From seeing it sometime in reel life to seeing it sometimes in real life, AI was more of a science fiction thing - the Skynets, the Jarvis and others. AI has come to reality and really helpful to business now a days. Many companies are trying to create their businesses with AI at its core. Companies around the world are investing heavily in AI start-ups and AI researches. A Narrative Science survey found that while in 2017 the companies that were using was 38% within a year it has grown up significantly to 62% in 2018. The numbers have not only increased in the number of companies that are using it but in the number of companies that are investing in it. According to a research a greater than 300% increase in investment in AI has been seen in the year 2017 compared with 2016. There is no denying in the fact that AI is the jewel that companies want in their crown. The big companies and many start-ups have restructured the way of working and have shifted their focus in AI being their workhorse in tandem with their employees.
An IDC study amongst 194 organisations across sectors in India reveals that 68.6% organisations are likely to deploy AI before 2020. Another report published by KBV Research says that the AI market in China
and India are expected to post a strong 42.1% and 49.3% growth during this period-India will grow faster than China when it comes to AI adoption.
AI and Profitability
What do the numbers and reports say? According to an IDC survey almost 64 percent of the companies said that AI can result in revenue augmentation due to improved targeting of offers and productive sales process. An Accenture report which underlines the exact thing by making things a bit more clear. Accenture
research reveals that with AI, 16 industries across 12 economies may potentially experience improvement in their profitability by 38%, amounting to a $14 trillion economic boost by 2035.
Harnessing AI's true power
Going a step forward, Accenture has spelt out a few key cross-industry strategies to help businesses leverage AI to its fullest potential for real business advantage:
1. Intelligent automation
In 2014, when a massive fire at a DRAM chip factory led to shortage of DRAM shipments, all the global customers of the chip-maker were severely hit by a resultant price-hike, except for customers of Elementum, an AI start-up. Elementum's customers purchased stocks well before prices rose due to advanced warning that Elementum's AI system provided. With its ability to analyse 10 million+ incidents daily and products (manufacturing outputs and shipped goods) worth $25 trillion, Elementum helps organisations like Tesla and Johnson & Johnson with advance warnings and alternative solutions whenever any supply chain issue is anticipated. Thus, the intervention of AI-powered intelligent automation in critical business processes (such as supply chain) can help organisations stay ahead of competition even during challenging scenarios.
2. Labour and capital augmentation
Organisations can immensely benefit by allocating tedious, time-consuming tasks to AI while reserving fruitful endeavours for their employees. For example, car insurers in India have to process tens of thousands of claims flowing in customers and their authorised service partners every week. AI can bring immense efficiency to claim processing, a time-consuming activity, and free up valuable human resources for more productive jobs. Similarly, as the AI system improves its understanding over time, it can also detect fraudulent claims or at least mark the suspicious ones for review by a human officer. Organisations can leverage AI to get maximum returns on capital employed. For instance, in the wind energy business, a sudden breakdown of a turbine would call for availability of specialised maintenance staff, spare parts, and equipment sourcing to ensure speedy restoration for business continuity. The longer the delay in service restoration the deeper the business losses are. NEM, an AI start-up, examines past incidents of turbine failure, monitors every component 24x7 and sets off alerts when any symptoms of impending issues are detected. This way, the energy company can minimise downtime and improve returns on capital invested.
3. Innovation diffusion
Businesses can also employ AI to expedite new product development and time-to-market, thus improving working capital utilisation. For instance, new drug discovery is the biggest challenge for pharmaceutical companies due to the high capex costs and long pipelines associated with drug discovery and testing. Besides, fewer than 10% of new drugs get final approval from regulators after testing. The biopharma major Berg Health , analyses trillions of data points on a cancer's progress by observing cancerous as well as non-cancerous cells with AI. This way, Berg Health has reduced the cost of discovery of a drug from $2.6 billion to $1.3 billion, saving a mammoth 50 percent in the process, which can be utilised to develop a new drug, thus increasing chances of business success.
The AI battle
AI was something that was adopted initially by industries like finance, healthcare, retail and information security. India has one of the best AI startup environment around the globe, supporting businesses of all sizes who are working on AI that could transform businesses for good.