Artificial intelligence (AI) is now one of the emerging new factors of production exponentially stimulates the business’s revenue. It is no more a science fiction, but a commercial reality driven by a massive surge in data, increasing computational power at reducing cost and the quantum leap in technology.
AI is an amalgamation of technologies used in different ways to extend human capabilities by acting, sensing, learning, and comprehending. It acts as a catalyst in transforming industries, which has witnessed a steady decline in profitability, resulting in a low innovation, investment, and shareholder value, in the past few years.
AI has been instrumental in back paddling the assuaging profit in 3 ways:
1- Intelligent Automation
Simulated intelligence offers many advantages over traditional automation. Companies that depend on the globally integrated network like Tesla, Johnson and Johnson are switching to Elementum, an Artificial Intelligence start-up to organise their supply chains.
AI-Powered systems give early deterrent of potential glitches and purpose the best solution. It has drastically changed the sales activities through valuable time and resources deployment generating the sales leads.
2- AUGMENTING LABOUR AND CAPITAL
AI has tremendously increased labour productivity by enabling workers to assign low value-added work to AI. In other words, it can create a virtual workforce altogether, and thereby complementing the ability of human workforce and physical capital.
Unlike before, AI is also setting its foot in a realm where critical thinking and intellectuals have long dominated. For example, AI is now doing business research, which is traditionally a daunting and time-consuming task.
It also aids companies in escalating asset utilization rates. Heavy industries like Energy and Manufacturing uses the massive up-front investment to decrease revenues associated with asset downtime.
3- DRIVING INNOVATION
AI is all set to drive and diffuse innovation by augmenting the new product development. It is instrumental in wiping out the disposable cost and producing a stream of revenue. It also helps the companies in developing new products for achieving the design goals.
The impact of Artificial Intelligence on revenue by industry is as follows:
- The manufacturing sector can unleash the potential through the application of Artificial intelligence, as it depends on heavy machinery. AI can bestow benefits like increasing the productivity of human labour and running machinery on the factory floor. It can bridge the gap between current learning and automation form with a more advanced one.
- Wholesale and Retail sector can use AI’s intelligent automation abilities to simplify and streamline the warehouse and inventory management. It can yield immersive shopping experience to customers. AI can also considerably benefit from accelerating the rate of innovation.
- Healthcare sector uses AI to develop 3D techniques for an organ transplant. AI dissects the unstructured data and diagnoses health risks in advance to take preventive measures.
- Financial services can leverage the AI to shift the workforce from repetitive task to generic mortgage reviews, market study and customer queries.
- Labour incentive sector can capitalize the AI to increase productivity growth leading to a subsequent increase in Gross Value Addition (GVA).
To conclude, remember that AI is still not capable of replacing all the existing processes: it is here to revamp and augment the business to work smarter.
Technology is not yet infallible and perhaps never will be, but AI can work alongside people like an effective tool. Whether rosy or rocky, AI will certainly dominate the world in future. Development in AI will lead to new startups, many business application and consumer uses and displacement of certain jobs and the creation of an entirely new one.
It is definitely going to remake the economy, but its exact impact is yet to be seen.