Artificial Intelligence (AI) is all the rage right now. And businesses in all industries are racing to adopt and integrate it. Its current trendiness aside, artificial intelligence has played a significant role in digital transformation in recent years.
AI is Trending
The popularity of AI has significantly increased in recent years. Historically, AI was viewed mainly as a niche technology with limited applications. However, in recent years, AI has become increasingly mainstream, with applications in a wide range of industries. This prompted growing interest in AI from businesses and the general public alike.
A December 2022 study conducted by Rackspace Technology found that 69% of respondents view AI (and machine learning) as a high priority within their organizations. Additionally, the survey revealed that nearly one-third of respondents had just started their AI/ML journeys in the past year, demonstrating the rising value of these technologies and the urgency to adopt them.
A contributing factor to the growing popularity of AI is the increasing availability of data. AI algorithms require large amounts of data to train and improve. The volume of data available to AI researchers has grown exponentially in recent years, enabling the training of more sophisticated models capable of performing tasks that were previously impossible.
Complexities and challenges associated with the technology discouraged businesses from adopting AI tools in the past. But breakthroughs in AI research have yielded new AI techniques that are more powerful and more efficient than previous methods, making AI more accessible to businesses and to the general public.
The increasing availability of AI tools contributes to the growing popularity of AI. Trendy tools like Bard and ChatGPT have intensified the rise in popularity of AI. These tools demonstrate the potential of AI to perform a variety of tasks and have made AI more accessible and user-friendly. Therefore, more people are discovering AI and all its potential.
PwC’s Global Artificial Intelligence Study from 2017 offers the prediction that North America will realize the majority of AI benefits faster because of the vast opportunities to introduce more productive technologies.
AI for Digital Transformation
The impact of Artificial intelligence on digital transformation in the United States has been significant, and its influence continues to grow. Here are some examples of the ways in which AI has aided companies on their digital transformation journey:
- Automation: AI is being used to automate tasks previously performed by humans. Developers are using AI-powered tools to automate processes such as data entry, customer service, and supply chain management. This automation of repetitive tasks streamlines workflows and frees up employees, enabling them to focus on other projects. Having AI perform these functions reduces human error, therefore enhancing efficiency. Automation has become essential to digital transformation, as it provides improvements to productivity while saving time and money.
- Data Analysis: AI has made it easier for businesses to analyze massive amounts of data, providing insights that were previously unattainable. While this has helped companies make better decisions and identify new opportunities, it also helps to ensure compliance with regulations; something specifically critical for businesses in the financial and healthcare industries.
- Fraud Detection and Risk Assessment: Because of its ability to analyze data, AI can be used to identify patters indicative of fraudulent activity. Data can also be analyzed to assess risk. An example of this in the financial industry is a credit risk assessment.
- Chatbots and Virtual Assistants: AI powers chatbots, which are often used to provide automated customer support. AI-powered virtual assistants go further than chatbots, helping with tasks like appointment scheduling, sending email, generating leads, and so much more.
- Enhanced Customer Experience: AI can be used to analyze data about user or customer. AI-powered tools such as the chatbots and virtual assistants just mentioned enable businesses to provide highly personalized experiences to customers. Things like personalized recommendations and personalized customer service result in improved customer satisfaction.
AI Tools in Digital Transformation Strategies
Many U.S. companies have utilized AI tools in their digital transformation strategies.
Google is heavily invested in AI. By using AI to power its search engine, Google is able to provide users with personalized results based on search history.
Similarly, Amazon uses AI for its recommendation engine, delivering personalized product recommendations based on browsing history and past purchases. Amazon also puts AI to work to automate processes in its fulfillment centers and warehouses.
Microsoft is another company using AI to transform its business. The company relies on AI for its Azure cloud platform and its Office 365 productivity suite. AI also powers the company’s virtual assistant Cortana.
Along those same lines, Apple uses AI to power its virtual assistant Siri, as well as the company’s facial recognition system and self-driving car project.
Your Facebook feed is powered by AI. Facebook uses AI to determine which content to display and which ads to serve. AI also helps detect and remove fake news and other inappropriate content.
A conversation about U.S. companies, AI, and digital transformation isn’t complete without mentioning IBM. IBM is a leader in the field of AI research and development. And AI powers the company’s Watson cognitive computing platform, which is used across various industries including finance, retail, and healthcare.
Harnessing the power of AI has led to innovation across various industries in the United States. In the healthcare sector, AI is being used to provide highly personalized care, develop new drugs, provide better medical imaging, and diagnose diseases. In the transportation sector, AI is being used to develop self-driving cars, improve safety, and optimize the flow of traffic. The finance industry is using AI to manage risk, detect fraud, and make investment decisions. And, in retail, AI is being used to manage inventory and provide personalized shopping experiences with product recommendations.
AI is having a significant impact on digital transformation in the United States. Task automation, improving customer service, and developing new products and services are delivering better customer experiences, saving companies money, and creating new opportunities for businesses. These new products and services made possible by AI are changing how we live and work and have a significant impact on the U.S. economy.
It’s likely that AI’s popularity will continue to expand in coming years, and businesses across all industries are rushing to implement AI tools to remain competitive and to meet customer expectations. This, in turn, is creating an even greater demand for AI skills and expertise. More innovative and transformative applications of this technology are likely to emerge in its continuing evolution.
Xebia has an established history of helping companies succeed with custom AI-driven solutions. Our team continually watches this space closely, monitoring the potential benefits and pitfalls of AI in software development to assess its effectiveness and usefulness for our clients. And we're actively working in this space on things to make it easier for developers to utilize AI in projects.
AI-powered tools will become even more powerful and versatile, capable of performing even more complex tasks. As a result, AI tools will cement themselves as an even more essential part of our lives than ever, putting those businesses that forego AI implementations at risk of being left behind.