How and Why Artificial Intelligence is the Future of Business Automation and Economy  – Statistics prove it

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Better technologies make incorporation of AI into business automation easier and cheaper.

AI cannot think and act like a human, but it does do quite a bit more.

It is no surprise that 47% of digitally mature organizations now have a defined AI strategy, says Giselle Abramovich on cmo.adobe.com.

That focus on AI goes hand in hand with leveraging the power of mobile technologies.

PwC, a consultancy service, found that AI is being put to a variety of specific uses in the business environment, and 54% of such enterprises report increased productivity.

AI promotes workplace automation

Artificial Intelligence

McKinsey’s research finds that 45% of activities in the workplace are routine and manual. This means employees do not get time to make productive use of their skills and talent.

Such actions are valued at $ 2 trillion in wages, covering the low end as well as senior executive-level jobs.

The McKinsey studies find that automating business processes can give returns that are worth three to ten times the cost of investing in AI.

AI, with its natural language processing ability, can automate about 13 percent of work activities.

Natural language finds use in analyzing raw data and generating natural language reports. For example, you may not need a receptionist to meet and greet people and show them the way. Your receptionist can engage in more productive, stimulating, and rewarding tasks.

Amazon uses robots for its fulfillment centers, saving costs, speeding up deliveries, and reducing dependence on the workforce. Work gets done four times faster.

The McKinsey report says that 60 percent of occupations can have 30% of the activity set automated. Source.

At the top level, it is found that 20% of businesses that high-level executives engage in can be automated.

Employees who are freed from tedious, repetitive tasks can use their brainpower to do more for their employers.

Big data gets bigger

Artificial Intelligence

The thought of managing the tremendous deluge of various data types flowing across multiple channels can be daunting. To sort it out, make sense of it, and derive intelligence and actionable insights in real-time are climbing a mountain too high were it not for AI.

AI with machine learning can happily take on terabytes of data, sort it out as it flows, and cherry-pick it as instructed.

Executives get choice nuggets of information that would take days of working hours and a team of dedicated specialists to extract.

Decision-makers may not even have to contemplate on which way to go. The AI-powered data analytics platform makes recommendations.

These are far more precise and accurate than the subjective decisions executives are likely to take.

Better manufacturing, better economy

Manufacturing is one of the backbones of the economy.

The world is still reeling under the massive Chinese onslaught in all spheres of manufacturing with low cost yet acceptable products.

In manufacturing, AI helps reduce costs, ensure better process controls, reduce machine downtime, and speed up production.

AI can help automate quite a few processes and do away with the need for skilled workers.

Whereas workers will work efficiently for only a few years, you will find AI-powered machines working tirelessly 24×7 without asking for bonuses or overtime or wage hikes.

A market and market report predict that in manufacturing, AI will grow to USD 17.2 billion by 2025 at a rate of growth of over 495.

The rise of IoT, better integration into manufacturing processes, and streamlining of data with AI & ML leads to more adoption with more positive outcomes.

Manufacturing is about the rapid production of fault-free products as it is about machinery maintenance and preventive services. AI, happily, ticks all the boxes.

IoT sensors can detect when a machine is sub-par and order shutdown or maintenance before it breaks down and leads to expensive repairs.

The Chinese may rely on human-powered mass production, but in more developed nations, AI is the key to manufacturing competitiveness and a healthy economy.

North America and Europe are the areas that will see the maximum utilization of AI in manufacturing.

America and Europe may not match the Asia Pacific in terms of numbers of manufacturing plants but could focus on high-tech, more sophisticated high-value products.

China is possibly taking a leaf out of the AI book as a report that Hon Hai Precision Industry Co. Ltd in China replaced 60000 factory workers with robots in 2016.

Another way AI in manufacturing helps economies is that it requires sophisticated processors and software where US-based companies have an undisputed stranglehold.

Intel, for instance, is focusing on products for neural networking.

AI powers retail

Manufacturing needs a sales outlet, and online retail activity is exceptionally competitive even as customers become fickle.

AI helps locals keep track of customers, make recommendations based on browsing preferences, and also anticipate requirements.

AI can be mixed with AR/VR to give a better experience and blend with beacon technologies, such as when the buyers feel inclined to visit brick-and-mortar stores.

AI can even pursue possible buyers through programmatic ads, shepherd them to sellers. Markets and Markets report predicts that the global AI market for retail will grow to USD 5034 million by 2022 at a CAGR of 38%.

As seen above, big data has AI, which helps retailers anticipate trends and be market-ready while giving manufacturing feedback to provide supplies in time and avoid risks of dead inventory.

While on the topic, the subject of swarm intelligence deserves mention. Innocuous data gathering points across the retail universe can become part of a colossal swarm model with uncanny predictive and analytics capabilities. Even mobile devices of users become part of the swarm.

It is not just retail and manufacturing where AI swarms are likely to become commonplace.

Governments benefit by using AI in their various departments of governance, disaster management, agriculture, and tax collections.

AI in governance

Governments have broad, slothful types of machinery that progress at crawl speeds. Progress becomes delayed.

AI changes governance across various segments.

Gargantuan data sets: In a country like China and India with huge populations, the data becomes too overwhelming to manage or make sense of.

AI and ML can handle all data sets and derive insights faster, thus helping the administration to take relevant action across geographic areas or demographics.

Governments have to walk the tightrope of balancing their budgets and allocating resources.

Skewed perspectives may lead to wrong decisions that promote the growth of an area while others more deserving languish.

Lack of support may also hamper administrative machinery.

Weather patterns, climate, and agriculture are all inter-related. Population movement, environment, and economy also influence agriculture.

Putting these data together and then deriving actionable insights is not an easy task by any means.

One of the essential requirements is that one should be able to detect changing weather patterns or patterns that indicate drought or floods to take preemptive action.

AI not only helps in the identification of such patterns but also in recommendations that would improve and adapt agricultural processes and practices.

Agriculture powers the economy of many countries.

A Deloitte report suggests that AI can save governments up to 30 percent of the workforce time by automating tasks and letting government staff attend to more vital tasks.

Paperwork is the bane of governance, an area that can transform with the infusion of AI.

Security is a vital area that requires constant attention.

There are related matters like crime and fraud. It is no easy task for governments to identify scams, check corruption within its departments, or keep watch on suspected criminals.

Artificial intelligence helps to transform this landscape, hopefully leading to a securer and safer future for citizens.

Security also extends to defense operations to keep borders and integrity of a nation sufficiently safeguarded.

Governments must keep track of industry and commerce.

Their statistical department may not be able to cope with all the data and derive precise intelligence about the state of sector or trends.

AI takes care of data density, granularity, and links, becoming smarter as the ML portion feeds on more and more data to give precise answers.

Healthcare is another area where governments are involved. Healthcare by governments is public service-oriented and not a revenue-generating service.

Artificial intelligence brings a variety of benefits to the healthcare sector, even privately operated ones.

Governments can use AI to analyze health records of its citizens, automatically monitor and recommend timely treatments, and also initiate wellness programs to keep citizens at peak condition.

Healthy people work better, and this naturally contributes to a healthy economy.

Artificial intelligence is not a magic remedy, but this advanced technology does take things to the next level in any industry and at any level.

Imagine a future in which small businesses men can access AI as a service, asking a robot challenging questions about decision making and receiving informed answers.

He does not need to pay consultants and gets advice that boosts business.

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