanding of where and how AI can help to improve processes. If so, focus on finding the right people, tools and skills to implement it. We will be happy to advise you if you have any questions.