Oftentimes, business is a prediction game. Everyone is making bets on the future and hoping they are placing good ones. So, would not it be great if an organization had a crystal ball that could predict which products will succeed, which customers are the most or least satisfied, or how its market is going to evolve in the next quarter or year? While there is no perfect crystal ball because the world is chaotic and complex, AI is a pretty good substitute in many ways.
Equipped with a large amount of data on customers and operations, companies can apply AI to make more predictive business decisions and anticipate customer wants and needs. Combined with machine learning, these systems can get smarter over time. For instance, Amazon uses data on what consumers have previously bought, correlates the information with similar customers purchase, and uses that as the basis for suggesting additional products.
As customers make more purchases, the suggestions become more accurate. Thus, Amazon can increase its order values and quantities through cross selling and up selling, driving top line growth.
This is due to the fact that AI is a very different tool from what most companies are comfortable with right now. For a long time, organizations have relied on traditional rule based programming.
Now, AI enables outcome based programming. The other problem is that the skill base at most companies is not aligned yet with the future of work. In the near future, there will be the need to re skill some roles, enhance others, and create new jobs. In fact, we are reaching new milestones in AI far sooner than expected. We haven t totally grasped the speed at which these changes are taking place.