With the power of digital transformation and artificial intelligence, several organizations have already enhanced their efficacy and agility through enhanced focus on how they generate value through digital technologies.
For the last few decades, businesses have been encouraged to focus on gaining traction through AI-powered digital transformation.
According to Statista, the global AI market has reached a staggering $142.3 billion. This number is fueled by the applications of AI, including insightful data analytics, customer experience enhancement, etc., to help businesses gain a competitive edge.
Now, the billion-dollar question is, what is AI-powered digital transformation? How it’s revolutionizing business growth?
Read on to find the answer.
What is AI-powered Digital Transformation?
This refers to integrating AI into various business processes and operations to enhance accuracy, efficiency, and overall performance. It’s a driving force behind digital transformation through cutting-edge technologies like natural language processing, machine learning, predictive analytics, etc., that enables businesses to make informed decisions.
What are the Objectives of AI-powered Digital Transformation?
The rise of AI-powered digital transformation has set the bar for organizations to provide top-notch solutions to their clients. On that note, setting clear goals plays a pivotal role in order to serve clients that align with their requirements. There are a few common goals of AI-enabled digital transformation as follows:
1. Enhancing Customer Experience
The amalgamation of AI and digital transformation is helping businesses to connect with their customers in a personalized way. Once the customers understand that the products/services are meeting their requirements, they feel special. For instance, Netflix’s curated show list enables viewers to binge any web series or movie.
On the other hand, businesses are establishing a deep connection with their customers through social media engagement. It includes encouraging active participation through various social media platforms, which fosters a sense of community.
2. Improving Operational Efficiency
Through process optimization and automation, brands can improve their organizational efficiency. Automation involves using AI to perform redundant tasks like data entry or scheduling. Consistently using the same can lead to reduced errors and increased productivity. Conversely, process optimization includes checking the processes and how those are currently working, streamlining, and eliminating redundant steps.
3. Helping to Make Data-driven Decisions
One of the primary goals of adopting digital transformation is accumulating, storing, and analyzing data to get valuable insights about market trends, customer behavior and operations. For instance, a logistics company can track customers’ parcel booking history to identify their service buying patterns. Based on that, it can optimize the website and current marketing strategies. Moving forward, companies can tap into new business models like on-demand or subscription-based ones.
4. Improving Compliance
The demand for storing and sharing sensitive data is increasing. To do the same efficiently, companies must adhere to HIPAA, GDPR, and compliance regulations. By performing consistent data audits, businesses can quickly achieve digital transformation goals.
5. Creating Agile Organization
Another goal of incorporating AI-enabled digital transformation is to develop a scalable and agile organization. Scalability refers to handling increasing growth or demand. On the other hand, agile refers to the ability to adapt and respond to changes. For example, an e-commerce company uses real-time data to adjust inventory stocks quickly to meet customer demand.
6. Reducing Costs
Implementing AI-enabled digital transformation can save costs by automating manual tasks. In turn, it can increase operational efficiency while reducing of need for physical infrastructure. For instance, a manufacturing company implementing digital transformation in their production line can lead to efficient use of resources. Additionally, the operational costs will be lower.
What Technologies are Playing the Key Role in AI-Powered Digital Transformation?
AI and digital transformation are interwoven to help organizations harness the power of automation, data, and intelligent decision-making. According to Accenture, organizations can increase profitability by 38% once they deploy AI in their business operations. Here, technology plays a pivotal role in taking the game up. Here are the standard technologies that are being used in digital transformation by businesses:
1. IoT
One of the key technologies that plays a crucial part in AI-enabled digital transformation. This deals with the interconnectivity of physical objects embedded with software, electronics, and sensors. This helps the objects to accumulate and exchange data, which is already revolutionizing several industries.
According to a report, 90% of companies have incorporated IoT in their digital transformation plans across multiple areas to achieve their goal. It allows businesses to be 3x productive through real-time data while improving processes through efficiency.
2. AI/ML
From AI-powered assistants to cutting-edge software, AI is gradually leaving its impact in this cutthroat business world. AI-powered tools streamline the operational process, improve employee management, and enable organizations to take advantage of automatic learning. Based on experience, it can simulate human intelligence. Some popular examples of AI are process chain automation, voice and facial recognition, and automatic payments.
3. Cloud Computing
Through the cloud’s automated processes, businesses are gaining traction. A business can leverage cloud computing instead of keeping the up-front costs of personal data centers. Moving forward, the team from various departments can depend on the power of data analysis powered by cloud computing services. For instance, brands like Spotify, Uber, and Amazon are reaping the benefits of cloud technology, such as scalability, flexibility, and affordability. Google Cloud, Microsoft Azure, and Amazon Web Services are some of the notable cloud computing services.
4. Mixed Reality
It’s the amalgamation of augmented and virtual reality to create immersive content. It transforms the workplace experience from bland to fascinating by creating virtual prototypes, performing less invasive surgeries, and offering assistance services.
5. Cloud-enabled Migration
Cloud migration enables organizations to build new services faster and more securely. The product will have maximum agility once you get quality assurance through code deployment and rigorous testing. Cloud-enabled migration has many advantages, like reducing time and cost as compared to maintaining physical servers.
Top 4 AI-enabled Digital Transformation Trends That Will Fuel the Business Growth in 2024
According to a report, global spending on digital transformation may reach $3.4 trillion by 2026. This number suggests that companies are inclined towards implementing digital transformation in their business operations. However, only 30-40% achieve success through digital transformation because they’re not aware of the latest digital transformation trends.
You won’t make the same mistake as we’re going to tell you about the current AI-enabled digital transformation trends. Businesses have already started incorporating these trends in their business operations to fuel growth. Are you ready to do the same? Before that, here are trends for you-
1. Generative AI
Your business can adopt generative AI to harness its potential while deriving maximum value from it. You need to understand the best generative AI models, including transformer-based models, generative adversarial models, multimodal models, variational autoencoders, etc.
Once you accumulate knowledge about these models, you can use the same for multiple business applications, including content generation, dedicated customer service, financial process evaluation, and personalized customer experience.
2. Cybersecurity
Of late, data privacy is the “talk of the town” as it contains valuable information that needs to be safeguarded. That is why the importance of cybersecurity cannot be overlooked. With AI-enabled digital transformation and its applications, you can protect your clients’ data from fraudsters.
3. Digital Twins
This refers to a contextualized digital representation of any real-life object. It can be a physical object or a virtual world person. Digital Twin uses AI technologies, web 3.0 and synthetic data modeling to produce cutting-edge analytical and operational solutions. According to McKinsey, 70% of c-suite technology executives prefer digital twins to reap the benefits of AI technologies, which can be effective for the growth of brands.
4. Chatbots and Voice Bots
Irrespective of product/service quality, a business can’t move forward without managing and enhancing customer experience. With AI-fueled voice bots and chatbots, addressing customer concerns is now easy. These bots can answer customer queries and assist them to take further action. Seamless performance and real-time context enable these bots to solve the queries accordingly.
Take Your Time!
Bear in mind you’re not running in a 100m race. Digitization is a journey, and you should consider every single aspect before moving forward with the same. If you feel that it’s the right time to adapt to the change for your brand, Danip Technology is here to smoothen your transformation pathway. Contact our team to get a glimpse of how we can move the rock for you!