As the transformation of IT structures in businesses has progressed rapidly over the years, AI or Artificial Intelligence has also made its way into systems used by businesses. AI has not only automated entire systems for a business but has also enabled them to establish a competitive advantage. It has effectively managed to enhance the capability of existing systems and has been responsible for significantly driving up revenues. It is predicted that by 2030 AI will be responsible for driving up revenues to nearly $15.7 billion in the global GDP. As CIOs now play a major role in the executive decision-making process, it has become crucial for businesses to implement smart and efficient systems that can augment their capabilities. AI is among one of the top priorities for executives around the world to use as a tool for advancing their IT structures.
Investments in the AI sector have also been at a rise for the past couple of years. The United States and China are among the top countries that are investing in AI-powered solutions. According to a study by Gartner it is amongst the first five investment priorities for IT heads in over 30% of the companies.
Transformations Brought About by AI
There are a lot of systems that have been automated through the use of AI. It has enabled businesses to improve both their top and bottom line processes. AI in itself has a number of applications including machine learning and natural language processing (NLP). Each one serves its own purpose in enhancing business procedures. A number of functions have been transformed by AI including customer service management, risk analysis, and Anti Money Laundering or AML Compliance.
Augmented Intelligence, which is an alternate concept for AI, has the ability to assist humans by understanding their cognitive behavior, emotions and the thought process involved in their decision making. According to a survey, 90% of managers claimed that they will trust advice imparted through intelligent systems in order to shape their key decisions. The idea is not to replace humans and their capabilities, rather than to assist them in making better and more informed decisions.
Obstacles and Opportunities in AI
In the day and age of digital transformation, businesses have never been keener to adopt AI into their existing IT structures. But while the executive management is eager to bring in intelligent systems, their teams are not so much so. A lot of front tier workers find it difficult to trust automated systems with sales insights and other functions. Customer service solutions, for instance, help sales teams in predicting customer behavior and exploring new opportunities to attract a wider clientele.
On the other hand, AI has significant opportunities in the financial sector. The Fintech industry is, at present, thoroughly exploring AI-based solutions. It has already effectively automated a number of systems in banking and financial institutions. Some of the processes that the Fintech sector has developed include AML compliance through anomaly detection and background screening checks, customer services and fraud detection solutions through effective biometric authentications.