By 2040, autonomous and intelligent cars will likely become a common sight on city roads. These cars will be well-equipped, with the ability to identify and replace faulty components by automating the purchasing process. The credit for this technological feat goes to Artificial Intelligence (AI), which can transform businesses digitally.
Today, AI is being applied across diverse industries, from Spotify’s music recommendations to smart home devices, such as Google Home and Amazon Alexa. Despite being in its early stages, the future potential of AI for digital transformation in business is immense.
The Role of AI-driven Digital Transformation in Reshaping Business Operations
Analytics Insight predicts that global digital transformation spending is expected to reach USD 2.8 trillion by 2025. Another one by PwC cites, that by 2030, AI is predicted to boost global GDP by USD 15.7 trillion.
With the help of AI-powered tools and cutting-edge technologies—machine learning (ML), cloud, and robotic process automation (RPA)—business leaders can automate mundane tasks, analyze large volumes of data in real time, and gain actionable insights that drive informed decision-making. This shift towards digitization has also changed customer expectations, with consumers now demanding seamless, personalized experiences across multiple channels. To keep up with these changing demands, companies are investing heavily in AI-driven digital transformation to enhance customer engagement and retention, improve operational efficiency, and drive continuous innovation at a hyper-personalized level.
Harnessing the Power of AI in Business Digital Transformation
With AI becoming an indispensable tool for businesses looking to streamline operations and drive digital transformation, let’s understand the five practical ways how AI can be of help:
- Understanding Customers: Enhancing Business Insights Through Customer Analysis
By analyzing customers’ behavioural patterns, purchasing history, and digital interactions, businesses can better understand and create more personalized, targeted experiences. This helps build stronger customer relationships and improve customer retention and loyalty.
- Enhancing Data: Ensuring Better Business Outcomes Through Analytics
Effective data collection is critical in digital transformation because it allows AI to analyze large datasets in real-time and derive valuable insights. AI helps unlock latent information and patterns in data, which can be further leveraged to ensuring better business understanding and delivering value. AI-powered analytics can predict changing customers’ needs and generate insights that help formulate effective business strategies.
- Improving Efficiency: Leveraging Technology to Streamline Organizational Performance
With its scalability, AI technology can adapt to the changing requirements, providing actionable insights for data-driven decision making by top management and executives and deliver value at scale, in a matter of few seconds. Additionally, enterprises can leverage AI to deliver superior, consistent, and personalized customer experiences using tools such as chatbots and consumer data analytics.
- Driving Profitability: Leveraging Analytics to Boost Business Growth and Revenue
AI also holds the key for enterprises to improve operational performance and boost growth & profitability. As companies increasingly adopt AI to power their digital transformation, they can expect to see a positive trend in their profits. By leveraging AI’s ability to advance human capacities and foster innovation, organizations will achieve long-term growth and profitability through digital transformation initiatives.
- Optimizing Productivity: Enhancing Workplace Efficiency through Data-Driven Insights
AI can improve human resource practices by increasing workplace efficiency and productivity. It will impact every aspect of a company, including staffing, customer insights, marketing, and more. Repetitive tasks can be automated using AI, allowing employees to streamline their workload and complete tasks much faster.
In Conclusion
Embracing AI is no longer an option, but a necessity for modern organizations. This new-age technology can open doorways to increase customer reach and maximize profitability. Business leaders are leveraging AI to streamline operations, deliver personalized customer experience, and gain valuable insights to make informed business decisions.
(The author is Mr. .Rajan Nagina, Head of AI Practice, Newgen Software, and the views expressed in this article are his own)
