Different industries are obliged to transform with time to meet consumer demands and increase efficiency. The pandemic has forced companies to speed up digital transformation to remain relevant in the market. Digital transformation is whereby industries leverage digital technologies to improve user experiences and business processes to meet consumer changing needs.
Many things have moved digital, including meetings and conferences. Thanks to AI, the process of transformation has been seamless. AI has brought in more innovation, flexibility, and adaptability. It has been used as a cost-effective option for increasing productivity and competitiveness during the pandemic while enabling quick digital transformation.
AI as a driver for digital transformation leverage on data to get insights that can help a company expand, improve its products or services, or increase innovation.
Some of the ways in which AI is facilitating digital transformation include:
Better customer understanding
As much as companies are forced to take the path of digital transformation, they need to understand the customer’s needs. That can only be possible once they understand customer behavior since they are working to improve customer experience.
Through AI, companies can understand customer needs and preferences easily. Once they have accurate customer data, they are assured of digital transformation success.
AI uses data to reveal the trends in customer behavior, their buying history, and digital channel engagement to give a detailed customer profile. This helps to personalize the individual customer experience, which is mandatory for the success of any business. This also helps a company unlock customer loyalty, customer satisfaction, and effective marketing campaigns, which gives it a competitive edge.
Customer engagement
Gone are the days where companies had to measure consumer engagement through analyzing website traffic. With AI and digital transformation, businesses can optimize customer engagement by ensuring that the website content aligns with customer preferences.
Companies are also able to touch base with customers through chatbots and other automation tools. This makes customers feel the company is there for them, which helps build up their loyalty.
Data-driven decisions
As mentioned earlier, data is critical for digital transformation. What will fuel your data transformation strategy is how you use the data that you get.
AI can process vast amounts of data in real-time and give you the insights you need in creating a strategy. A business needs the right strategy that reacts to consumer needs as opposed to customer actions. Data-driven solutions are crucial for a great personalized customer experience and effective marketing campaigns that lead to massive savings.
Risk Mitigation
AI is a sure way of dealing with risks and, in general, avoiding them. Through accurate data insights, you can get to know what you are about to get into before you do, avoiding making the wrong move. This helps in decision-making. That explains why companies are using AI to increase operational efficiency, which has been predicted to increase profitability by about 38 percent by 2035. Advanced analytics can use data to help companies that will help a business outperform the competition.
The need for risk mitigation has made Clearfind to jump into the bandwagon. This is a software intelligence platform that will effectively analyze your software system and uncover what you should keep, assess, remove or consolidate. This will help you avoid risks while increasing the efficiency of your system. With the platform, a company can save up to 50% of the operational costs.
According to the CEO of Clearfind, James Layfield in an interview “We can see a world in which clients get quicker more effective outcomes by bringing in AI-enabled solutions to do the heavy lifting on highly complex tasks such as software selection. We already work with CIO’s and some incredible consulting firms to supercharge their teams and better serve their clients.”
A survey done by Tata Consultancy Services shows that 44% of 835 companies use AI to detect and prevent intrusion. There is an increasing number of companies that are using AI to deal with security risks.
Automation
There is no doubt in the current era; we cannot live without automation. There are many advantages to automation as it can do much more than humans can do. It makes the process faster, a sales cycle shorter, and that increases profitability. On the flip side, when it comes to digital transformation, automation makes it faster and easier.
Contrary to expectation, not all automation tools are intelligent; some are just programmed to give you a particular set of outputs. AI not only helps in automation but can also do transformation.
Digital supply chain
A supply chain is a critical component of any business. Even though many companies worked hard at ensuring accuracy, the system still had loopholes as it was hard to detect some things, such as when an item was damaged in transit or when a product got lost. AI has, however, been used to solve this problem.
In health or fitness goods, a sensor has been incorporated to detect when an impact that causes damage happens. There are many ways other industries have also digitized their supply chain process.
In addition to supply chain, it has also been used in the product description in confirming the accuracy of the listed products in a bill.
Even though there is a range of technologies that have aided digital transformation, such as SaaS, IoT, virtual reality, robotics, etc., none beats artificial intelligence and machine learning. With time, many things will have integration of AI tools as more industries adapt to the technology. Since digital transformation is here to stay, the future market will be exciting with exciting innovations.
