Artificial Intelligence is taking over the world. Tasks requiring so many hours are done in a few clicks and taps. New entrepreneurs and enterprises are eager to use AI for business processes. It speeds up their tasks and increases efficiency.
Since Business operations have a peculiar method of processing data, it has to manage, curate, tag, clean, govern, refresh, and prioritize the structured and unstructured data to get perfect.
Does AI for Business Processes Increase Productivity?
Today the world is all about speed and accuracy. AI can do both with its integrated database software. It is perfect for repetitive tasks. Businesses worldwide leverage AI to automate tasks, improve customer service, and gain a competitive advantage. As technology advances, companies can use AI to improve efficiency, streamline workflows, and enhance decision-making processes.
5 Methods Businesses Can Use AI to Increase Efficiency
Here are the main ways a business can use AI for business processes to improve performance and gain higher returns.
Detecting Fraud and Theft
AI can sense any unusual activity instantly. It uses the pattern of all employees and past data. It detects special payments or withdrawals from the business.
This feature is used by Paypal, who later observed that after using AI fraud detection customers started trusting them again, and their productivity increased with timely alerts. Other than that, it increased the accuracy of transactions and decreased their loss by up to $1 billion annually.
American Express uses AI to analyze transactions and identify patterns for better decision-making. This aids in fraud detection and understanding consumer behavior, leading to more informed strategic decisions.
Optimizing Supply Chain Management
Elevating the supply chain is a significant feature of AI. It manages the inventory, detects the need, and balances the demand and supply ratio. Many businesses use this feature to increase traffic on their website. The most prominent example is Amazon.
Amazon detects its customer’s needs through its search history, likes, and followings. It can predict when and how a customer will order the product. So they stock up their inventory for the potential sale and when a customer makes a purchase, they can deliver the product to them within a day or two.
Regarding retail business, Zara is another example that uses AI for prediction. They use AI to know what youth like in apparel, the latest trends, and cuts. It saves them a lot of hustle, wastage of fabric and resources, etc. It also helps them update their inventory.
Improving Customer Service
AI has worked a lot in customer service. From creating chatbots to user interface robots, AI has done everything to make human life easy. We have a lot of examples in our daily lives where AI detects our query and provides the best solution, like the algorithm of Uber Eats and Foodpanda. They know their user’s past orders, patterns of searching, and a list of their favorite restaurants. After opening an app, it gives the perfect suggestions that save time and effort.
Another example is of Uber as it uses AI to predict rider demand and optimize routes for its drivers. By predicting areas with the highest possible orders, the AI helps drivers know where to be at what times, significantly reducing waiting times for riders and increasing trips for drivers.
Similarly, resort owners, online shops, and restaurants can use AI to increase traffic and accuracy in their services. Through this, most entrepreneurs can use AI for business processes.
Automating Repetitive Tasks
AI is also an excellent tool for scheduling repetitive tasks for a longer time. Businesses can significantly enhance efficiency, reduce errors, and allow their staff to focus on more strategic, value-added functions by automating repetitive, routine tasks.
For example, JP Morgan implemented a machine learning platform, COiN, to review commercial loan agreements. A process that typically takes employees thousands of hours. This AI-driven system completes the task in just a few seconds, significantly improving efficiency.
Decreasing Overhead Costs
Overhead costs are the biggest expense of any big business. It includes maintaining all assets, predicting future costs, and improving operational efficiency and customer satisfaction.
General Electric is one of the leading corporations in the industrial sector, dealing with various product lines such as aviation, power, renewable energy, digital industry, and additive manufacturing. They have started leveraging AI to cut overhead costs and maintenance charges. After a while, AI starts predicting when their machine needs maintenance, predicting the life of the device, increasing the output, and much more. This practice saves them thousands of dollars, along with an increased profit ratio.
Thus, AI can be a transformative tool for businesses. It improves efficiency, boosts productivity, enhances customer experiences, and facilitates better decision-making. However, successful AI implementation requires a sound strategy, investment in the right technology, and adapting to change. AI is changing the work dynamic of businesses in multiple industries like healthcare, autonomous vehicles, robotics, finance and much more.
Businesses must remain open to continuous learning and innovation as they embark on their AI journey. Therefore, AI for business processes contributes enormously to monetary and functionality growth of businesses.
AI will take the place of 87 million jobs in five years. But experts say AI will also generate 92 million jobs for humans in different departments. So, either way, or another, AI is helping humans in many different ways possible.
About 42 percent of business organizations are using AI in their day-to-day operations. In the future, the number of business bodies will increase. So, the trend of AI is going nowhere soon.
AI for business processes is meant to make work faster and smoother. Maybe a percentage of experts think of it as a threat, but if we see results and outcomes, AI is the biggest helping tool for humanity.