Our lives today would be very different without Siri. Or Alexa. Or Google Assistant. From quick facts to setting reminders, we all use these techs in our day-to-day lives.

Siri, Alexa, and Google Assistant are the three top examples of conversational AI (also known as artificial intelligence), a technology that has revolutionized information sharing and business processes alike.

So, what is AI and how is it important to business?

 

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What is AI?

Artificial intelligence is a branch of computer science involved in the simulation of human intelligence and processes by machines. The global AI market is forecast to grow by 33.2 percent between 2020 and 2027.

AI can empower companies by automating tasks and providing them with valuable analytics to design successful business strategies. AI essentially collects and analyses data and allows us to optimize it for our business needs.

Use of AI in Business

AI is increasingly being used in business functions due to its efficiency and reliability. Here are some of the functions that particularly benefit from its adoption:

Marketing

An estimated 40 percent of marketing and sales teams optimize AI and machine learning for their success. This is higher than any other business division. With the ever-changing nature of customer needs, preferences, and shopping trends, it can be challenging to market products that are aligned to these.

This is why businesses are trying to predict customer behavior to help make marketing decisions. AI collects customer data from their browsing history to gain meaningful insights. These predictive analytics help businesses design tailored marketing campaigns for prospective customers. These can include product recommendations and custom emails to market specific products customers are interested in. This boosts the overall customer experience. 

This recommendation system is extensively used by Netflix and Spotify to present users with shows and music tailored to their viewing and listening preferences. Here's a stat to highlight this point: Netflix's AI-powered recommendation engine is worth a whopping one billion dollars annually.

Customers who grow used to this enhanced level of personalized service start expecting the same customized experience from other businesses. This is a prime example of how AI aids smart business decisions.

Sales

Just like marketing, AI can provide sales teams with useful insights into consumer behavior that can boost sales functions. AI and machine learning can predict customer needs and shopping preferences, provide more accurate sales forecasts, and help augment average order value.

AI-backed RPA can assist sales teams with administrative and scheduling tasks too. These tools allow them to stay on top of which clients to follow up with. They also help with effective time management by automating the scheduling of meetings and emails.

 

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Talent Acquisition

Ironically, the business functions most likely to benefit from artificial intelligence and machine learning are those that are the remit of Human Resources. AI saves time and boosts efficiency by automating repetitive tasks.

Recruitment is one of the main areas that can benefit from it. According to a 2020 report by Gartner, 38 percent of companies use AI for talent acquisition. Recruitment automation takes over a multitude of tasks that are both repetitive and time-consuming.

From using chatbots to answer frequently asked questions on a company's careers page to the automated scheduling of interviews, AI-powered automation helps process large volumes of applications seamlessly, in a fraction of the time it would take a hiring manager.

Without the burden of labor-intensive, administrative work, recruiters can focus on the human aspect of the hiring process and use their expertise to effectively fill multiple roles at the same time.

CRM

Customer relationship management (CRM) is the way businesses manage their engagement with customers. Improving business relations with buyers has a direct impact on sales and revenue. This probably explains why the global CRM market is expected to grow to a staggering $82 billion by 2025.

AI collects data about customer preferences through loyalty programs and reward systems. It then provides specific recommendations for salespeople. These include customized emails, messages, and other communications sent at specific times. This allows businesses to offer tailored products to customers according to their preferences, reduces bounce rate, and boosts sales.

Chatbots are another innovative way of improving CRM. These AI-backed bots can address hundreds of standard customer queries and complaints in seconds, significantly reducing the workload of CRM teams. It's worthwhile for SMEs to know how to make a bot to optimize client engagement online.

 

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Finance and Accounting

Companies are increasingly favoring AI in their finance and accounting divisions for its lower costs and greater efficiency. AI-powered automation is key to reducing human error in the workplace.

By automating certain basic accounting tasks, finance managers can concentrate on higher-level activities that require their expertise. This boosts overall productivity.

AI also uses natural language processing (NLP) to monitor communication and can provide the real-time status of financial matters to organizations.

Social Media Management

According to a recent survey, an estimated 420 billion people were active on social media in the first quarter of 2020. This is reason enough for any business to join social media to market its products and services. If used correctly, social media can open up vast revenue portals with unmatched potential.

Social media management is also an effective way for businesses to engage with customers on a more personal level. AI-backed social media management platforms can help in automating your social media posting. This saves time and is more efficient in maintaining engagement. It's yet another smart business decision made using AI.

In Conclusion

AI is a rapidly growing technology that's here to stay. Businesses that wish to keep up must implement it in their processes.

AI provides businesses with valuable insights into customer behavior to give them a better understanding of what sells and who's ready and willing to buy.

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ABOUT THE AUTHOR

Joanne Burman - Head of Strategic Marketing, PureClarity

 

Jo is the Head of Strategic Marketing at PureClarity⁠- a fast-growing AI-based website personalisation SaaS solution driving revenue and conversions through personalised shopping experience. She is an expert with over 20 years experience in Marketing, Ecommerce, and Project Management. Jo dedicated her career to empower online retailers and propel their ecommerce growth. Here is her LinkedIn.