AI is everywhere these days, and let’s be honest, it’s hard to keep up with all the buzz. What really amuses me is how some companies slap on OpenAI’s API, and suddenly, they’re an “AI company.”

But love it or hate it, you can’t ignore it! AI is here to stay, and if you're not benefiting from applications of AI in your business, you're missing out big time.

A recent McKinsey study showed that early AI adopters could boost their cash flow by an impressive 122%, while those trailing behind might see only a modest 10% increase or even face losses of up to 23%. 

In this article, I’ll shed light on some incredible applications of AI in business that have helped small and large scale companies alike increase operational efficiency and productivity. 

Let’s get straight into it. 

Applications of AI in business to enhance operations

Artificial intelligence transforms how businesses operate by driving efficiency, accuracy, and innovation. Here are some key applications of AI in business that can significantly enhance your business operations:

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Automation

Automation is one of the most significant ways AI enhances business operations. In product-based businesses, AI-driven automation streamlines production processes to reduce the need for manual intervention. 

It is best seen in assembly lines where robots perform repetitive tasks with high precision. 

AI systems can monitor production in real-time and identify issues before they cause significant disruptions. 

For service-based businesses, AI enhances operations through marketing automation and cutting down routine tasks like scheduling, data entry, and customer service. 

Tesla is a great example of how AI automation can supercharge a production line. The electric car company operates a machine that stamps 13 different body parts with a force of 73,000 tons at a mind-blowing speed of 16 parts per minute.

Decision-making

AI models help businesses make informed and smart decisions that improve efficiency and drive growth by analyzing vast amounts of data in no time. 

In finance, AI algorithms are used to predict market trends and assess risks, which ultimately leads to better decision-making. 

For example, JPMorgan Chase uses a machine learning algorithm called LOXM to execute trades. The AI model analyzes past trading data to optimize the timing and pricing of trades. As a result, It produces better outcomes for the bank and its clients.

AI also supports decision-making by helping doctors diagnose diseases and recommend treatments. IBM Watson is a well-known AI system that assists healthcare providers by analyzing medical records and research papers to provide evidence-based treatment options. 

Personalized customer service

The customer service industry is seeing a massive adoption of AI-driven chatbots and virtual assistants. These tools can handle a large number of inquiries simultaneously while providing quick and accurate responses for each.

For example, Bank of America uses an AI virtual financial assistant named Erica. Erica helps customers with various tasks such as checking account balances, paying bills, and providing personalized financial advice based on their spending habits.

E-commerce giant Amazon also uses AI to personalize the shopping experience. Amazon’s AI/ML analyzes customer browsing and purchase history to recommend products. 

It's no surprise that Amazon was the pioneer in offering product recommendations on its platform and has been doing it for around 20 years now.

Predictive maintenance

Predictive maintenance is one of the best applications of AI in business that helps equipment run smoothly and avoid unexpected breakdowns.

Delta Airlines, for example, owns a proprietary AI-driven platform that analyzes millions of operational data points for predictive analysis. The platform looks at aircraft positions, flight crew restrictions, and airport conditions. 

The platform also serves as a post-mortem tool to identify how better decisions could have been made in specific situations. 

The system uses machine learning to provide decision-makers with the best range of options to ensure safe travel before, during, and after large-scale disruptions like severe winter weather or volcanic eruptions. 

The AI-driven approach has contributed to Delta achieving an industry-best U.S. DOT completion factor of 99.8% in 2019, including the lowest rate of aircraft maintenance-related cancellations in its history.

Content management

Creating engaging and informative content is crucial for any business. Generative AI tools like ChatGPT, Gemini, and Meta AI have long been a topic of discussion for generating ideas and drafting content.  

In the media industry, The Washington Post uses an AI tool called Heliograf. This tool helps journalists by generating news reports and covering events in real-time. 

Heliograf is a hybrid system that relies on both the machine and the human input. It allows The Post to produce stories that surpass the quality of fully automated systems while being updated more frequently than stories written solely by humans.

