AI in business analytics: Not long ago, people associated artificial intelligence (AI) with fiction and science. It was more like an extraordinary concept that seemed too good to be true. Surprisingly, AI has become pretty commonplace in our daily lives today. In households, people have AI-enabled voice assistants such as Alexa and various smart appliances. Similarly, business owners are integrating AI to automate repetitive and mundane tasks in the organization.
Before we dive deeper into how AI is changing the business landscape, let us shed some light on the concept of artificial intelligence. AI refers to computer software that can imitate human intelligence. It engages in human-like activities such as planning, learning, and problem-solving. Machine learning is another type of AI that processes large amounts of data to reveal changing consumer patterns. In addition to giving exclusive insights, AI allows businesses to stand out. AI in business analytics
Believe it or not, these traits of artificial intelligence can indeed be valuable for improving business productivity and efficiency. If you are still having second thoughts over this, have a look below. Here we are highlighting the significance of AI for businesses in today’s competitive era.
1. Predicts Evolving Demand
Undeniably, consumer tastes and preferences are changing in the blink of an eye. Therefore, businesses must deploy measures that can help with sales forecasting. The AI-based software can analyze customer relationship management (CRM) data comprehensively. It looks at every customer’s purchase history, patterns, and shopping trends. In simple words, the software combines big data and artificial intelligence to create accurate forecasts. The melding of AI with Big data has eased various business processes throughout several industries, explaining why the demand for analytics professionals has skyrocketed.
Furthermore, this technology performs text mining to determine what products and services customers expect in the future. AI analyzes every data element and evaluates the next move of customers, resulting in accurate predictions. In addition, the forecasts can spot potential problems in the business model and give a better understanding of the customer’s journey. In short, this will allow you to maximize customer lifetime value and boost retention rates.
2. Prevents Fraud
Nowadays, many financial institutions are counting on AI to mitigate fraudulent activities. The AI-enabled servers monitor the activities in financial datasets. Thus, in case of imbalances in this data, the servers immediately alert the security department. Moreover, AI-based algorithms evaluate historical data and anomalies in the systems. It reveals transactional patterns of the company and prevents nuanced attacks on the system.
Apart from this, AI can also detect over and under-sampling. If any customer is trying to incur duplicate transactions, the system will identify this fraud within seconds. Likewise, AI can discern fraudulent activities done by employees. Whether they try to change the order of transactions or payment amounts – AI-servers will identify these activities on the spot.
3. Improves Customer Service
These days, impulse buying has become a trend. People want immediate responses to their queries; otherwise, they turn to another brand. Here, customer service driven by artificial intelligence can make a huge difference. The AI-enabled chatbots provide automated responses 24/7 without any coffee breaks. They can answer questions regarding delivery charges, order tracking, product availability, and other standard questions.
As a result, owners no longer have to hire full-time customer representatives. Alongside saving costs, automation of customer service can improve the response time. You can even integrate the option of ‘live chat’ on the website so that visitors can seek assistance and place orders quickly. According to the Financial Digest, soon chatbots will take over live telephone service, taking customer experience to the next level. AI in business analytics
4. Offers Powerful Competition Intelligence
Do you monitor what your rivals are up to these days? As the competition intensifies in the digital landscape, keeping a close eye on competitors has become essential. Thanks to artificial intelligence, you can get comprehensive information on rivals by performing a competitor’s analysis. AI-enabled servers collect, analyze, and process information related to key players in the industry. They closely monitor the business environment and strategies of competitors, allowing you to stay one step ahead. AI in business analytics
In turn, you can find what works for other firms in the industry and make more informed decisions. For example, if your competitor launched a herbal skincare cream, you can also tap into the organic market. Remember, the idea behind competitors’ analysis isn’t to copy your rivals’ strategies. Instead, you have to use your creativity to develop something more innovative and intuitive to outshine the industry players. AI in business analytics
5. Creates User-Friendly Shopping Experience
With spiking demand for online shopping, people look for unique experiences. Luckily, artificial intelligence can transform the traditional website experience. It can integrate the element of personalization into marketing campaigns, capturing audiences’ attention. For starters, take advantage of instant access. The AI will determine when a customer visited the store before and which product they bought. Based on that, it will offer personalized product suggestions.
Using data, AI can also offer personalized rewards such as loyalty points, discount vouchers, free shipping, etc. Similarly, it can create a ‘recommended for you’ section, so customers don’t have difficulty choosing their favorites. Also, it will eliminate the need to browse the entire website, increasing conversion rates. That will increase the store’s efficiency, boost brand loyalty, and provide a seamless shopping experience.
6. Automates HR Operations
The role of AI goes beyond marketing and sales. Today, AI-enabled tools can streamline the recruitment and hiring process. The human resource tools with integrated AI software can scan applicant’s information against the preset benchmark. For instance, if your organization wants a candidate with four years of experience and 21 years of schooling, AI will find the best match. Similarly, it can match applicants with the skillset inserted in the system.
This automation would shorten the recruitment process while ensuring you hire a more competent person. Besides this, AI can also help with employees’ performance appraisals. The system can collect feedback on the HR process from newly recruited employees. It would ask questions on benefits and policies, allowing managers to determine if the workers are content or not. Such practices can help in reducing employee turnover, increasing the retention rate.
Most business owners believe that AI is only accessible for tech giants, but that’s not true. As we move into a digitized era, AI is available for every future-oriented business that wants to grow. It can change the way you run operations and make decisions. The AI-enabled servers will give you access to data, ensuring you make data-driven decisions. Likewise, it will redefine the terms on which businesses will compete. It is more of an opportunity for forward-thinking companies, so ensure to make the most of it. AI in business analytics