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Artificial Intelligence in Business
Yaswanth Manikanta Nissankara
Campbellsville University
Current and Emerging Technology
(BA/CS634)
Dr. Nagamani Palla
2
Artificial Intelligence in Business
Background
Artificial intelligence (AI) and its application in the business world is not a new thing
anymore in the business world. The way that commercial organizations function is being
revolutionized by AI (
Lee
et al.,
2019
). Machines may now learn from data and make
judgments on their using AI. AI has emerged as a crucial tool for companies to remain
competitive as a result of the development of digital technology and the growing amount of
data being collected.
Improving decision-making processes is one of the main uses of AI in business
organizations. AI is able to analyze enormous volumes of data and offer insights that are
impossible for humans to produce quickly and effectively. Businesses can use AI, for
instance, to evaluate customer data and forecast consumer behavior, which can enhance
customer engagement and retention.
AI is also utilized to improve marketing initiatives. AI may assist companies in
identifying target markets and developing customized marketing messages that are more
likely to be resonant with consumers by evaluating customer data. Additionally, by evaluating
data on consumer behavior and preferences, AI can assist firms in optimizing their marketing
tactics.
Moreover, automating tasks that would otherwise take a long time or be impossible
for people to complete is another way that AI is used in the business world. For instance,
companies can automate customer service with AI, which can increase productivity and lower
expenses (
Lee
et al.,
2019
). AI can also be used to automate production procedures like
assembly line work or quality control, which can help organizations increase efficiency and
decrease errors.
3
AI is making strides in the field of finance for instance where AI algorithms can
evaluate financial data and forecast market trends, assisting firms in making better investment
choices. Furthermore, AI can be used to automate financial procedures including detection of
fraud, approving loans, and risk assessments, which can assist firms in lowering the risk of
financial losses.
AI is also reshaping how firms function strategically. Businesses can use AI to better
understand their processes and find chances for growth. Artificial intelligence, for instance,
can assist companies in identifying inefficiencies in their supply chains or processes, which
can result in cost savings and increased performance.
The employment of AI in business organizations, meanwhile, is not without its
difficulties. The ethical challenges that come with of AI are one of the main obstacles. For
instance, companies must make sure AI algorithms are impartial and fair, and that they do not
reinforce current social or economic imbalances. Businesses must also make sure that their
usage of AI is transparent and that their consumers' privacy is respected. Another difficulty is
finding qualified individuals to create and apply AI algorithms (
Lee
et al.,
2019
). Even if AI
technology is becoming more widely available, companies still require professionals in the
field to create and implement trustworthy AI systems.
Why Should Businesses Adopt the Use of AI in Their Practice
AI can aid in improving the decision-making process of an organization. AI's capacity
to accurately and swiftly evaluate large data is one of its key advantages. Businesses can use
this to spot patterns and trends that might be challenging to spot using more conventional
techniques. Businesses can use this information to make well-informed decisions that are
based on current data rather than relying on data with no known source (
Jöhnk,
Weißert
and
Wyrtki
2021
). For instance, a business that use AI to analyze consumer data can
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identify trends and patterns that can aid in decision-making around how to enhance customer
service, lower customer dissatisfaction, and boost revenue.
Additionally, AI can assist organizations in cost reduction. AI can complete jobs more
quickly and precisely than humans, which is one of its key advantages. As a result of
requiring less human work and enhancing operational precision, firms might experience
significant cost savings. For instance, a business can save money on labor and inventory costs
by automating its supply chain using AI to decrease the need for manual labor.
AI can also increase production and efficiency for enterprises. AI can automate a
variety of repetitive tasks, including data entry, record keeping, and customer support.
Employee attention can then be directed into more difficult tasks that call for human
involvement, like making decision, problem-solving, and creative thinking source (
Jöhnk,
Weißert
and
Wyrtki
2021
). This may result in greater effectiveness and production as well as
higher employee work satisfaction. For instance, a business that automates data entry might
save time and money by doing so, freeing up staff members to work on activities that require
technical skills.
Businesses may enhance customer experience with AI. To personalize
recommendations and enhance the entire consumer experience, AI may evaluate client data.
For instance, a business that use AI to examine consumer data can offer tailored
recommendations for goods and services that are most pertinent to the client's requirements.
Increased client happiness, loyalty, and retention may result from this.
AI thus aids companies in maintaining their competitiveness. Businesses who do not
utilize AI run the danger of slipping behind their competitors as more do. By empowering
them to make better decisions, increase productivity and efficiency, cut running costs, and
enhance customer experience, AI may give businesses a competitive edge over their
5
competitors. A business that automates its processes with AI, for instance, can react to market
forces faster than businesses that rely on conventional methods, providing it a competitive
advantage.
