How businesses are embracing AI

March 05, 2024 | 12:23
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The rising tide of AI redefines how businesses operate and make decisions. Nguyen Hoang Nhan, director of Technical & Digital Innovation and IT Advisory at KPMG in Vietnam, explores vital AI trends that businesses can apply to enhance performance, save costs, and elevate the customer experience.

At the forefront of this revolution stand four dominant AI trends: machine learning, natural language processing, computer vision, and robotics. These technologies unlock immense potential for automating processes, analysing big data, and providing meaningful insights for businesses.

How businesses are embracing AI
Nguyen Hoang Nhan, director of Technical & Digital Innovation and IT Advisory at KPMG in Vietnam

Beyond a potent tool, AI transcends its utility to become a gateway for innovation and process optimisation within enterprises. Its robust integration into core systems presents both captivating opportunities and challenges that demand insightful navigation.

Enterprise resource planning

Within the field of enterprise resource planning (ERP), AI tools have demonstrated significant strength. The incorporation of AI into ERP systems has gone beyond data automation, extending to the proactive optimisation of supply chain processes. Machine learning algorithms facilitate demand forecasting for proactive inventory and procurement decisions.

This integration not only streamlines operations but also fosters a more agile business environment, which in turn enhances competitiveness and sustainable growth for enterprises.

Utilising ERP systems with AI support, Amazon has achieved notable optimisation within its supply chain. Employing machine learning algorithms to forecast customer demand, the company automates adjustments across its supply chain processes, including inventory management and transportation. This helps Amazon to reduce unnecessary inventory and ensure products are ready precisely when customer demand arises.

Toyota has also integrated AI into its ERP system to transcend traditional supply chain management. The company now possesses the remarkable ability to anticipate market demand fluctuations and also dynamically adjust production schedules.

This proactive approach minimises inventory stockholding while guaranteeing product availability precisely when customer demand peaks, propelling Toyota’s global position as a force to be reckoned with in its industry.

AI-integrated ERP solutions are rapidly emerging as a dominant trend within the global business landscape, and prominent companies like Amazon and Toyota serve as compelling testaments to the transformative impact of AI in this sphere.

Customer relations and HR

In an era where prioritising customer experience is paramount, conversational AI-powered by natural language processing and machine learning, is reforming strategies in customer relationship management. These chatbots and virtual assistants enable natural interactions, analyse real-time sentiment, and personalise responses, forging deeper relationships and driving customer success.

Apple employs AI’s sentiment analysis as a strategic tool to gain profound insights into customer preferences and opinions. By leveraging AI to decipher the emotional resonance of user interactions and feedback, Apple gains a deep comprehension of its customers’ desires and frustrations. This comprehensive understanding allows them to tailor content based on specific desires, craft personalised marketing campaigns that ensure a unique and engaging experience for each user.

Besides that, through analysing user data and feedback, AI helps Apple identify emerging trends and unmet needs, paving the way for revolutionary products and services. This continuous refinement cycle propels Apple to the forefront of technological innovation, showcasing the multifaceted impact of AI in their ecosystem.

Major companies like Salesforce, Microsoft, and Oracle are also integrating AI-powered chatbots, predictive analytics, and personalised recommendation engines into their customer relations management, driving a profound shift in customer engagement and satisfaction. AI is undeniably shaping the future of such management - a landscape where every experience is tailor-made for individual customers.

Meanwhile, the application of AI within the domain of human resource management has transcended its initial focus on streamlining the recruitment process. While advanced analytics and predictive algorithms initially aided in identifying suitable candidates, AI’s reach now extends far deeper. Beyond efficiently filtering through resumes, AI algorithms are now employed to perform in-depth, data-driven evaluations of employee performance.

These assessments can identify skill gaps, offer insights into areas for improvement and even predict potential turnover risks, empowering HR professionals to proactively address talent retention challenges.

