Transforming economy through AI

Transforming economy through AI

AI or Artificial Intelligence is the “intelligence possessed by the machines”. That’s why they are called “smart devices or smart software”. AI is the backbone of every industry that is persistent in the world today, like Digital marketing, eCommerce, health and fitness, culture, SEO, content writing, etc. It is really impossible to differentiate where the existence started where it will end. The only key is to be acquainted with the working of AI.

It mainly consists of cognitive technologies like Machine learning (extracts information from data sets without relying on explicit programming) and Natural Language Processing (enabling computers to understand human speech).

AI is not only necessary in the business sector but also in the economic sector as well. Thus, we will see step-by-step how AI adds value to both domains.

An ambitious project, Industry 4.0 is set to be established with the help of AI. It is mainly an association of manufacturing activities with the cyber systems, internet of things, cloud computing, and production lines of network. Their main goal is the production of smart industries that can yield high economic benefits to all the physical elements that are connected via technology.

Transforming economy through AI

Smart factory:

Industry 4.0 is generally depicted as a “smart factory”. It is not directly dependent on AI but it does inculcate some features of AI like high-speed broadband connectivity. This technology can then help in return in production facilities, cloud computing, big data analysis, etc.

Thus, we see that AI provides the conjunction of other technologies within the smart factory. Industry 4.0 takes the help of artificial intelligence services to smoothen its processing.

Predictive maintenance and optimization:

AI has enhanced productivity in the manufacturing sector through its maintenance and optimization features. Thus, the onshoring trend by the developed economies could return back. Earlier, offshoring was in trend because the developed economies used to cut production costs by outsourcing their activities overseas. But with the help of AI, even reshoring is possible through optimization and repartition of jobs.

AI in the business sector:

Data is the core of every business and organizing that data in the database is equally important for the industries. AI comes to use here for database development. It helps the businesses in improving their overall functioning.

  • Now there are improvements in market strategies that have been possible due to AI. Businesses don’t have to bear the cost of investing in passive strategies. Instead, they can easily target their audience, turn them into leads and earn sales from them. This helps in increased revenue generation and effective ROI.
  • The data extraction and analysis become easy for the businesses so that they can focus on the conversion of leads. They don’t need to invest time and capital on useless strategies which won’t work in the future.
  • Web conversions and unlocking of customer data is another benefit of AI. Nowadays, with the help of AI social media is quite prevalent among customers. The businessmen can easily know where their potential customers are scrolling so that they can target them by advertising. This has been made possible by data unlocking.
  • There has also been a reduction in fraud rates by the implementation of proper AI systems. The cyberattacks and frauds have been reduced due to easy detection by AI-powered systems.
  • Customer retention and experience have come at the fingertips due to the virtual assistance of AI. It has provided technologies like chatbots that are available to the user 24*7, unlike human assistance. This helps in improving business response by the customers.
  • Contacting potential customers at the right time has been made possible by removing time constraints. This does not mean calling or emailing them constantly. Instead, smart techniques have emerged for this. The AI-powered systems generate the actual timing of the users to be online or using their device so that advertising can occur at that time. Also, the integration of AI into the CRM system makes it easy to contact the customers at the right time.

Transforming economy through AI

AI in Manufacturing:

Doing complex tasks and managing business systems has been a part of AI for a long time. In the manufacturing sector, the dependence on human labor could decrease by using AI for more advanced issues like complex problem solving, assembling and reshuffling, etc.

What is expected is an evolution rather than a replacement, because AI is not just a replacement. Once it enters the manufacturing domain, it will evolve it thoroughly. They can help in increasing total factor productivity in parts by increasing productivity and error minimization. It can improve the quality of goods by better manufacturing capabilities and time-saving techniques.

Installing robots or AI-powered systems could lead to better functioning of the industrial sector. No doubt, it will impact the human workforce tremendously, but this depends on the rate by which AI technologies are adopted. With the installation of these technologies, the global revenue and GDP, are expected to increase by 15 times. We are not sure of future possibilities but it is true that AI will help to achieve sustainable development as well.

Without the integration of internet-based technology, sustainable development could not be achieved. AI has the capability to transform and evolve every domain be it environmental or artificial.

Closing thoughts:

The bulk of increment in productivity, rise in GDP, and global revenue is expected to increase with the pace of the adoption of artificial intelligence services. Surely, it would transform the world, but the question is, are we ready for this transformation? Are we ready to evolve?

Setting up a “digital economy” and leaving the past behind is the necessity of today’s times. Humans need to act smartly not only to devise AI- compatible solutions but also to keep them under their control.

For more on AI, read: the future with Artificial Intelligence (AI)

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