McKinsey describes AI as:
AI is typically defined as the ability of a machine to perform cognitive functions we associate with human minds, such as perceiving, reasoning, learning, interacting with the environment, problem-solving, and even exercising creativity. Examples of technologies that enable AI to solve business problems are robotics and autonomous vehicles, computer vision, language, virtual agents, and machine learning.
Machine Learning vs Deep Learning Features
Artificial intelligence makes use of machine learning algorithms. The ML algorithms mimic a human brain to understand, comprehend and provide recommendations. The algorithms can re-run themselves for problem resolution.
Deep learning is a sub-part of machine learning. Most often, deep learning and machine learning are confused with each other. Deep learning uses neural networks where there are over three layers involved. IBM figure shows how it works.
Where these two differ is how deep learning automated machine learning algorithms. Deep learning excludes the manual human intervention element and uses the larger data sets.
While machine learning algorithms need human intervention, deep learning can scale itself without it.
Market Size of AI
Artificial intelligent devices demand is high. They have infiltrated every business worldwide, which is why the market share will keep rising in the future.
The artificial intelligence market is a billion-dollar industry—the market value measured at USD 58.3 billion. Expert forecast by Markets and Markets predicts that this market will increase by almost forty percent in the next five years. The value comes to 309.6 USD for 2026.
Even with the pandemic, this industry demand did not get negatively impacted. Businesses rapidly installed AI-enabled devices. The forecast suggests that Artificial Intelligence cloud services and solutions could further increase the market size. It reduces running and operational costs with the option of being highly scalable too.
Impact of using AI
[AI] is going to change the world more than anything in the history of mankind. More than electricity.
— AI oracle and venture capitalist Dr. Kai-Fu Lee from 2018.
There is an impact of artificial intelligence in several sectors. It takes over menial tasks for the employees. So, the workers can concentrate on other more critical work. The menial tasks for machines increase the employees’ job satisfaction, which keeps them happy.
The health sector demanded intelligent monitoring and diagnostic tools. Hospitals implemented innovative monitoring tools at scale to facilitate the doctors. Tech giants such as Amazon and Facebook took on telemedicine facilities, contact, and drug tracing initiatives. According to McKinsey estimations, big data could save medicine and pharma companies up to $100B annually.
The different businesses’ customer services took a hit. The lockdown and social distancing rules caused companies to scale back on the number of employees. Online businesses installed conversational AI software to improve the customer experience. These were able to take customer queries 24/7 while the employees had lesser responsibilities.
The most prominent AI use came in the education sector during this pandemic. Online schools, colleges and universities rapidly installed AI tools for learning purposes. These were used for teacher benefit as well. These tools helped track student performance and provided grades automatically placed in the data server and counted. It also helped identify learning gaps and automate the administrative work if there were any. The learning and teaching methodology changed overall.
Opportunities of Artificial Intelligence for Industries
With the advancement of machines on AI, there are several advantages for the industries at large.
A global survey by McKinsey from 2020 reports that:
22% of companies using AI said the technology accounted for over 5% of their 2019 earnings before interest and taxes. Additionally, revenue generated by AI increased year over year in the majority of the business functions using AI technologies. Companies earning the most from AI told McKinsey they planned to increase their AI investments in response to the COVID-19 pandemic.
(TechTarget)
Improved Efficiency
Improved efficiency is the most commonly reported advantage that businesses use artificial intelligence. Machine capabilities are superior to humans and can do tasks faster. AI frees up the human workforce who can do jobs that the machines cannot do. Improved efficiency maximizes the human capital talent and allows the industry to reduce costs associated with repetitive and mundane tasks.
Faster Production
Faster production times reduce the developmental cycle time. The shortened time between innovation and delivery provides an immediate return on investment for investors and the industry.
New Solutions
Artificial intelligence helps in expanding the business with advanced analytics. Advanced analytic identifies market gaps where the company can infiltrate and expand.
Improved Customer Service and Customer Experience
Customers are the most crucial part of making a business flourish and succeed. So improving the customer services and customer experience is vital to retaining customers.
AI identifies the customer’s needs and wants and customizes the business solutions. AI compares the competitors’ solutions before presenting the answers to the customer.