A notable example can be found at IBM, where they leverage AI to optimise talent acquisition with informed decision-making in recruitment and performance management. IBM utilises AI to scan skills, career aspirations, and contextual factors like location and pay grade for its employees. This comprehensive analysis then generates potential internal job matches, fostering growth and satisfaction through data-driven talent allocation.

Besides that, AI helps IBM to enhance managerial decision-making by evaluating performance data, industry-standard compensation benchmarks, and the demand for specific skills. Additionally, they also aid employees in discovering their strengths and crafting development plans to maximise their potential. These AI-driven initiatives yielded substantial cost savings, demonstrating the tangible benefits of AI integration in talent management.

IBM’s AI-powered approach to HR management represents just a glimpse into the transformative potential of this technology. Google, Dropbox, and many other companies are embracing AI to revolutionise talent management strategies. This widespread adoption suggests that AI will be the driving force behind its effectiveness, allowing companies to attract, develop, and maintain resilient workforces.

How businesses are embracing AI
illustration photo/ Source: Shutterstock

Data analysis and leverage

AI plays an undeniable role in real-time data analysis and business information. The ability to process large volumes of data by AI algorithms helps extract crucial information, analyse trends, and make accurate predictions. Automated reporting tools and forecasting models have opened new avenues for decision-making, enabling businesses to adapt quickly to dynamic markets.

Tesla, for example, has harnessed AI algorithms to analyse extensive datasets collected from self-driving cars. Beyond managing the vehicle’s energy, AI plays a pivotal role in scrutinising driving performance and system data. By leveraging AI capabilities, Tesla can proactively identify areas for improvement and potential technical bugs, ensuring not just autonomous control, but continuous refinement and enhanced safety.

This comprehensive approach to data analysis empowers Tesla to continually refine and optimise their self-driving technology, ensuring that their vehicles remain at the forefront of innovation while prioritising the safety and satisfaction of their customers.

The success of Tesla is not only a testament to the power of AI but also evidence of innovation and process optimisation it brings. This demonstrates that the application of AI technology trends is not just theoretical but a reality in leading global enterprises.

Although AI presents vast opportunities, it also poses significant ethical challenges. The pervasiveness of AI in business necessitates a multifaceted approach encompassing ethical considerations, workforce adaptation, and transparent communication.

Firstly, data security remains paramount. Businesses must prioritise adhering to stringent regulations and employing robust security frameworks to safeguard customer information and maintain user trust. Transparency regarding AI integration becomes equally crucial.

By openly communicating the functionalities and limitations of AI-powered systems, businesses foster trust with partners and empower customers to make informed decisions. However, the potential for job displacement looms large. To mitigate this challenge, businesses should prioritise employee retraining and reskilling initiatives, equipping them with the skill sets necessary to navigate the Industry 4.0 landscape.

Finally, alleviating employee concerns through comprehensive education and communication programs is essential. By demystifying the goals and benefits of AI integration, businesses can cultivate acceptance and encourage the efficient utilisation of these transformative technologies. Addressing these critical aspects enables businesses to harness the power of AI responsibly, fostering a future where technological advancements and ethical considerations go hand in hand.

Despite these challenges, many organisations have successfully integrated AI into their business operations. From optimising supply chains and revolutionising personalised marketing to harnessing the power of intelligent data analysis and transforming HR processes, AI’s impact across diverse fields has been demonstrably positive and significant.

However, for successful AI deployment, organisations need to carefully plan, clearly define specific business goals, and build flexible and relevant data strategies. Additionally, developing internal AI capabilities and collaborating closely with reliable providers are crucial factors.

Organisational change and the fostering of a culture of continuous learning and adaptation are indispensable cornerstones of effective AI integration. Embracing flexibility and the readiness to adapt to evolving technological landscapes not only enhances operational efficiency but also fosters an environment where both employees and systems can grow and achieve business goals.

The future of AI brings not only exciting opportunities for businesses but also an innovative journey that pushes businesses beyond boundaries, fuels progress in development and competitiveness in today’s dynamic market.

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By Hoang Nhan

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