How to Use AI in Business to Drive Efficiency and Grow Your Company

For anyone interested in starting, growing, and eventually selling a company, it’s important to pay attention to the dramatic impact of AI in business. Recent advances in artificial intelligence technology have unlocked truly transformative capabilities. Ignore these changes and you risk getting left behind. Embrace them and you enable yourself to drive efficiency and grow your company.

In this article, we discuss:

• The different types of artificial intelligence
• How to leverage AI to automate business processes
• The power of AI to analyze data and gain insight
• Using AI to engage with customers
• Common concerns regarding AI in business

Related Article: How to Get Acquired: Your Step-by-Step Road Map to a Successful Exit

Understanding the Different Types of Artificial Intelligence

Nowadays, when we think about AI, we may think about ChatGPT or other similar generative AI models. While these tools do fall under the AI category, they are by no means the only forms. In order to understand the different ways AI can impact business, it is important to know the different categories. These include:

• Natural language processing
• Data mining
• Machine learning
• Computer vision

“Recent advances in artificial intelligence technology have unlocked truly transformative capabilities.”

Natural language processing

Natural language processing, or NLP, is perhaps the most widely known form of AI. NLP models aim to understand and interpret language similarly to how humans do. By utilizing deep learning, computational linguistics, machine learning, and statistical models, NLP models can understand the content, context, sentiment, and intent of human language.

Furthermore, these models can respond to and interact with human speakers in a highly coherent and helpful manner. These AI tools present unique opportunities for business owners.

Data mining

Data mining is a part of artificial intelligence. It collects, stores, and analyzes big data. Using powerful computational abilities, these programs can recognize patterns in the data and draw conclusions or make predictions.

While humans can operate in much the same way, the sheer power of modern data-mining programs can yield results beyond the capabilities of even the smartest humans. When directed at the right data sets, these insights can be leveraged for immense business benefit.

Machine learning

Machine learning is a branch of artificial intelligence that mimics the way humans observe, learn, and interact with the world. With machine learning, computers take in information from the world, analyze the data, and then make associations between related portions of the data. As the machine learns and forms associations, it can then make predictions or decisions about future behavior related to the data set.

Machine learning is still a budding field of AI. As with other AI fields, the full power and capabilities of machine learning are still not clear. As we will see, however, it is clear that it contains huge potential to revolutionize a wide range of business processes.

Computer vision

Computer vision is a form of AI that allows computers to understand images or videos in much the same way that humans do. If the image shows a picture of a flower, computer vision recognizes it as a flower. The same is true for understanding and describing video. Given the importance of image or video assets in business and marketing, computer vision holds a lot of promise for businesses of all types.

AI technology and business

Emerging AI technologies provide powerful new capabilities for a range of use cases. When it comes to business, we are still in the process of understanding the specific ways artificial intelligence technology can be utilized for gain.

While new uses will undoubtedly be discovered, AI is making an impact on business in three main ways:

• Using AI to automate business processes
• Analyzing business data and gaining insights through AI
• Engaging with customers using AI

Each of these categories contains numerous specific use cases. Below, we take a look at some of the common ways AI is currently being used by business owners.

“When it comes to business, we are still in the process of understanding the specific ways artificial intelligence technology can be utilized for gain.”

Using AI to Automate Business Processes

According to a study by Harvard Business Review, the majority of businesses polled use AI to automate business processes. Given the capabilities of AI, process automation holds huge promise for increasing efficiency and reducing business costs. Below, we take a look at some of the common ways AI is being used to automate business processes.

Digital personal assistants

According to a Forbes study, 47 percent of polled business owners use or plan to use an AI-powered digital personal assistant. As AI becomes more powerful and humanlike, it is able to complete mundane tasks that have traditionally been handled by personal assistants. This includes drafting emails, organizing schedules, and more.

Smart inventory management

AI is being utilized to analyze inventory trends in order to better predict future needs. This can help to avoid inventory shortages or overstock and help plan the optimal ordering time, creating a more seamless and cost-efficient management process.

