Gaurav Tewari, founder and Managing Partner of Omega Venture Partners.
Almost two-thirds of business owners (64%) believe that artificial intelligence (AI) will increase productivity and improve customer relationships. However, most business leaders struggle with where and how they should deploy AI to achieve pragmatic benefits. Consequently, many companies today are marketing, rather than delivering, the integration of AI into their products and services.
However, as AI becomes increasingly pervasive, simply utilizing AI will no longer be a compelling selling proposition. Instead, the technology’s ability to provide a sustainable competitive advantage will be the true distinguisher. Our team has met with thousands of AI startups (and invested in a few), giving us valuable insight into the market. Based on those interactions and my experience, here’s how business leaders can rise above the hype and actually harness AI in ways that deliver tangible advantages:
Empowering Users: Usability, Democratization and Customization
As I see it, almost every business stands to benefit from deploying AI-enabled superior user interfaces. Generative AI is particularly well suited to power intuitive and conversational Natural Language Interfaces. For example, natural language processing (NLP) enables interactions between humans and computers in natural human language instead of code or a graphical user interface (GUI). This empowers users to focus on completing important tasks rather than learning how to interact with technology, thereby enhancing productivity through more intuitive systems.
Intuitive AI interfaces also democratize accessibility to previously specialized skills, such as coding or data analysis, enabling a more diverse range of users to interact with technology. Research from the University of Pennsylvania revealed that around 80% of the U.S. workforce could have their work affected by the introduction of large language models. AI-enabled seamless adoption can empower millions to level up their abilities and performance.
AI systems also have the capacity to learn over time, making them customizable to each user. This is a major paradigm shift from the one-size-fits-all technology solutions we have become accustomed to. With their dynamic adaptability, AI systems can learn from user behavior, preferences and feedback to deliver tailored experiences. This level of personalization can not only enhance user satisfaction but also foster improved user retention as individuals feel understood and valued. If AI is deployed with a user-centric approach that emphasizes intuitiveness and customization, it can provide great value to the user experience.
Supercharging Business: Integrating, Scaling and Adapting
If deployed correctly, AI can augment company-wide operations and revolutionize workflows. These solutions often eliminate the need for extensive training, as employees can easily incorporate AI technologies into their current routines.
Once integrated, AI systems capable of scaling with the company can provide a significant competitive edge for growing businesses. In fact, 75% of executives believe they risk bankruptcy in the next five years if they don’t scale AI. Scalable AI models can enable organizations to handle larger workloads efficiently, resulting in increased productivity and the ability to deliver timely and accurate results.
Finally, taking an iterative approach to deploying AI is crucial for businesses to stay agile in a rapidly changing landscape. As market dynamics shift and new challenges emerge, businesses need AI systems that can be fine-tuned to meet evolving demands. Adaptable AI solutions can enable organizations to respond quickly to changing circumstances, seize new opportunities and stay ahead of the competition.
Case Studies: Genuinely Leveraging AI To Optimize Work
There are many areas where I believe AI can make a difference, but three industries stand out:
Commerce. The market for AI-powered online shopping is projected to grow to $16.5 billion by 2030. A typical consumer now interacts with advertisements that are completely personalized, augmenting their browsing by automatically identifying potential purchases. Simultaneously, brands are crunching vast amounts of data about their products, enabling educated production decisions and increasing profit.
Healthcare. Although only 35% of medical tasks can be automated, AI-empowered telehealth platforms can go further with real-time monitoring of patients and seamless connectivity with professionals. Looking forward, AI is demonstrating its potential to provide diagnosis insights that can help doctors diagnose and treat patients.
Customer Service. Gartner, Inc. predicts that, by 2027, chatbots will become the primary customer service channel for roughly a quarter of businesses. Chatbots augment the notoriously painful process of contacting businesses, and 80% of consumers polled report having positive experiences. By implementing AI for customer service, businesses can substantially enhance customer experience, reduce costs and amplify value.
Caution: Downfalls Of Suboptimal AI Implementation
When AI is employed for marketing purposes without providing substantial value, it can hinder a company’s ability to perform and be detrimental to overall performance. While the majority of consumers believe AI can enhance their experience, 76% are concerned about misinformation and other adverse consequences.
If a business claims to utilize AI but fails to provide tangible benefits, customers may perceive it as untrustworthy and lacking authenticity. For example, when Google’s Bard made a simple factual error, it cost the company $100 billion. Poor AI implementation can seriously damage brand reputation.
Implementing AI technologies without a clear understanding of what success looks like leads to misalignment and misuse of resources. Businesses should identify specific pain points and areas where AI can truly improve efficiency and deliver better outcomes, rather than adopting AI for the sake of following a trend. AI technologies have the capability to unlock new insights, optimize processes and drive innovation for individual users and entire organizations—when used effectively.
In conclusion, AI is not a mere buzzword, but a transformative platform that has the potential to revolutionize business. Users gravitate toward customized and intuitive products and services that are useful as well as usable. Businesses should take a thoughtful, iterative approach and have a clear understanding of desired outcomes. Businesses should seek to implement AI systems that democratize usability, and which are scalable and adaptable to evolving needs. By embracing AI with purpose and passion, businesses can differentiate themselves from competitors, make data-driven decisions and help ensure future success.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here