What Benefits Do the Use of AI Give to The Business Organizations?
c
Challenges Faced in Implementing the Use of AI in Business Organizations
AI as a technology has the potential to automate processes, make forecasts, and offer
insights. This technology has the potential to change how firms run and open up new growth
prospects. However, there are a number of bottlenecks associated with implementing AI in
commercial settings.
Shaw
et al.,
(2019)
states that
the quality and accessibility of data
provide one of the main obstacles to the use of AI. Since AI mainly relies on data to learn and
make predictions, an inaccuracy in the data will make the AI system ineffective. Business
organizations need to make sure their AI applications have access to high-quality, relevant
data. To effectively train their AI models, they also need to have access to lots of data.
The talent shortage and skill mismatch are another important issue. In order to build
and apply AI successfully, one needs specialized knowledge and skills. Finding qualified
candidates is challenging for firms due to the lack of trained workers in this industry. To
bridge these gaps, businesses must invest in the training of their current workforce and recruit
the best AI talent.
Moreover, integrating AI into current systems is a common component of its
implementation in commercial organizations, which can be a difficult undertaking. AI
systems might not work properly with organizational norms systems or they might need
considerable modifications. Before using AI, businesses must weigh the cost and time
involved in integrating it with current systems.
6
Decisions made by AI have the ability to significantly affect society. Consequently, it
is crucial to make sure AI is used morally and responsibly. When using AI, business
organizations need to take ethical concerns like privacy, bias, and transparency into account.
To prevent unfavorable outcomes, they must also set precise rules and norms for the usage of
AI.
The development and application of AI technology can be expensive. Businesses must
take into account the cost of the software, hardware, and labor needed to implement AI.
Before spending money on AI technology, they must also take the possible return on
investment (ROI) into account.
Workflows and business procedures may need to alter significantly as a result of the
use of AI, which may be resisted with employee. Some workers could worry that AI will
eliminate their positions or lessen their responsibilities (
Shaw
et al.,
2019
). To overcome
employee resistance to change, business organizations must explain the advantages of AI to
their staff members and include them in the implementation process.
AI systems can be used maliciously and are susceptible to cyberattacks. Businesses
must make sure their AI systems are safe and secure from outside dangers. To safeguard
sensitive data, they must also adopt precise security policies and processes.
Organizations must address these issues in order to successfully implement AI in their
businesses and reap its benefits. These issues include ensuring data quality and availability,
bridging the talent gap and skill shortage, taking ethical considerations into account,
integrating AI with existing systems, taking into account the cost, overcoming resistance to
change, and ensuring security.
Business Organizations That Have Implemented the Use of AI into Their
Organizational Practice
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Ali Baba
One of the biggest online marketplaces in the world, Alibaba Group brings together
customers and sellers from all over the world. Alibaba was established in Hangzhou, China,
by Jack Ma in 1999. Since then, it has expanded to become a global technology leader,
facilitating billions of dollars' worth of transactions annually through its online platforms.
Alibaba has been a leader in incorporating AI into business processes recently, using the
technology to boost productivity, customer satisfaction, and overall performance.
The intelligent logistics network is one of the most significant ways Alibaba has
incorporated AI into its business. Using machine learning algorithms, this system predicts the
most effective routes for delivery trucks and plans pickups and deliveries accordingly (
Jia
et
al.,
2018
). Based on information from previous sales, the system can also forecast demand for
certain products, enabling Alibaba to stock and distribute goods more effectively. As a result,
the company's delivery times have been shortened, costs have been cut, and customer
satisfaction has increased.
Alibaba has expanded on its logistics system by incorporating AI into its search and
recommendation engines. The company's algorithms may personalize search results and
suggest things that customers are most likely to be interested in by evaluating data from
millions of searches and purchases. Customers locate what they're looking for more quickly
as a result, and Alibaba's merchants may see a boost in sales.
Alibaba has also utilized AI in their chatbot customer support system. Alibaba's
chatbots can converse with clients in a conversational manner, responding to inquiries,
resolving problems, and even suggesting products using natural language processing and
machine learning. This method has assisted Alibaba in lowering its customer care expenses,
speeding up response times, and giving customers a better tailored experience.
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In addition to these uses, Alibaba has also made investments in a number of
companies and AI-related technologies in an effort to remain a leader in the sector. Alibaba
Cloud, the business' cloud computing arm, is one such example (
Jia
et al.,
2018
). It provides a
variety of AI-powered services like speech recognition, natural language processing, and
computer vision. Businesses of all sizes can utilize these services to automate processes,
enhance customer interactions, and derive insights from data.
