The use of computer systems to carry out operations that ordinarily require human understanding is referred to as using "artificial intelligence" (AI) and has been around for almost 60 years. But, it is only now that AI seems poised to revolutionize a range of sectors, including manufacturing, law, journalism, aerospace, and health care, with the potential to have a significant impact on how people live, work, and play.
In order for AI to flourish, a number of elements have come together. Computers can now complete complicated tasks at speeds that were previously unthinkable because to increased processing power, and the cost of doing so is falling quickly. The expansion of cloud computing and the outsourcing of data storage, whose costs have decreased dramatically, have made it possible for businesses to create and employ AI applications. The ability to access apps from most remote regions is made feasible by workers' mobility and the accessibility of bandwidth. In addition, our capacity to incorporate brain-like components into computers and our growing understanding of how the human brain functions have led to the development of features like speech and pattern recognition, natural language learning, and machine learning.
We anticipate an exponential rise in the number of commercial AI-based applications over the next three to five years. According to a Deloitte research released earlier this year titled Cognitive technologies: The actual potential for business, AI applications can be broadly divided into three categories:
For the advantage of the end user, product applications incorporate AI into a good or service. Netflix's recommendation engine and the application of computer vision to increase auto safety are two examples.
AI is incorporated into process applications to either automate processes or enhance them by increasing worker effectiveness. For first-tier customer assistance, automated voice response systems have been employed for some time in place of human customer service representatives. Building on the knowledge of specialists, the Hong Kong subway system uses AI to automate and optimize the planning of workers' engineering duties.
Applications for insights use cutting-edge analytical tools like machine learning to unearth insights that can guide tactical and strategic decisions within an organization. For instance, chipmaker Intel uses a prediction algorithm to divide its clientele into groups based on their shared wants and purchasing habits. Following that, it prioritizes its sales efforts and customizes promotions using this information. After it is implemented globally, the corporation anticipates an additional $20 million in revenue from the strategy.
These are but a few instances; more are being introduced to the market every day. Leaders across all sectors must consider if, how, and where to make investments in AI-based technology. Understanding the available AI technologies is the first step in this process. Next, it involves examining current and potential business processes, staffing models, data assets, and markets to find applications for AI that can boost quality, speed, and functionality as well as top-line revenue growth.
But thinking of what might be is not only about possibilities. CEOs must put on their "paranoia hat" and think about how AI can disrupt their company or possibly their entire sector. This conversation should be had right away. It might already be too late in three to five years.
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