Artificial intelligence or AI can be broadly explained as the human-like intelligence mimicked by machines or software. Substantial development in the AI domain can be traced back to the mid-20th century with the first checkers' playing program. But, in recent years, AI applications have become more sophisticated and are finding advanced use cases.
Now, most of the world's population is getting accustomed to the disruptive prowess of AI. Thanks to popular movie franchises like Terminator, the general hysterics regarding AI advancements have pacified over the decades. A global takeover of intelligent machines remains an unlikely scenario, and it’s safe to bid ‘Hasta la Vista’ to any apprehensions. What remains is the monumental impact of AI in changing modern society.AI has been disrupting legacy industries and bridging the gap in automation. Advanced analytics, sophisticated programs, powerful computational technology, and leading-edge software enable the surging popularity of AI. As per reports, the Artificial Intelligence Industry will be worth $642 billion by 2028. Now, let’s look at how AI digital transformation is revolutionizing the working of the following six legacy industries:
1- Technology
The primary industry that AI is revolutionizing is the technology industry itself. AI patterns developed with big data modules enable extensive research for upcoming technologies. Likewise, the self-learning patterns aid in solving technical queries that have long plagued researchers.AI Applications
AI-backed applications like image processing, machine learning, data synthesis, speech recognition, and deep learning solutions offer additional use cases. AI solutions assist research and commercial applications, resulting in advanced automation and self-learning support.AI Research Market
AI as a research market is also an emerging subset of the tech industry. Companies are pouring billions of dollars to fund the next AI breakthrough. An AI-focused report indicated that more than 91% of businesses surveyed had an ongoing investment in AI. While the creation of job opportunities and economic upheaval is an obvious result of this emergence. What is more exciting is the upcoming innovations in this domain that will further disrupt industries.Cybersecurity
Likewise, cybersecurity has been an endearing threat in the internet age. AI digital transformation offers an edge to study, create and initiate carefully curated cyber breaches and provide solutions to seal off attack enabling points. The self-developing nature of such cybersecurity solutions provides an edge in defense against miscreant activities.2- Customer Experience and Services
Chatbots
AI-backed Natural Language Processing (NLP) algorithms have proved to be a game-changer for the customer experience and services industry. The self-learning abilities of NLP algorithms aid them in processing a wide range of information through text, sound, and display mediums. NLP combined chatbots can then cater to a wide range of questions. This AI digital transformation empowers the self-service channels and reduces the burden on customer service agents.Customer Agents
Likewise, AI and Machine Learning(ML) models aid customer agents in reducing the average handle time since agents can find the necessary information faster. Every call is an opportunity for the models to supplement their knowledge, making the system more robust and holistic in finding the most relevant answer.Knowledge Management System
An excellent example of an AI-enabled customer service solution is a comprehensive AI-supported knowledge management for digital transformation that combines all these use cases discussed earlier. It optimizes the self-service channels to handle customer queries through self-learning chatbots. Likewise, customer agents get better equipped to address client issues. Agents can access articles and other solution modules by typing a keyword-based on the client’s query. All the necessary information gets displayed on the agent screen, which helps in quick query resolution.3- Logistics
Predictive analysis solutions by AI are streamlining the existing logistics and supply chain processes. And here’s how.Operations
AI and ML models study the available data, assess existing operations' loopholes, and arrive at alternate solutions. These solutions help reduce costs, better allocate resources, and optimize efficiency. Likewise, using AI-powered machines and robotics in hazardous environments, like mine exploration and waste segregation, reduce the threat to human lives.Supply Chain Management
AI digital transformation in supply chain management helps in better management of resources. The models can study historical orders, demand points, delivery times, and warehouse locations to understand the supply process. The models then arrive at intelligent solutions to better curate the supply chain. Notably, the successful implementation of AI-enabled supply chain management helped early adopters improve logistics costs by 15%.
Storage Facilities
In the warehousing and storage industry, AI models reduce spoilage by continuously monitoring the temperature and humidity in the facilities. AI patterns also maintain assessment of incoming and outgoing vehicles. Based on the traffic, AI arrives at a perfect schedule for quick loading, unloading, and dispersing trucks to the desired location. Likewise, AI models help optimize delivery by arriving at faster routes based on weather, traffic, and safety conditions.4- Finance
A Business Insider report estimates that the aggregate potential cost savings from using AI applications will be $447 billion by 2023. And this is just the tip of the iceberg on how AI digital transformation is helping the ‘Banking, financial services, and insurance (BFSI)’ sector.
Infographic created by DFIN
Banks and Financial Services
Banks and financial service entities are deploying AI-run mechanisms at the front to streamline customer interaction experience. As discussed, the AI-backed chatbots accommodate client queries better. And AI-run programs offer better financial plan recommendations.Similarly, AI models optimize Know Your Customer (KYC) and Anti Money Laundering (AML) processes and protect financial institutions from inter-office and customer fraud.
Insurance
AI patterns also help in analyzing records and tailoring highly personalized insurance covers. They also help in detecting fraud and flag any undesired applicant. Likewise, AI models also identify any irregularities in the claim process. Again, like banks and other financial services, AI deployment in the financial customer service domain helps save time and enhance customer experience.5- Advertising and Marketing
The AI digital transformation has completely changed the marketing and advertising industry landscape. Companies lose their competitive edge today by not using AI solutions to design advertisements or marketing campaigns. A survey conducted among global marketers found that AI-enabled marketing campaigns resulted in more revenue growth and improved performance for nearly 41% of survey respondents.Campaigns
AI and ML models analyze consumer pain points, habits, spending frequency, and shopping data. Coupled with this, deep learning solutions study and understand the best performing advertisements/campaigns and data trends in a particular domain. By combining the findings of these solutions, advertisers and marketers can not only script an ad or a marketing campaign but also maximize the visual and auditory components to hook a consumer firmly.Budgeting and Marketing
AI oversees the issue of budget allocation to different marketing and advertising funnels. AI designs a thorough strategy for budget allocation in various mediums and guides how to spend the budget. Not only this, but using data analytics, AI models can predict new marketing channels and supply the cues to entice the audience. Combined research by Quantcast and Forbes found that AI enables marketers to increase customer retention by 51% and increase sales by a whopping 52%!What’s Next?
The exciting convergence of 21st-century technologies, namely AI, ML, big data, blockchain, and IoT, results in state-of-the-art solutions. The main focus is boosting efficiency and streamlining the existing industry and commercial operations. The analytics functions performed on big data and AI and ML patterns offer insights that can be used in adapting working models via blockchain and IoT. But, this is just one of the use cases of this convergence.A PwC global study on artificial intelligence hinted that AI will contribute $15.7 trillion to the global economy by 2030. The growth of AI is looked upon as a threat to employment opportunities. As per a World Economic Forum report, AI will eliminate 85 million jobs by 2025. But, on the flip side, it will create 97 million new job opportunities. With the expansion of AI in the legacy industries, it is now the time to upskill and be a part of the AI digital transformation wave.
Sounds more interesting than a machine takeover, doesn’t it?
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