How Artificial Intelligence Will Impact Business in 2023

Global economic growth prospects have rapidly deteriorated this year, owing to rising inflation and tightening financial conditions. Additionally, it is hard to predict how long a slowdown in economic indicators will last, such as GDP, corporation profits, and employment. In spite of these pessimistic forecasts, the good news is that businesses can improve their productivity and resilience by making a few intelligent investments today. Many companies survived the challenges that came their way during Covid-19, thanks to digital transformation. Digital transformation is not only limited to taking processes online but has a far greater impact, as we shall see in this article.

The business context in the post-pandemic era

After the pandemic, businesses face high demand from consumers who expect more and are highly expectant. However, high energy costs, a less workforce, and a worldwide semiconductor shortage have resulted in a loss of business profitability. As a result of the global recession, many businesses have gone out of business or are struggling to make a profit. However, businesses that invested in innovation and new technologies have emerged stronger and fitter during these uncertain times. A substantial increase in sales and market share has been observed in such companies across a range of sectors, including consumer packaged goods, automotive, retail, and technology. The important question however remains, how can artificial intelligence turn the tides?

The role of AI in the emergence of business

The post-pandemic period saw companies become more dynamic and predictive in their decision-making in order to achieve operational resilience. In an effort to be flexible and survive in trying times, businesses focused on saving cash and slowing their growth plans. According to a recent survey conducted in India, 66% of CEOs expect a recession over the next 12 months, compared to 86% globally. As we edge closer to a global recession, a carefully thought-out investment in AI and AI-powered tools can go a long way in helping businesses stay afloat. From reducing costs to optimizing financial functions to uncovering new revenue streams, the possibilities opened up by AI are endless. Here are a few ways artificial intelligence can help businesses cope with the current economic situation:

1. Improved customer acquisition and engagement

According to a recent study, improving customer retention rates by just 5% can result in a 25-95% increase in profitability. Thus, it is important for businesses to not only acquire customers but also engage and build a relationship of loyalty with them. Despite significant investments in lead generation, businesses often overlook the customer acquisition and customer retention strategies of offer optimization. Through artificial intelligence, offers can be personalized to make them more effective. Artificial intelligence can be used to create bots that answer questions from potential customers and keep them interested. Through artificial intelligence, email marketing can be customized to each prospect and targeted to their unique interests. As a prospect becomes a customer, AI can continue to boost engagement and drive recurring sales.

2. Unearthing new business growth potential through data sanitization and mining

Did you know that bad data costs companies about $13 million annually? Many businesses lack a fundamental understanding of how the quality of the data running through their systems affects their success. Data and the derived knowledge, if processed and leveraged appropriately, can greatly help enhance profitability. For example, through CRM data automation, organizations can maximize CRM input from sales professionals without adding more tasks to their already overburdened schedules. As a result, CRM is more productive and better able to handle leads, accounts, and contacts with greater accuracy.

3. Real-time-decision and Predictive Behaviour Analysis

The definition of real-time decisions is the ability to make a decision based on the most recent data available, such as data from a customer’s current interaction with a business – with near-zero latency. Real-time decision-making increases the effectiveness of marketing to customers. As an example of real-time decisions, identifying customers using ad blockers and offering alternative UI components can keep them engaged. A predictive analytics process involves using statistics, data mining, and modeling to make predictions. AI can quickly analyze large amounts of data, allowing it to produce real-time, actionable insights that guide customer-brand interactions.

4. Enhanced recruiting and talent sourcing

Companies typically recruit by posting job ads, reviewing resumes, and conducting interviews. However, that’s not how things work anymore. Despite the fact that human interaction will always be essential for recruiting the most qualified candidates, a growing number of companies are using AI-powered recruiting tools in order to find skilled candidates more quickly and efficiently.

An AI-based talent-sourcing solution can read a job description in natural language and recommend top candidates. Recruiters can also use chatbots to screen candidates. With AI-automated tools, hiring managers can receive interview answers from a larger pool of candidates with the same level of effort.

5. Improved Efficiency Of Supply Chains

Organizations across industries are using AI to improve supply chain management. Machine learning algorithms help forecast when and what supplies will be needed, as well as the optimal time to move them. With AI, business leaders can minimize and possibly eliminate overstocking and the risk of running short of in-demand goods by creating more efficient, cost-effective supply chains.

According to Gartner, between 2020 and 2024, 50% of supply chain organizations will invest in applications supporting artificial intelligence and advanced analytics.

6. Increased business productivity

Business productivity and artificial intelligence are intertwined. AI is a significant contributor to business productivity. In the field of project management, artificial intelligence has demonstrated its ability to enhance team performance and project outcomes. By utilizing AI to automate and improve data sets used in project execution, organizations can achieve optimal investment value and identify savings that can be used for further product development, leading to increased organizational growth.

Let’s examine a few instances of how companies implement AI for emerging successfully in business.

What the future holds for AI in business emerge

With AI, businesses can navigate nearly any market environment by increasing productivity, accuracy, and growth at a lower cost as well as reducing customer churn. Back- and front-office software is being integrated with such capabilities to enable businesses to improve performance across their organizations. Embedded AI facilitates the acquisition of fully operational AI capabilities where they are needed in an efficient and smart way. Various AI-powered capabilities are now available in this way, tailored to the role of the user with a range of critical information. Artificial intelligence can help counteract the current economic and commercial headwinds. It enables organizations to improve customer service, automate processes, reduce expenses, and increase revenues. In these challenging times, perhaps AI will help us become more resilient.

Reference

Edited By : Naga Vydyanathan

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Global Recession: How Artificial Intelligence Will Impact Business in 2023