In today’s rapidly changing business landscape, there is a continuous increase of enterprises implementing Artificial Intelligence (AI) to gain a competitive advantage. AI would positively be a springboard for businesses’ efficiency enhancement, cost reduction, customer service improvement, and much more. However, it is critical to determine whether your business ready for AI. Therefore, in this article, Kyanon Digital will explore what it takes to put AI in place at your company, and look at the signs that your business is ready to adopt artificial intelligence into your existing structures.
1. What is Artificial Intelligence (AI)?
Artificial Intelligence (AI) is a term used to describe processes and algorithms that mimic human reasoning and problem solving based on the available data. Data plays a vital role to accelerate digital transformation in every business, and AI provides a valuable way to reap the benefits from this data. The software engineers and strategists who make AI possible are Machine Learning (ML) engineers and Data Scientists. Generally, data science is a field that studies how to leverage insights and knowledge extracted from data. Machine learning is a particular methodology devoted to understanding and building methods that utilize data to improve performance or inform predictions. These AI systems can then use the available data to make decisions quickly, reducing the need for human input.
2. Benefits of Implementing AI
A 2021 Global Survey showed that AI benefits had tended towards cost-saving rather than top line revenues, as 27% of respondents reported that at least 5% of EBIT could be attributed to AI, up from 22% in the 2020 survey. In tangible terms, AI provides the opportunity to deliver benefits across the three pillars of value, innovation, and service.
Furthermore, AI and ML help businesses perform sentiment analysis to observe customers’ prospects and feelings about them. They are crucial to predictive analytics, which every business needs to identify future opportunities and risks, particularly when it comes to sales and marketing. Additionally, customers’ experience with business improves with automatic recommendations tailored to their tastes, based on their purchasing data. In the manufacturing industry, predicting maintenance goes a long way in preventing unexpected failures or errors.
3. What Signs Show That Your Business is Ready for AI?
3.1. You Have a Well-Structured Data Collection Process
It is undeniable to say that data is the most important part of the foundation on which all AI ambitions are built, and getting good-quality data is one of the biggest challenges in the world of AI. A study indicated that 72% executives say data issues may hold back their AI progress. Data is the fuel that powers machine learning algorithms, enabling them to generate insights that can revolutionize operations and bolster performance.
Data needs to be clean, tagged correctly, and documented. Standards should be in place to ensure data sources will remain secure and consistent, and that collection, storage, and management is effective for organization needs. In order to achieve that, it is necessary to determine:
- What data should be bewared: Consider the expected outcomes of the AI-enabled applications. When it comes to collecting data, most businesses already have some data around. Even without advanced technology that can crunch large data sets, it is not impossible to improve by focusing on the most important data. Leveraging a range of data, such as customer survey responses, user behavior, sales records, and pricing data, is the primary input source for successful AI applications.
- Data structure and analysis: Businesses must create an organized data storage and retrieval system. Storage tools like data warehouses and data lakes will help efficiently store the data, streamlining both retrieval and analysis. With the data organized, AI applications use big data analytics to quickly process and interpret the data. The analysis helps to identify patterns and trends that can provide actionable insights.
3.2. You Have a Knowledgeable Workforce
When implementing AI into a business, the staff makes an outstanding contribution to the success. It is crucial to understand what skills and knowledge employees need, and the job roles that need to be filled to effectively integrate AI technologies into existing processes.
- Staff training: Employees with expertise in digital and analytics are ideal candidates, as they are highly proficient users of technology. Alternatively, staff with solid project management or organization abilities are also highly suited for AI implementation.
- New job roles: When launching a new AI-based task, businesses should also consider the implications of new job roles created by the implementation of AI. Some positions may require filling, such as managing new AI technologies, a data scientist to interpret data, or a solution architect to design and develop AI systems. These roles are necessary to successfully implement AI technologies into existing processes.
3.3. You Are Certain that AI Exerts A Positive Effect On the Company ROI
It is rational to determine a positive ROI on any business investment, and AI implementation is not an exception. Considering the return on investment of an AI-related project would prevent enterprises from making unnecessary expenses. There are multiple things to consider before implementing an AI solution in the organization, specifically related to ROI. These are questions that should be asked:
- Is AI implementation making a positive effect on business revenue generation?
- Is there enough data to advantage the technology to its full capacity?
- Is there a strategy in place to utilize AI technology?
If the responses are positive in all of these questions, then it is possible to generate practical ROI from AI investment. The calculation for an AI-related project would be quite straightforward after this. It is essential to determine if AI can generate a positive ROI for a company.
Kyanon Digital hopes you have derived the benefits of this article. As a result, you can gain a deeper knowledge of Artificial Intelligence (AI) and determine whether your organization is ready for AI, and how your business will benefit from it. And if you have any questions related to this matter, do not hesitate to contact us for specific consultation.