Increasing Company Value with Artificial Intelligence
The idea of Artificial Intelligence has been captivating imaginations for several decades now. But with many recent advancements in technology, AI is no longer the way of the future – it is here now, and it is here to stay. In fact, AI is already starting to make its way into several early-adopting companies.
Automotive companies like Tesla and Waymo are changing the way that we drive, using AI technology to create self-driving vehicles. Factories are using Artificial Intelligent Robots to restock warehouses. Utility companies are using Artificial Intelligence to forecast the demand of electricity. IT professionals are using AI to resolve technical issues. Customer service-based businesses are using AI to anticipate future customer purchases and to automate calls. And the list goes on and on.
But where is this sudden demand of AI coming from, and what is the driving force behind it? Really, it all comes down to computer power and data. As society learns more about algorithms, it allows for the creation of ever-more sophisticated models of Artificial Intelligence. Similarly, the more data available to use, the more sophisticated AI programs can become. And with billions of gigabytes of data being collected on a daily basis, that gives the power to create some pretty sophisticated AI programs that can help to drive business and push forward production.
And the power Artificial Intelligence is not going unnoticed. Since 2016, entrepreneurial investment and interest in Artificial Intelligence has almost tripled, and of course, large companies like Amazon and Google are taking notice and starting to steer in that direction.
With that being said, as of date, it seems that Artificial Intelligence is being used more in technology sectors than anywhere else. Given that Artificial Intelligence employs so much technology, this should not come as much of a surprise. But what are early AI adopters using the technology for? It seems that most adopters of the technology are using it to find ways to increase revenue and reduce costs. Companies that have not yet adopted the technology are concerned that they may not see a beneficial return on investment.
Having said that, the financial benefits of Artificial Intelligence do seem promising. In a study by McKinsey, it was suggested that companies that take on Artificial Intelligence and use it across operations tend to have higher estimated profit margins over the next few years than those who do not. But this difference is widening the gap between early adopters of AI and others, making it more difficult for smaller companies or non-adopting companies to keep up. Larger companies, like banks and automotive manufacturers, for example, are using AI across the board to improve their operations and improve customer service experience. As a result, large companies taking on AI are moving forward, while those failing to adopt the technology are starting to lag behind.
As for the government? They are not without impact either. As Artificial Intelligence continues to push it’s way forward, the government must find new ways to encourage fairness without inhibiting innovation. In addition, they must be constantly searching for new ways that we can work with AI, instead of against it. As AI continues to move forward, many people are at risk of losing their jobs and livelihood to automated robots. But instead of seeing AI as a threat, society simply needs to adapt. Some jobs will be replaced, but many new jobs will also be created. So, AI shouldn’t lead to panic, it should just lead to adaptation.
Of course, the interest in AI is not shared equally around the world. The United States remains as the leader in AI innovation, accounting for over 66% of the world’s AI investments. Shortly behind the United States is China (at 17%), with South Korea and the United Kingdom catching up quickly. For countries like these, there are significant gains to be had with advancements in AI. It is up to each individual company to put their own AI into place, and to utilize it to reduce downtime and enhance profits. All in all, it does seem that AI does, and will continue to, provide a high return on investment for companies that take on an early adoption.
Significant gains are there for the taking. For many companies, this means accelerating the digital-transformation journey. AI is not going to allow companies to leapfrog getting the digital basics right. They will have to get the right digital assets and skills in place to be able to effectively deploy AI.
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