How AI Enhances Business Efficiency

Artificial Intelligence (AI) replicates the human intellect through complex technological processes and systems. Thanks to technological advances, it is now possible to extrapolate some of the human brain’s unique characteristics and capabilities to technology. We can apply technology to any field; therefore, it is possible to nurture inert beings with human thought.

Giving life to any entity has its advantages. Most importantly, the proper human intellectual effort can be complemented and added a plus through technology that will allow us to save time. We already know that time is money. The machines that emerged in industrialization were based on mechanical processes. However, implementing artificial Intelligence allows them to solve problems and decide for themselves.

All of this is possible thanks to the four pillars on which AI is based:

  • Genetic algorithms (machine learning).
  • Artificial neural networks (deep learning).
  • Logical reasoning (intelligent data discovery).
  • Search for the requested status (predictive analysis).

ARTIFICIAL INTELLIGENCE AND PROFIT MAXIMIZATION

The technology applies to any field that is of interest to humans. One of them is the company. If we analyze where most of an entrepreneur’s time is wasted, it is in business management. The margin of error cannot exist. Resource optimization is where all efforts should be concentrated to maximize AI’s benefits to a business structure.

Business management has become increasingly complex, and the massive volume of data generated daily by each individual is greater. Technology has a lot to do with this, and to simplify processes, a great opportunity has been identified to enhance business development and management: Artificial Intelligence.

Having access to so much data, we must understand that it all has a function and utility. Losing it along the way results in a loss of information and, therefore, productivity and money. Analyzing it and making decisions based on this data is a crucial factor depending on its activities.

REQUIREMENTS TO BE ABLE TO IMPLEMENT AI IN THE COMPANY

Business management seeks to increase the productivity of the company. Artificial Intelligence also watches over it, and for it to be implemented in a process, it must have these four requirements:

Data: The greater the volume of data, the greater the probability of obtaining a more significant number of connections. This translates into an improvement in the precision of ideas and, therefore, increased detection of patterns and behaviors, making sound recommendations and suggestions to users.

Computing capacity: is one that manages to consume, store, and analyze data. The phenomenon of cloud storage has managed to give access to valuable information at the user’s request that is part of it. In computing, knowledge is power.

The science of data is essential to managing, cleaning, integrating, and transforming information. Statistical procedures must be applied to all the extracted data to obtain user behavior patterns. We are talking about intellectual property in computing (IP), recognizing exclusive rights to use algorithms and models created based on large volumes of data.

Time: the first to implement an algorithm, resulting from laborious research and development, has an advantage. These algorithms present a long learning period for the data they handle. On the other hand, we must not forget that once optimized, they will simplify decision-making as much as possible, both for the company that applies it and its customers.

THE OPTIMIZATION OF BUSINESS MANAGEMENT DEPENDS ON ARTIFICIAL INTELLIGENCE

If decision-making is simplified thanks to AI, it can be affirmed that sound business management depends directly on introducing artificial intelligence. These are the four factors that make it up:

  • Planning: Identify how these goals will be achieved through strategies and resources (technical, financial, or human).
  • Organization: Who will carry out each of the activities? Once you have the answer, an estimated timing and action procedure must be established.
  • Address: Motivate the employees in charge. Make sure that all activities are carried out optimally through assertiveness and empathy.
  • Control: Monitor the work that is being done to detect problems early.
  • Data collection to facilitate decision-making and correct measures to avoid putting the company at risk.

Therefore, business management comprises four functions that allow us to identify a company’s strengths and weaknesses. Once these are detected, ideas are proposed to reduce the risk of the company’s activity.

ARTIFICIAL INTELLIGENCE AS A PROCESS SIMPLIFIER

Every department of a company is subordinate to business management, which guarantees its proper functioning. Overall, the optimization of resources in the shortest possible time is rewarded, ensuring benefits maximization. Artificial intelligence is the intelligence that allows this goal to become actual intelligence.

AI improves all the variables directly affecting business management functions: productivity, workers, customers, products, and the labor market.

THE POSITIVE IMPACT OF AI ON BUSINESS MANAGEMENT VARIABLES

  • Productivity: increased performance and productive capacity of companies. The machines will handle routine processes like real-time troubleshooting. This is possible thanks to exchanging information and analyzing unstructured data.
  • Workers: Artificial Intelligence has liberated employees from the most mechanical activities. Your efforts can now be focused on your emotions, creativity, imagination, or intuition.
  • Customers: AI algorithms enable automated responses to customer needs. This is due to a better understanding of their behavior thanks to the technology used. It also allows a tight design of loyalty strategies according to the identified target.
  • Products: This lets you see all the details of each item offered in real time. In e-commerce, it is essential to know everything about storage, distribution, and sale.
  • Labor market: Workers will have to be updated to fill new jobs that will emerge, compared to others that will disappear. However, the number of employees will remain the same; it will neither decrease nor increase. Age and training will be vital to securing a contract.

ARTIFICIAL INTELLIGENCE AS A PROCESS SIMPLIFIER

Every department of a company is subordinate to business management, which guarantees its proper functioning. Overall, the optimization of resources in the shortest possible time is rewarded, ensuring benefits maximization. The accelerator that allows this goal to be reached earlier is Artificial Intelligence.

Next, examples of the company’s organizational structures will be presented for each department. Here, the following is demonstrated: why the democratization of the use of Artificial Intelligence in companies should be ensured.

ADVANTAGES OF AI IN THE SALES DEPARTMENT

Automatically fill, monitor, and update activities related to the company’s CRM database.
Recommend the best response to a customer via email.
You will closely monitor each phase of the funnel to determine the likelihood of converting to a sale. It will identify why the user did not finish making the purchase.

ADVANTAGES OF AI IN THE CUSTOMER SERVICE DEPARTMENT

Automatic segmentation of the type of need that the contacting customer has. It prevents the agent from wasting his time if it is unnecessary.
Optimize the service since the system locates the operator who can best solve the customer’s problem.
Suggest the best solution to solve the problem presented. This reduces the time needed for decision-making but increases the quality of the service.
Save the customer the call to the call center through self-service—for example, a chatbot.

ADVANTAGES OF AI IN THE MARKETING DEPARTMENT

Automatically predict the rate of opening an email and the subscription rate to a newsletter.
Send recommended products exclusively for each user based on recent purchases. The items have a high purchase and conversion rate according to the target’s automatic segmentation by the algorithm.
Prepare messages at the right time. After learning how and when the customer buys (purchase cycle or buyer journey), identify when they will be most vulnerable to the purchase.

Final Words

Artificial Intelligence in Business Intelligence presents a very positive growth trend. However, its introduction is not as fast as companies would like, and challenging work is done on the areas that most affect business management: reasoning, understanding, and interaction.