The Financial Express
By Sweety G Chhabria
Artificial Intelligence works similarly to how humans think and is becoming better each day. It refers to the ability gained by machines through programming that helps them understand better about different processes and come up with a better result. There are debates about whether Artificial Intelligence will be able to see humans in the coming years. Artificial Intelligence is impacting numerous industries, such as healthcare, manufacturing, retail, logistics, fashion, education, entertainment, and customer service, to name a few.
Artificial Intelligence (AI) is reshaping the business landscape, with the potential to automate up to 70 percent of business activities, contributing trillions of dollars to the global economy by 2030. Businesses across industries, including healthcare, manufacturing, retail, logistics, fashion, education, entertainment, and customer service, have harnessed AI’s power to streamline tasks and enhance personalization. However, to fully reap AI’s benefits, businesses must navigate integration challenges. These include employee acceptance, with 70% of business activities being candidates for automation, requiring a mind-set shift. Integration can also be time-consuming and costly, with investments needed to blend AI seamlessly into existing systems. Additionally, the scarcity of skilled personnel capable of managing AI-generated data poses a hurdle.
Nonetheless, the impact of AI on businesses is undeniable, offering advanced data analytics, informed decision-making, and heightened employee productivity, which collectively drive improved profitability. Moreover, the rise of “gen AI” signifies that anyone, with little to no formal training, can utilize AI, as it becomes embedded in everyday tools. As a result, AI’s contribution to the U.S. GDP is projected to increase by a significant 21% by 2030, affirming its role in economic growth. AI is no longer just a technological novelty but an essential driver of business growth and efficiency.
There is hardly any industry left that is not affected by the presence of Artificial Intelligence. Most businesses have started using Artificial Intelligence technologies such as
How is the future of business being shaped by artificial intelligence?
Artificial intelligence has simplified regular and repetitive processes, opening the door for more crucial business functions to operate with increased precision and efficiency. Aside from this, artificial intelligence deserves praise for the degree of personalization it has brought to the table in terms of recommended products and services. The introduction of chatbots and virtual assistants has also resulted in faster customer service. Businesses are benefiting from artificial intelligence in all areas, including customer, supply chain, and risk management. It is now an essential component of doing business.
Artificial Intelligence Adoption Hurdles: Challenges in Business Integration
Artificial Intelligence offers a plethora of business opportunities and is therefore a necessity of today’s time. However, to implement Artificial Intelligence in Business (especially small businesses), they have to overcome many challenges. Acceptance of technology by employees is one of the biggest hurdles faced by businesses while adopting Artificial Intelligence. Second, integration of Artificial Intelligence with existing technology also requires considerable time and money for businesses. Third, businesses lack skilled employees capable of handling data generated by Artificial Intelligence.
How is artificial intelligence influencing business in the future?
Regular and repetitive tasks have been made simpler by artificial intelligence, which has allowed more important commercial operations to run more precisely and effectively. Apart from this, artificial intelligence is commendable for the level of personalization it has added to suggested goods and services. Customer support has also gotten faster since chatbots and virtual assistants were introduced. Artificial intelligence is helping businesses in every aspect, including risk management, supply chain, and consumer relations. It is now a necessary part of conducting business.
The author is assistant professor, FOSTIIMA Business School – Delhi
Follow us on Twitter, Facebook, LinkedIn
Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.
The Financial Express