AI in Business: Using AI to Drive Growth
| 7 Min Read
Today, conversations about artificial intelligence (AI) applications in business are everywhere. AI’s potential to transform the way we do business sparks mixed emotions. Many are unsure what the future holds, but the truth is, AI in business is already all around us. Leading companies are using AI in business every day to improve efficiency, deliver top-notch customer service and drive growth.
To understand the impact of AI, it’s important to first understand its components:
- Machine Learning: Computers can learn from data and make recommendations without extensive human interaction. This capability is used to improve efficiency and gather insights and can be used to predict what clients need, whether it be a product recommendation or a medical intervention.
- Natural Language Processing: This technology allows computers to understand and generate language and can help provide customer service and develop quick answers to key business questions. Customers may encounter natural language processing when using chatbots or smart assistants, such as Siri and Alexa.
- Generative AI: Generative AI can produce images, music, text or videos using material in large data sets, which is useful for content and idea generation. A well-known example of generative AI is ChatGPT, but many options exist.
The impact of the growing field of AI cannot be overlooked. Grand View Research found that the global artificial intelligence market size was an estimated $196.63 billion in 2023 with a growth rate of 36.6% between 2024 and 2030.1
How Does AI Help Businesses?
The answer to the question of how AI helps grow businesses could have many answers depending on who you ask. In 2023, Forbes Advisor revealed that over half of business owners currently use some form of AI for cybersecurity and 46% of business owners use AI to help with crafting internal communications. Almost all business owners surveyed believe that ChatGPT will help their business, either by developing website content or helping to develop content in other languages. Sixty-four percent of business owners said they believe that AI will help improve customer relationships.2
The survey went on to reveal more about how businesses are leveraging AI. The findings state, “AI is allowing companies to become more nimble and productive. AI is used or planned for use in various aspects of business management.”
According to the survey, organizations used AI for the following business tasks, among others:
- Customer Service: 56%
- Process Automation: 51%
- Data Aggregation: 40%
- Inventory Management: 40%
- Idea Generation: 38%
- Accounting: 30%
- Recruitment: 26%
- Audience Segmentation: 24%
The integration of AI into business practices will help organizations spend more time on the aspects of their work that further drive results. The Forbes Advisor study found that 60% of the business owners surveyed believe that AI will drive sales growth, 59% believe it will save costs and 42% believe it will streamline processes. Additional benefits of implementing AI tools in business include:
- Improved Efficiency: AI can look at a lot of data quickly, ensuring that businesses can gain and respond to insights in real-time.
- Enhanced Personalization: AI can help businesses understand their consumers and tailor communication and experiences to their needs.
- Analytical Forecasting: AI can assist business leaders when they’re determining where a business is heading and the viability of next steps and future endeavors.
These are just a few ways AI helps efficiently gain market share and make calculated adjustments to drive growth in business.”
Are There Negative Implications of Using AI in Business?
While many business owners see the value of AI in business and have begun to use AI in a significant number of business functions, they also have concerns. More than 40% of those surveyed by Forbes Advisor said they are worried about an over-dependence on technology due to AI. Organizations must remember that AI does not replace expert knowledge and creativity. Professionals must still understand their customer base and businesses to ensure success.
There are also significant cybersecurity implications. Because AI uses a lot of data, organizations must be careful that the data is secure, and that laws and ethical regulations are followed closely. Failure to protect sensitive data could result in legal action or damaging consequences for a business and its customers.
Even with all the advancements of recent years, AI is far from perfect. For example, AI hallucinations happen when AI returns false or misleading information due to a variety of factors, including biases or insufficient data. Relying too heavily on AI, while not fully understanding how to implement it effectively, could lead to unforeseen outcomes.
In addition to the above concerns, working with AI can be difficult for those who make a living through the work that AI enhances. Thirty-three percent of businesses surveyed by Forbes Advisor are concerned about workforce reduction due to AI. This concern is mirrored by 77% of the public who are concerned that AI will cause job loss, with 44% saying they are “very concerned.”3
There are a lot of unknowns when it comes to working with AI. Business professionals will have to be agile and open to new ways of doing things as we figure out what AI’s role will be in the future of organizations. Businesses leaders should ensure that employees know how to properly leverage AI capabilities and encourage upskilling to avoid redundancies.
How Will AI Affect Jobs?
In 2022, The Pew Research Center looked at who might be most exposed to AI in their jobs. Their research found that 19% of American workers were in jobs that are most exposed to AI. In these jobs, important activities could be replaced or complemented by AI. High exposure jobs include budget analysts, data entry keyers, tax preparers, technical writers, and web developers.
As the Pew Research Center pointed out, high exposure to AI in your job doesn’t necessarily spell job loss. When asked whether AI will lead to job loss, they stated, “The answer to this is unclear. Because AI could be used either to replace or complement what workers do, it is not known exactly which or how many jobs are in peril.”4 AI cannot replace human imagination and intelligence, but it can support it. It’s likely that AI will take on more everyday administrative tasks allowing professionals to use their time for creative and complicated endeavors.
New careers in AI may develop because of the ways businesses are implementing AI. Those with skills in AI could pursue emerging careers such as AI project manager, business intelligence developer or AI prompt engineer. These roles will likely blend technology and business skills to help organizations ensure that they are using AI to its fullest potential, while also mitigating risks.
As we look toward the future of AI in business, it’s important to develop an AI-skilled workforce and upskill current employees to understand how to use AI to improve their performance in their jobs. To prepare for AI in business and determine how to get a job in AI, professionals should proactively work to understand AI tools and the benefits and risks of implementing them.
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Sources
- “Article Intelligence Market Size & Trends.” Grand View Research. Retrieved August 2024 from https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-ai-market
- “How Businesses Are Using Artificial Intelligence In 2024.” Forbes Advisor. Published April 24, 2023. Retrieved August 2024 from https://www.forbes.com/advisor/business/software/ai-in-business/.
- “Over 75% Of Consumers Are Concerned About Misinformation From Artificial Intelligence.” Forbes Advisor. Published July 20, 2023. Retrieved August 2024 from https://www.forbes.com/advisor/business/artificial-intelligence-consumer-sentiment/
- “Which U.S. Workers Are More Exposed to AI on Their Jobs?” Pew Research Center. Published July 26, 2023. Retrieved August 2024 from https://www.pewresearch.org/social-trends/2023/07/26/which-u-s-workers-are-more-exposed-to-ai-on-their-jobs/