Is AI Actually Good for Your Business?

Separate the hype from reality in order to understand whether AI can positively impact your organization’s success.

AI is here and there’s nothing we can do about it

AI in Business: Is This Really Happening?

AI (Artificial Intelligence) is the latest in a long line of tech buzzwords to explode across the internet. Like blockchain, NFTs, crypto, and the metaverse before it, there is no shortage of tech pundits crowning AI as the future of business, the one technology to save us all.. But unlike those previous buzzwords that ended up coming & going with little impact on most of our day-to-day lives, it seems likely that AI is going to be around for a while, given its diverse applications and vague definition. 

So What Actually Is AI?

Traditionally when we talk about AI, we’re talking about computers that can sense and react to their environment. They can choose what actions to perform, learn from their mistakes, and mimic human behavior in exciting and terrifying ways. Today AI refers more specifically to the development of computer systems that can perform tasks that traditionally required human intelligence. It doesn’t mean our computers now think and act for themselves (yet!), it simply refers to a way of quickly processing and analyzing huge amounts of data, and then generating inferences and recommendations based on that data. Between the rise of big data and the complexity of modern business, AI in most modern contexts represents an opportunity to streamline processes, improve decision-making, and improve both employee and customer experiences.

Separating AI Myth from Reality

So: AI can be a somewhat misleading term. It’s often used interchangeably with another technology known as machine learning. Machine learning (commonly written as ML) is a computational algorithm for ingesting large data sources and making predictions and inferences based on that data. This is not computers learning to think for themselves, it’s simply a process for making suggestions based on the data input into the system.

This technology has the potential to automate or facilitate certain tasks, but not the ability to completely replace humans in business. At its core, AI/ML is mostly suited to assisting or augmenting human-driven processes, freeing up time for employees to focus on higher-level activities.

What’s really interesting and new is that AI is not merely the domain of large, global corporations with vast quantities of money to throw at new technologies. Any organization with some data and an interest in process improvement can explore and implement AI solutions for their business needs. There are already many user-friendly platforms that require minimal technical expertise, and organizations like ours are skilled at helping businesses develop affordable solutions tailored to their specific needs.

Aligning AI With Your Business Goals

Theoretically, the potential ramifications for AI to impact some businesses are huge. But in this modern gold rush era, before racing to implement off-the-shelf AI SaaS solutions that may or may not actually benefit your business, it’s important to take a step back and figure out which business goals matter most to you. 

What are your pain points? What challenges does your business currently face? Do your teams have repetitive or time-consuming tasks that can be automated? Are there opportunities to improve decision-making with improved data analysis? 

More crucially, pick apart what you really mean by “AI.” We’ve often found that companies looking to implement AI are actually talking about a problem with data management. Connecting two disparate systems so they can share data may unlock the kind of decision making or customer experience you’re hoping to achieve with AI.

Assess the resources and capabilities available within your organization. Do you have the right data infrastructure in place? What about your team - do they have the expertise to implement AI effectively, or would they benefit from technical upskilling?

By assessing your business needs and goals, you can determine if and how AI aligns with your strategic objectives, and where it has the potential to make the most significant impact.

Explore Potential AI Solutions for Your Industry

Once you have a handle on your relevant business needs and goals, it’s time to explore the variety of potential AI solutions for your industry. Research industry-specific use cases. Are you looking to improve your employee experience? Maybe you want to automate your market research. Or, maybe you want to communicate more effectively with your customers. 

Learning how related companies are implementing AI can provide valuable insight into the benefits or pitfalls you might see in your organization. You may also want to consult with AI solution providers who can provide recommendations and insights tailored to your specific requirements. Enterprise-level SaaS offerings may have you paying for cool-sounding features that don’t actually align with your business needs. Do some research, and talk to people who can offer you a thoughtful, unbiased opinion on how AI can be applied in your organization.

Measuring the Long-Term ROI of AI on Your Business

Even before you implement AI solutions in your business, think about how you plan on measuring your ROI (return on investment). There are costs associated with new technology, data infrastructure, employee training, and even ongoing maintenance. Evaluate the potential benefits against your financial investment. 

One way to measure ROI is by running a small-scale experiment. A small team, using AI to improve one specific business process, for a limited period of time. This will allow you to test the effectiveness of the solution and gather valuable feedback from your team on its impact, both to them and to the business. 

It’s also important to balance short-term difficulties against long-term benefits. Perhaps you see myriad long-term benefits of AI to your customers and your business. But if new processes are not implemented thoughtfully and purposefully, you could end up breaking your existing processes, making things difficult for your employees and your customers, causing long-term harm to your business. Think not just about the solution, but about the implementation: the timeline, and the training that will be required for your team, and the education that will be necessary to your customers. 

So despite the fervor around AI online, it’s important to not get too swept up in the hype. AI may be useful in certain areas, but it’s not going to solve every problem every business ever encounters. Determining whether AI is good for your business requires a thorough assessment of the current solution landscape, a deep understanding of your business goals and needs, and thoughtful guidance on implementation of the options available to you. 

If you need help thinking about whether AI is a fit for your business, or how to assess the AI readiness of your business, schedule a free 30-minute call with us. We’ll be happy to bounce ideas around and assist in exploring your options.