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How to Leverage AI to Drive Business Growth

14 February 2024 by Shweta Jhajharia

In ‘The Games Foxes Play’ by Chantell Ilbury and Clem Sunter, they argue that leaders with a balanced set of beliefs and the capability of adapting to change are more likely to win the game, in the extraordinary times we live in.

What does winning the game mean to you? In business, there’s a variety of ways to win, if you’re playing the game that foxes play.

Today’s business landscape is influenced by constant shifts in external environments. So, you can choose (and change) your measurements for success. At Growth Idea, we’re big advocates for regularly checking in on the goals you set – review your progress, and if something’s not working, figure out why and reset.

AI has been rising in popularity over the last decade. As a business owner, it should be one of your goals by now. And you don’t have to be a tech giant – even if you operate as a brick-and-mortar retail store, you can leverage AI to compete with the convenience and personalisation of online shopping.

Here are 3 key strategies to leverage AI and help your business thrive:

How to Leverage AI to Drive Business Growth

 1. Data-driven Decisions:

Financial institutions leverage AI algorithms to detect fraudulent activities.

AI enables businesses to extract valuable insights from large datasets, enabling informed decision-making and strategic planning. Businesses can optimise areas such as data analytics, risk management, and fraud detection using AI. AI-powered analytics tools can help businesses identify trends, patterns, and anomalies in data, enabling them to make data-driven decisions in real-time.

  • Process Improvement: AI enables businesses to analyse vast amounts of data to extract actionable insights, helping in better decision-making and strategy formulation.
  • Example: Capital One, a leading financial institution, leveraged machine learning to create a dynamic and adaptive fraud prevention system. Their AI algorithms continuously analyse transaction data and user behaviour to identify patterns indicative of fraud.
  • Tools: Platforms like TensorFlow, PyTorch, or scikit-learn can be used to develop and train machine learning models for fraud detection. Tools like Tableau or Power BI can be used to visualise transaction data and identify patterns that may indicate fraudulent activity.

2. Personalised Customer Experiences:

An e-commerce giant like Netflix utilises AI algorithms to suggest products and content based on individual preferences, driving customer loyalty and retention.

AI can be leveraged to gain deep insights into customer preferences and behaviours, enabling businesses to deliver highly personalised experiences. Areas such as customer segmentation, targeted marketing, and dynamic pricing can be optimised using AI. By employing AI-powered recommendation engines and chatbots, businesses can enhance customer interactions and drive engagement. Tools such as customer relationship management (CRM) systems integrated with AI capabilities can help businesses analyse customer data and tailor their offerings accordingly.

  • Process Improvement: Businesses can enhance their understanding of customer preferences and behaviour through AI-driven analytics. This includes analysing customer interactions, purchase history, and feedback to create personalised experiences.
  • Example: Netflix uses AI to recommend movies and shows based on a user’s viewing history and preferences, enhancing the overall customer experience.
  • Tools: Algorithms such as user-based or item-based collaborative filtering can be used to recommend products or content based on the behaviour of similar users or items. Deep learning models, such as neural networks, can be used to extract complex patterns from user data and make more accurate recommendations.

3. Streamlined Operations:

Manufacturing companies use AI-driven predictive maintenance to prevent equipment failures and downtime, maximising operational efficiency and profitability.

AI can automate repetitive tasks and optimise operational processes, leading to increased efficiency and cost savings. Businesses can optimise areas such as inventory management, supply chain logistics, and predictive maintenance through AI. By utilising AI algorithms for demand forecasting and inventory optimisation, businesses can reduce excess inventory and minimise stockouts. AI-powered predictive maintenance tools can help businesses identify potential equipment failures before they occur, reducing downtime and maintenance costs.

  • Process Improvement: AI can automate repetitive tasks, optimise resource allocation, and improve supply chain management, leading to streamlined operations and cost savings.
  • Example: General Electric (GE) implemented generative AI to analyse sensor data from production lines, allowing them to easily identify patterns that precede machine failures. This helps avoid unplanned downtime and maintain consistent production levels.
  • Tools: IoT Sensors can be attached to equipment to collect data on various parameters such as temperature, vibration, and pressure. Specialised software, such as IBM Maximo or SAP Predictive Maintenance and Service, can be used to implement predictive maintenance strategies and schedule maintenance activities.

By optimising data-driven insights, personalised customer experiences, and streamlined operations, businesses can improve decision-making, customer engagement, and efficiency.

AI is inevitably going to change how every industry operates. The Games Foxes Play intimates that business owners need to understand, not just the game, but how the game is changing before identifying the correct tactics to win. When Steve Ballmer was at the helm of Microsoft, he failed because he missed every major trend in technology. This serves as an example of what not to do. ‘The Practice’ by Seth Godin poignantly said this about Ballmer: “He structured the company to defend their core competencies, creating an organisation that was merely competent.” Ballmer neglected optimisation efforts for the 21st century.

With a strategic approach and the right tools, businesses can leverage AI to unlock new opportunities and drive innovation, ultimately leading to better-achieving growth objectives and staying ahead in today’s competitive and ever-changing market.

 

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Shweta Jhajharia

Shweta Jhajharia is one of the leading authorities on Business Value Building and the creator of the unique 6M Model. Shweta is widely respected as an impactful, intelligent and results orientated professional who helps business leaders unleash their potential to reach meaningful, higher objectives. This realisation of potential and maximisation... Read more
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