Artificial Intelligence for Business: Impact, Benefits, Examples
Artificial intelligence for business refers to the role, application and impact of AI, its branches and related fields for industrial and commercial purposes.
This article discusses the impact and uses of artificial intelligence in business, as follows;
-Impact of Artificial Intelligence on Business
-Use of Artificial Intelligence in Business
-Benefits of Artificial Intelligence in Business
-Disadvantages of AI in Business
-Examples of Artificial Intelligence in Business
Impact of Artificial Intelligence on Business
Artificial intelligence helps business by reducing demand for resources and increasing the efficiency and quality of output [3].
The positive impacts of artificial intelligence on business and society can be traced to its effectiveness at managing large amounts of data.
Artificial intelligence can help businesses gain competitive advantage in their field by automating tasks, reducing time spent, minimizing errors and reducing the demand for human resources.
The most important branch of artificial intelligence in business is arguably machine learning.
Machine learning helps businesses to solve complex problems by applying predictive analysis of datasets in making decisions [2].
It is also applicable to achieve sustainable manufacturing through a combination of resource and energy conservation, in the form of energy-efficient procedures equipped with robotics and automation.
Use of Artificial Intelligence in Business
The use of artificial intelligence in business is versatile, and can apply at any level of an institution or commercial outlet.
Levels of AI application in business are; grass-root functionality level, performance optimization and business management level.
At the functionality level, artificial intelligence can be used to handle individual tasks, especially those powered by data, and/or involving repetitive and/or arduous activity [1]. It is at this level that automation using both machine learning and robotics, is very helpful.
Highly complex tasks may require advanced deep learning with intricate neural networks, especially when these tasks require the acquisition and utilization of data in real time.
Performance-optimization using AI in business, has to do with measures to improve the output of functions, which refers to products and services.
This application mainly involves decision-making, where AI can help to evaluate available data and make rapid decisions with higher accuracy.
In some cases, performance-optimization takes the form of research and development. Here, the analytical ability of AI is used to recognize opportunities for improvement and innovation.
Business management using artificial intelligence, is a more holistic approach that involves compiling data from various commercial and industrial activities, and continuously evaluating this data to spot flaws, errors, and areas of possible improvement.
Here, artificial intelligence is often combined with Internet of Things (IoT) functionality, so that sensors and other smart devices that are stationed in various aspects of the business, can form a network in which data is shared effectively, and activities are synchronized.
Benefits of Artificial Intelligence in Business
Benefits of artificial intelligence in business are;
1). Increase in productivity
2). Versatile application
3). Innovation facilitation
4). Minimization of errors
5). Conservation of resources
Disadvantages of AI in Business
Disadvantages of AI in business are;
1). High capital cost
2). Initial technical requirements
3). Prospect of human-job replacement and unemployment
4). Ethics and regulation problems
5). Potential environmental impact
Examples of Artificial Intelligence in Business
Examples of artificial intelligence in business are;
1). Automated manufacturing
2). Real-time sales forecasting
3). Management of digital demand-supply networks
4). Intelligent quality assessment
5). Digital personal assistant usage
6). Intelligent security systems
7). Data-driven business management
Conclusion
The impact of artificial intelligence on business is generally positive, and includes resource conservation, quality enhancement and process optimization.
The use of artificial intelligence in business spans across multiple areas and levels that include grass-root functionality, performance optimization, and business management.
Benefits of artificial intelligence in business are; increase in productivity; versatile application, innovation facilitation, minimization of errors, and conservation of resources.
Disadvantages of AI in business are; high capital cost, initial technical requirements, prospect of human unemployment, ethics and regulation problems, and potential environmental impact.
References
1). Chen, X.; Xie, H.; Zou, D.; Hwang, G-J. (2020). "Application and theory gaps during the rise of Artificial Intelligence in Education." Available at: https://doi.org/10.1016/j.caeai.2020.100002. (Accessed 3 February 2023).
2). Stancheva-Todorova, E.; Bogdanova, B. (2021). "Enhancing investors’ decision-making – An interdisciplinary AI-based case study for accounting students." AIP Conference Proceedings 2333(1):150007. Available at: https://doi.org/10.1063/5.0041612. (Accessed 3 February 2023).
3). Waltersmann, L.; Kiemel, S.; Stuhlsatz, J.; Sauer, A.; Miehe, R. (2021). "Artificial Intelligence Applications for Increasing Resource Efficiency in Manufacturing Companies—A Comprehensive Review." Sustainability 13(12):6689. Available at: https://doi.org/10.3390/su13126689. (Accessed 3 February 2023).
