You can’t open a business or trade journal anymore without seeing a headline about artificial intelligence (AI). AI technology is transforming business processes and changing how people work in industries.
Companies are increasingly finding new ways to apply AI to increase efficiency and streamline operations. A McKinsey research shows that 72% of organizations have already adopted AI for at least one business function. The annual growth rate for AI adoption between 2025 and 2030 will be 36.6%, says a Grand View Research.
Here’s a closer look at some emerging AI applications across industries.
Enhancing Customer Experience
Chatbots powered by AI are assuming responsibility for customer support across sectors. AI algorithms are being trained to handle routine customer queries and speed up response, whether on the web or by phone, improving customer service and cutting costs.
KFC Australia is testing voice AI for drive-through orders. The chatbots are programmed to take orders, respond to questions and suggest popular items, although staff members are available anytime. The goal is to increase order accuracy and provide a consistent customer experience. KFC Australia says that adopting chatbots won’t reduce the number of jobs but will allow team members to focus on improving the customer experience.
Payment and shopping service Klarna has introduced Klarna AI, a multilingual virtual assistant that helps customers with various tasks, including refunds and returns and developing healthy financial habits. Klarna reports that Klarna AI is doing the work of 700 full-time agents, assisting two-thirds of its customers with 2.3 million conversations. Adopting Klarna AI has shortened the average response time from 11 minutes to under two minutes and led to a 25% drop in repeat inquiries.
AI is also powering personalized services. Spotify uses AI to help users create custom playlists by simply entering a natural language chat prompt. For example, users can request “a list of soft jazz instrumentals to help me study,” and the system will create an AI-curated playlist. The same AI technology can readily be applied to personalized marketing.
Improving Operational Efficiency
AI is invaluable for improving operational efficiency across the organization. Here are just a few examples.
Siemens is using GenAI for predictive analytics for equipment maintenance. Siemens’ Senseye Predictive Maintenance uses machine learning and worker behavior models to create a dialogue between users, AI and maintenance professionals for proactive maintenance, increasing maintenance workers’ efficiency.
Ford uses AI on the assembly line to address quality issues and reduce defects. For example, some Ford hybrid vehicles use electric oil pumps sealed using “squish tubes,” which can shift or fall out during assembly. Ford’s Mobile Artificial Intelligence Vision System can detect squish tube defects and identify design flaws. Ford reports that the number of electric oil pumps with faulty squish tubes dropped from 40 per month to zero thanks to AI quality control.
HSBC is using AI for document processing, using AI, robotics and optical character recognition software to automate the processing of 100 million pages of documents. Rather than manually reviewing and processing paperwork, AI analyzes invoices, insurance papers and other documents faster and more accurately. For example, HSBC can automate trade transactions, which typically require 65 fields to be extracted from 15 document sources resulting in 40 pages to be reviewed.
AI for Data-Driven Decision-Making
One of the advantages of using AI machine learning models is they can process vast amounts of information. AI-powered predictive analytics help senior managers make better-informed decisions using real-time data.
Domino’s Pizza is a favorite in the UK and Ireland, and to satisfy customer demand, Domino’s Pizza UK & Ireland Ltd. uses AI for demand planning. By centralizing inventory planning using AI, Domino’s was able to eliminate manual tracking with spreadsheets and create a single, more accurate source of truth.
American consumers have a chronic problem with package theft. Forbes reports that 79% of Americans have been victims of “porch pirates” during the holidays. To combat the problem, UPS created DeliveryDefense, an AI-powered solution that analyzes location, loss frequency, returns volume, delivery attempts and other factors to predict delivery success so shippers and customers can reroute at-risk packages to a secure UPS location.
AI is also being leveraged by Airbnb, Uber and Amazon for dynamic pricing, adjusting fees based on real-time demand, location and other factors.
Fighting Fraud, Improving Security
E-commerce and digital transformation strategies make it easier for consumers to buy goods and services anywhere, anytime. They also create new opportunities for fraud.
Transaction platforms and payment sites like PayPal use AI to identify fraudulent activity. For example, AI can spot scammers signing up for services by analyzing third-party data. It can also spot login fraud by matching devices, IP addresses, transactions and other user behavior. Furthermore AI fights credit card fraud, quickly analyzing transactions for anomalies.
Stripe is another payment platform that uses AI to fight fraud. Stripe Radar is a new AI-powered fraud prevention tool that allows Stripe retailers to use natural language processing (NLP) to describe and set fraud rules. Rules are then tested against previous payments to reduce fraudulent payments without increasing false positives. Stripe retailers reported a 10% drop in disputes using Stripe Radar.
A Fannie Mae survey also revealed that mortgage lenders are using AI to detect fraud and identify defects in the underwriting process. AI is an excellent tool for streamlining home loan processing, detecting fraud and managing risk. For example, AI is the ideal tool to review documents for regulatory compliance.
Of course, AI is not the solution for every business challenge. McDonald’s recently announced the end of a pilot program using AI chatbots to take drive-through orders. McDonald’s has been using an AI ordering system at more than 100 locations across the United States. The number of incorrect AI-generated orders has not only had an impact on customer satisfaction, but led to a growing number of viral posts ridiculing the McDonald’s system. For organizations like McDonald’s looking to incorporate AI into their operations, it’s critical not to overlook the human element and rely too much on a fledgling technology. There’s a balance between AI-enabled enhancements and human guidance.
These are just a few examples of how AI is transforming today’s businesses. The ongoing value of AI is to make work faster, more accurate and more efficient, freeing workers for more productive tasks. AI will automate many business processes but can’t replace the human in the loop. Human oversight is essential to eliminate AI bias and watch for possible errors. AI can’t think or reason like people, but it can make their jobs easier by processing real-time data and unlocking the potential for business growth.
