Advantages of Machine Learning and AI for Value Growth
McKinsey estimates that artificial intelligence (AI) may deliver an additional economic output of around US$13tril by 2030, increasing global GDP by about 1.2% annually. The growing penetration of this technology will not unlock new value opportunities, but widen the gap between companies who manage to maximize the benefits, and those who fail to capitalize on them.
This research offers a fascinating deep dive into the potential of AI, and it echoes findings of numerous studies which demonstrate the huge impact of AI and machine learning (ML) technologies. In its own research, global technology giant IBM noted that AI will continue to “enable organizations to address urgent and immediate business priorities—quickly and at scale.”
IBM notes how AI can augment human skills, improving a cost base by motivating greater and more expansive efficiencies, at the same time protecting revenue while boosting experience and engagement. These are all benefits we recognize from our own work at Neural Technologies. As pioneering AI and machine learning experts, we know the power of AI and ML to unlock real value for customers in revenue protection, fraud management, data integration, customer personalization, and beyond.
Understanding a smart future of AI and ML
There are many advantages of machine learning and artificial intelligence for business, but fundamentally they come down to better understanding and improved responsiveness. That means everything from improved detection of high-risk events through to personalized solutions that improve the customer experience.
In its own analysis, McKinsey explored five categories of AI—computer vision, natural language, virtual assistants, robotic process automation, and advanced machine learning. It projects that by 2030, some 70% of companies will likely have adopted one form of AI technology, but less than half will have adapted all five. That leaves a significant competitive gap for those 30% of companies who fail to embrace the advantages of artificial intelligence and machine learning at an early stage.
This imperative to adopt early is critical for those seeking to unlock the greatest value from those technologies, with first-movers gaining a significant early competitive advantage. Those who adopt late might find the margins of value eroded significantly, as they compete against more mature AI and ML adopters.
IBM’s findings already show that more than 85% of advanced adopters are reducing operating costs with AI. What’s more, its study reveals that COVID-19 has significantly accelerated the transition of these advanced technologies from nascent to widely adopted as key drivers of competitive advantage and profitability across industries and businesses.
First movers unlock the greatest value from AI and ML
You can’t leapfrog to expert AI adoption. IBM’s study reveals that investing in capabilities that are necessary preconditions of AI—data, process, and human capital—speeds progress to more advanced adoption and time to value.
It’s important to start that journey soon however. Almost a third of organizations plan to bolster AI investments as a result of the pandemic according to the IBM research, with 84% of executives expecting steady or increasing levels of organizational focus on these technologies.
Data-driven industries are likely to see the most immediate impact of these technologies according to analysis by PwC—that means the likes of financial services, information technologies, and telecommunications. The latter industry is one in which Neural Technologies has been delivering AI and ML-driven solutions for years, and we can see the way such technologies can drive positive revenue outcomes for customers.
Technologies such as deep learning and neural networks are one area where telecommunications has a data-driven advantage. These neural network approaches require deep volumes of data—something readily available in the telecommunications ecosystem—but in doing so provide a path to greater value. An analysis of use cases by McKinsey reveals that AI deep learning techniques offer the potential to boost value above and beyond traditional analytics techniques by between 30% and 128%. That’s a powerful example of value created through the use of deep learning.
At Neural Technologies, we recognize that the complex nature of these technologies can often be a barrier to adoption for some enterprises. Yet research is clear that acting now is the quickest path to unlocking the greatest value.
Our powerful, user-friendly Optimus Platform solution provides a supportive pathway to generate benefits in risk analysis, revenue protection, and beyond. It’s customizable to your unique business needs, and easily integrated into a business.
AI and ML have huge potential to uplift GDP across the world, and that starts with developing user-friendly and easily deployed solutions for businesses. Those enterprises that commit early, have a path to mature AI and ML technology use in a competitive global marketplace. Neural Technologies can be a valuable partner in that journey, not only deploying our pioneering AI and ML tools to meet your business needs, but working with your team along the way to ensure they’re used to unlock the greatest possible value for your business.