- April 28, 2022
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Do you know what digital transformation with AI is and how it can impact your business?
Organizations today are under pressure to digitally transform to stay competitive. This digital transformation is driven by advances in technology, particularly artificial intelligence (AI). The role of AI in digital transformation is changing the way organizations operate and interact with customers and employees.
However, many organizations are not yet ready to take advantage of AI. They may not have the right data, the right infrastructure, or the right talent. Additionally, they may not have a clear understanding of how AI can be used to improve their business.
This guide will help you understand what AI is and how it can be used to digitally transform your organization. It will also provide some key considerations for getting started with AI.
Table of Contents
What is Digital Transformation and AI?
Do you know the digital transformation market revenue in the US is predicted to reach 490 billion by 2025?
Digital transformation is the process of using digital technologies to create new or different business processes, products, and services. This can be done to improve efficiency, performance, and competitive advantage.
AI is a type of technology that is driving digital transformation. AI involves using computers to do things that would normally require human intelligence, such as understanding natural language and recognizing patterns.
Difference Between Digitalization and Artificial Intelligence
Digitalization is the technique of converting information into a digital format. On the other hand, Artificial intelligence is the branch of computer science that deals with creating intelligent machines that can work and react like humans.
Businesses can use digitalization to process and store data more efficiently. It can also be used to improve communication and collaboration among employees. Whereas, Artificial intelligence can be used to create and interpret text, images, and video. This technology can help make decisions based on data.
Also, digitalization can be used to create 3D models and simulations. AI can be used to create realistic images and videos. Finally, digitalization can be used to create virtual assistants. AI can also be used to create chatbots.
What Are the 4 Key Areas of Digital Transformation?
The 4 main areas of digital transformation are-
1. Process Transformation
The first and most obvious area of focus for digital transformation is process transformation. This is the realm of business process management (BPM) and enterprise resource planning (ERP) systems. The goal here is to use technology to automate or at least improve existing business processes.
2. Business Model Transformation
The second focus for digital transformation is business model transformation. This is about using technology to create new ways of doing business or to enable new business models.
This could be something as simple as going for mobile app development to sell goods and services directly to consumers, or it could be something more disruptive, like going for blockchain development to create an entirely new type of marketplace.
3. Domain Transformation
The third focus for digital transformation is domain transformation. This is about using technology to transform an entire industry or sector. An excellent example of this is how Uber used smartphone technology to create a new category of transportation services.
4. Cultural or Organizational Transformation
The fourth and final focus for digital transformation is cultural or organizational transformation. This is about using technology to change the way people work or change the culture of an organization.
A good example of this would be using social media to create a more open and collaborative culture within an organization or using analytics to empower employees to make data-driven decisions.
Each of these areas presents its own challenges and opportunities. Organizations will need to carefully consider which areas are most important to their business and how AI can improve their operations.
Read more: dApps is another revolutionary name in the world of digital transformation
How Can AI be Used for Digital Transformation?
AI can help in several ways to digitally transform your organization. Some common use cases include:
1. Improving Customer Experience
AI can be used to personalize the customer experience and provide recommendations. It can also automate customer service tasks, such as handling customer queries. With AI, organizations can provide a better customer experience while reducing costs.
One of the examples is Amazon go store, where customers can just walk in and pick up what they want and leave without having to go through a traditional checkout process.
2. Enhancing Employee Productivity
AI can be used to automate repetitive tasks and provide employees with real-time feedback. This can free up employees' time so that they can focus on higher-value activities. Additionally, AI can help create a more personalized and engaging work environment.
For example, Artificial Intelligence can be used to monitor employee performance and give them feedback in real-time. This can help employees to stay on track and improve their productivity.
3. Driving Operational Efficiency
AI can streamline processes and make organizations more efficient. For instance, it can be useful for scheduling meeting times, routing deliveries, and managing inventory. Besides, it is possible to predict maintenance needs and optimize energy usage with AI.
Using AI, an organization like UPS could save millions of dollars by rerouting its drivers using the shortest possible route.
4. Creating New Products and Services
AI can be used to develop new products and services. For example, it can be used to design personalized experiences, create new marketing campaigns, and develop new business models.
Organizations can also use AI to create entirely new products and services. For example, IBM has developed a Watson-powered app that helps doctors diagnose and treat cancer.
5. Improving Decision-Making
With AI, organizations can make better and faster decisions. It is a great innovation for a business analyst who needs to go through tons of data to find the needles in the haystack.
Currently, AI is being used by a number of organizations to improve their decision-making. For example, Google uses AI to improve the accuracy of its search results.
6. Enhancing Security
Digital transformation with Artificial Intelligence can help organizations to enhance their security. Businesses can use AI to monitor their systems for malicious activity and protect against cyber attacks. Additionally, AI can be used to authenticate users and authorize access to data.
7. Reducing Fraudulent Activities
With AI, businesses can reduce the incidence of fraud. For example, banks can use AI to detect suspicious activity and prevent fraudsters from accessing customer accounts. AI can also be used to verify the identity of customers and flag any potential fraudulent activity.
How to Get Started With AI?
Digital transformation with AI is a powerful tool that can help organizations improve their operations, better serve their customers, and create new products and services. However, before embarking on a digital transformation using AI, it is important to ensure that your organization is ready. The following are some things to consider:
- Do you have the right data? In order to use AI, you need to have access to quality data. This data will be used to train the AI models and enable them to make decisions. If you do not have the right data, your AI project will likely fail.
- Do you have the right infrastructure? In order to use AI, you need to have the right infrastructure in place. This includes things like computing power, storage, and networking. If you do not have the right infrastructure, your AI project will likely fail.
- Do you have the right people? In order to use AI, you need to have the right people on your team. This includes people with the technical skills to develop and operate AI systems, as well as people with the domain expertise to understand how AI can be applied to your specific business problem.
- Do you have the right culture? In order for AI to be successful, you need to have a culture that is open to change and willing to experiment. AI projects can be disruptive, and they often require organizations to change how they do things. If you do not have the right culture, your AI project will likely fail.
Final Thoughts
That is all for today! Digital transformation is a hot topic, and AI plays a big role in it. In this article, we have seen how AI can be used for digital transformation. However, for better results, it is important to understand your business goals and how AI can help you achieve them.
If you are not sure where to start, we recommend that you seek help from an experienced AI development company. They can help you identify the right use cases for your business and develop a custom solution that meets your specific needs.
About Author
Sakshi Aggrawal
Co-CEOView All Articles
Sakshi is co-CEO who started the company back in 2016 and has been leading our team ever since. She personally handles the partnership with our key customers and invests lot of time and effort to make sure that CodeAegis provides exceptional quality of services and offer cutting edge tech solutions across the board. Sakshi is a fitness enthusiast and food lover.
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