Companies using AI

It is no secret that companies are becoming increasingly

more aware of the potential of new technologies and process
automation for their businesses. However, 2020 has seen
astonishing growth in the use of artificial intelligence across
all sectors.

As usual, the McKinsey Global Institute has conducted its

annual survey on the State of Artificial Intelligence,
comprising more than 2,300 participants from various regions
and industries around the world. The main conclusion of the
survey was that companies are using artificial
intelligence principally as a tool to generate value.

Some data from the year 2020:

1. 22% of those surveyed maintain that at least 5% of

their profits can be attributed to the introduction of
AI into their business. This shows how its value
translates into profit; more than half of the participants
said they were able to reduce costs in various areas,
particularly in the optimization of talent management
and automation.
2. 50% of respondents have embraced artificial intelligence
in at least one of their business functions.
3. Those companies that use artificial intelligence on a
continual basis and that see the value in their EBIT,
experience better year-over-year year growth than
other companies. Also, their CEOs are considered more
effective and perform better overall

4. COVID speeds up the process

5. While some may have expected the emergence of the
coronavirus to hold back the expansion of artificial
intelligence, companies have continued to invest in AI
during the pandemic. In fact, many have increased
their investment in order to deal with the crisis
more effectively.
6. Companies most likely to invest in this way have been
those from the health sector , such as pharmaceuticals.
In fact, the head of a pharmaceutical company stated in
an interview with
7. McKinsey that the use of artificial intelligence was
promoted to keep things going during the pandemic.
8. The crisis enabled them to launch the AI initiatives that
had been planned, and to install them more quickly and
efficiently, since the organization was even more
dependent on the capabilities of artificial intelligence.
9. Automotive and assembly line companies are also
leading the way in this use of AI. However, progress is
not moving at the same pace in all parts of the world. In
Latin American countries and developing nations, the
implementation of AI is not yet at the same level as the
rest of the world.
Artificial Intelligence is perhaps the most hyped technology of the 21st
century, and it is now rapidly making its way into your workplace. In the last
four years alone, the use of AI at an enterprise level has grown 270%. As the
first wave of AI-based solutions is establishing markets, it has become
obvious that businesses are deploying the AI technology mainly to replace the
redundant human workforce and save costs in the long run.

In the era of big data, digitization has enabled the conditions for AI
applications to flourish and generate revenue. But one can only wonder how
exactly AI helps businesses achieve that.

In its essence, AI improves any company's ability to increase its revenue on

multiple fronts. For instance, through AI, businesses can detect very weak
signals and generate more accurate forecasts regarding inventory prices,
logistics, demand and supply. But more importantly, AI is extremely fast and
automates the analysis of large chunks of data to improve real-time decision-
making. With this in mind, let us take a quick look at different ways AI can
boost your business revenue.

Related: How Entrepreneurs Can Use AI to Boost Their Business

AI increases employee productivity

One of the main reasons behind that drive is AI's potential to boost employee
productivity. While it's not some silver bullet that will show immediate results,
there are various reasons why we're excited:

 It automates redundant tasks. Fear for job security often comes

intertwined with mentioning AI in the context of the workplace. It has
been predicted that AI will render various jobs redundant and replace
half of the workforce by 2033. It will replace many jobs, but at the same
time, it will create many new, more fulfilling jobs.
 It keeps workers happy. While AI directly improves employee
productivity by automating redundant and mundane tasks, it indirectly
helps with increased work satisfaction in employees. AI tools have been
deployed to analyze the emojis and certain keywords used on
workplace communication platforms like Slack, so using these, you can
subjectively gauge employee satisfaction in your workplace.
 It has high computational power. AI is superior to its human
counterpart when it comes to solving complex problems and recognizing
patterns. For instance, we have AI programs that can scan complex
legal documents to fetch relevant information. This frees employees to
focus on tasks that add value to your business.

