Digitization has been changing the processes and business models of companies for several years. Artificial intelligence (AI) is now heralding a new phase: computer systems capable of learning make it possible to gain new knowledge by intelligently linking existing – even unstructured – data.
This raises fundamental questions for medium-sized companies: How can they orient their business more efficiently through the use of AI? Which new AI-based business models are opening up? And what does the use of AI mean for the entire organization?
How AI is benefitting the business world
New Forms of Networking
Companies offer products and services, but can also use the data and knowledge of other companies. From companies that already build and use AI systems, to companies that are using their first AI applications, to full techies who want to exchange ideas about the latest AI snippets among their peers, they can now learn from data and then offer them to other companies.
Smart Products & Services
Whether vehicle, fitness bracelet or a ceiling fan – all of these objects can be digitally connected. The analysis of the collected data makes it possible to make products and services “smart”. AI systems can also make the data available to other products and applications via interfaces – and, conversely, receive data from this data.
Clear Customer Orientation
The focus of new business models is no longer companies with their products and services, but increasingly the users with their personal needs and preferences. They receive products, internet-based services and services that can be tailored to their individual needs when and where they want (on-demand).
New Forms of Work Organization
Innovation increasingly arises in flexible teams. Because employees change employers more often than before; Freelance work is increasing. AI also changes the way work is organized, but it can also offer advantages for employees – by helping them to complete projects and provide flexible training for employees.
New Degrees of Freedom for the Design of Business Models
Innovation in physical goods is limited due to their materiality. It is not the case with digital products. This goes hand in hand with a higher degree of freedom: Companies often give away digital goods to certain groups in order to motivate them to use them over the long term, to generate data and/or to place advertising in a more targeted manner. In the age of AI, the question of the economic rules of the game arises anew.
Changed Business Models Through AI
Learning systems and AI methods make it possible to extract knowledge from extensive and complex data and generate new insights – which in turn form the basis of changed and innovative business models.
Business Models Across Company Boundaries
Examples of this are apps that optimize travel routes, for an example, Paytm. They take into account individual preferences for certain means of transport and routes, calculate the fastest and cheapest means of transport, provide the ticket and bill for it across all providers. Self-learning systems enable completely new products. You can now configure and manufacture customized, unique items in real time.
Platforms & Ecosystem
Individual companies are usually not able to implement data-driven business models. Digital platforms are emerging on which companies of different industries and sizes work together (digital ecosystems).
Transforming existing business models in the direction of AI requires courage, a willingness to take risks and perseverance. Not only do AI algorithms need time and data before they can generate added value. Leaders, especially in high-growth companies, want to use AI more for decision-making. Among other things, they want to invest more of the time gained through technology in motivating their employees.
AI as a tool for medium-sized businesses
AI-based applications are already in use in many places – be it in search engines, speech recognition and recommendation systems or applications for predictive maintenance. The AI map on the learning systems platform provides an overview. The current drivers of development are advances in machine learning. Computer systems use algorithms to evaluate large amounts of data, recognize patterns in them and learn to solve problems increasingly independently – without having to program individual steps.
Experts in Promact agree: AI is becoming a key technology for companies. New technologies require new solutions – at all levels, not just in the operational area. The possible uses of artificial intelligence (AI) range from data analysis for decision-making processes via chatbots to new services, products, and business models. If you still think it’s not the need of the hour, then you are going in the wrong direction.
From a technological point of view, AI is the logical continuation of digital transformation: It enables people to be supported in their work by computer systems. AI-based applications promise enormous potential for medium-sized businesses.