5 Ways Businesses are Utilising Emerging Technology to Transform Business Operations

Businesses worldwide are striving to maintain a competitive advantage and relevance by increasingly leveraging emerging technologies, such as artificial intelligence (AI), to transform their operations. The state of AI in a 2022 review conducted by McKinsey identified a significant increase in AI adoption, with 50% of respondents indicating the use of AI in at least one business area, more than double the figure in 2017

Discover five ways businesses are harnessing the power of revolutionary technologies to drive transformation.

1. Optimising service operations

Businesses are leveraging AI by automating complex tasks, reducing the potential for human error and enhancing operational efficiencies. AI has become an essential tool in service operations optimisation, from logistics to customer service, driving future productivity.

2. Driving product/service development

Incorporating AI in product and service development facilitates businesses to execute predictive modeling and customer insights enhancing client experiences by creating more innovative, user-focused solutions. AI is able to predict consumer behaviours, shape product features and deliver personalised solutions at scale.

3. Revolutionising marketing and sales

By adopting AI for marketing and sales, businesses are personalising customer interactions and improving target marketing by forecasting more accurate sales patterns. AI enables business owners to understand their customers at an individual level and provide more effective client engagement.

4. Enhancing risk modeling and analytics

AI is also making significant inroads in risk modeling and analytics offering the potential to predict and mitigate business risks with greater accuracy. However, companies should take the necessary steps to mitigate AI-related risks.

5. Increasing investments in AI

The tangible benefits of AI are becoming more evident, with companies globally increasing their investment in this space. As cited in the survey, businesses are investing substantial resources into AI technology, with leading organisations allocating 70% of their AI investment to integrating AI into their business processes and agile ways of working.

The potential of emerging technologies to transform business operations is immense. To unlock this potential, organisations must be strategic, ensuring they not only invest in technology however embed it into their processes to empower their consumers and constituents to leverage effectively.

“The pioneers of AI companies that have scaled AI and achieved meaningful value from their investments typically dedicate 10% of their AI investment to algorithms, 20% to technologies, and 70% to embedding AI into business processes and agile ways of working. In other words, these organisations invest twice as much in people and processes as they do in technologies”, according to the Boston Consulting Group.

1. Identify the right opportunities

The first step to AI implementation is to identify the areas of your business most likely will gain optimum benefit. This may incorporate any area where automation of repetitive tasks can increase efficiency, or where AI can deliver better decision-making insights.

2. Invest in the right infrastructure

AI requires a substantial data infrastructure, including hardware for data processing and storage, as well as the right software to analyse data and optimise insights.

3. Upskill your team

AI can be complex, and the skills required to implement and maintain AI systems are specific and advanced. Consider investing in training your existing staff or hiring new employees with AI expertise.

4. Ensure data quality

AI systems are only as good as the data they are trained on. Ensure you have processes in place to maintain data quality and integrity.

5. Mitigate AI risk

AI systems can be prone to bias, security risk, and other data issues. Developing a strategy to mitigate risk, including clear policies regarding data governance and usage is imperative.

6. Engage in ethical practices

Consider ethical implications when implementing AI into your business, which may include  privacy, transparency, and fairness. Proactively addressing these issues and communicating your commitment to ethical AI usage to your stakeholders is recommended.

7. Adopt an iterative approach

Learn from incremental AI implementation by starting small and progressively scaling AI initiatives. Implementation is not a one-off project however an ongoing process of learning, tweaking, and improving.

8. Partner with experts

If you don’t have the in-house expertise to introduce AI to your business, consider partnering with a company specialising in AI implementation, which is able to guide the process and assist mitigate common pitfalls.

9. Keep humans in the loop

AI can automate many tasks, however it’s not a replacement for human judgment. Maintaining a human in the decision-making process to oversee the AI operation is recommended to enable intervening if necessary.

Below are some examples of businesses across various industries that have successfully implemented AI to drive revenue growth and expansion.

Netflix

This popular streaming service has extensively used AI to improve its recommendation systems, crucial to driving user engagement and retention. By using machine learning algorithms, Netflix analyses a user’s viewing history, preferences, and behaviour to recommend shows and movies tailored to individual tastes. It’s estimated their AI-powered recommendation system saves Netflix over $1 billion per year by reducing customer churn.

American Express

AMEX, the financial services giant leverages AI for fraud detection by analysing millions of transactions in real-time to identify patterns and detect anomalies that could signal fraudulent activity.

Starbucks

Starbucks uses AI in its ‘Deep Brew’ program to personalise marketing, increase sales and improve operations. By analysing customer purchase history and behaviour, Starbucks sends personalised offers to customers which significantly increased sales. They also utilise AI to manage staffing level and supply chain, increasing their overall operational efficiency.

These examples highlight the potential of AI to transform various aspects of business, from customer engagement and marketing to operations and risk management. The common thread amongst these companies is a strategic approach to AI implementation, with a clear focus regarding executing AI to enhance customer value and business efficiencies.

Operating a company typically presents complex issues, sometimes on a daily basis. Imagine if you could leverage the experience from an extensive group of industry peers to improve your decision making and social proof as well as futureproofing a successful sustainable business, whilst being held accountable?

Also imagine if you gained the peace of mind to seamlessly access these answers and navigate business challenges, simply by connecting with entrepreneurs and gaining knowledge from business leaders? This is the strength of peer to peer leadership mentoring and impactful, meaningful relations.

Coraggio offers a mutual exchange of expertise, ideas and a support system enabling you to capitalise on a give-and-take dynamic amongst advisors who have walked the path before, mitigating risk to your business.

Leading business owners and entrepreneurs join Coraggio to become part of a highly effective business community facilitating leadership, guaranteeing accountability and sharing innovative ideas within a cohesive and confidential national network.

This mutual exchange of Member’s expertise tangibly results in sustainable revenue streams, increased cash reserves and productive outcomes to future proof your business.

Coraggio Chairs are industry leaders, Members are forward-thinking advisors and all Advisory Boards are dedicated to the ongoing success of their fellow Member’s businesses, offering Fearless Objective Advice – that’s the Coraggion Spirit!

Want to be an integral member of a confidential group of business owners sharing their insights and experiences for the benefit of your business? Imagine how your business would benefit and grow from connecting with a broader community consisting of more than 400 high performing and driven business owners!

Explore membership today! Find out how our proven program can help you build a better business and become a better leader.