Today, enterprises are adopting various technologies to achieve operational efficiency, deliver superior customer experience, and drive continuous innovation. While the desired technology stack differs for every enterprise, artificial intelligence (AI) and AI-based solutions are the most sought-after capabilities that business leaders want to embrace.
According to The State of AI in 2022 report by Mckinsey, the adoption of AI has more than doubled since 2017. AI brings tremendous value to enterprises by enabling intelligent decision-making, identifying bottlenecks, and optimizing resources.
By embracing AI-based solutions, enterprises can bring agility to their processes and enrich customer experience while reducing costs and efforts. For businesses to tread the path of profitability, they must devise a comprehensive business strategy with AI as their focal point.
Here are some of the ways in which AI can boost profitability for businesses:
1) Hyper-personalised engagements
Personalized and meaningful customer engagement is the secret elixir that keeps customers happy and makes them stay for a long. Using AI, enormous data sets can be retrieved within seconds, and the information derived can then be translated into the desired format for the business users to study and deliver hyper-personalised engagements. It provides a deep understanding of customers’ purchase behaviour and preferences and enables intense personalization of every customer engagement.
2) Real-time decision-making at scale
To make crucial decisions in real-time and do that at scale—is an ability that every enterprise would wish to possess today. AI can help enterprises achieve this ability by extracting and connecting contextual data, enabling accurate decision-making in real time. It facilitates decisions like individual credit assessment and recommendations for the next best actions and boosts productivity.
3) Targeted marketing and spending optimization
AI helps enterprises devise an effective and more pragmatic marketing plan to reach the target market. Organizations like Netflix and Amazon have adopted personalization and target marketing as prominent strategies to reach customers. Enterprises can utilize AI-enabled marketing tools like chatbots and data collection software to reach their potential customers. Using AI, enterprises can develop a tailored strategy to help them expand their reach and achieve desired outcomes.
4) Enhanced customer service
Enterprises can use AI-based chatbots to support customer operations. It helps them save significant time and effort while addressing queries and feedback. In some cases, these chatbots can even help enterprises do away with expensive call centers as they can replicate human-to-human service interactions to a high standard.
Moreover, these chatbots are available to customers round the clock to answer queries and complaints, providing frictionless customer service.
5) Risk Identification and Fraud Prevention
Most enterprises today deal with various risks and security threats while executing their operations and processing customer data. With AI-based solutions, enterprises can identify potential threats and patterns to mitigate emerging risks and detect fraud. For instance, banks can analyse individuals’ profiles, past transactions, and other financial histories to decide on loan conditions.
To Conclude
Using AI, businesses can boost profits through reduced costs and better competitiveness. It’s time for enterprises to realize the opportunity that lies with AI and associated solutions and future proof their business.
Authored By: Rajan Nagina, Head of AI Practice, Newgen Software