Related: Here's What AI Will Never Be Able to Do

AI increases sales

AI has various simple solutions to offer when it comes to improving your sales
numbers, and that includes investing in the correct technology, evaluating
products and bringing a shift in marketing strategies:

 It creates a refined sales tunnel. AI can be leveraged to analyze data

and identify patterns in consumer behavior in your sales funnel faster
and with more accuracy than a human. Post-processing, your sales
team will be left with only high-quality leads, which won't require much
vetting.
 It results in targeted marketing strategies. A solid marketing strategy
is core to the success of any organization, and targeting your
campaigns to reach the right audience will give you the best results. AI-
powered marketing tools like chatbots, advertising platforms and data-
collection systems will be helpful in this venture. AI can also generate
personalized content based on customer data in the CRM, and this will
further help in automating a sales pursuit.
 It leads to optimized prices. Most organizations heavily rely on
salesmen to determine the final price of a product in pursuit of closing a
deal. AI is well-suited for tasks such as these, and based on win-loss
rates and path deals, it can identify ideal discounts and the right timing
for closing the deals.

Related: When Should You Not Invest in AI?

AI helps cut costs

Identifying areas where you can cut costs is just as important as finding new
revenue streams, and when AI is put to use in daily operations, it can pinpoint
such areas and offer various cost-cutting tactics. Here are a few ways:
 Automation. Automation in tasks like data analysis, recruitment and
customer support can help employees focus on tasks that are more
pressing and require human acumen. According to Forbes, automation
technology can save businesses north of $4 million every year.
 Customer service. Smart chatbots can power up your customer-
support operations and help you save both time and money answering
repetitive questions and collecting feedback. While it surely can't
replace the human customer-service representative, it can replicate the
experiences to a great degree and offer 24/7 availability to your
customers, among numerous other benefits.

Artificial intelligence has evolved to become a critical asset that businesses

can't ignore if they want to stay competitive. It's safe to say that this
technology is no longer the future — it is the present, and intuitive solutions
are helping individuals fulfill their demands for AI services. Finding and
adopting AI-driven solutions that suit your business early on will without a
doubt have a positive impact on your business revenue. So hop on board the
AI bandwagon today.

https://www.entrepreneur.com/
As business leaders navigate a succession of pandemic-fueled
transformation imperatives, artificial intelligence (AI) continues to enable
organizations to address urgent and immediate business priorities—quickly
and at scale. AI improves a company’s cost base—augmenting human
capability to motivate greater and more expansive efficiencies. And AI helps
enhance or protect top line revenue, experience, and engagement. With its
value-expanding impact on both sides of the financial equation, the
essentiality of AI is clear, both in and before the current crisis.
Our six-year data series shows that COVID-19 has accelerated AI’s shift from
experimental to widely adopted as a key lever of sustainable competitive
advantage and profitability across businesses and industries around the
world.

More than 85% of advanced adopters

are reducing operating costs with AI.
With participation of 6,700 C-level executives across 13 business functions,
28 industries, and 46 countries, IBV’s third biennial survey on enterprise AI
reveals significant advancement in the maturity and use of AI technologies
and related capabilities.
Key insights from the new data include:
 AI is an economic accelerator. As the pandemic continues, AI
adoption has become positively correlated with superior business
outcomes in revenue, cost, and profitability—and this finding holds
across industries and regions.
 AI’s financial impact has become clear. Business leaders now
acknowledge that investments in AI bear a direct relationship with
financial gains from the use of AI.
 An all-in commitment to AI pays off. Advanced AI adopters
achieved proportionately more financial value from AI technologies.
 Investment in foundational AI “readiness” speeds time to
value. Investing in capabilities that are necessary preconditions of AI
—data, process, and human capital—speeds progress to more
advanced adoption and time to value.
 AI “readiness” capabilities yield near-term financial
results. Strategic, broad-based investments in AI-enabling
capabilities—staged along a path of AI-specific initiatives—deliver
value in their own right. Companies begin realizing value even before
AI is introduced.
Our analysis has already revealed that companies that turned to AI to
address pandemic-exposed vulnerabilities—from an inability to absorb spikes
in customer-service volume to recalibrating broken or uncertain supply
chains—have found AI a boon in enhancing customer engagement and
maintaining operational flexibility. And as a consequence, nearly one-third of
organizations plan to bolster their AI investments as a result of the
pandemic, with 84% of executives expecting a steady or increased level of
organizational focus on AI.

