Why AI is the Ultimate Superfood to Power Digital Transformation
Digital transformation is like trying to build a rocket ship while it is already in flight. It is complex, exciting, and a little scary. Add the pressure of getting it right with a tiny margin of error and things are as overwhelming as they could possibly get. Even with the smartest and biggest of teams, transformation leaders often wish they could have an uber-efficient and sharp-as-a-tack personal sounding board to help them navigate the complexities. Their very own J.A.R.V.I.S that helps them plan and execute like champions. Cue the use of AI in digital transformation. No wonder then that they have been smitten by how different AI tools have progressed in the last couple of years to now act as their digital transformation superfriends. And that ever-increasing army of in-love-with-AI professionals includes me!
AI: Your Super Buddy in Digital Transformation
AI isn’t just a buzzword anymore. Neither is it a fancy little toy to only create hilarious pictures or write routine emails. It has evolved to be a real-life problem-solver that can help digital transformers at every stage of your digital journey. Let’s deconstruct the role of AI in digital transformation across these said stages:
1. The Planning Phase
Think of AI as your crystal ball. It can analyze mountains of data to predict trends, identify opportunities, and help you make smarter decisions. For instance, a retailer could use AI to determine which products will be the next big thing. Or a supply chain specialist can ask their AI agent to analyze tonnes of data in minutes to give insights to work on
2. Execution Phase
This is where AI flexes its muscles. It can automate boring tasks (like data entry), leaving your team to focus on the fun stuff. For example, chatbots can handle customer queries, freeing human agents for more complex issues. And AI can even help you design new products or services. Hello, Figjam!
3. Monitoring and Optimization
AI is like your personal trainer, constantly tracking your progress and suggesting improvements. It can spot inefficiencies, identify customer pain points, and even help you fine-tune your digital strategy. So, you don’t have to monitor thousands of dashboards to spot trends and sentiments. Leave that to your digital pals.
Assembling the AI-vengers of Digital Transformation
There’s a whole universe of AI capabilities, each with its superpower. And it is very easy to get lost in what to use and when to use it. But here’s the A-team you can’t afford to not recruit.
- Machine Learning: This is like teaching a computer to learn from experience. It can be used for everything from predicting customer behavior to detecting fraud
- Natural Language Processing (NLP): This is about getting computers to understand and respond to human language. It’s the brains behind chatbots, sentiment analysis, and language translation
- Computer Vision: This is where computers learn to see and understand the world. It is used in image recognition, video analysis, and even self-driving cars (okay, maybe not for your business, but it’s still very cool!).
The Benefits of AI in Digital Transformation
To put it simply, using AI in digital transformation tasks is akin to winning the lottery—without even needing the ticket. Here’s why:
- Cost savings: AI can automate tasks, reduce errors, and optimize processes, saving you money
- Increased efficiency: Say goodbye to manual work and hello to faster turnaround times
- Improved decision-making: Data-driven insights help you make smarter choices
- Enhanced customer experience: AI in digital transformation can personalize experiences and provide better support
- Competitive advantage: Last but not the least, being an early adopter of AI can give you a serious edge over your competitors
Lots of companies are already using AI in digital transformation to overhaul their businesses and reap the benefits. For example, Netflix uses AI to recommend shows you’ll love, Amazon uses it to optimize its supply chain, and even your bank uses it to detect fraud.
According to a recent study by McKinsey, around 70% of organizations are already experimenting with AI, and 20% have scaled AI in at least one function. That’s a lot of AI-powered awesomeness!
The Secret to AI Success
Promising as it may sound, though, here’s a note of caution. AI can never fully substitute critical thinking, real-life experience, and the pixie dust that an amazing team brings. Hence, to make the most of AI, you need a few key ingredients:
- Quality data: Remember, garbage in, garbage out, so make sure your data is clean and accurate
- The right talent: You need a team of AI experts to help you harness its power
- A clear strategy: Know what you want to achieve with AI and how it fits your business goals
- A culture of experimentation: Don’t be afraid to try new things and learn from your mistakes
AI is the ultimate sidekick for digital transformation. You can achieve amazing things by combining human creativity with AI’s power. So, are you ready to embark on your AI-powered adventure?
NOTE: The views expressed in this article are those of the author and not of Emeritus.
