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How can Artificial Intelligence Deliver Real Value to Companies?

Narendra Kumar

| Updated: Nov 07, 2017 | Category: General

Artificial Intelligence

Artificial intelligence is a branch of computer science that targets to create intelligent machines.

What is Artificial Intelligence can it Deliver real Value to Companies?

Artificial intelligence (AI) is a part of computer science that highlights the formation of intelligent machines that work & react like humans. However, some of the activities computers with artificial intelligence are designed for comprising:

  • Speech recognition
  • Learning
  • Planning
  • Problem solving

Artificial intelligence is a branch of computer science that targets to create intelligent machines. It has become a vital part of the technology industry. Research associated with artificial intelligence is extremely practical & specialized. The core problems of artificial intelligence include programming computers for certain traits such as Knowledge, Reasoning, Problem-solving, Perception, Learning, Planning, Ability to manipulate & move objects. An essential part of AI exploration & study is knowledge engineering. Machines can often act & react like humans only if they have abundant information relating to the world. Artificial intelligence must have access to objects, categories, properties & relations between all of them to implement knowledge engineering. At starting common sense, reasoning & problem-solving power in machines is a problematic, tough & tedious approach.

Artificial Intelligence is a way of making a computer, a computer-controlled robot, or a software think intelligently, in the similar manner the intelligent humans think. Artificial Intelligence is accomplished by studying that how the human begins brain thinks & how humans learn, decide & work while trying to resolve a problem, & then using the outcomes of this study as a basis for developing intelligent software & systems.

Main Content

New Companies which acquire a great deal from initial adopters who have invested billions into AI & are now beginning to reap a range of benefits. After decades of extravagant promises & frustrating disappointments, artificial intelligence (AI) is finally starting to deliver real-life benefits to early-adopting companies. Retailers on the digital frontline depend on AI-powered robots to run their warehouses & even to automatically order stock when inventory runs low. Utilities use AI to forecast electricity demand. Automakers harness the technology in self-driving cars.

A confluence of developments is driving this new wave of AI development. Computer influence is growing, algorithms & AI models are becoming more cultured, sophisticated & perhaps most important of all, the world is generating once-unimaginable volumes of the fuel that powers AI—data. Ranging from web browsers to turbine sensors billions of gigabytes each day is collected by networked devices. Most of the investment in AI consists of internal R&D spending by large, cash-rich digital-native companies like Amazon, Google, etc.

For all the investment, much of the AI acceptance outside of the tech sector is at an early, experimental stage. Few firms have deployed it at scale. AI adopters incline to be closer to the digital frontier, are amongst the larger firms within sectors, organize AI across the technology groups, use AI in the most core part of the value chain, adopt AI to increase revenue as well as reduce costs, & have the full support of the executive leadership. Companies that have not yet adopted AI technology at scale or in a core part of their business are unsure of a business case for AI or of the returns they can expect on an AI investment.

Thus, initial proof recommends that there is a business case to be made & that Artificial Intelligence can deliver real value to companies willing to use it across operations & within their core functions. Early AI adopters that combine strong digital capability with proactive strategies have higher profit margins & expect the performance gap with other firms to widen in the next three years. However, various firms say they are currently unaware & uncertain about any possible business returns, with AI being deployed commercially in just 12% of cases. On some research conducted it’s found that the companies who are early adopters of AI that combine strong digital capability with proactive strategy typically have higher profit margins. Companies that fail to embrace the growing AI trend look set to see the gap between them & early adopters continue to grow, with the latter already gaining significant competitive advantages. AI also brings urgent challenges to business, the workforce has to be reskilled to work alongside AI & robotics, as opposed to competing with it. Progress will also need to be made on the ethical, legal & regulatory challenges that currently face the implementation of artificial intelligence.

Companies which are incorporated newly to AI can learn a great deal from early adopters who have invested billions into AI & are now beginning to reap a range of benefits.

However to recognize a gap between Artificial Intelligence investment & commercial application, which is typical of initial technology development curves, that the new generation of AI applications is based on the foundation of digitization. Leading sectors in digital tend to be leading sectors in AI, & these are predicted to drive growth. AI has the potential to accelerate shifts in market share, revenue, & profit pools—all hallmarks of digitally disrupted sectors.

Conclusion

For many companies, this means accelerating the digital transformation journey, AI is not going to allow companies to leapfrog getting the digital basics right. They will have to get the right digital assets & skills in place to be able to effectively deploy AI. It concludes that pioneer companies in adopting AI tend to be closer to the digital frontier, are among the largest of their sectors, deploy AI in different technology groups, use cognitive technologies at the heart of their chain of value, apply the IA to increase revenues & reduce costs & have the full support of senior management. Companies that have not yet adopted AI on a large scale or in the fundamental part of their business are not sure that they can benefit from the technology & obtain the returns they expected from their investments. Companies that incorporate AI early, & combine strong digital capabilities with proactive strategies, have higher profit margins & expect the difference in results with their competitors to be extended in the next three years.

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Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

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