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The value of AI for business
As AI talks reach an all-time high, companies find themselves asking familiar questions: "What is the value of AI for business?” and “Where are the visible benefits?" The weight of these innovations is undeniable, but it's a lot easier to acknowledge the power of AI than it is to get started, know how much to invest, or justify those investments (prove ROI) to decision-makers.
That being said, early adopters are already beginning to show results, reporting 5-6% of direct revenue gains from their AI investments. For companies showcasing higher levels of AI and data maturity, those results triple in value, seeing 3X the return on investment to those companies still bogged down in their pilot stages.
Results like this are why 84% of C-suit executives believe they must leverage AI to achieve their growth objectives. They realize that AI boosts efficiency, cuts costs, and brings new levels of consistency, speed, and scalability to business processes. It learns from data in real-time, self-optimizing to continually compound the business benefits it provides.
In short, AI tools for business are extremely valuable. This blog will explore that fact further, covering the value of AI for business both in general and across four case-study industries: financial services, healthcare, insurance, and manufacturing. Let's get started.
The benefits of AI for business
AI tools for business extend far beyond simple automation, changing how businesses operate and thrive. From enhancing customer experiences to optimizing internal processes, AI offers many benefits that drive growth, efficiency, and innovation. Listing all the benefits would be impossible to predict. However, below, you'll find a non-exhaustive list of our top benefits of AI for business.
1. Productivity
AI helps eliminate friction, improve analytics, automate complex processes, and minimize downtime. By tackling mundane activities, it increases people’s speed and helps them meet targets faster.
2. Improved accuracy
AI improves performance accuracy and decision-making by augmenting human intelligence with rich analytics and pattern prediction. It also excels at natural language processing, image and speech recognition, personalization, and more, allowing for automation of repetitive manual tasks.
3. Intelligent offerings and new asset production
It can uncover gaps, opportunities, new business models, or potential products more quickly because it has access to and can process more data than humans. This minimizes the time needed to produce new products or other offerings and can help optimize production schedules.
4. Loss and risk prevention
Predictive algorithms can alert people of potential risks and/or breaches, especially in industries such as banking and insurance. Providing better protection from breaches can help companies keep private data safe under regulations such as the GDPR.
5. Improved customer experience
Because it has access to a wide range of data and can “remember” everything, it can provide 360-degree customer insights for hyper-personalization, leading to high-touch experiences that drive growth, retention, and overall customer satisfaction. Chatbots can also answer questions with more personalization and provide better recommendations.
The value of AI for business: financial services
Financial service providers can use AI to optimize processes, mitigate risks, and deliver personalized services that cater to individual customer needs.
Enhancing the customer experience: AI-powered chatbots and virtual assistants revolutionize customer interactions. They provide instant support, answer queries, and guide customers through various banking processes. This 24/7 availability and personalized assistance significantly improve customer satisfaction and loyalty.
Unlocking growth opportunities: AI's potential impact on the banking sector is substantial, with estimates suggesting it could contribute up to 4.7% of revenue. The market opportunity for AI in banking is projected to reach $200-340 billion USD. High-potential use cases span various areas, including:
- Customer operations: Personalized customer service, intelligent virtual assistants, and enhanced customer experiences.
- Marketing and sales: Targeted marketing campaigns, improved customer acquisition, and tailored product offerings.
- Risk management: Fraud detection, credit risk assessment, and regulatory compliance.
- Underwriting and collections: Sped up loan processing, efficient collections processes, and personalized risk management.
The value of AI for business: pharmaceuticals
The pharmaceutical (pharma) sector is also experiencing positive change thanks to AI, which promises to improve clinical trials, streamline medication manufacturing, and accelerate research and development. Pharma companies are already beginning to enhance supply chains, optimize machine maintenance, and deliver personalized advice via customer service chatbots.
Improved clinical trials: Manual data analysis and inefficient patient recruitment have made pharmaceutical companies' clinical trial processes laborious (and often delayed). Companies can use AI to simulate trial outcomes to de-risk early processes and simulate outcomes across diverse populations. Relevant patients can be identified faster via biomarker-screened data.
