A classic algorithm always operates in the same way. Its output is determined by the input data. AI (Artificial Intelligence) algorithms work quite differently—they are designed so cleverly that they can change their mode of operation while running. Therefore, the more data they receive about a phenomenon at the start, the faster and better they can predict its development and variability. The more correct sentences and information about their meaning in a specific language and context they receive, the faster and better they will be at constructing similar sentences themselves. Artificial intelligence is already knocking at our doors, and not just metaphorically. Many people have already had contact with bots trying to sell them solar panel kits. And that is just the beginning! How does artificial intelligence impact business?
AI solutions built on language and human speech recognition algorithms, trained to conduct conversations with humans in their natural language, have become a permanent fixture in the landscape of interactions between customers and providers of telecommunications, insurance, or financial services. The average consumer also interacts with AI algorithms when using voice assistants like Apple Siri or Amazon Alexa. This, of course, has great business significance—such a digital assistant does not get tired, is available 24/7, and does not demand vacations or social benefits—which translates into very concrete and significant financial savings. AI algorithms are most commonly encountered in customer service tasks in 24/7 call centers. For example, PKO BP bank reported that its voice assistant, IKO, which has been operating for two years, has already conducted over 2 million conversations with customers. It started by understanding about 70 topics, and now there are over 310. Interestingly, these are conversations conducted in natural language
[i]. Therefore, a sentence like “send a hundred to Owsiak” can also be understood. 700,000 of the bank’s customers already use this assistant regularly. It is no wonder—in this respect, AI is much better than a human. A digital assistant can perform the same tasks incessantly; it will not get bored of writing or saying the same thing for the hundredth time, and the customer receives an answer immediately, at any time. The list of business applications for artificial intelligence solutions supported by machine learning (
Machine Learning) is constantly growing. E-commerce is becoming a bastion for AI applications, where AI algorithms can optimize supply chain operations, design advertising campaigns, translate website content, and suggest products that consumers might be interested in. It is artificial intelligence that is responsible for perfectly matched suggestions, which in turn helps buyers make quick purchasing decisions. Correctly identifying future needs is the key to a leap in sales growth. Improving delivery logistics is done based on data about website traffic and interest in specific products. In this way, an online store can order goods in advance and eliminate not only the risk of stock shortages but also excess inventory. In the machinery industry, vision algorithms have found wide application, with capabilities that exceed human perception. They are used to recognize defects and anomalies, i.e., for precise quality control. Even a seemingly simple process of manufacturing a protective helmet for construction workers can be modified so that the AI controlling the robots correctly identifies the position of the helmet during laser marking and picks up and applies the UV exposure sensor in the correct position
[ii]. Another area of company operations where AI is used intensively is the HR department, where automated applications profile candidates, collect data about them, and compare their qualifications. Accelerating and objectifying this process lowers recruitment costs and improves the quality of the workforce. In the near future, AI algorithms will likely steer autonomous trucks delivering goods on long routes, and in cities, intelligent drones will take over the functions of couriers delivering packages. Changes can be expected in virtually every aspect of business where repetitive processes occur. The “
Evolution of IT Research Report”
[iii] report indicates that as many as 88% of 500 surveyed IT managers and directors from globally operating companies stated that AI elements are already being developed within their organizations. While concerns about jobs arise alongside the development of AI, at least some estimates are partially optimistic—although AI will displace 85 million jobs globally by 2025, it will simultaneously create 97 million new ones
[iv]. The balance is positive, but the problem is that these will be completely different jobs. Business will radically change its face.
