Delano, April 2019
Innovating through AI
We currently are at a stage where businesses have understood the urgency of embracing and embedding digital technologies in their operations and strategies. Innovations are created on a regular basis through new service and product offerings, business processes, and operating models. As businesses continuously leverage advanced technologies to solve business problems and enhance their solutions, we see an explosion in the adoption of Artificial Intelligence (AI), in particular. This is due to the evolution of the availability of data, its enhanced computing, and packaged algorithms.
While private and public organizations have been initially using AI to optimize back office functions, the shift towards a realization of the added value for their entire organization, across the entire value chain, including their clients, employees, and business operations is noted.
Increasingly, AI is supporting and improving decision making across various sectors and industries. For example, cognitive knowledge management systems ensure timely insights on markets and clients to provide recommendations to financial advisors. Furthermore, leveraging AI supported analytics help to enhance due diligence processes by identifying issues more quickly to help buyers and sellers to close a deal better and faster. It strengthens the ability of Private Equity firms to better anticipate evolutions of markets and companies as well as to consider new strategies and thus, to improve the entire decision processes. Hence, better outcomes for clients and the business itself are achieved.
Commercial companies leverage AI to control loss of revenue by classifying customers who are likely to pay late. After gathering historic data on their customers along with external data such as macro-econominc indicators, AI clusters them into customer groups. The AI algorithm then makes recommendations based on these clusters such as whether the customer is likely to pay, and eventually can lead to an action to review or even block a certain customer.
A high level of customization is achieved at a large scale by automatically analyzing client’s behaviour, which can be benefitial for engaging with the client in a human-like way by offering tailored information at the right time. Practical examples range from chatbots to digital assistants that significantly support sales and service interactions to predict client needs. Whether it is resulting in direct and more effective interactions with the client, or filling in forms, or even navigating through interfaces, a greater customer experience can be achieved in a more cost effective way.
To gain maximum advantage, it is key to combine a business with a technological approach by knowing exactly the areas of improvement and the potential of AI while having clearly defined goals. Ultimately, AI is an enabler to solve business issues of today to enhance competitive advantage for tomorrow.