Artificial intelligence is on everyone’s lips. Companies that want to remain fit for the future need to get to grips with it today. Because AI will positively reshape the corporate world. Don’t be afraid of the new possibilities, proceed with caution: inform, test, and adapt. As an entrepreneur, it is essential that you engage with it and consider the pros and cons. AI forms integral part of transformation, but is not the transformation per se, see it as a smart instrument at your disposal. You remain at the helm of the transformation, and that is the key.
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The importance of AI for companies
AI imitates human cognitive abilities, thus can perform tasks that previously could be carried out by humans exclusively. AI can automate processes, increase productivity and efficiency, and even improve customer and employee satisfaction.
In business transformation it plays a supporting/integrating role. As it can eventually predict market developments in complex scenarios and optimize/validate business strategies. Nevertheless, it also harbors risks and challenges that every company should face. You can find out how entrepreneurs deal with these in the subsequent section: Risks and challenges when implementing AI.
AI benefits for your company business
Benefit No. 1: Automate processes for greater efficiency and productivity
In every company, there are routine tasks that do not necessarily require directly involved and intervening human intelligence. AI can take over and automate these tasks with suitable parameters set by humans. Meanwhile, employees can devote themselves to more complex tasks that can only be performed by them and thereby create extra added value. This increases productivity and efficiency. Humans are not replaced, but rather given new potential and stay in charge.
Benefit No. 2: Save costs by using AI
Initially, the development of AI applications increases costs. In most cases, however, you will save costs shortly afterward and harvest a nice ROI. AI works more accurately, faster, and more objectively. Above all, it is value for money, just think of the advantages mentioned above. Your employees can devote themselves to more complex (brain force) tasks, enabling a more agile and innovative corporate culture and extra space for innovation. ‘People still know People better’ as any AI can perform (e.g. in complex personnel situations, in marketing, activities that require out of the box thinking, human senses etc.).
Benefit No. 3: Increased customer and employee satisfaction through personalized offers and services
By creating in-depth customer profiles and accurate data analysis, AI creates a new way of interacting with customers. It can provide personalized recommendations and offers for customers. This improves customer loyalty and increases satisfaction, which in turn can boost sales. We do live in the age of individualization. What works externally also works internally. Individual employee solutions become possible and effective. AI tools allow for efficient and effective individualization at a reasonable cost.
Benefit No. 4: Identify future market developments and optimize (test/validate) your business strategies
AI-supported data analysis supports your company in many areas. Providing you early warning of emerging trends and allowing you to take the necessary targeted and future driven steps. Operational and strategic decision-making becomes easier for business leaders as they can base their decisions on data (transformed into insights and information thanks to AI) and having them pre tested/validated against the ever increasing AI accessible universe. A leap step to a increasingly future-proof company and quality in leadership decision taking.
Benefit No. 5: Time savings and more room for creativity
By leaving time-consuming routine tasks to AI, your employees and yourself have more time for creative work, innovation, value-generating tasks and business development. New ideas can be AI tested for success. Thus AI supports both the routine and the creative process. However, the latter is still controlled and naturally owned by humans.
Risks and challenges when implementing AI
AI does not only provide new possibilities and opportunities. If you want to embrace it positively, you also need to be aware of the challenges and risks involved in dealing with AI.
Challenge no. 1: Data protection and data security
If you use artificial intelligence, be aware that it has access to a large amount of personal and often sensitive data. Therefore address the question of how this data is stored and protected; who has access to it and, above all, how you can guarantee data protection not only technically but in your processes. Disregarding these aspects can damage the mutual trust of your customers and employees, as well as having legal consequences; nobody wants that. There are solutions to this; find out more about it right at the start of your AI journey and you will be OK.
Challenge no. 2: Job losses due to automation
AI supported process automation can lead to job losses (not necessarily). Tentatively mainly employees performing repetitive tasks are affected. Staff are also trained to use AI and can be re-deployed for other, more complex tasks. The issue needs to be handled with sensitivity. After all, every advance in technology can have a negative impact on employees’ areas of responsibility. However, it is also true that AI creates new task profiles and therefore jobs. Sometimes even entirely new business areas (e.g. in medicine). I remember when the internet came up. Yes, it has changed work, but it definitely has created new jobs.
Challenge no. 3: Transparency
Responsible use of AI is essential. Since AI systems can make decisions autonomously (of course only where this is permitted to this extent), this is not without ethical concerns. As a company, you need to ask yourself who is responsible for the AI’s decisions. How can you find a good balance between the technology and ethical principles, delegated authority and control mechanisms? You need to introduce clear guidelines and structures that involve both humans and machines. Alternative thought models and design elements are required to ensure that this is not a case of working against each other, but with each other. Make sure the human keeps the last call, not the machine. In-between just enjoy the benefits AI provides.
How AI will change organizations
Companies will be able to access and process ever larger volumes of data. This will lead to the emergence of data-driven business models that offer individualized services and tailor-made products and solutions. The available data can be used to identify customers’ needs and satisfy them with precisely tailored solutions. AI contributes to the automation of tasks and increases productivity and efficiency in day-to-day business and can therefore have a decisive impact on the business world in the coming years and decades. AI offers many opportunities and possibilities, but also entails risks and challenges. This is not just an operational task, but also a strategic task (and responsibility) for company management. Al is definitely a key boardroom topic; board should have it on their radar.
Organizations cannot focus on the opportunities and possibilities only. They must also smartly address the AI-age risks and challenges. Including filtering misinformation, the redefining of jobs, data protection, dependency on technologies and ethical issues in AI decision making. Every organization has its responsibility to actively address all the possible applications and associated challenges of AI and to proactively shape the change. This way AI has the potential to positively change the world of work and live, seizing the opportunities and possibilities offered by AI and tackling the respective risks in an intelligent and agile manner.
As a transformation partner, I will support you in your corporate transformation
You have a first overview of how AI can transform your business in 2024 and beyond. If you are looking for experienced transformation partners who can support you passionately in your business transformation efforts, we are here to serve. Get in touch today via info@enjoytransformation.com. Talk soon.
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