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Monday, July 22, 2024

The Role of Artificial Intelligence in Modern Business Strategies

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The various businesses are integrating Artificial Intelligence (AI) into their services for enhancing their product quality. Where, AI is drastically changing, how the Businesses operate and compete. The AI became the key part for effectively enhancing business strategies and for implementing data driven decisions.

What is AI?

Artificial Intelligence is developed by humans, for humans. Which can learn, think and can make decisions just like humans do. This technology can process large amounts of data for processing and analysis to understand patterns within it to make impactful decisions.

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How AI is used in Business

1. Human Resources: –

As we have seen, the companies are using AI driven Applicant Tracking System (ATS) software, which makes the process of resume shortlisting fast and efficient for Human Recruiter’s. Which ultimately saves time and efforts which could be taken by HR’s, if they had to analyze all the applicants resumes for shortlisting.

It’ll help for identifying best suitable candidate for any particular job role. And, AI can also analyse employee performance and will suggest training programs for further skill improvement.

2. Customer Services: –

The AI powered chatbots are being used by various industries for helping and resolving their customer queries. Which helps to offer 24/7 customer care services. So, users can ask for help at any point of time.

The chatbot can answer common questions for resolving issues and even guide end users for purchasing any product by analysing their given requirements.

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This ultimately improves the customer satisfaction and reduces the requirement of large customer care team.

Like, In 2024, the company’s like Google and Amazon have increased the use of AI chatbots for handling customer inquiries and to help them by guiding how to use their services and functionalities.

3. Marketing: –

AI helps businesses to understand the behaviour and requirements of their targeted customers. By processing and analysing the data they retrieved from various social media platforms and from customers purchase history and their timing of website visits.

And, after the analysis it can predict what customers actually want. In recent times, the companies like Netflix, YouTube have started using AI algorithms for pushing personalized ads and content recommendations which leads to higher user engagement.

4. Sales: –

The AI can be used to analyse sales data to understand which products are mostly selling, why they are selling and which products are not selling. AI can also suggest best times for contacting potential customers for effectively enhancing the sales.

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5. Product Development: –

AI can help businesses to understand the requirements of users and as per that the companies can start working on designing and developing the products. Which will ultimately help companies to stay ahead of their competitors.

As per processing and analysing customer feedbacks the companies can work on improving their services and can start developing new functionalities as per end-user needs.

Benefits Of AI in Business

1. Efficiency: –

AI can process and analyze large amounts of data faster than humans. Which helps to make data driven decisions smoothly with lesser of amount.

In 2024, industries like finance and healthcare have benefited by AI’s ability to handle large volumes of data for providing quick insights.

2. Accuracy: –

AI reduces the chances of human errors. By predicting the most accurate outcome by analysing large datasets. Majority industries are using AI for enhancing their security. Like finance industries are using AI detecting fraudulent transaction which can be missed by humans.

3. Cost Savings: –

AI ultimately reduces the cost by automating routine tasks. It reduces the need of human resources by automating majority of tasks with speed and accuracy. Like, use of AI driven chatbots can be used to provide 24/7 customer services which leads to minimize the need of enlarging customer support team.

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4. Better Decision Making

AI uses various analysis techniques like predicting analysis, descriptive analysis, prescriptive analysis for effectively analysing the large volume of data to provide better decision making. Where effective and more accurate predictions can be made by analysing the years of generated data. It can help to analyse market Uncertainties to make strategic decisions.

Challenges of AI in Business

1. Cost of Implementation: –

The development and integration of AI systems can be costly especially for small business where, they can struggle with their initial investments. Government and various industry groups are supporting by providing more grants to help small businesses to adopt AI technologies.

2. Job Displacement: –

AI automating majority of industry tasks. Which ultimately affects job market and can vanish some of the jobs which used to require basic and entry level skillset.

Businesses need to manage these transitions carefully by initiating training programs for their employees to upskill to be relevant in this dynamic job market. So, they can be well prepared for AI driven future.

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Future of AI in Business

As the technology advances, the role of AI in business is expected to grow. AI will become more affordable and accessible for small businesses. The recent advancements in AI, such as ChatGPT and various other tools for automating software testing, we can say that, more advanced AI applications will be developed.

In conclusion, AI is playing significant role in modern business strategies. It helps them to make efficient data driven predictions and to automate processes which improves efficiency, reduces cost and enhances user engagement. In this competitive market, the use of AI can be helpful for businesses to compete with their competitors by understanding and fulfilling their customer requirements.

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