In the wake of COVID-19, organizations across the globe have adopted digital technologies or switched to digital transformation initiatives to meet different strategic business goals. It’s good to see that 53% of organizations already have enterprise wide digital transformation strategies in place and others are planning to implement from the core.
With digital transformation, along with cloud, IoT, and data & AI capabilities, many organizations have already achieved an excellent level of business efficiencies and operational capabilities. Now the question is, what new capabilities do the recent developments in artificial intelligence and machine learning or generative AI behold in their bucket? What impact is this specialized AI creating on digital transformation strategies?
In this blog post, we will explore the current state of digital transformation within organizations of different domains and the journey those companies can cover if AI and ML technologies are implemented in them.
How Artificial Intelligence Is Changing Digital Transformation Practices?
Specialized AI, including Generative AI and large language models (LLMs), revolutionize enterprise efficiency through supporting innovation with digital transformation. Artificial intelligence, along with machine learning, can be added as an additional layer of solutions to existing business transformation systems in different industry use cases.
Embedded AI as an additional layer of technology holds the potential to enhance the existing system’s processing capabilities, conversational capabilities, and decision-making abilities.
As AI and ML can understand natural language, these promote key pillars of the business, needing groundbreaking solutions such as performance measurement, personalization of customer services, continuous learning, predictive analytics, innovative product development, and more. AI transforms challenges into opportunities. Empowering such areas of digital transformation systems with AI and ML implementation and solutions can help businesses drive efficiency, enhance decision-making, and encourage creativity within organizations. Below are four pivotal AI levers driving digital transformation and redefining modern business models:
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Customer Experience
In customer experience, every company or organization has presales, sales, and post-sales customer journeys or customer interaction points. Digital transformation, though, has infused technologies within organizations like CRM, CMS, Big Data Analytics, Chatbots, Voicebots, Cloud solutions, and others; still, the traditional customer journey lacks personalization in customer-facing areas and scaling, interoperability and omnichannel experience as promised earlier. With AI-based customer journeys, the promise of an exceptional customer journey can be fulfilled. Implementing artificial intelligence into the existing customer experience solutions can enhance outcomes in several ways, including:
- Developing Personalized Recommendation systems that leverage predictive analytics to analyze customer preferences and help make informed predictions about forthcoming consumer behavior.
- Developing Intelligent chatbots and virtual assistants that can provide human-centered service experiences. Top CX leaders hope for AI-powered bots that can streamline routine tasks and promote efficiency, all while delivering richer experiences to customers.
- Developing agent AI bots as central to the workforce experience alongside customer experience. Digital transformation has provided support to the workforce with tools to access data, but to ensure an optimum experience for the customer, they also need support or capability to quickly access data. Beyond that, they also need more support from the new technology to deliver the desired customer experience while ensuring an omnichannel experience for the business.
For example, AI-powered recommendation systems used by companies like Netflix and Amazon analyze user preferences to suggest tailored products or content. This level of personalization not only boosts engagement but also drives significant revenue growth, with businesses reporting up to 10-30% higher sales through AI-enhanced customer experiences.
Ready to transform your business with AI-powered solutions? Discover how AI can enhance your digital transformation journey, optimize operations, and deliver exceptional customer experiences. Contact our experts today to get started!
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Business Strategy
Digital transformation brought technological advancements in day-to-day business operations by modernizing existing applications and infrastructure of organizations with cloud and big data management solutions. Industries like healthcare, finance, insurance, manufacturing, and others have leveraged digital technologies and collected vast amounts of data. These companies leveraged the data and transformed their business strategy practices into data-driven processes. Over a period of time, such capabilities came to a stalemate as data processing or generating insights to the required extent was not possible with the available systems or solutions. Bringing AI into business strategy development, along with digital transformation strategies and technologies, has huge potential to generate new revenue streams for organizations. In general, AI in business strategy can help companies with the following key advantages:
- Personalized Marketing
- Customer Service Automation
- Predictive Analytics
- Content Optimization
- Social Media Management
- Lead Generation
- Search Engine Optimization
There are highly technical use cases of AI in business strategy transformation where all leverages sophisticated AI models to analyze vast datasets, such as:
- Dynamic Pricing
- Fraud Detection
- Anomaly Detection
- Predictive Maintenance
- Advanced Customer Segmentation
- Algorithmic Trading Strategies
- Drug Discovery & Molecular Design
- Machine Learning-Based Route Planning
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Technology
With digital transformation, companies have fundamentally changed their technology adoption and become rapid in their approach to embracing new technologies like cloud, mobile apps, data analytics, IoT, and others to stay competitive. Moving from waterfall to agile and DevOps-based approaches has also enabled companies to respond quickly to market disruption. Digital transformation within organizations has prepared them with a digital strategy to create, process, store, secure, and exchange data at low costs and low overheads. Adopting AI within existing business practices as part of a digital transformation strategy may require organizations to make improvements in their infrastructure to adopt new tools and platforms.
Luckily, organizations that already have infrastructure deployed on the cloud and practice DevOps save immense time and expenses on implementing AI-infused applications. Many things come together to build AI applications, such as machine learning models that need robust infrastructure, training data, and model lifecycle management tools, frameworks, libraries, and visualizations. To ensure the models are accurate, robust, fair, transparent, explainable, continuously and consistently learning, and auditable, the existing infrastructure supports AI implementation. With cloud-based infrastructure or cloud platforms like AWS, you can begin AI projects instantly. Leveraging AWS SageMaker or AWS Bedrock provides instant AI project development, integrations, and deployment to realize AI advantages.
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Organization & Culture
Beyond technology and infrastructure, digital transformation heavily relies on the culture of an organization. Not every company has had a culture of innovation for digital transformation, but when hit by COVID-19, companies realized its long-term significance. Different stakeholders within the organization realized the importance of interconnected data access and communication. Just like that, organizations are required to first develop a growth mindset to implement AI within existing solutions, processes, and systems. They need to realize the benefits of AI, such as cross-functional collaboration and data-driven insights, to make faster and smarter decisions. This approach can help companies to fully embrace AI and cloud technologies and position themselves as digital innovation leaders.
With improved data sharing, workflows, and real-time insights, AI can help different teams within a company collaborate and make decisions more agilely and effectively.
Wrapping Up
Digital transformation firms leverage AI to offer data-driven insights and solutions to their clients. AI tools help analyze client data to identify inefficiencies, market opportunities, and areas for improvement. This approach enables consultants to provide tailored strategies that align with their clients’ unique challenges and objectives, ensuring successful digital transformation outcomes.
As AI has emerged as a transformative force in digital transformation, businesses are leveraging dynamic tools to innovate, optimize operations, and enhance customer experiences. By strategically integrating AI into your digital transformation initiatives, organizations can achieve sustainable growth and maintain a competitive edge in the digital age.
