Business Analytics: Is Artificial Intelligence the Future?
Enterprises are ushering into a new era ruled by data. And this challenge to improve decision-making and routine business activities is bringing Artificial Intelligence (AI) and Business Analytics (BA) ever closer together.
Organizations from the most diverse industries already rely on machine learning algorithms to recognize new trends and insights in gigantic databases.
These technologies translate - in real time - these answers into colorful charts, elegant graphs, and, consequently, practical business actions.
In recent years, entrepreneurs have begun to apply artificial intelligence (AI) technology to their businesses.
Many have used AI systems to automate tasks, while others have used it to develop diagnostic systems or to create bots that can recognize facial expressions. AI is becoming more widely used in many fields, and it can help businesses to gain a competitive advantage.
Therefore, in this article, we will learn more about
- What is Business Analytics?
- What is Artificial Intelligence?
- 9 Benefits of Artificial Intelligence in Business
What is Business Analytics?
Business Analytics (BA) is a data analysis tool that helps you determine which variables are directly affecting company results and extracts insights that support strategic planning, among other things.
It should be noted that a quality BA does not cross-reference only commercial results, but rather gathers data from all departments of the company, from product to marketing campaigns, user interactions, support services, and finance.
This process becomes increasingly complex and accurate - in real time - when the company has an IT team that works with structured, organized data, or has partners that work with robust data lakes.
The supply of the data bases is a good example of how and why collaboration is important. If employees are involved in the process and understand the importance of taking a data-driven approach to decision making, it is easy to ensure that the bases are supplied to the highest quality possible.
A Harvard Business School study shows that 60% of companies use BA to increase operational efficiency, since a user's experience - even more in the digital environment - is fundamental to the purchase decision.
Another McKinsey survey, meanwhile, reveals that 50% of companies said they will have adopted AI in at least 1 business function by 2020.
What is Artificial Intelligence?Artificial intelligence or AI is a term used to define the process of training a computer's systems through human intelligence techniques such as learning, problem solving, and decision making.
The application of AI in business has been enabled primarily by AI-powered machine learning technology, that can be used to perform specific tasks, such as:
- Reading and understanding written text, such as user feedbacks or suggestions
- Recognize and classify images and photos
- Recognize facial features and objects, thus enabling facial recognition and product recommendations (Next Best Action).
One of the biggest challenges faced by companies using AI is integrating customer data spread across different systems. A further challenge is affordability, as many companies do not have the resources to commit to AI.
It is also important to recognize that AI is not always a viable option. Sometimes, the most cost effective and efficient solution is to partner with an organization that can provide the structured data required for AI and apply AI to business analytics.
When thinking about the resources to expend on AI, it is important to think about the potential for growth in customers through better customer experience.
We'll talk more about the benefits of applying AI in the next topic.
9 Benefits of Artificial Intelligence in Business
Many enterprise solutions gain great potential thanks to AI, which incorporates various tools when doing analytics.
Moreover, AI can extract insights from large data sets and automatically recommend future steps not only to your team, but to your customers as well.
Here are some of the key benefits of applying AI in business below.
- Automate communication with customers through online chats, email marketing, and social media messages that previously required human agents. You can even learn the best way to communicate using natural language processing technology.
- Provide digital customers with a personalized experience based on AI-driven data - from customer behavior, online shopping patterns, social media, demographic, and historical information.
- Achieve operational efficiency through AI-powered automations, for example, in inventory management, for automated check-ins, and in industrial facilities.
- Make accurate business forecasts of sales volumes, inventory management, and product demands with predictive analytics based on customer data and buying patterns.
- Detect data on investment and spending trends, and prevent fraud for financial sectors and banks.
- Anticipate diagnoses and prevent disease based on patient exams, medical history, and cross-referencing data from health applications
- Provide real-time help to customers through AI-powered applications for communication or delivering personalized services
- Assist employees with little technical knowledge. While AI reads, interprets and organizes large amounts of data, your team uses the insights and focuses on strategic business issues.
- Optimize the product return stage. With AI and customer data analytics, you can anticipate a return based on user behavior or items in the shopping cart.
Put your data to work!
From businesses closer to our daily lives to the industrial universe, the basic goal of BA with AI is to help companies work with large volumes of data to have unlimited business opportunities.
If you plan to invest in AI and data-driven solutions, it is advisable to contact a reliable software development company.
While many organizations dream of big data and AI solutions, Zoox makes it real. Our experts can guide you in applying and scaling your business.
Contact us to learn more or request a demo.