Is it the right time to consider an AI strategy for your business? Large corporations are investing in AI right now, raising one question: will you starting planning for the AI era before, or after, your competitors?
Read on for our AI strategy overview…
What is AI Strategy?
According to MIT Sloan Review, the definition of AI strategy is the merging of artificial intelligence into the business world. It is how AI affects the developing and maintenance of strategy in a company or industry.
However, due to AI strategy being unfamiliar territory, many ethical and moral issues have arisen. The main objective of AI strategy is to combine humans and machines alike to achieve maximum efficiency in the workplace.
However, many software experts claim that businesses should not jump ahead into AI strategy, right away. Because it is a huge commitment and a new area of work, many companies should take a calculated approach and figure out whether AI strategy is the right next step for them. A company must consider the risk they are taking with this strategy; they should also consider if they have the right risk management plan to accompany it. It will also require a lot of working hours and skilled, dedicated teams to monitor AI strategies to ensure maximum results.
How AI Strategy Works: How to Develop Artificial Intelligence
The most common use of AI strategies? The use of chat-bots as a virtual presence of the company.
AI strategy gives digital marketing departments less cause for guesswork and more room for analytical facts. In digital marketing, the team has the task to understanding their audience and their reactions to a campaign through the best possible use of research and metrics. But, this AI strategy has the ability to analyse and predict future objectives behaviour from the audience based on statistical reports and patterns of behaviour.
Most companies who have used and integrated AI strategy into their business have the same objective; they have a specific problem that they need to solve and they are using artificial intelligence to do it. There are many areas where AI strategy excels and progresses, but it mostly depends on the industry. The most common aspect that has been dominated by artificial intelligence is R&D, information technology, and customer service. In the case of customer service, companies use voice recognition to give customers the help they need in record timing.
Benefits of AI Strategy in the Workplace as a Digital Marketer
According to Forbes Magazine, AI strategy will benefit the marketing industry and increase its efficiency in a multitude of ways; this includes business strategy. In terms of digital marketing, this particular strategy has the capacity to track down what kind of content that consumers find most interesting and what attracts them. Digital marketers used to use a variety of tools to find out what might impresses the audience; AI strategy aids marketers to create more personalised content that will be distinguishing for every target audience. This allows the customers the experience they will enjoy and benefit most out of.
Artificial intelligence also offers a more sophisticated digital marketing process. This means that instead of marketers guessing the outcome of their audience, this strategy confirms the audience’s reaction. Using AI strategy in digital marketing does not discard the traditional process. But, it makes the process easier and more proficient for the department, the client and the product that is promoted.
AI strategy also allows digital marketers to establish more proficient and personalised marketing campaigns and with better distribution among a specific target audience too. By doing so, marketers can work with a broader view of the campaign; they won’t waste as much time in collecting data. Simply put, the artificial intelligence will collect the data for marketers and allow them to apply it creatively. That is how the digital marketing department in any industry can benefit from artificial intelligence in the workplace.
In terms of digital marketing being incorporated into artificial intelligence, there are four main issues that this business strategy rectifies. This can also be applied into any other industry. These main issues are: minimising errors, minimising faults in performance, increases productivity in workplace and maximises breakthroughs in the company.
Risks of AI Strategy: Artificial Intelligence…The Drawbacks
AI strategy is considered a cutting edge trend, but it is still has its disadvantages. The disadvantages of artificial intelligence are something that should be considered: ethical concerns, cost, and loss of control over business decisions and implementation.
The first concern is ethical concern because artificial intelligence tends to invade the privacy of the target audience. It is a common misconduct for companies to use artificial intelligence in an invasive way towards their clients; this has been a more-than widespread mistake that has led to lawsuits and demolished reputations.
The second concern is cost, because AI strategy is an expensive investment. The cost of incorporating artificial intelligence into a business is a risky endeavour; it needs a calculated approach, from the company’s part. Even after the AI strategy is applied into the business, there is still space for mistakes. If the strategy malfunctions, it costs almost double the amount of money to fix it. The third concern is the implementation of AI strategy, which is a lengthy process. The process takes a long time and needs a lot of consideration.
The final concern is the loss of control over business decisions; AI strategy tends to give up the human aspect of decision-making. AI strategy is very technical and doesn’t allow the human instinct to come to play. This causes a lot of controversy in a company; this is because artificial intelligence could be implemented and eliminates the human aspect of a firm. Those are the risks of artificial intelligence added into a company.
How to Create a Successful AI Strategy
In order to create a successful AI strategy, you need to define what the problem is that you’re facing. Whether it is business strategy, information development, or customer service, artificial intelligence will solve an issue that a company faces. Once artificial intelligence has been considered into a business, there are a few steps that need to be measured.
The first step is the understanding of a company’s strategic status and focusing on the AI strategy initiative. Artificial intelligence will help fix a problem and incorporate technological progress, but the company has to define the problem’s extent. The upper management is responsible to fully understand if AI strategy is the best implementation of problem-solving in their business.
