AI in Digital Transformation

AI and Digital Transformation

Artificial Intelligence is the branch of computer science which focuses on building machines and algorithms which automate the tasks manually done by humans. This field focuses on providing human intelligence to machines. Digital transformation is the integration of digital technology and AI into all sections of business which in turn has revolutionised the standard business models.

=> Digitalization of a business provides the following benefits:
=> Faster and better decision making
=> Improvement in management protocols
=> Easier and faster shifts as per requirement
=> Cost-efficient
=> Improvement in efficiency and productivity
=> More attention to long-term value of digital initiatives
=> Data literacy and intelligent systems help companies discover hidden insights, enhance their current products and services and even help develop new revenue streams.

Impacts of AI in Digital Transformation

=> Predictive Analytics

Predictive analytics is an approach used for forecasting based on previous data and other critical indicators. It relies on information collected and past events to determine the best possible approach for business growth. Benefits of Predictive analytics :
=> Improved financial performance
=> Recognising new opportunities
=> Optimising product performance
=> Reducing Operational costs and risks

=> Finance and Trading

We have developed better and smarter trading analysis
systems and trading software tools. We have also developed algorithmic trading which is the approach to automate trades based on a predefined set of rules i.e. algorithm. With the help of AI trading models, we can place buy and sell orders almost instantaneously by following a predefined strategy which is devised based on trading styles and other factors like time, price and volume. Real-time alert systems enable us to get up to date with the current trends and stock prices. Personalised recommendations for investment analysis and decision making.

=> Security

Smart security infrastructure enables us to prevent cyber attacks and identify and authorise activities more efficiently. With advanced algorithms and automation, security can be enhanced. Thus, completely minimising human intervention along with cost optimisation. The applications of security vary for different businesses but they do help in improving network security and threat prevention. Moreover, adopting biometric systems help avert human errors as well.

=> Customer Analysis and Personalisation

Customer Analysis is the amalgamation of qualitative and quantitative research methods with the goal of better comprehension of the customer base. It focuses on the following stage of approach :
=> Identification of the customers based on traits like age, gender, location and other demographics.
=> Observing their requirements and their preferences
=> Grouping them based on similar traits and behaviours
=> Keeping a profile of ideal customers.

Advantages of Customer Analysis:
=> Lower Customer Acquisition Costs
=> Improved Customer Retention
=> Effective Customer Service
=> Increased sales and profits

Users are recommended similar and related items based on their preferences via the services. They are also recommended offers which may be useful for them. This approach leads to more pleasant user experience and helps in generating additional revenue.

Edge AI

Edge AI is the future of AI transformation and computer intelligence. It focuses on a distributed computing system where the essential computations are stored in the device itself. Combined with AI, Edge computing can process data in real-time and facilitates operations on the device itself. Edge AI has immense advantages such as :

=> Faster decision making
=> Hyper-personlisation to improve UX
=> Lower costs
=> Energy efficient
=> Improved Security