99% of companies report reduction in

cost per contact from using virtual
agent technology—estimated at $5.50
cost savings per contained
conversation.
How AI drives revenue growth
We find that organizations that adopt AI in at least a pilot phase outperform
peers 2X financially, compared to those who haven’t. AI adopters report 5-6
percentage points of direct revenue gains from their AI investments. The
more mature a company’s level of AI adoption, the higher that revenue
advantage.

On average, companies report 6.3%

points of direct revenue gains
attributable to AI.
Other results from the new survey provide even stronger evidence of a direct
positive relationship between AI adoption and business performance. For
example, organizations report a 6.3% increase in business unit revenue
directly attributable to their AI initiatives, on average, and a 5% median rise.
(Note these gains offset revenue erosion for those hit hard by the pandemic
or help capitalize on new growth opportunities for those impacted more
positively, financially speaking.) Fewer than 10% of respondents report a
decline.
Organizations in the AI piloting and implementing phase report a 4-7%
revenue boost from specific AI initiatives, on average, while those in the
operating and optimizing phases report an impressive 10-12% gain. Virtual
agent technology alone may be contributing 3% revenue gains, on average,
as another recent IBV study confirms.
The impact AI has on revenue increases with maturity level

Read the full report to see how AI adoption can help boost profitability and
deliver a competitive advantage during the pandemic and beyond.
https://www.ibm.com/

As artificial intelligence (AI) continues to replicate human

intelligence in machines, the possibilities for businesses to
use this technology seem endless. With this and a steady rate
of AI adoption in mind, many executives are asking
themselves if they, too, should begin making investments in
AI technology.
Several reasons may cause a business to get on board, but
the one that should stand out most is the financial benefit in
doing so. A 2017 PwC report indicates 72% of business
decision-makers agree that AI will create a
competitive advantage in the future. This advantage will
help you retain your existing customer base, as well as reach
potential new markets that competitors may currently claim.
In our view, it’s cleat that artificial intelligence can be an
instrumental tool for increasing your business revenue when
leveraged correctly. And that applies to businesses of
virtually any size.
These are the key ways in which artificial intelligence
directly impacts revenue today. But let’s begin with a few
general processes.

The importance of AI adoption

As time progresses and the technology being used to

replicate human intelligence advances, AI will slowly become
one of the most powerful tools in a business’s arsenal.
Many people view AI as simply complex robotics systems.
However, most AI tools are just computer software programs
that run on existing software. Programs are trained
to complete tasks that humans would typically
complete, but at faster, more accurate speeds.
A few examples of what these programs are capable of
include:
 Processing large sets of information and translating the
data into a format for more straightforward human
analysis
 Powering machines and robotics in warehouse
operations
 Automating customer interactions and enhancing their
experiences
 Creating personalized marketing campaigns
By becoming an early adopter of modern technology that
uses advanced AI, your business will be more prepared to
meet the evolving demands of the future. Especially when
those demands are symptomatic of the competitive
landscape that modern businesses face today.

AI to boost sales

Many business executives want to find simplified solutions to

boost their sales numbers. Whether that means investing in
the right technology, adopting marketing solutions, or
undergoing product evaluations, AI can be beneficial to these
processes.
Through targeted marketing strategies and sales
funnel refinement, AI can help decision-makers focus on
areas of improvement to boost their sales pipelines.
1. Targeted marketing strategies

A strong marketing strategy is integral to the success of any

organization. Targeting your campaigns to reach your ideal
market best is one of the most important aspects of a
successful marketing strategy. With AI-enabled marketing
tools, such as chatbots, data collection software, and
advertising platforms, the possibilities are seemingly
endless for marketers.
These tools can help increase sales by reaching the right
target market with specific advertisements aimed to meet
the needs of new and existing customers.
In marketing AI helps you:
 Identify consumer trends from social media and search
history
 Create target buyer segments
 Prepare tailored marketing messaging
Targeted marketing strategies and personalization have been
strong trends over the last decade, and a popular strategy for
companies such as Netflix and Amazon. Consumers today
expect more personalized marketing and advertising,
and generic messages are less effective.
Using AI marketing tools to create a customized strategy can
also be beneficial in increasing the revenue from marketing
efforts you’re already conducting, and evaluating their
effectiveness.
2. Refining the sales funnel