Alibaba has been investigating the application of AI in actual retail settings. A smooth
shopping experience is created via the company's first "smart store," which launched in 2018
and makes use of face recognition technology and AI-powered product recommendations.
Without using cash or credit cards, customers can enter the store using facial recognition,
view the merchandise, and make purchases (
Jia
et al.,
2018
). A customer's browsing history
and previous purchases can be used by the store's AI system to suggest things to them.
Alibaba has been able to stay ahead of the curve in a sector that is continuously
changing because of the incorporation of AI into its business operations. Alibaba has been
able to better customer support, optimize logistics, boost search and recommendation
algorithms, and develop novel retail experiences by utilizing machine learning, natural
language processing, and computer vision. In the years to come, it's probable that we'll
witness even more creative uses as the corporation continues to invest in AI research and
development.
Facebook
Through a number of techniques, Facebook, one of the biggest social media platforms
in the world, has been able to integrate the usage of AI in its commercial operations and day
to day practices. Facebook has been able to employ AI to personalize user experiences,
identify and stop fraud, examine user behavior and preferences, and create new goods and
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services that meet its users' changing demands (
Sadiku
et al.,
2021
). This essay will examine
how Facebook has successfully incorporated AI into its operations.
Facebook's News Feed algorithm has allowed it to deploy the uses of AI. Machine
learning is used by the News Feed algorithm to customize the content that shows up in a
user's news feed. To decide what material should be shown in the user's news feed, this
algorithm considers things like their behavior, interests, and interactions. Since Facebook
makes money by displaying advertisements to users, maintaining user engagement on the
network for extended periods of time is essential for the success of its business model.
AI has also been used by Facebook to identify and stop fraud on its network.
Facebook cannot manually monitor every post and interaction due to the volume of users and
content on the platform. AI can help in this situation (
Sadiku
et al.,
2021
). Facebook utilizes
machine learning algorithms to examine patterns of activity and highlight accounts or actions
that may be fake. This keeps the website's users safe and confident in it.
Facebook's facial recognition technology demonstrates how AI has been applied.
Facebook is able to automatically identify and tag users in images because to this technology.
Users will find this feature useful, and it also aids Facebook in gathering information on user
interactions, preferences, and relationships (
Sadiku
et al.,
2021
). The user experience is then
enhanced using this information, and advertisers are given more precise advertising options.
Facebook has also used AI into its marketing plan. The platform analyzes user activity
and preferences using machine learning algorithms in order to offer them with relevant
adverts. By showing consumers advertising that are relevant to their interests, this helps users
as well as advertisers by increasing the likelihood that their ads will be clicked on.
Additionally, Facebook has been utilizing AI to create fresh goods and services that
meet the changing demands of its users. For instance, the business has been funding the
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creation of chatbots, AI-driven programs that can converse with consumers in a human-like
manner. These chatbots can be used for lead generation, e-commerce, and customer care.
Facebook is able to invest in this technology and expand its revenue sources while
simultaneously enhancing the customer experience.
Conclusion
Summarily, businesses need to adopt the use of technological advancements like AI
in-order to stay afloat in a competitive business world. AI will aid them to maintain their
competitiveness. Businesses who do not utilize AI run the danger of slipping behind their
competitors as more do. By empowering them to make better decisions, increase productivity
and efficiency, cut running costs, and enhance customer experience, AI will give the
businesses a competitive edge over their competitors. A business that automates its processes
with AI, for instance, can react to market forces faster than businesses that rely on
conventional methods, providing it a competitive advantage. However, just like any good
thing that has its flaws, AI also comes with a fair share of challenges that the businesses must
be willing to come to terms with. The challenges may include, susceptibility of technology to
cyber-attacks, the use of AI may be expensive to implement, and the use of AI may be
resisted by the employees. Notwithstanding, AI is a better technological advancement that
need to be adopted with the businesses so that they may maintain a competitive edge.
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References
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innovation: the case of artificial intelligence.
Journal of Open Innovation:
Technology, Market, and Complexity
,
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(3), 44.
Jöhnk, J., Weißert, M., & Wyrtki, K. (2021). Ready or not, AI comes—an interview study of
organizational AI readiness factors.
Business & Information Systems Engineering
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63
,
5-20.
Shaw, J., Rudzicz, F., Jamieson, T., & Goldfarb, A. (2019). Artificial intelligence and the
implementation challenge.
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Jia, K., Kenney, M., Mattila, J., & Seppala, T. (2018). The application of artificial intelligence
at Chinese digital platform giants: Baidu, Alibaba and Tencent.
ETLA reports
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