AI Case Studies on the Application of Artificial Intelligence in Business
| 12 Min Read
Applications of artificial intelligence (AI) in business and AI case studies are booming topics around the world, and for good reason. Since its appearance almost 70 years ago, AI’s capabilities have grown tremendously. Nearly every organization invests in AI to save money, make decisions, deliver personalized experiences and streamline processes. Based on the results of their 2024 Global Survey of AI, McKinsey & Company report that in many industries, organizations are about equally as likely to be investing more than 5% of their digital budgets in generative AI as they are in nongenerative, analytical-AI solutions.1 These investments are paying off. Two of the biggest benefits of generative AI applications are reduced human errors and faster task completion.
Because AI boasts near-perfect task execution, many professionals wonder if their jobs are in danger. It’s more likely that AI will enhance business jobs rather than replace them, but AI will change how people prepare for their jobs. Aspiring leaders will need a blend of business expertise and foundational technical knowledge to truly understand how their organization can benefit from AI. Build these perspectives in programs such as New Mexico Highlands University’s online bachelor’s degree in business. You can complete your bachelor’s degree while studying topics in business application software, business analytics, innovation management, Internet marketing and more. With your new skills, you’ll be prepared for the next step in your business career.
5 Applications of Artificial Intelligence in Business
AI applications in business are as diverse as the organizations that use it, but many businesses are using artificial intelligence for the following.
- Customer service
- Cybersecurity and fraud management
- Finance
- Marketing
- Supply chain management
1. Customer Service
Artificial intelligence can provide personalized communication for businesses. Backed by conversational AI, chatbots can provide instant customer service 24/7. They can answer frequently asked questions, record and resolve complaints, recommend products, automate processes and more. Some can translate languages for customers. These complex capabilities improve the customer experience, boost conversions and leads and save money by freeing up valuable time for human resources professionals. The IBM Institute for Business Value states that no single area of an organization provides a better foundation for the success of generative AI than customer service.2 In fact, the Institute’s 2023 survey of international business owners reveals that 85% of executives say that generative AI will be directly interacting with customers within the next two years.2
Among organizations that are already using AI for customer service, customers are largely enjoying their experiences, and especially with chatbots. According to conversational AI platform Dashly’s 2023 chatbot usage surveys, 50% of customers like to talk with AI chatbots and 74% of customers would choose a chatbot over a human agent for simple questions.3 Chatbots are clearly a well-liked and widespread practice, so businesses need to consider how this AI-powered communication technology can best support their customer service goals.
Case Study: KLM Royal Dutch Airlines
One of the most historical airlines in the world, KLM Royal Dutch Airlines, was able to work through its customer service backlog by using AI. According to information provided by Altoros, an IT services provider, KLM realized they had an issue when hundreds of customers sent Facebook messages about rescheduling flights due to a widespread weather emergency.4 The situation shed light on a backlog of customer service communications that needed to be addressed. KLM was able to help its employees manage social media messages with AI, so customer’s needs could be fulfilled more efficiently. BlueBot (or BB) is KLM’s conversational AI tool that helps customers book and reschedule flights, choose seats, check bags, answer common questions and more. Altoros reports that AI has enabled KLM to speed up customer interaction by 50%, freeing up the customer service team to provide more personalized help when needed.4 When it comes to customer service, AI is now standard for KLM Royal Dutch Airlines and many other global organizations.
2. Cybersecurity and Fraud Management
As with customer service, AI saves resources, time and money for businesses’ cybersecurity efforts. AI can monitor cyber networks and online activities faster and more thoroughly than humans, which enables businesses to more quickly and thoroughly review activities that are outside the norm and could be fraudulent. It can also detect hacking attempts that could lead to a destructive data breach. These benefits have made AI an indispensable asset at a time when highly qualified cybersecurity professionals are more sought-after than ever. According to the World Economic Forum, the world faces a 3.4-million-person shortage of cybersecurity professionals as of 2023, and AI can help mitigate the skills gap in cybersecurity careers.5 Businesses should be investing in AI cybersecurity solutions, according to World Economic Forum, and in staff training as part of a collaborative, organizational approach to cybersecurity.5 Today’s business leaders should be prepared to act as a liaison between IT teams and executives and draw on insights from AI as they make informed decisions.
