Previously relegated to Hollywood fantasy, artificial intelligence (AI) is now one of the fastest-growing industrial capabilities. In fact, AI as an industry is projected to surpass $390 billion globally by 2025, up from $24.9 billion in 2018.
At its core, AI seeks to transform information into intelligent, automated action. The consolidation of data structures and the creation of unique algorithms allow systems to automatically learn and recreate patterns that they’ve previously synthesized.
While tech giants like Amazon, Google and Facebook annually invest hundreds of millions of dollars in AI to develop new products, marketing programs and enhance their platforms, can also leverage machine learning, a field of computational statistics where algorithms automatically learn and improve tasks without explicit programming, and predictive modeling to improve operations and grow at the same time.
AI and related applied sciences are commonly perceived as advancements that take jobs away from the labor force. However, the core purpose of AI is to make jobs and responsibilities more efficient by automating specific tasks and revamping outdated processes, allowing workers to maximize more critical areas of their profession. Simply put, AI either automates the execution of simple tasks or enhances our ability to perform complex tasks.
In fact, 54 percent of executives have said that AI has already increased their business productivity. Charlie Burgoyne, founder and CEO of Valkyrie, an Austin-based AI-consulting firm, believes that the is particularly critical for up-and-coming startups to help reduce burdensome operations.
“AI can be extremely beneficial in the automation of operational functions, such as financial management, risk mitigation, accounting and even legal work," he explains. "In turn, this allows leadership to holistically understand the state of their company while prioritizing the strategic direction of their business as opposed to focusing on the minutia of the mechanics.”
For example, an owner of a startup apparel company collects data related to purchasing trends and customer patterns, but likely doesn’t have the resources to sift through all the information without taking valuable time away from day-to-day operations. By incorporating that data into custom machine-learning models, the business can better examine how to position popular product lines based on seasonal trends and improve cash flow management and future inventory. And because the data is examined in real-time, a process that would normally take weeks or months can be drilled down to just a few days.
Emerging tech and AI expert Valeria Sadovykh, Ph.D. says that, “Small businesses are in a much better position to savor the benefits from AI, and there should be no excuses for not utilizing basic features for enhanced business decision-making and competitive advantage.”
She adds that small businesses usually have their data “easily accessible with lower volumes and smaller data sets. In addition, in the current environment, every bit of digital information that competitors produce is also available for gathering and analyzing for better decision-making.”
The old adage that the customer is always right still rings true, but it’s now even more critical to find and maintain a relationship with the right customer. A recent MIT Technology Review Insights survey of more than 1,000 business leaders discovered that 87 percent of respondents have begun deploying AI in their business, with most implementing various programs to improve customer service.
