By Rajan Nagina, Head of AI Practice, Newgen Software
There was once a time when the responsibility of business decision-making was borne solely by the intuition and human judgment of professionals. Imagine the risky consequences of implementing organisational-level decisions without any credible validation.
Businesses today rely on a far safer approach. They welcome advanced technologies like AI as catalysts for transforming decision-making and paving the way for data-driven decisions at scale. AI has become a force majeure for businesses across various industries, who implement it to smoothly blend data-driven insights into their operations and use them to make better decisions.
AI as the key enabler for critical corporate decision-making
According to McKinsey research, executives spend nearly 40 percent of their time making decisions. Ineffective or poor decision-making can give businesses across industries a run for their money (and time).
Businesses have now started turning to AI to overcome decision fatigue. AI assists in making faster and more accurate critical business decisions by sifting through massive pools of complex raw information to find specific patterns and trends. It converts this raw data into helpful insights that can be implemented for decision-making.
This gives businesses a clear advantage, as these real-time insights can be applied to create better strategies, drive efficiencies, accelerate growth, and offer customers an exceptional and irresistible customer experience.
Building long-lasting customer relationships with hyper-personalisation
Businesses recognise that the “one-size-fits-all” approach is now passé. The only way to hit the bullseye is to give customers exactly what they want right when they want it. But how can we achieve that in an era of mass production, where the latest outfit, footwear, or body lotion you purchase is likely to match what your coworker or acquaintance already owns?
That’s where AI-enabled hyper-personalisation steps in. AI can identify patterns and signs from an organisation’s vast data pool to understand the personal motivations driving each customer and grasp them at the N=1 level. In this way, every customer becomes a unique individual whose preferences are recognised and acknowledged, helping businesses earn their loyalty and satisfaction and creating meaningful and long-lasting relationships.
AI in Banking and Finance
With businesses across industries infusing AI into their operations, the banking sector can no longer afford to take a back seat. Banks now recognise that a customer-centric approach is the key to gaining and maintaining customer satisfaction.
McKinsey Global Institute estimates that GenAI could bring $200 billion to $340 billion annually to the banking sector. By integrating AI to gain data-based insights, banks and financial institutions can enhance efficiency, detect fraud, and offer personalised services.
For instance, a bank can deploy AI to track its customers’ spending habits and patterns. If customers regularly make purchases for entertainment, wellness, and shopping, the bank can offer them a lifestyle credit card.
Personalised Shopping Experience with AI
As per a Deloitte report, by 2025, 20% of top global retailers will drive holistic results through distributed AI systems.
AI is revolutionising the retail and e-commerce industry by offering a highly personalised and tailored shopping experience. It swiftly analyses customer data to monitor inventory levels, predict demand, suggest relevant products, and provide tailored recommendations. For instance, a clothing brand uses AI to understand customer preferences, browsing history, and purchase patterns. It accordingly recommends the type of outfits the customers can purchase and their suggested size.
AI also helps businesses perform hyper-targeted advertising by using advanced data analytics to decipher customer behavior and demographics and help them deliver personalised and on-the-spot marketing messages to boost conversion rates and bring in more customers.
Human-AI Collaboration
When humans and AI work in tandem, this collaboration can do wonders to boost the efficiency and accuracy of any business. AI can take the technical and operational tasks under its wing, such as analysing data and making decisions, while humans can devote their time and energy to creative planning and strategising. When guided and regulated by humans, AI can fast-track its capabilities and open the doors for the progress and advancement of different business fields.
Ethical AI and Regulation
As more businesses turn to AI to streamline their operations, taking its ethical considerations into account has become the need of the hour. Organisations must invest in AI literacy and take steps to encourage employees to understand the capabilities and limitations of this technology. Robust governance frameworks can be implemented to promote transparency and accountability, combined with training and monitoring systems to prevent any form of misuse.
At the same time, global collaborations are integral to enforcing ethical AI regulations that ensure its fair and transparent use. Governments and organisations must join forces to tackle the bias, security, and innovation concerns around AI. The primary purpose is to balance innovation and security and practice the responsible deployment of AI worldwide.
Embracing effective decision-making with AI
In an era where choices surround customers, and competition is at its peak, businesses have recognised constant innovation as the only way forward. Enterprises are embracing AI to help them reshape their operations and make informed, data-driven decisions.
AI plays a critical role in helping businesses work faster and smarter by assisting them to analyse data to deliver personalised experiences and drive customer satisfaction and loyalty.