Case Study: Dark Trace Cybersecurity AI
Darktrace, a global leader in cybersecurity AI programs, recently launched an Enterprise Immune System for its clients. This Cyber AI platform incorporates leading-edge applications in threat detection, autonomous response systems and contextual threat analysis—the package even includes a mobile app for on-the-go cyber protection. According to Darktrace, over 3,000 organizations are using this innovative, AI-powered platform.6 From defense mechanisms to proactive security, implementing Darktrace’s Enterprise Immune System—and AI business applications like it—protects valuable assets while enabling human analysts to focus on more strategic tasks.
3. Finance
AI offers valuable business applications in accounting, finance and management. It can automate billing, monitor collections, detect changes in the market and flag any errors it finds in financial records. AI’s ability to save time while reducing human errors is paramount to finance and bookkeeping, where just one mistake can have serious implications. According to EMARKETER, an international digital research and transformation company, the aggregate potential cost savings for banks from AI applications are estimated at $447 billion in 2023.7 Because AI’s deep learning capabilities can even forecast financial outcomes, businesses using artificial intelligence can spend less time on data entry and more time making strategic decisions.
Case Study: U.S. Bank
U.S. Bank has become a leader in AI for financial services. According to their Artificial Intelligence department, U.S. Bank’s advanced applications of AI and machine learning systems can:
- Help identify suspicious transactions.
- Analyze business functions, so teams can utilize the data to improve relationships with customers.
- Draft agile financial processes and provide reports on their effectiveness.8
U.S. Bank is just one example of a financial institution where business leaders depend on AI insights to protect clients’ data and optimize cybersecurity.
4. Marketing
Based on the results of their 2024 Global Survey of AI, McKinsey & Company reveal that marketing is the number one way that respondents use AI.1 Businesses across industries leverage AI’s advanced algorithms for marketing purposes because AI can collect and analyze large amounts of consumer data, generate customer preferences, identify patterns from purchase histories, optimize ad performance and more, which means AI can forecast marketing trends with greater accuracy than humans alone. In fact, AI is behind one of the most common phrases in online shopping — “customers who viewed this item also viewed…” It draws from trends in shoppers’ browsing habits and order history to offer products that are most likely to be purchased at that time and place. Since AI marketing applications have become a cornerstone of successful businesses, leaders need to regularly and consistently evaluate how AI can support their goals.
Case Study: Coca-Cola® Y3000 AI Experience
Coca-Cola’s® September 2023 Y3000 marketing campaign offers a tasty new flavor created with the help of AI. The company deployed machine learning software to analyze customer’s concepts of “what a Coke from the future might taste like.”9 Alongside their new flavor, Coca-Cola® launched an AI experience that customers can access through a QR code. This unique AI platform puts users in their own Coca-Cola® Y3000 videos, photos and branded merchandise, which the company says deepens engagement with existing fans and those who may not have considered the brand before.9 With cutting-edge AI technology, Coca-Cola’s® marketing team was able to create an exciting new product and increase their brand’s engagement.
5. Supply Chain Management
From raw materials to manufacturing to shipping, AI is helping the supply chain become more efficient. It can maintain inventory and forecast the demand for certain products, reducing instances of overproduction. AI applications also monitor product quality, identify fuel-efficient delivery routes and choose shipping options that avoid delays from severe weather, according to Oracle, a U.S.-based IT company.10 In the future, the supply chain could even see AI-powered driverless deliveries. To take full advantage of AI’s innovations, supply chain managers should ensure that employees are trained to work with AI so that AI can best benefit the company. This is a huge undertaking for the employees who are responsible for gathering, validating and uploading any data that AI needs to function, but the payoff is well worth it.
Case Study: DHL
DHL, a global leader in logistics, is using AI applications to optimize daily warehouse operations such as emptying shipping containers, bundling packages onto pallets and sorting packages. The company has developed AI “DHLBots” that take over mundane tasks so that supply chain managers and business leaders can focus on more pressing issues. DHL reports that its DHLBots are capable of sorting over 1,000 small parcels per hour with 99% accuracy, although humans will always be essential to problem-solving and process oversight.11 Among warehouses that specialize in picking (pulling items from shelves and packing them), DHL reports that AI-powered robots have increased productivity between 30% and 180%.11 For DHL and many other companies, AI is now indispensable for efficiency.