Content production

Many businesses use AI to produce content as part of their marketing efforts. Depending on your needs, you can consider utilizing AI tools to produce:

• Website copy
• Customer emails
• Blog content
• Social media posts

This is only a partial list. While AI may be used to produce the entirety of certain types of content, it may only play a role in creating others. For example, it could be useful in doing keyword research for a blog post. It may still pay to have a human write and edit the final piece, however.

When using AI to create content, keep in mind the end purpose of the piece when deciding whether AI is appropriate. Some content is still best produced by a human.

Data handling and transfer

AI also holds a lot of promise when it comes to reading, transferring, or inputting data. Typically, these business functions are handled by back-office personnel. AI programs are getting much better at reading different types of documents, recognizing pertinent data, and then inputting this data into the appropriate location or customer relationship management software.

For example, AI could be used to analyze customer emails and update customer files with any relevant information, such as shipping address or phone number.

Legal document analysis

There is a lot of buzz around how artificial intelligence technology will impact the legal profession. One area of particular interest is AI’s ability to consume and analyze legal documents. When it comes to business, AI can read legal documents and extract relevant provisions that may be useful to you as an owner. This can save you time and money.

“AI technology can now plan delivery routes in order to optimize for efficiency, cutting down on delivery time and costs.”

Delivery mapping

Another area of impact of artificial intelligence in business is its ability to analyze and optimize delivery routes. AI technology can now plan delivery routes in order to optimize for efficiency, cutting down on delivery time and costs.

Fake-review detection

AI is also being used to analyze reviews in order to identify and flag potential fake reviews. These reviews can then be further analyzed and removed if deemed necessary. For platforms such as Amazon or Shopify that rely on reviews to signal product quality, being able to identify fake reviews on a mass scale is crucial.

The Power of AI to Analyze Business Data and Gain Insights

In the world of business, information is power. Knowing your customers is key to shaping a successful business strategy. As technology progressed to the digital age and businesses moved online, huge amounts of customer information became available through social media sites, Google, and other online points of contact.

AI provides several useful ways to analyze this trove of business data and gain insights. These include:

• Analyzing customer behavior
• Detecting fraud

Analyzing customer behavior

AI technology has supercharged this information revolution. Through data mining and machine learning, you can now collect and analyze customer data in a way only previously dreamed of. By combining large amounts of customer data with powerful AI analytics tools, you can now understand each customer on a much more detailed level.

This knowledge allows you to get a clearer idea of who your customers are, what products they are likely to buy, when they do their shopping, and more. As we will see, this information can then be used to communicate and market more effectively to your target audiences.

For example, you can use AI to analyze your product or service reviews to gain an informed understanding of what your customers like and don’t like about your company. You can do the same to understand the competition as well. Armed with this information, you can address weaknesses and capitalize on your strengths.

This is just one way to gain customer insights. In the next section, we will discuss some of the ways you can utilize these insights to connect with your audience.

“By combining large amounts of customer data with powerful AI analytics tools, you can now understand each customer on a much more detailed level.”

Detecting fraud and counterfeits

AI is proving to be a powerful tool to detect fraud. Using data analysis, AI tools can accurately predict when fraud is being committed. Once flagged, a human can step in to analyze the situation and take any action necessary. Fraud detection is especially important for credit card and insurance companies.

At the same time, AI can be used to detect when counterfeit products are being sold. If you have ever encountered this issue with your own business, AI may be able to help.

Using AI to Engage with Customers

Businesses are using various AI systems to engage with customers in new and exciting ways. While these capabilities are still in the process of coming online, they are already proving to be quite valuable for many business functions.

AI customer service chatbots

If you’ve played with ChatGPT or other LLMs (large language models, a subset of NLPs), you know just how far AI chatbots have come. At present, they can provide useful humanlike responses to a wide variety of questions. Recognizing the potential this new technology has when it comes to mitigating customer service costs, many companies are implementing AI customer service chatbots.