You should decide whether or not AI strategy is the best choice for the business; after that, the next step to success is hiring the right people. To start AI strategy incorporation is a challenge, but finding people to incorporate it is a whole other challenge. It is crucial to find the right people to integrate AI strategy; this includes data scientists, researchers and software engineers.
If a corporation manages to find and hire a team for artificial intelligence, then the final step is training them. The company is obliged to train the interrelated departments that correspond with this strategy; this is so the other departments will be able to handle any conflict that occurs relating to artificial intelligence. For example, the customer service department will have to learn how to use automated chat-bots as a means of interaction.
Once these steps were implemented and monitored, then the integrated artificial intelligence in a company should be a success.
AI Strategy in the Business World: How is it Approached?
One of the most common uses of AI strategy in the business world is project management and maintenance. Along with project maintenance, another common use of artificial intelligence strategy is data collection and statistical analysis. Incorporating artificial intelligence strategy into a company turns an organisation from a functional to a learning organisation.
According to McKinsey and Co, there are five dimensions following AI strategy: plan for action, authority, infrastructure, creativity and ethnicity. Each one of these aspects is a cornerstone of AI strategy and help explain the intricacy that is AI strategy.
By establishing plans for action, the company will be able to define the areas that AI strategy will excel in the business. The plans for action should be intertwined with the organisation’s business strategy and its overall objective in its industry. Authority in AI strategy refers to the organisational structure of the company while adding the AI to the upgraded model. This means that there should be an “AI model” that will optimise the structure of the business.
A company applies the infrastructure of this business strategy by ironing out the technical aspect of it. Artificial intelligence needs equipment and data architecture in order to function properly. In the business world, infrastructure for AI revolves around the relevant tools that are required for it to work. The fourth and final aspect is creativity and this consists of human labor. AI strategy requires an “all hands on deck” approach from every part of the company; this stems from the CEO to the mere employee. In any company that incorporates AI strategy, leadership is necessary for the process to run smoothly and surely.
AI Strategy and its Impact
AI strategy has been expanding rapidly across all of the industries, one technological fingerprint at a time. Most business executives have been going back and forth in incorporating this business strategy into their companies; many of business executives are uncertain because of the risk factor.
However, the companies that have included AI strategy into their business plan have benefited greatly.
There is one area that AI strategy has made a remarkable contribution and that is data, as mentioned above. It has the ability to process any form of information or data and turn into information companies require. There are many different structures of data and this strategy can process all of them; it does it in record timing and in large quantities. The main area of expertise of AI is to make the human aspect of the organisation find data easier.
AI also helps in the decision-making process, cutting down the time to half and offers twice the amount of knowledge. It can also give the company a considerable advantage in the marketplace, because of the information it offers. It provides companies with relevant information about any topic they require and gives real-time insight.
Real-time insight is important in a company because it gives the business the effects they need to know; real-time insight is information being applied to the real-world. Artificial intelligence is applied to offer real-life insight in strategic plans; it is processed both within the company and with external parties.
Finally, AI strategy has been known to avoid and maintain risk that could occur in a company. Artificial intelligence also gives the organisation a considerable advantage because it can tell the company what their competitors are doing. This gives the organisation an edge and keeps them one step ahead, due to the information that AI strategy processes.
Examples of AI Strategy Use in Companies
AI strategy has been an epidemic in the business world for the past two years. The positive results and expansion of AI has led to many companies integrating artificial intelligence into business applications. The most famous example is Walmart and the artificial intelligence, HANA. Walmart is one of the most successful retail corporations in the world.
HANA is an AI strategy that is specifically created for the Walmart chain, where they use it for machine learning. This strategy is more distinguished than generic AI, because it stores raw information into RAM instead of on a disk. HANA stores information on RAM because it allows the corporation to access more accurate data with real-time.
HANA has been used in analytics for product promotion and machine learning; machine-learning is information-driven decisions that keep the organisation better informed. This is the current alternative to informed assumptions of the future. HANA has helped the Walmart Incorporation keep up with customer preferences without being affected by the supply chain.
Other companies have used HANA as an AI strategy and they claim that their revenue has been skyrocketed. Businesses use artificial intelligence because it helps them prevent any conflict before it arises. If there is a problem with the supplier of the company, then the AI strategy will let them know; it will even offer solutions to the problem that harmonises with their budget.
HANA and Walmart is just one of the many examples of artificial intelligence being integrated in a company. It is also one of many instances where the organisation doesn’t regret artificial intelligence and mentioned high praises about it. HANA concentrates on the machinery, so it gives seasonal alerts on a piece of equipment should be fixed or upgraded.
AI strategy brings many benefits, from saving time to facilitating the decision-making process.
However, almost every expert and data analyst in AI has suggested that before integrating this business strategy into a company, there are measures to be taken. Companies need to take a calculated approach to the integration, rather than jumping head-first.
AI strategy has rapidly dominated the business world, what time is the right time for your business to get ahead of this trend?