How Will AI Impact the Digital Transformation of Modern Businesses?
Artificial Intelligence (AI) is widely recognised as the main streamlining enabler of in various industries for the past few years. Covid crisis just added an emergence for many organisations to accelerate the adoption of AI as a digital transformation tool, which resulted in increased ROI’s, capturing a wider range of market and substance in the period where the economy crashed. Digital Tech innovates an array of solutions to deliver value, bring exceptional customer experience, modify consumer buying culture, and business processes, in its way meeting the set standards of the volatile market.
AI adoption in past 2 years:
Covid19 pandemic accelerated the adoption of AI-driven digital transformation of businesses as most already had it in their anticipated future business goals. Leading the growth of the momentum in the 2020s as per the survey statistics. 52% of the companies have embedded AI in their market and sales plans in the Covid Crisis in the US, study findings by PWC. While 86% of the Business Leaders say AI Adoption is turning out to be their Top-line Technology in 2021. Working with Apen, Harris Polls, found that 55% of organisations accelerated their AI strategies in 2020 and 67% are planning to further accelerate the use of AI in 2021.
Characterising Digital Transformation
Digital Transformation is a set of methods, processes, tools used in modern companies to optimise their operations like differentiated services, increasing productivity, and growing market reach as a priority.
Digital transformation also being considered to be the 4th Industrial Revolution has changed global business landscape, garnering more attention as a movement rather than a concept. It is attracting business leaders to get a competitive edge in the market in innovation, reviewing processes and optimization thus increasing the ROI’s. Technology and Business are collaborating more than ever before.
Data and AI (Artificial Intelligence) are critical and crucial factors in this strategy of embedding digital transformation in organisations. Expansion of the business, wider reach of the market, having a business impact on the consumer base through technology is the digital transformation journey every organisation today is embarking on.
Key Points of AI Statistics:
- 80% of the tech leaders and business leaders affirm that AI boosts
- 61% of the global market leaders say that AI is an integral part of their Data
- 83% of early AI inculcators have achieved higher economic benefits than before the adoption of AI in their business
Do we understand the true meaning of ‘DATA’?
The use of DATA is a focal point in the management of companies in the Digital Transformation roadmap. It is a strategy in itself that proves to be a competitive advantage. The extensive volume of Data flowing from various sources and formats, structured or unstructured when curated and used with precision results in greater profits. As a crucial part of market analysis, understanding customer desires, drawing buyer personas, evaluating competitors, bringing insights for effective, efficient and agile decision- making Data plays a major role in driving business to success in current competitive market.
Why the Combination of Digital Transformation and AI?
As per a survey conducted by Infosys, 98% of the companies that use AI to boost their digital transformation generate an additional surplus of 15%. AI serves to be a powerful tool in business and marketing strategies of digital transformation to yield more positive and profitable results. AI helps integrate different systems and automate daily tasks resulting in faster, more productive and more efficient operations in business. AI and ML deem to be an integral part of digital transformation as it allows better allocation and use of the Data collected in many ways thus also resulting in being resourceful and yielding. These enablers increasingly innovate effective solutions that directly impact the markets speedy growth, curb competition, improve end-user experience and have more satisfied customers. AI and ML with the use of enormous Data at hand will change the map of the market in the coming few years for a better future.
Embedding Strategy of Digital Transformation through AI?
Business leaders are realizing and capturing the power and potential of AI, ML and analytics in their business. AI is helping overcome organisations various shortages. Industries like travel, hospitality, and other services industries after the pandemic hit needed resources to accelerate to fulfil rising demands.
The market believes AI to be an answer to such resource shortage and ironically there is an increase in the development of AI and analytics to overcome such shortages in future. AI algorithm and automation jobs will increase by 28% over the previous quarter as the demand for use of the AI is increasing. AI is growing as a revolutionary strategy to drive businesses in the changing landscape of the digitally transforming market.
- Understand Consumers better and do business better — AI assists marketers to draw accurate buyer personas and understand target audience better which deems to be a critical foundation for designing marketing strategies. It is comprehensive to understand customers and their needs accurately throughout the buyer journey to drive more business profits. AI helps create a personalized experience for the consumers with precise insights. With more data, more value can be created for the customer
- Dynamic Analytics — AI can process enormous data points to provide insights and identify trends in real-time. This enables the companies to be proactive with the customers’ needs rather than reacting to consumer actions. AI facilitates market segmentation based on the data collected and increases personalized consumer experience thus resulting in customer loyalty and more ROI’s.
- Faster and Effective Operational Processes — Predictive Analytics can not only provide data insights for better decision making but can also offer the best course of action in a given scenario for optimal results. Market patterns and trends can be revealed with the use of AI and CMOs and Executives can make more informed decisions judging the risks and opportunities. Processes can be optimized by removing bottlenecks that might or do occur and allocation of marketing budgets with AI precision will deliver maximum profits and improved KPI’s.
Harnessing AI’s power strategically in the digital transformation journey of the business world to augment employee capabilities and fuel innovation is a sure way towards accomplishing consistent growth and enormously increased ROI’s. New business models will have AI and analytics as a core critical part of the new innovated market.
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