How Companies Created New Revenue Pools By Using AI?
Artificial intelligence (AI) is now one of the emerging new factors of production exponentially stimulates the business’s revenue. It is no more a science fiction, but a commercial reality driven by a massive surge in data, increasing computational power at reducing cost and the quantum leap in technology.
AI is an amalgamation of technologies used in different ways to extend
human capabilities by acting, sensing, learning, and comprehending. It acts as
a catalyst in transforming industries, which has witnessed a steady decline in
profitability, resulting in a low innovation, investment, and shareholder
value, in the past few years.
AI has been instrumental in back paddling the assuaging profit in 3 ways:
1- Intelligent Automation
Simulated intelligence offers many advantages over
traditional automation. Companies that depend on the globally integrated
network like Tesla, Johnson and Johnson are switching to Elementum, an
Artificial Intelligence start-up to organise their supply chains.
AI-Powered systems give early deterrent of potential
glitches and purpose the best solution. It has drastically changed the sales
activities through valuable time and resources deployment generating the sales
leads.
2- AUGMENTING LABOUR AND CAPITAL
AI has tremendously increased labour productivity by
enabling workers to assign low value-added work to AI. In other words, it can
create a virtual workforce altogether, and thereby complementing the ability of
human workforce and physical capital.
Unlike before, AI is also setting its foot in a realm
where critical thinking and intellectuals have long dominated. For example, AI
is now doing business research, which is traditionally a daunting and
time-consuming task.
It also aids companies in escalating asset utilization
rates. Heavy industries like Energy and Manufacturing uses the massive up-front
investment to decrease revenues associated with asset downtime.
3- DRIVING INNOVATION
AI is all set to drive and diffuse innovation by
augmenting the new product development. It is instrumental in wiping out the
disposable cost and producing a stream of revenue. It also helps the companies
in developing new products for achieving the design goals.
The impact of Artificial Intelligence on revenue by the industry is as follows:
- The manufacturing sector can unleash
the potential through the application of Artificial intelligence, as it depends
on heavy machinery. AI can bestow benefits like increasing the productivity of
human labour and running machinery on the factory floor. It can bridge the gap
between current learning and automation form with a more advanced one.
- Wholesale and Retail sector can use AI’s intelligent automation abilities to simplify and streamline the warehouse and inventory management. It can yield immersive shopping experience to customers. AI can also considerably benefit from accelerating the rate of innovation.
- Healthcare sector uses AI to develop 3D techniques for an organ transplant. AI dissects the unstructured data and diagnoses health risks in advance to take preventive measures.
- Financial services can leverage the AI to shift the workforce from repetitive task to generic mortgage reviews, market study and customer queries.
- Labour incentive sector can capitalize the AI to increase productivity growth leading to a subsequent increase in Gross Value Addition (GVA).
CONCLUSION
To conclude, remember that AI is still not capable of replacing all the
existing processes: it is here to revamp and augment the business to work smarter.
Technology is not yet infallible and perhaps never will be, but AI can
work alongside people like an effective tool. Whether rosy or rocky, AI will
certainly dominate the world in future. Development in AI will lead to new
startups, many business application and consumer uses and displacement of
certain jobs and the creation of an entirely new one.
It is definitely going to remake the economy, but its exact impact is
yet to be seen.
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