AI can hold a personalized conversation with the customers also. Hence, the customers feel at ease when calling in for any issues.
Better Monitoring
Artificial intelligent devices use advanced analytics, as mentioned. Analytics is an advantage to the client as real-time data is collected. It monitors every market and alerts the business manager of different opportunities.
Another monitoring capability advantage is in the business. Cameras and tools are installed in the building and peripherals to monitor the process. If there is any breach in the system, then the system generates a recommended action or a response.
If any machinery breaks down, the AI collects the data from the sensors and identifies the issue and solution. Monitoring makes scheduling maintenance very easy—the respective person comes to fix the machine.
Cybersecurity monitoring is a part of the artificial solution advantages. If a bug enters a system or a hacker, AI identifies and reports it or takes the necessary action.
Reduced Error
Smart devices reduce human error from production. The devices will strictly follow the guidelines, which the workforce ignores.
Companies can incorporate RPA with AI. RPA and AI automate and speed up the menial tasks while simultaneously reducing the chance for any errors or mistakes. The system can be trained and scaled on taking on broader functions within the business.
Artificial Intelligent Solutions Benefits for Industries
Several industries are reaping the rewards for implementing intelligent AI solutions.
Healthcare Industry
The healthcare industry has been using AI intelligent machines for a few years. Since the pandemic, they have expanded machinery for more tasks.
There are robot-assisted surgeries that reduce the chances of human errors for better chances of saving the patient.
Artificial intelligence tools protect patient records against hackers and computer viruses.
Some hospitals use AI machine learning algorithms for diagnosing pathology patient samples. The pathologists have a system that closely monitors the collected samples and makes an accurate and precise diagnosis.
Automotive Industry
Self-driving cars are an innovation of artificial intelligence solutions. There are some on the roads already, most famously Tesla.
Other manufacturers follow suit to make their self-driving cars a competition for the Tesla cars.
According to the Policy Advice study,
about 33 million vehicles with self-driving capabilities will be on the roads by 2040.
Finance Sector
The financial sector needs updated real-time data at all times. There are big datasets to gain insights. These provide accurate and efficient answers for decisions and investments.
Forbes reported that the sector is implementing and using
machine learning, algorithmic trading, adaptive intelligence, chatbots and automation in their financial processes.
Transport Industry
The transportation industry is using AI to find the best routes for travel. They incorporated the option of booking hotels within their AI system.
The industry is using the increased smartphone usage to its advantage. People use smartphones to find directions and search for eateries.
Restaurant Engine reports that “more than 80% of the people say that they use their smartphones to research local restaurants and landmarks.”
Google Maps is an AI tool that uses GPS and the internet to provide accurate routes from multiple points. It gives real-time traffic conditions and routes to avoid even if you are a pedestrian or talking in the car.
E-Commerce Industry
The e-commerce industry uses artificial intelligence for improved customer experience and customer services. Seeing a product somewhere online gets your ads for that exact item. Advertisements are due to machine learning algorithms.
Amazon is an example of an e-commerce business using AI capabilities. The giant company uses this technology in every step that a customer takes to order an item.
Offshore for AI Solutions
Offshore vendors can provide artificial intelligence solutions cheaply and without wasting time.
Offshoring helps get access to skilled AI developers. Such developers might not be up to the standards locally. Off-shore services providers can take care of all the needs of a client. The client will not have to worry about sourcing, managing and retaining AI developers.
Offshore teams are pre-made and flexible. The unit is hired according to the client’s needs at flat rates. They are professionals who are skilled and worked on such projects previously. So, the offshore team knows how to make a secure system according to the requirements.
These developers can incorporate BI analytics if needed as they have a diverse skill set. The client will get two important systems placed. They will have cybersecurity in mind when implementing such systems.
Mashkraft for AI Solutions
Mashkraft has extensive experience in servicing AI customers across the world. Our offshore team can provide turnkey artificial intelligence services and solutions. We have successfully provided big data services to clients across Europe, North America, Asia and Africa. Please reach out and our experts will help you find the right solution that fits your budget and needs. You can find out more details about our services and successes at www.mashkraft.com.