Leveraging AI to analyze data can help identify trends and

patterns in consumer behavior and sales leads. Computer
software can easily process this information and send highly
qualified leads to the sales team, versus unqualified leads to
the marketing team for further vetting.
That means as the system sorts through large sets of
consumer data, AI can score each prospect to highlight
those leads which are most likely to be profitable in
the sales process.
The more data you have, the more the program learns and
the more effective it becomes. These improvements are the
at the heart of what makes AI intelligent.
And of course, the outcome is lead qualification in seconds.
Sales teams could spend hours researching the information
that machines likely already know or could pick up almost
instantly.

AI can help cut costs

Evaluating where your business can cut costs is arguably just

as important as boosting sales to grow revenue. When AI is
used in daily operations, several cost-cutting tactics may
begin to emerge.
Through automated workflows, smarter data analysis, and
streamlined customer service operations, AI can be a
powerful cost-cutting tool.
1. Automated workflows

Automated workflows help employees complete repetitive

and time-intensive tasks such as data analysis, employee
recruiting, and customer support. Relief from these tasks lets
your teams devote more time to targeted experiences that
have the potential of yielding higher sales.
Or in other words: they have time to do better work.
Since automation technology began to emerge, it has proven
to be a worthwhile investment that could save businesses
upwards of $4 million annually.
AI is also known for being vastly more accurate than the
alternative. Humans made a lot of mistakes, and these errors
often add up to huge operational costs. Machines can
significantly reduce the rate of these inefficiencies and
errors. For example, recruiters can leverage automated
recruiting software to streamline their hiring processes and
reduce time filling positions manually.
By using an agile enterprise resource planning (ERP) system
that encompasses AI technology, you can more easily identify
inefficiencies in production and streamline those processes.
An ERP software integrates all of the various functions of a
business into one easy to manage software system to help
streamline production across the organization.
2. Data analysis

AI can be used to retrieve large data sets within a matter of

seconds and translate that information into a more easily
digestible format for humans to analyze. Additionally, there is
little to no error when using machines, empowering decision
makers with the information needed to make intelligent
decisions.
The data AI powers can then be used to:
 Develop smarter pricing strategies
 Highlight areas where operational costs can be reduced
 Uncover inefficiencies in production
And once again, this analysis can be done in real time,
instantly.
3. Customer service operations

Using intelligent chatbots to power your customer service

operations saves your business from spending time
answering questions and feedback while remaining authentic
with your audience. These chatbots help cut costs by
eliminating expensive call centers that have long proven to
be ineffective and inefficient for customer service.
Though chatbots cannot replace all important human
interactions for customers, they can:
 Replicate human-to-customer service experiences to an
impressive standard
 Provide consumers with 24/7 availability to answer
questions and concerns outside of business hours
 Offer seamless transactions, helping reduce customer
frustrations
 Support virtually any language
 Understand and separate the intent of each message
and mark them appropriately with a priority level
More efficient customer service - especially outside of
business hours - can only be good for business.
It’s time to embrace AI - if you haven’t
already

Eventually, AI will be viewed as a critical asset to remain

competitive in any industry. With cost-cutting tools and sales-
boosting capabilities benefiting anyone who adopts this
technology, it's a powerful tool, no doubt.
Though it can provide many business owners with feelings of
anxiety and complexity, AI may be more simplistic than you
imagine. In fact, many of the Saas tools and services you use
today likely already incorporate it.
There are many technologies readily available on the
marketplace today for businesses of any size to take
advantage of. Conduct your research early on by turning to
the internet, industry leaders, and other experts who will be
able to provide you with solutions tailored to your unique
business needs.
Finding AI-driven solutions that fit your business and adopting
them early on will almost certainly have a positive effect on
increasing your business revenue.
https://www.spendesk.com/