Still Unsure of Using AI as Digital Transformation Strategy? These 3 Outstanding Benefits of AI Will Convince You
As we stand in 2022, the terms artificial intelligence (AI) and digital transformation are linked. Less than 30% of digital transformation projects are successful, according to McKinsey. The success rate is as low as 4% in some industries. Digital transformations frequently fail because businesses don’t fully utilize artificial intelligence.
In reality, AI can be one of the best ways to get value out of a digital transformation. AI already is and will continue to power the next phase of digital transformation initiatives, creating opportunities and improvements not possible previously.
Artificial Intelligence as a Powerful Digital Innovation Strategy
Did you know? A recent Infosys survey found that 98% of businesses that use AI to drive their digital transformation generate 15% more revenue. AI is one of the most disruptive forces behind a business’ digital transformation. Artificial intelligence refers to a technology that enables machines and computers to mimic certain functions of the human brain. AI also typically refers to the process of creating systems that have traits of human intelligence, such as the capacity to learn from the past, reason, find meaning, and generalize.
Given that data is the foundation of digital transformation, AI is crucial.
The lifeblood of any modern business is data. Data is produced by each interaction your company has with its markets and customers. This is why AI can be a powerful digital innovation strategy for your business in this digital transformation era. When considering the goals of digital transformation and the range of technologies used in this process of transformation, the significance of AI is evident (Li et al., 2017; Pan, 2016).
3 Outstanding Benefits of Artificial Intelligence (AI) to Accelerate Your Business in the Digital Transformation Era
1. AI for Data Security
a. Biometric Authentication
Being able to use AI to automatically detect and respond to data breaches is extremely important to protect business data. AI biometric authentication offers a defense against data breach by using body parts’ distinctive traits. These informative distinctive traits are converted by AI into codes or made more machine understandable. Thus, AI and biometric technology are paving the way for identity verification processes and reducing security risks.
b. Acceleration of Threat Detection
Different types of malwares can’t be handled by conventional cybersecurity systems. Thus, business must employ advanced security tools that can deal with these problems. AI is effective in analyzing site crawl paths, micro-behavior of malware, and any malicious activity. Businesses now are implementing AI-driven systems that can quickly identify threats through pattern recognition using sophisticated algorithms and constantly updated codes (Rakhmatov, 2021).
c. Fast Response to Attacks
The use of AI technology to automate the incident response process has greatly improved security operations. AI can analyze millions of security events using advanced machine learning capabilities, and it can identify threat patterns ranging from malware exploiting to risky behavior, phishing attacks, and malicious app codes. AI has assisted cybersecurity teams in overcoming the drawback of duplicate security procedures by introducing workflow automation.
2. AI for Customer Service
a. Chatbot-based customer support
Today’s customer service representatives are required to respond to numerous customers calls on a daily basis. They must also work to cut down on the typical resolution time for each customer. Both of these problems can be solved in part by using chatbots. Not only offer immediate responses in real-time, chatbot can also answer a large volume of customer inquiries with the highest level of accuracy and human-like behavior.
b. Cost reduction and resource optimization
According to IBM, companies worldwide spend more than $1.3 trillion annually on 265 billion customer service calls. By accelerating response times, freeing up agents for more work, and responding to routine questions, chatbot can help to reduce the cost of providing customer service.
c. Personalized user experiences
AI aids in the analysis of customer data which enables to make product or service recommendations to customers based on their browsing and purchasing preferences. Huge data sets can be analyzed by AI, which can also be used to determine location and other information and suggest relevant content to customers. Businesses can concentrate on individual purchasing patterns and gain a better understanding of each customer.
3. AI for Sales
a. Demand forecasting
Demand forecasting is a form of predictive analytics, where the process of estimating customer demand is analysed using historical data (Dilmegani, 2021). Although complex, forecasts can be automated. Based on all client interactions and previous sales results, artificial intelligence enables the automated and precise creation of sales projections.
b. Lead scoring
Lead prioritization is aided by AI. Based on their likelihood to convert, these tools assist sales professionals in prioritizing customers. By assembling past data on a client, social media postings, and the salesperson’s history of customer interactions, the AI algorithm can rank the opportunities or leads in the pipeline based on their likelihood of closing successfully.
c. Sales rep chat/email bot
According to reports, chatbots increase sales by 67% on average. By sending a personalized message, they can start the conversation and make it easy for customers to get involved right away or later. Sales representatives can avoid manually sending personalized emails to numerous customers by using AI algorithms.
In conclusion, AI is a GAME-CHANGER. AI serves as a catalyst for the digital transformation, assisting businesses in becoming more creative, data-driven, and responsive to their customers’ escalating demands. Business utilizing AI as a key part of their Digital Innovation Strategy are surely achieving a successful Digital Transformation.
Do you agree that AI is the key to Digital Transformation? Let us know your thoughts below!