AI chatbots can now field customer questions, customer requests, or customer concerns. For the business, this allows for a 24/7 customer service representative to be available for assistance. At the same time, it can save on costs as human workers become less necessary. Of course, this raises questions and concerns over the long-term impact that AI will have on human jobs.

Personalized shopping recommendations

The more you can understand each individual customer, the more successful you will be in sales and marketing. One of the big promises of AI is the ability for companies to personalize each customer’s experience on a mass scale.

Personalized shopping recommendations are one of the most direct ways to do this. By analyzing past shopping behavior and other relevant customer information, AI can make predictions about which products each customer will find most useful. These algorithms can turn these predictions into personalized shopping recommendations for each customer.

“One of the big promises of AI is the ability for companies to personalize each customer’s experience on a mass scale.”

Enhanced product search

Another way AI can personalize the shopping experience is to produce individualized product search results. Ecommerce platforms can gather and analyze data about each customer and then offer them product search results that match their buying behavior. This can lead to greater customer satisfaction and boost sales.

Personalized ad targeting

In order to make sure your ad budget is spent wisely, it is crucial to target the right audience. With the help of AI tools, you can better target the right audience. This can boost the performance of your ads, increase sales, and drive profitability.

Once a potential customer has interacted with some aspect of your marketing efforts, AI can provide you with high-powered retargeting tools. This allows you to better reach interested customers, further boosting your marketing efforts.

Dynamic pricing

Lastly, AI can assess your market and competition in real-time to provide you with up-to-date assessments on the best pricing strategy. If a competitor has dropped their prices, you can elect to let AI automatically alter your price in response, helping you stay competitive.

Common Concerns regarding AI in Business

While AI technology holds incredible promise, it also raises concerns. Futuristic robot wars and doomsday predictions aside, every business owner should be aware of some of the potential pitfalls of artificial intelligence. These include:

• Fears of diminished website traffic
• Reduced customer service quality
• Privacy and customer data
• Accuracy of information

“Futuristic robot wars and doomsday predictions aside, every business owner should be aware of some of the potential pitfalls of artificial intelligence.”

Fears of diminished website traffic

Some industry leaders fear that AI tools like ChatGPT could lead to a reduction in organic website visits. As more customers turn to ChatGPT or other chatbots to answer their questions, those using organic search results will decline, so the thinking goes. While the direct answer yielded by ChatGPT may benefit the customer, it could potentially harm businesses that rely on content marketing and organic traffic to attract new customers.

Nobody really knows how AI will impact traditional content marketing or organic traffic in the long run. Some reconfiguring of the industry could happen. As always, businesses will need to proactively adjust to the disruptive changes in order to maintain their edge.

Reduced customer service quality

Have you ever talked to an automated chatbot only to be frustrated with its lack of ability to address your concerns? You aren’t alone. While AI customer chatbots are getting better and better, they can’t handle all customer concerns. Sometimes it’s nice to talk to a real, live human being.

As you consider rolling out AI customer service chatbots in your own business, you must weigh the efficiency and cost savings they provide against the risks they present to the quality of your customer service.

Privacy and customer data

Another big concern with AI technologies is privacy and customer data. As with any new technology, AI could present new challenges when it comes to protecting customer information and technology. As always, it is your responsibility as a business owner to ensure that you take all necessary steps to protect your customer data and maintain privacy.

Accuracy of information

While ChatGPT and other modern AI tools are a true marvel to behold and can be incredibly useful, they are known to “hallucinate” from time to time. That is, they sometimes output incorrect or untrue information. If you use AI output in your business processes, incorrect information could have a negative impact. Additionally, misinformation disseminated to your customers could destroy customer trust and harm your bottom line in the long run.

As with privacy concerns, it is up to you to ensure the information you use from AI tools is factual and accurate. Be sure to check the output before using it in your internal processes or disseminating it to customers.

Conclusion

Modern AI technology carries the promise to revolutionize many areas of business. From customer behavior analysis and marketing personalization to inventory management and delivery optimization, AI can cut costs and boost productivity across your business operations. By learning how to utilize this new technology in your business and what pitfalls to watch out for, you can stay ahead of the competition.