The competitive advantage of early AI adoption

Waiting for others to test AI innovations might seem safer, but it often means falling behind. 

We have seen it time and time again: companies initially fear new technology, and by the time they realize its potential, they've already lost ground to more daring competitors.

Here’s how early AI adoption in business processes helps you gain a competitive advantage: 

1. Room for trying new things

AI excels at crunching massive amounts of data and identifying patterns that humans might miss. The speed of operations powered by AI can fuel groundbreaking ideas for new products, services, and ways of doing business.

2. Low competition

With early AI adoption, you get to experiment with new technologies, iron out any kinks, and refine your approach before your competitors even get started. 

The experience positions you as a leader in your industry and allows you to capture market share before others catch on. 

In short, you’ll have that first-mover advantage.

3. More money in the bank

AI and machine learning allow businesses to provide tailored solutions that meet evolving consumer needs. 

For example, AI-driven recommendations enhance shopping experiences and attract more customers. This personalization grows with the audience and boosts loyalty, conversion rates, and revenue without needing extra staff. 

4. Business growth

AI automates tasks and optimizes processes, which allows you to scale operations quickly without a proportional increase in resources. 

Plus, faster and more accurate decisions based on AI-powered analysis lead to quicker responses to market changes. 

How to prepare for AI adoption?

Don’t know how to start integrating AI into your business? Don’t worry and read these steps.

1. Take stock of what you have

You will need to review your existing technology and infrastructure. AI applications can be resource-intensive, so assess if your current hardware and software are sufficient. 

You might need to invest in more powerful servers or cloud services to handle AI workloads.

AI relies heavily on data, so ensure you have quality data that is accurate, complete, and organized. 

Consider how well your data integrates across different systems. AI requires data from multiple sources to provide valuable insights. Ensure your data can be easily combined and accessed across your organization.

2. Identify AI opportunities

Now, think about how to integrate AI into your business. Are there repetitive tasks that could be automated with AI? 

Identify core business processes that are slow, error-prone, or simply crying out for a boost. See if you can streamline customer service inquiries with a chatbot or automate data entry tasks. 

Talk to your team and gather feedback on the challenges they face. These issues might be areas where AI can provide solutions. For instance, if your sales team struggles with predicting customer preferences, AI could offer better insights.

3. Invest in the right technology

There's a whole toolbox of AI solutions out there, from pre-built software to building your own. Think about your needs and what kind of budget you're working with.

Once you know what you need, invest in the right technology, such as AI software and data storage solutions. Make sure the technology you choose is scalable as your needs grow. 

4. Build a skilled workforce

AI isn't here to replace your employees; it's here to work with them. Invest in training programs to help your workforce understand AI and how it can improve their jobs.

That said, applications of AI in business do require new skills. If your team lacks certain expertise, consider hiring AI specialists. Look for professionals with experience in AI integration, development, data science, and machine learning. 

5. Foster a culture of innovation

Encourage your team to embrace AI and be open to change. Create an environment where employees feel comfortable experimenting with new technologies and ideas. 

Allow your team to explore new ideas and approaches without fear of failure. Support pilot projects and small-scale tests to experiment with AI applications.

Recognizing efforts and achievements encourages a continued focus on innovation and motivates employees to contribute new ideas.

The time to act is now!

While AI for small businesses in particular might seem futuristic, the reality is it's here today, and early adopters are reaping significant rewards. 

Waiting too long can mean missing out on opportunities to enhance your business operations and improve customer experiences.

If you want to benefit from applications of AI in business, give Formaloo a try. It offers a range of powerful no-code AI solutions, including AI-powered surveys, CRM, chatbot builder, business intelligence dashboards, and whatnot. 

With Formaloo AI, you can even create your own AI system and customize and integrate AI for business operations tailored to your specific needs, all while ensuring data security and compliance.

Don’t let your competitors get ahead—sign up for Formaloo AI today to stay one step ahead.