DIGITAL TRANSFORMATION AND AI
You’ll remember that digital transformation (DT) is all about how companies use different technologies to change and improve their business processes, cultures, and experiences. It helps businesses meet the changing needs of the market and consumers and also makes them more efficient, agile and flexible. If businesses don’t embrace digital transformation, they could find it tough to meet changing market needs and what customers expect. Using digital technology like AI helps businesses improve customer experiences, give more value, and change how they do things.
AI VERSUS AUTOMATION
Automation and AI are sometimes used interchangeably because they might seem similar at first. They’re actually two different things. Before we talk about how AI helps with digital transformation, let’s understand the real differences between automation and AI.
- Automation means things can happen automatically with little to no human involvement. It follows set patterns or rules and is great for handling routine tasks. Automation uses regular software, but it can be made even cooler by adding AI like machine learning and deep learning which is AI-powered automation.
- Artificial intelligence is all about making tech act like humans. It uses data to figure out patterns and learn from them, so it can make predictions or decisions. AI learns from data and gets better over time, unlike pure automation without AI. It also learns from how people interact with it and can improve by examining training data.
DRIVING YOUR DIGITAL TRANSFORMATION
Artificial intelligence is like the engine driving digital transformation. With AI, companies can react faster and better to sudden changes or new trends. AI algorithms learn from what happened before and can predict outcomes and avoid risks in the future. Here are five ways that AI will drive your DT initiatives and keep you safe and secure online.
AI helps make business processes better and lowers risks at the same time. This gives managers critical information, so they can make faster and smarter decisions. Imagine you bring in an AI tool for your work – it can handle massive amounts of data and figure things out for itself. Once it’s trained enough, it learns from what it has seen and can suggest or predict things way more accurately.
By adding AI solutions to your business methods and everyday tasks, you can cut down on risks and boost how efficiently things run. This can really speed up your company’s growth. And talking about making money, AI can make the most out of various marketing avenues by running tests and ramping up marketing efforts.
360-DEGREE CUSTOMER VIEW
Using AI to drive your DT efforts gives you a complete picture of your customers. It can handle tons of data and figure out new trends and shifts in how customers behave. With practical tips from AI, you can make customized campaigns, super-focused messages or ads, and provide better customer experiences on all channels or platforms.
When you let AI take over certain manual tasks, it really amps up how productive your organization can be. Studies have even shown that AI can bump up productivity by 40% or even more. It can quickly find and put together information, which means your employees get more time to focus on what they’re best at. Plus, AI can handle tough calculations, spot patterns, and deal with those boring, repetitive jobs. This gives your organization a leg up, helping you get smart insights and make solid decisions that can set you apart from the competition.
CYBERSECURITY AND FRAUD
Companies that use advanced AI and automation for security ended up paying 80% less in breach costs compared to those without these. This clearly highlights the crucial role of AI-driven security, especially if you handle personal information. With AI-powered security, software taps into real-time analytics and past data to spot irregularities in a user’s actions. This means your system can automatically stop login tries from odd places, flag dubious transactions, or put a halt to big cash withdrawals.
DIGITAL TRANSFORMATION SUCCESS STORIES
Check out these four success stories of companies that used AI in their digital transformation strategies:
- Airbus – the French aircraft manufacturer harnessed generative design for a bionic partition in its A320 aircraft. This move slashed the part’s weight by 45%, resulting in enhanced fuel efficiency, passenger comfort, and decreased carbon emissions for every flight.
- Red Roof Inn – the American hotel chain employed AI-driven analytics to keep track of up-to-the-minute flight cancellation updates. This initiative prompted the company to focus on optimizing mobile searches for regions adjacent to particular airports. As a result, conversion rates for these locations skyrocketed by an impressive 375%.
- Lemonade – the American insurance company harnessed AI to tackle fraudulent claims and slash administrative expenses. They assert that their systems amass a hundredfold more data compared to conventional insurance providers. The CEO of Lemonade highlights that AI played a pivotal role in shrinking their loss ratio from 146% to 87% within a single year. What’s more, approximately 30% of claims are now handled instantly, ensuring customers enjoy a smooth and hassle-free experience.
- C3.ai – the American technology company offers a platform for warehouse managers to access live inventory information and stock recommendations. Their AI software assists businesses in cutting down shipping expenses by 20-50% and lowering inventory levels and holding costs by 15-30%.
TRANSFORM WITH ME
Automation is a fundamental component of digitalization and digital transformation. I’ve been in the cybersecurity and IT support business for almost 20 years. While I might have cybersecurity and risk mitigation in my bones and blood, I’ve also moved on with the times, increasingly seeing why businesses need AI, automation and digital transformation. Let’s get together soon. You’ll quickly see how digital transformation using AI will revolutionize your business culture, transform the way you work, and keep your customers, suppliers and team happy.