There’s little question about artificial intelligence's place today. AI is invisible, but it plays a role in almost everything we engage with. Social media, search engines, entertainment - you name it. AI is likely working somehow behind the scenes.
In the business world, investment is pouring into AI. Companies see how it can streamline their processes, and yield greater profits. According to research from Tractica, the global market for AI software was worth $5.4 billion in 2017. The technology research firm expects that figure to balloon to $105.8 billion by 2025.
In conjunction with Braze, eMarketer mapped out the latest developments in artificial intelligence. Here’s what they found about how it's used.
Areas Where Business Use Artificial Intelligence
The Economist Intelligence Unit found that common uses for AI were narrowed down to the following six areas.
Predictive analytics: Examining data to find patterns and relationships in them. Companies use Predictive analytics to prognosticate future events and results.
Real-time operations management: Streamlining tasks and processes is an area AI helps companies. For example, automating repetitive tasks brings a huge boost to productivity. Through AI, employees are free to work on more important tasks.
Customer service: As more people shop online, companies rely on chatbots for help. Natural language processing and natural language generation power the conversations conducted by Chatbots.
Risk management: Evaluating worthwhile opportunities can mitigate project failures and sunk costs.
Unearthing customer insights: Much of digital marketing relies on interest and location-based targeting. AI helps advertisers sending the right customers the right message at the right time.
Improving customer experiences: Many platforms thrive by providing helpful and engaging information. If sites like Google or Instagram don’t, people will go elsewhere.
Of all the sectors in business, the marketing industry has made the most use of AI so far. Artificial intelligence has simplified two particular processes: advertising targeting and media buying. AI eases the process of reaching potential customers by making audience segmentation easier. As for the latter, a survey from MediaMath and Econsultancy found strong evidence of use. Forty percent of advertisers use AI to optimize spend.
What’s Slowing the Implementation of Artificial Intelligence?
Though companies embrace AI, implementation to its full potential is still slow. Why? Many companies don’t have clear strategies for using AI yet. Though it has come a long way, artificial intelligence is still hard to understand. The potential for how it’s best used is still under development.
General Data Protection Regulation (GDPR) is another reason why companies are cautious. For artificial intelligence to work best, it needs plenty of data to process. The EU law, which took effect in 2018, has limited the data businesses can collect from customers. GDPR requires companies to earn customer consent to use personal data, and explain how it’s used.
A survey from PwC on AI implementation reflects this current rate of adoption. According to a December 2018 report, only 27 percent of companies stated that they use AI. Another 20 percent said that they planned to put in place AI tactics in 2019.
When it comes to the future of AI, there’s plenty of upside for businesses. It’s already playing a major role in their bottom line, yet there’s still more room for it to grow.