Impact of AI and ML on Modern Businesses- Complete Guide for Entrepreneurs

Impact of AI and ML on Modern Businesses- Complete Guide for Entrepreneurs

We live in an age of modern technology. Industries across the globe are reshaping their business models. Small companies are gradually making their way by implementing cutting-edge technology solutions. It means now, in the business world, there is no monopoly. Anyone with the right mindset and approach can enjoy success. 

On the other hand, customers have also become tech-savvy and demanding personalized solutions from their favorite brands. After years of waiting, finally, Artificial Intelligence and Machine Learning technologies are gaining huge attention among business owners. They offer some exclusive benefits and make businesses more agile and competitive. A 2018 survey revealed that almost 46% of companies had deployed at least one AI capability into their business operations, and this number will keep growing in the years to come. 

From personalized marketing channels to customer experience and product recommendations to voice assistant to augmented reality- AI and ML are ready to makeover the business world. One of the most substantial effects is on the analysis of Big Data. Businesses now process a huge volume of data accurately within a few minutes. 

Though some leaders earlier claimed that AI and ML would replace human beings, it is not true because no matter how advanced technology you have, they can not think and act like humans. But AI and ML are here to stay as, right now, these technologies are at the forefront of modern business operations. 

Understanding AI and Machine Learning

Source: Oberlo

There is a lot of chatter for these two modern words. Yes, Artificial Intelligence and Machine Learning have transformed business operations. From driverless cars to chatbots to recommendations on online streaming sites, AI and ML have become a norm across all industries and organizations. But what does that mean? 

Artificial Intelligence means the simulation of human intelligence in machines that are programmed to think and act like humans. Simultaneously, machine learning is a branch of AI where you give privilege to your computers to access data to find solutions to any problems by identifying certain patterns in databases. 

Let’s go through some real-life examples where AI is used in various applications to improve customer experience. 

  1. Popular online cab applications such as Uber and Ola using machine learning technology to optimize routes and traffic. 
  2. Popular email portals such as MailChimp using ML technology and helping marketers to separate important emails from spam boxes. 
  3. Online video streamlining sites such as Netflix and Amazon Prime leverage machine learning to provide their users’ recommendations based on their browsing experience. Similarly, retailers are now embracing delivery and ordering system for store as it helps them analyze customer behavior and make informed marketing decisions. 
  4. Similarly, a popular social networking website, Facebook automatically recognizes the faces of the people and displays their names for tagging purposes. 

In short, from marketing to delivering exceptional customer experience to identify frauds, businesses are adopting AI and ML in order to achieve excellent business performance. Furthermore, AI innovations might reduce the level of repetitive tasks, but research suggests that AI has its own limitations and won’t replace humans anyway. 

Ways AI and ML Reshaping Modern Business

One of the most acute consequences of Artificial Intelligence and Machine learning in business is that it requires fewer human resources for a lot of work. Yes, it automates repetitive tasks and helps business owners to make informed and bias-free decisions. This is why entrepreneurs opt for it, as it offers better service to customers. Using effective and advanced communication tools brands now can assist customers without any barrier. So, let’s see how AI and ML have been changing the modern business world. 

Enhancing Customer Service 

Source: messengerpeople

Today, customers prioritize customer service along with product quality. Therefore, it is inevitable for brands to provide exceptional customer service. AI-powered chatbots here allow brands to interact with their customers round the clock without any geolocation barrier. 

Chat+ Robot= Chatbot! 

Today, more and more brands are using chatbots in order to deliver a top-notch customer experience. In fact, the recent survey conducted by Chatbot Magazine revealed that brands could reduce customer care service costs by up to 30% by integrating virtual chatbots. These chatbots are mainly developed to increase the customer engagement ratio. It minimizes the need for human staff and resolves customer’s doubts quickly. 

Hence, integrate chatbot within your website or application as they

  • Assist your customers round the clock
  • Allow your employees to focus on core business objectives
  • Improve customer service 

Irrespective of business size and type, AI and ML will surely change the customer service. 

AI is Influencing Recruitment Practices

Recruiting a skilled and talented workforce might be a daunting task for any organization. AI here optimizes data and creates streamlined HR procedures that improve recruitment and on-boarding. Several companies use AI technology in their recruitment and selection process by leveraging advanced AI-based software to find talented applicants.

Moreover, some industry leaders believe that using AI and ML technology to find a suitable candidate will partially reduce discrimination and make the overall recruitment process bias-free. With the help of powerful software, you can browse resumes, sort suitable resumes, and even conduct the initial interviews without human intervention. 

Eventually, it eliminates bias in the recruitment process and ensures a smooth and equal selection system. 

Transforming eCommerce

eCommerce is booming; especially after the pandemic, it has seen enormous growth in terms of customers and revenue. According to Gartner’s prediction, almost 80% of customer interactions will be assisted by AI technologies by the year 2021. 

Moreover, customers have also become tech-savvy. The usage of AI and ML in the eCommerce industry makes the customer experience even better. AI-based tools have the ability to predict shopping patterns based on the customer’s previous browsing history. Here you can take the example of Amazon and Spotify. They are delivering personalized customer behavior and allow brands to understand customers better. 

One of the emergings AI tools, such as Google Duplex, can create a grocery list from customer’s voices. It can also place an order on behalf of the human. 

AI In Healthcare

Healthcare is another sector where AI and ML are making their way. AI plays a crucial role in the healthcare industry as it helps patients diagnose the disease in the early stage without consulting doctors. Moreover, patients no longer need to visit doctors; professionals can assist and guide patients virtually. Indeed, it saves time and money together. Patients now can avail better treatment while sitting at their homes. 

Keeping in mind ongoing crises, AI also assists COVID patients in identifying hotspots. Moreover, they can measure body temperature and help them to take precautions. 

Prepare Your Business for AI and ML

Here is a glimpse of the effects of Artificial Intelligence and Machine learning on the business sector. Technology giants such as Apple, Tesla, Google, and IBM have claimed that AI is here to stay for a long and it has a bright future. AI has become an important part of our daily lives, and it is surely changing the way we eat, communicate, order, and even travel. 

Every time we hit Google to book online tickets, receive series recommendations from Netflix, open Instagram and Facebook newsfeed, AI and ML are lurking in the background.

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