Driving growth and innovation: The potential impact of AI on the pharma industry could contribute up to 4.5% of revenue. The market opportunity for AI in pharma could reach $60-110 billion USD. High-potential use cases span various areas, including:
- Research and early discovery. AI can speed up research by streamlining clinical trials and analyzing vast amounts of data.
- Clinical development: Access to great analysis tools also leads to improvements in clinical development.
- Improved operations: Similar to manufacturing, AI can help with pharma operations by augmenting sourcing, quality control, and inventory optimization.
- Commercial use cases: AI can create personalized content and advertising, automated medical and legal reviews, customer-enablement copilots, and much more.
- Medical affairs: With AI, pharma companies can generate customer insights, improve medical writing, and use rapid summaries of scientific and medical research for their work.
Want to learn about various use cases for AI in the pharmaceutical industry? Check out our whitepaper here.
The value of AI for business: insurance
In the insurance industry, AI promises to enhance customer experiences, eliminate bottlenecks, and improve risk assessment. Insurance companies can now deliver personalized services, optimize claims processing, and make better, data-driven decisions.
Personalizing the customer journey: AI-powered tools can analyze vast amounts of customer data to provide personalized product recommendations tailored to individual needs and preferences. Intelligent virtual assistants enhance customer service by offering instant support, answering queries, and guiding customers through complex processes.
Unlocking growth and efficiency: Estimates for the potential impact of AI on the insurance industry suggest it could contribute up to 2.8% of revenue. The market opportunity for AI in insurance can reach $50-70 billion USD. High-potential use cases span various areas, including:
- Personalized product recommendations: Tailoring insurance offerings based on individual customer data and preferences.
- Intelligent virtual assistants: Enhancing customer interactions through AI-powered chatbots or voice assistants.
- Content generation: Automating the creation of marketing materials, policy documents, and educational resources.
- Compliance and risk management: Utilizing AI to ensure regulation adherence and identify potential risks.
- Agent and broker enablement: Empowering agents and brokers with AI-powered tools for customer engagement and sales.
The value of AI for business: manufacturing
AI for manufacturing holds the potential to optimize production processes, enhance product quality, drive operational efficiency, and automate the product design cycle (i.e. streamlining market research, analysis of previous designs, historical performance, customer preferences, etc). AI tools for business manufacturers can predict and prevent equipment failures, streamline supply chains, forecast demand, improve inventory management, and create more agile and responsive production systems.
Optimizing production processes: AI-powered systems can analyze vast amounts of data from sensors and machines, enabling predictive maintenance that identifies potential equipment failures before they occur. This proactive approach minimizes downtime, reduces maintenance costs, and ensures smooth production flow. AI algorithms can optimize production schedules, allocate resources efficiently, and adapt to changing demands in real-time.
Driving growth and innovation: Companies leveraging AI report significant improvements in operational efficiency, product quality, and overall profitability. The market opportunity for AI spans the entire product lifecycle, from design and development to production and distribution. High-potential use cases include:
- Predictive maintenance: Minimizing equipment downtime and optimizing maintenance schedules.
- Quality control: Ensuring product quality through real-time defect detection and analysis.
- Supply chain optimization: Enhancing demand forecasting, inventory management, and logistics planning.
- Product design and development: Accelerating innovation through generative design and simulation.
- Robotics and automation: Increasing efficiency and productivity through intelligent automation.
The value of AI tools for business spans all industries
The transformative potential of AI tools for business across industries is undeniable. From improving how we interact with customers and enhancing operational agility to unlocking new growth opportunities, the way businesses operate and compete is evolving. The evidence is clear: early adopters who invest in AI are already reaping significant rewards, while those who hesitate risk falling behind.
The time to embrace AI is now. Whether in banking, healthcare, insurance, manufacturing, or any other sector, AI offers a wealth of possibilities to drive efficiency, innovation, and growth.
It all starts with data. Want to get started with AI for business today? Let Ataccama help you so you are fully prepared and can begin your journey on the right foot. Learn more about AI readiness by reading this blog and contact us today to begin your AI journey.
