Tech&Innovation

The Cruciality of AI in Business

“AI is one of the most profound things we’re working on as humanity. It’s more profound than fire or electricity.”

Sundar PIchai WG02, Alphabet CEO, at 2020 World Economic Forum.

The AI Revolution

Artificial Intelligence may seem to still be the stuff of science fiction to some, but modern-day business view it as a revolutionary tool that must be harnessed to keep up with future competition. Already, AI has drastically changed the business model of many digital services. Almost all major platforms, such as Youtube, Gmail, Netflix, and Facebook all have AI-features integrated into core parts of their systems. Additionally, digital assistants and much more are also uses of AI in business products. It allows businesses to reach higher goals with less manpower, but more skill required.

For example, Cybersource is Visa’s global payment management platform. In 2020, the platform processed 21 billion transactions, and 2 billion of them were screened for fraud. Even with this process, each transaction only took half a second. KenSci is an AI platform for digital health, and helps other health-care companies and hospitals harness the power of AI. By analyzing past data, the organizations can plan more accordingly for the future and make statistically favorable decisions. For example, the AI platforms can predict a patient’s length for their hospital stay, helping with planning for patient discharge and care.  JPMorgan Chase is also using the power of AI to thrust themselves into the future. They hope to achieve mass personalization through AI, and by specifically tailoring AI models to the user they are serving, achieve greater financial gain. 

What is AI?

AI, or artificial intelligence is a buzzword and key term used by many simply to attract attention, However, there is a reason, or multiple reasons that this concept generated this much hype surrounding it. Formally, artificial intelligence is a branch of computer science that builds machines capable of performing tasks that usually require human intelligence. However, this usually comes out to an AI model spitting out a prediction for a current data point given past data and time to analyze the trend. 

In business, there are three main types of AI used. The largest use is for process automation. Robotic process automation technologies, or RPAs are more advanced than their predecessors because they can act like a human while gathering it. The second most used type of AI is Cognitive Insights. This branch allows machine-learning based applications to predict various events in the future. 

Finally, the last use is cognitive engagement. This includes digital services such as phonebots that analyze the input by a user and then react accordingly. 

Sources:

https://magazine.wharton.upenn.edu/issues/fall-winter-2021/the-future-of-business/

https://hbr.org/2018/01/artificial-intelligence-for-the-real-world

Categories: Tech&Innovation