AI has been a key enabler driving change in today’s organizations. They are leveraging AI to bring in enterprise-wide transformation, such as meeting changing customer expectations, reducing fraud, and empowering employees, says Rajan Nagina of Newgen Software.
In the digital age, customers expect everything to be available at their fingertips. They require fast, efficient, and exceptional customer service, and any organization that wants to stay ahead in the game needs to deliver.Â Â
A key enabler that has been driving this change is artificial intelligence (AI). From virtual personal assistants to the concept of self-driving cars, AI has played a revolutionary role in modernizing the world and raising customer expectations.
Unleashing Enterprise-wide Change with AIÂ
In simple terms, AI is the ability of machines or computer systems to carry out tasks that typically necessitate human intelligence, including visual perception, speech recognition, decision-making, and language translation. In recent years, modern-day organizations have slowly and steadily infused AI into their systems to solve operational challenges, design innovative offerings, and deliver excellent customer experience.
AI can help organizations in numerous ways:
- Organizations can leverage AI to make faster and more accurate decisions by analyzing past patterns and learnings from them.
- AI can help organizations make precise data-based predictions by leveraging AI algorithms trained on large datasets.
- AI also has a learning loop ability to optimize future predictions for organizations based on past predictions.
Here is how organizations are leveraging AI to bring in enterprise-wide transformation.
1. Meets the ever-changing customer expectations
AI can be the secret formula for building deeper customer engagement, driving faster responses, and inducing more intuitive customer recommendations.Â Â
AI lets organizations gauge the needs of their customers better by analyzing their demographics, purchase history, online behavior, and more. For instance, banks can automate and fast-track customer interactions by deploying AI-powered chatbots. These chatbots can ensure that banks deliver swift and real-time responses to customer queries, provide personalized recommendations, and offer credible financial advice by analyzing the customer’s risk profile in real time.
2. Reduces fraud with personalized risk assessments
Doing away with risks and potential threats is a challenge that every organization needs to overcome. Leveraging AI will empower organizations to assess risk and fraud individually by maintaining track of past transactions, purchase behaviors, and engagements. This enables organizations to lower potential risks and helps them make more informed decisions on managing those risks.Â
For instance, AI algorithms can enable insurers to detect and reduce the risks associated with the underwriting process. With the help of AI, insurers can integrate with the industry database to extract relevant customer data and then align this data into pre-determined categories for pricing the policies. This allows insurers to determine multiple risk areas, including governance and compliance risks, and enhance the underwriting process.
3. Empowers employees to make intelligent decisions
The data-driven approach to decision-making has immensely soared in popularity among organizations in recent years. This approach allows organizations to make decisions based on factual data and analytics, empowering them to do away with assumptions. Organizations can bestow more power on employees to make informed decisions by implementing the data democratization process.Â
However, the journey from data to decisions is complex, requiring considerable effort on behalf of the data scientists. This becomes a critical drawback. To resolve this, organizations now have many low-code data science platforms that offer intuitive solutions where data can be ingested, processed, and various AI models can be trained to make intelligent decisions at scale. This ability to leverage raw data to make decisions at scale provides differentiated offerings and long-term competitive advantage.Â
Modernizing Industries with AI
AI plays a monumental role in modernizing different industries, from insurance to retail and banking. Here are a few examples of how AI is being used in these industries:
Retail: The retail industry has witnessed rapid transformation with the advent of AI. With AI, organizations can personalize their customer engagement across touchpoints. Retail organizations can segment customers dynamically and target them with lifetime value and personalized promotional targeting. AI also allows retail organizations to successfully target customers using the uplift modeling technique, which can predict the customers likely to respond to a particular marketing campaign or action. Insights into individual customer preferences and behaviors can help retailers deliver personalized recommendations and shopping experiences. This helps to improve customer loyalty and retention.Â
Insurance: AI has impacted the insurance industry in numerous ways. Insurance firms leverage AI to predict whether an insurance claim requested by a policyholder is fraudulent or not. AI also helps predict the mortality risk in life insurance by keeping track of demographic data, lifestyle-related information, and any pre-existing disease data.
Banking: Banks and financial institutions have massively modernized their operations with AI. Banks adopt AI to detect fraud by analyzing large data volumes to make a note of any suspicious patterns. AI-based models can also assess credit risk, identify potential defaults, and make more accurate credit decisions. This helps banks to reduce the risk of bad loans and improve the overall quality of their loan portfolios.
Game-changing Potential of AI in Modern Organizations
According to a 2022 McKinseyOpens a new window survey, AI adoption has more than doubled over the past five years, and investment in AI is steadily rising.Â
Integrating cutting-edge technologies like AI into their operations can be a game changer for modern-day organizations. This will empower them to make accurate decisions, boost operational efficiency, and ensure an excellent customer experience. Innovation and growth are, of course, part of the package.Â Â Â
Which best practices have you followed to stay ahead in the digital age and unlock new opportunities for your organization? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window . We’d love to hear from you!
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