5 ways Artificial Intelligence (AI) is revolutionizing the business landscape

Artificial intelligence (AI) is a thrilling leading indicator, announcing a new era of expansion and development in the future of business industries. AI is the development of computer systems and algorithms that perform tasks equal to or better than humans, which typically requires human-level intelligence. AI supports automation, creativity and growth, increased productivity, in-depth data analysis, accurate prediction, and better safety and security. It has brought transformative changes in brainstorming business ideas, formulating plans, and executing strategies along with customers’ input.

Here are five critical points set to revolutionize the future of the business landscape, driven by the ongoing advancement of AI technology:

1. Strategic Planning and Forecasting

Strategic planning is a step-by-step process to achieve business goals (increase profit and decrease cost) by creating concrete actions. AI helps in long-term strategic planning by providing detailed insights into continuously changing market trends in the post-COVID-19 world. AI facilitates unfolding competitive intelligence by providing solutions to potential risks and creating well-designed marketing strategies for different target markets. It empowers businesses to make informed and successful decisions, leading to increased profits and reduced costs. For example, AI supports satellites and weather stations to forecast weather predictions, allowing businesses to be better prepared for severe weather events.

2. Product Development and Innovation

AI identifies the market gaps by creating innovative, practical, and creative products to meet customers’ needs. It benefits understanding customers’ feedback and perceptions. Who thought chatbots or virtual assistants could answer customer inquiries correctly and instantly? They are available around the clock to ensure efficient service anytime, day or night. They enable personalized recommendations and create tailor-made products by increasing profits for the company. To illustrate innovation, AI creates gaming applications in the education industry to alleviate the burden of worldwide illiteracy. One of the most famous AI innovative products, IBM’s Watson, was able to win ‘Jeopardy!’ In 2011, it competed against human champions. Watson applications have also eased medical doctors to make the correct diagnosis.

3. Supply Chain Optimization

AI forecasts demand, manages inventory and provides a seamless schedule for logistics to create a productive supply chain and efficient operation throughout a business value delivery network. With the assistance of AI robots in Amazon’s fulfillment centers, AI streamlines routine-based repetitive tasks by managing inventory and reducing human error, which was not in hindsight a couple of decades ago. It has automated order picking, packing, and sorting processes in warehouses. It supports quality control and detects product defects before shipping. It reduces waste and contributes to environmentally friendly supply chain practices.

4. Market Expansion in Globalization

AI provides voice assistants to enhance customer interaction programs that offer a convenient experience to international markets that were unattainable due to linguistic and cultural obstacles. We live in a globalized world where AI connects distant parts of the world by bringing businesses together from diverse linguistic backgrounds. It can identify customers based on location, language, and cultural preferences. AI provides timely support for enterprises aiming to expand their target market and run global marketing campaigns, such as Coca-Cola’s ‘Share a Coke’ campaign. It can automatically adapt to local content and various interfaces per local preferences and tastes.

5. Fraud Detection and Security

AI algorithms ensure businesses create and follow ethical and fair policies and procedures to deal with unforeseen events. It assists with managing online global transactions to keep scammers and hackers at bay. It automatically detects threats, identifies unique patterns, and blocks phishing attempts to protect businesses and customers. In real-time, companies can adjust prices based on demand, sales, competition, and customer response. AI identifies patterns for security breaches and fraudulent activities, providing a more robust defence mechanism in evolving business. PayPal was able to identify and prevent potentially fraudulent transactions by providing a higher level of security and protecting its customers’ sensitive information.

Balancing AI and human knowledge, skills, abilities, and other characteristics (KSAOs) is crucial for creating a successful and sustainable future for businesses in the age of rapidly advanced technologies. Remember, technology is not an enemy of humanity but a powerful tool that empowers us to navigate impossible outcomes, provided it is crafted and utilized with empathy, creativity, and a deep understanding of human needs and aspirations.

About the Author

Amna Khaliq teaches online and face-to-face business management programs. She is a doctoral student in strategic leadership. She has an MBA in Economic Development (Cape Breton University), B. COMM honors (University of Windsor), an Adult Education Learning Diploma (Vancouver Community College), a Women’s Leadership Development Certificate (University of Oxford), and an E-learning Certificate (University of Toronto). In her spare time, she likes to travel (she is blessed to have been to more than 35 countries), volunteer, work out, read, and spend time with her family. Her research interest involves economic development, the education industry, and strategic leadership. She is an awarded researcher who has showcased her research at numerous domestic and international conferences. In her viewpoint, communities are not bestowed but constructed with love, kindness, and unwavering dedication.

Are you looking to enhance your skill set to adapt to the rapidly changing business world and future-proof your business career? McMaster University Continuing Education offers courses such as Business Foundations, Managing the Workforce of the Future and Making Decisions, Managing Risk as part of the Business Administration Diploma program electives.