3 things businesses gain from embracing AI

This article first appeared on FastCompany.

Businesses have the potential to gain a lot from the implementation of AI, but AI can also give rise to some hesitations that can make business leaders think twice. Here’s what you need to know.

I recently saw someone on social media say, “We can tell our kids we’re older than AI.” After wrapping my head around that concept, it got me thinking more about the trends and innovations I’ve seen over my career, and then about how the perceptions and strategies around these trends and innovations change over time, too.

For example, I remember in the early 2000s (also early in my career), the concept of application service providers (ASP) was the big new “thing” that promised businesses the revolutionary ability to outsource sections of their IT infrastructure. Yet, despite big benefits, I encountered companies that were hesitant about relinquishing control and wary of potential security risks. However, ASP eventually led to multi-tenant or Software-as-a-Service (SaaS), which, despite initial resistance, eventually transformed into the backbone of modern digital business strategies. Once the positives heavily outweighed the risks and people became more educated on the technology, a new era of software was born. More recently, I’ve noticed a similar pattern unfolding with artificial intelligence (AI).

So, what are the benefits of AI and what might make an organization hesitate to implement this new, innovative technology? First, it’s important to understand how businesses can and are using artificial intelligence.

HOW BUSINESSES TODAY ARE USING AI

Today, we’re seeing businesses of all shapes and sizes implementing (or considering) AI in a variety of innovative ways to enhance their operations and offer competitive solutions and products. From the automation of tasks in HR, finance, and customer service to business data and analysis to enhanced security, these applications of AI are rapidly transforming industries.

And, as AI technology continues to evolve, its adoption across all facets of business operations is expected to increase even further. In the realm of biometric authentication tech, for example, which uses AI for identity verification purposes (like facial recognition), there is a huge variety of industries and use cases where these technologies are making big impacts on business.

WHAT BUSINESSES CAN GAIN BY EMBRACING AI-BASED SOLUTIONS

What are businesses actually getting back when they invest in AI?

More Time: AI excels at automating repetitive tasks, such as data entry, scheduling, and simple customer service inquiries. Automation leads to increased efficiency, which leads to less time spent on manual tasks, which results in more time back for other priorities. And I’m sure you know what they say about time equaling money…

More Money: Speaking of money, AI can help companies boost their profitability in several key ways when integrated into their offerings. Wise business leaders should consider where in their own products and solutions it may make sense to apply AI to do things like improve functionality, appeal, and user experience. Enhancing your offerings with AI can certainly help you stand out for innovation among competitors and win more deals.
More Happy Customers (And Stakeholders): Last, but certainly not least, AI can help transform the  customer experience in many ways—for example, by enabling companies  to offer fast and efficient customer support, personalized experiences and recommendations, and low-friction (but still secure) access. A better customer experience often leads to higher customer retention rates, plus it can help companies  attract new customers.

ADDRESSING KEY CONCERNS

Businesses have the potential to gain a lot from the implementation of AI, but in my experience, AI can give rise to some hesitations that can make business leaders think twice.

A few common concerns, and how businesses can confidently address them, include:

Bias In Algorithms

Addressing concerns about AI algorithm bias is critical for businesses, as biased algorithms can lead to unfair treatment of individuals, legal liabilities, and damage to a company’s reputation.

Businesses can approach and mitigate these concerns by making sure to train algorithms on diverse data sets and by enforcing continuous evaluation for improvement of these technologies. For organizations working with a third party to implement an AI-based solution, it means choosing a provider/partner wisely.

Data Privacy And Security

Concerns about privacy and data security are understandable in our digital age, from both a personal and business perspective. Businesses must be able to protect both themselves and their customers’ data, as mishandling of data can lead to serious legal, ethical, and reputational consequences. And this has certainly proven to be no small feat in today’s digital world.

How can businesses address these concerns effectively? By using a combination of robust data protection policies (especially to comply with applicable data protection laws like GDPR in Europe or CCPA in California), strict access controls and authentication mechanisms, transparency and consent for users, and continuous team education.

Cost And Complexity Of Implementation

Addressing concerns about the cost and complexity of implementing AI is crucial for businesses, especially small to medium enterprises that may have limited resources. A few important strategies to mitigate these concerns include leveraging cloud-based AI services, which generally require less technical expertise and upfront investment, as well as choosing scalable solutions that have flexible options and can expand or modify capabilities as needed without significant additional costs.

MOVING FORWARD IN A WORLD OF AI

It’s easy to see that exciting innovations and ripe opportunities await businesses that find the best ways to embrace new tech, like AI. It’s also vital for leaders to do their due diligence and consider possible concerns that come with new tech, especially when these concerns center around issues such as equity, privacy and security, and costs.

And yes, we may be “older than AI” (at least the AI our kids know), but from my perspective, we’re just in time to take advantage of this pivotal, game-changing technology.