Intelligent systems supporting business decisions
A comprehensive approach to data and analytics can help optimize and develop the operations of all business departments. For example, there are already AI-based systems that help assess a company’s financial health, monitor key performance indicators, collect data from various sources (e.g., spreadsheets), and then create reports with tables and diagrams, which helps in making key decisions for the company. Artificial intelligence also excels at forecasting future business trends. With sufficiently large datasets (Big Data) coming from, for example, CRM systems, artificial intelligence algorithms are able to recognize new consumer behavior patterns and create forecasts based on assessing customer readiness for a purchase or sales contact. The possibilities of such solutions are much greater. Artificial intelligence applications extend to identifying new business opportunities at a strategic level, even in mature markets. By collecting a large amount of data from market analysis, video materials from interviews with recipients, surveys, and business data, it is possible to develop new features for existing products and identify new paths of development for the company as a whole
[v]. Without the support of artificial intelligence, this would not be possible.
Competitive advantage through artificial intelligence
Innovations in artificial intelligence bring great benefits to enterprises, and the pace of their implementation will accelerate in the coming years
[vi]. Artificial intelligence in business means accelerating revenue growth and reducing operating costs. For the first time in history, solutions of this class are creating personalized consumer experiences on a large scale, forming a highly individualized product and service offering. This is, among other things, thanks to efficient algorithms for planning advertising campaigns, which significantly increase return on investment (ROI) and can very accurately predict consumer needs and behaviors. With analytical tools and decision-making support from artificial intelligence at their disposal, companies can shorten the sales cycle, utilize new production technologies, and reduce the time spent on performing repetitive operations and tasks on data in various business IT systems. In total, all these factors determine the competitive advantage of the entire organization. Of course, not all
business strategies based on artificial intelligence and machine learning are equal, but they are becoming crucial for differentiation and sometimes even for the survival of a company. Adopting a more anthropocentric point of view, one could venture to say that ultimately, the advantages resulting from the use of artificial intelligence will still be decided by the qualifications and creativity of the employees who program and teach AI algorithms. Artificial intelligence is only as creative and innovative as the person or company that created it.
Artificial intelligence and business security
In the field of cybersecurity, artificial intelligence provides invaluable services to business and humanity. Nothing works better at analyzing petabytes of internet traffic data in search of correlations and phenomena that herald a cyberattack. It is artificial intelligence algorithms programmed to instantly search for and monitor network user behavior patterns that allow for the early detection of symptoms of attack preparations. After all, hackers also have to test their ideas somewhere. Upon detecting such a threat, monitoring systems can track the network of connections and detect the sources of attacks. In this way, artificial intelligence becomes an extra pair of eyes that protects the entire IT infrastructure of an organization. An example of such a solution is the Akamai platform. Thanks to a massive database of traffic characteristics originating from one-third of the entire internet, Akamai has built its own tools, supported by machine learning and artificial intelligence algorithms, to check which sites are suspicious, which are dangerous, to categorize URLs, and to inspect payloads. This allows for full protection against any threats, because all network traffic passes through Akamai machines, and they decide and filter what can be directed toward the client
[vii].
AI allows you to become a data-driven organization
Possessing a large amount of data, and of the right quality, is a necessary condition for artificial intelligence to be effective and show its advantages. Artificial intelligence algorithms deal primarily with data collection, finding correlations in large datasets, and data visualization. This allows for making the right business decisions and setting new directions for development, and it also drives productivity and innovation because people can then focus on tasks with higher added value. Consequently, a data-driven organization is created, where all decisions made are justified by data. Automating data analysis processes using artificial intelligence and machine learning paradoxically allows for the maximization of human intelligence, by freeing employees from monotonous and repetitive activities related to
data entry, review, and analysis. The creative potential freed in this way can be successfully used to develop the company.
[i] https://wyborcza.pl/duzyformat/7,127290,29404471,kwasniewski-u-sztucznej-inteligencji-pogadaj-ze-mna-o-zonie.html
[ii] http://www.apsystem.info/
[iii] https://www.logicmonitor.com/resource/evolution-of-it
[iv] https://www.weforum.org/reports/the-future-of-jobs-report-2020/
[v] https://www.aidatainnovations.com/blog/news/post/provide-business-intelligence-to-identify-strategic-opportunities
[vi] https://www.gartner.com/en/articles/what-s-new-in-artificial-intelligence-from-the-2022-gartner-hype-cycle
[vii] https://www.akamai.com/
