The place of AI in digital transformation

While AI is an integral part of digital transformation, it is AI’s big data capability that sets it apart from the majority of technological innovations such as the Internet of Things (IoT) and virtual reality (VR). AI’s ability to collect and analyse vast amounts of data has ushered in an era of data-driven decision-making, which will only increase in application and relevance over time.

AI-powered processes are able to respond to new information or unexpected changes. In other words, AI algorithms are able to learn from their successes and failures, allowing them to make informed decisions without human intervention. It is this feature that distinguishes AI from other common technological processes that rely on standard automation.

AI is an integral part of digital technology when it comes to innovation and improving productivity. Without AI, digital transformation and the resulting digitisation of processes would generate huge amounts of data that humans could not easily analyse and respond to in a timely manner. AI is a direct driver of digital transformation processes, as it opens up opportunities for innovation and improvement that were previously not feasible. AI makes it possible to collect and effectively analyse tonnes of information to improve the efficiency of the process in question.

Of the business processes undergoing AI transformation, customer support is at the forefront as a pioneering process experimenting with AI’s capabilities in self-service options and automated responses. As a result of AI-driven solutions, customer satisfaction has improved and companies are seeing cost optimisations. Due to privacy concerns, the use of cookies is decreasing, so companies need to find newer ways to understand their customers and their behaviours. AI-powered software seems to be the likely way forward, as it will help businesses understand their customers better and more comprehensively, without relying on cookies, through behavioural and predictive analytics.

Decision-making is the other process that will benefit from AI infiltration. In order to come to an optimal conclusion, we need all the important data, and more often than not, this data needs to be processed and a decision made quickly. With AI, decision makers are not only able to identify and highlight the important information about their business and processes, but also gain access to predictive outcomes.

AI can be an effective tool when it comes to optimising the time it takes to create value, and increasing productivity. Automation is an integral aspect of digital transformation for businesses, as it allows them to understand and see all the critical details of their processes and even take pre-emptive steps to combat downtime, in addition to being able to determine expected completion times. Whether it’s identifying issues before they occur or running simulations, AI works to optimise timelines by automating tasks, freeing up human resources for the more cognitive aspects of product development processes. In doing so, AI reduces the resources required, effectively increasing profit margins.

All technologies, including the use of AI, need to be within a company’s profit margin. Businesses are considering embarking on a digital transformation initiative, but in a controlled environment where they can weigh the impact of advances on their operations. AI is an integral part of enabling businesses to become reactive and agile in their problem solving. As it is, it remains to be seen whether AI as a component of digital transformation will become the most integral element, although there are already myriad indications that it will.

* To learn more about AI and the digital transformation, attend the Nation Media Group’s Digital Summit – Synergies in Digital Transformation and AI.