The Future of AI in Business
AI applications in business will likely become more prominent in the coming years, and the future workforce will need to evolve with it. According to Business News Daily, experts predict that the workforce will require specialized skills that AI can’t readily provide, such as creativity, problem solving and decision making.12 AI can help business leaders make strategic decisions, but only if they are prepared to harness AI with technological awareness, critical thinking skills and adaptability.
As they develop AI applications, business employees and IT teams will need to train AI for specific goals. One starting place is their organization’s Key Performance Indicators (KPIs) and the metrics that indicate success. Once KPIs are established, teams of business specialists and data experts work together to gather and upload any data relevant to their goals. Then, they can teach AI how to interpret data and filter it for patterns that match KPIs. With such a complex process, businesses need the appropriate technology, employees and resources to implement AI effectively.
The impact of AI on business might even add new jobs that Business News Daily says will facilitate the transition to AI applications in business.12 For examples, project managers, management consultants and market research analysts are at the forefront of daily AI applications in business. Budget analysts and financial managers will be needed to ensure that businesses have the appropriate budget for the initial expense of AI technology and the cost of training personnel. Human resources professionals will need to consider AI-related workplace expectations.
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Sources
- McKinsey & Company. “The State of AI in Early 2024: Gen AI Adoption Spikes and Starts to Generate Value.” McKinsey Insights. May 30, 2024. Retrieved September 18, 2024, from https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai.
- IBM Institute for Business Value. “The CEO’s Guide to Generative AI: Customer Service.” Retrieved September 18, 2024, from https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/ceo-generative-ai/customer-service.
- Dashly. “The 36 Key Chatbot Statistics: How Chatbots Help Businesses Grow in 2024.” December 12, 2023. Retrieved August 26, 2024, from https://www.dashly.io/blog/chatbot-statistics/.
- Altoros. “KLM Handles 2x More Customer Requests with Artificial Intelligence.” Blog on Digital Transformation. July 24, 2018. Retrieved September 18, 2024, from https://www.altoros.com/blog/klm-handles-2x-more-customer-requests-with-artificial-intelligence/.
- World Economic Forum. “Cybersecurity and AI: The Challenges and Opportunities.” June 5, 2023. Retrieved September 18, 2024, from https://www.weforum.org/agenda/2023/06/cybersecurity-and-ai-challenges-opportunities/.
- Darktrace. “Darktrace Launches Enterprise Immune System Version 4.” September 9, 2019. Retrieved September 18, 2024, from https://darktrace.com/news/darktrace-launches-enterprise-immune-system-version-4.
- EMARKETER Inc. “Artificial Intelligence in Financial Services: Applications and Benefits of AI in Finance.” January 2, 2023. Retrieved September 18, 2024, from https://www.emarketer.com/insights/ai-in-finance/.
- U.S. Bank. “Innovating Financial Services With Breakthrough AI.” Retrieved September 18, 2024, from https://www.usbank.com/about-us-bank/artificial-intelligence.html.
- The Coca‑Cola Company®. “Coca‑Cola® Creations Imagines Year 3000 With New Futuristic Flavor and AI-Powered Experience.” September 12, 2023. Retrieved September 18, 2024, from https://www.coca-colacompany.com/media-center/coca-cola-creations-imagines-year-3000-futuristic-flavor-ai-powered-experience.
- Tsidulko, Joseph. “Benefits of AI in the Supply Chain.” Oracle. January 11, 2024. Retrieved August 26, 2024, from https://www.oracle.com/scm/ai-supply-chain/.
- DHL. “We, Robot: How Humans and AI are Working Together in Logistics.” Retrieved September 18, 2024, from https://www.dhl.com/global-en/delivered/digitalization/ai-in-logistics.html.
- Uzialko, Adam. “How Artificial Intelligence Will Transform Businesses.” Business News Daily. Updated August 26, 2024. Retrieved August 26, 2024, from https://www.businessnewsdaily.com/9402-artificial-intelligence-business-trends.html.