Artificial Intelligence (AI) has become the most popular technology in the major industries like Healthcare, eCommerce, Automotives, Creative Sciences, Education, Finance, Gaming, Internet of Thingshttps://net2.com/artificial-intelligence-in-marketing/ (IoT), and many others. But many folks are not familiar with this innovative technology. In 2017, 1500 business owners were asked about AI and literally just 17% knew about it. They did not know how this technology is transforming their respective industries and how it works. This was an astonishing thing because AI is a well-known technology introduced in 1956. And business owners of the 21st century did not even know about it.
Despite the unfamiliarity of AI, It is a technology that drives every field of life and is gaining traction day by day. AI is not only revolutionizing the businesses but also changing the business environment. For instance, you can imagine how your methods of shopping differ from the past. How do we ride and book our cabs? These industries are changing their methodologies just because of AI.
In this article, you will learn about the basics of Artificial Intelligence and how it works. You will also learn the change in different industries through AI. In the last section, I will tell you the advantages and disadvantages of AI. So, let’s start with the Basics of AI.
How Does Artificial Intelligence Work?
Artificial Intelligence is the simulation of Human Intelligence processes and functions by digital machines—Computer systems and Robots. Developers use AI in following applications:
- Expert Systems
- Natural Language Processing
- Voice Recognition
- Machine Vision
There are many other applications of AI used in our daily lives. Now, let’s have a look at how AI works:
As AI is spreading rapidly in every industry, vendors also promote their product and services through it. Mostly, People think AI is a machine learning technology, but it needs a complete foundation of software and hardware for learning and training machine learning algorithms. Some popular languages like Python, R, and Java also include when we train a machine.
Generally, AI works when we ingest large amounts of training data, analyze the correlation and patterns and then use these patterns to predict future states. For example, when we feed data in a Chatbot, it will automatically reply to a person according to the situation in the future.
AI is further divided into three categories based on their skills.
It is a process in which AI programming focuses on getting data and creating rules for performing actions. These rules are also called algorithms. It enables computer systems to work step-by-step to perform a specific task.
This process focuses on the selection of the right algorithm to get the desired result.
This process is continuously tweaking algorithms and making sure that they provide accurate results to the users.
Why Artificial Intelligence Is Important?
- AI is very important in this age because it enables human functionalities and capabilities to be performed by software with high accuracy, high efficiency and low cost.
- We can also perform analytical tasks by AI which we have been performing with software for many years.
- These abilities create many opportunities in different fields of life and web applications.
- AI also enables the automotive industry to produce automatic cars. It also assists in making automatic diagnosis software, voice recognition for computers, intelligent agents, automated data analysis and enhancing decision-making abilities.
- AI has many use cases in this digital era that generate a huge amount of revenue and save costs in existing sectors.
Now, let’s move to our major topic: how AI is transforming the digital. AI is changing the way of business and many industries are gaining huge amounts of revenue by applying this technology to their industries.
Applications of Artificial Intelligence (AI)
As we have discussed above, Business owners are using AI in a wide range of industries. Eager to know about the applications of AI? Here are some applications of AI.
AI in Business
Business owners leverage from AI and provide better customer support to their customers. For instance, they integrate machine learning algorithms into analytics and Customer relationship Management (CRM) platforms to give a better customer experience.
AI driven technologies function automatically, and it is a standalone business model. In most cases, AI is used to make existing systems more efficient and advanced. For example, AI is now being used to help web developers create highly functional and visually appealing website layouts. Using machine learning processes to suggest layout variations and font styles based on the type of business or target market is one indication.
AI in Education
We have already applied AI in the education sector and are leveraging it. AI is helping to fill the gaps in learning and teaching and enables teachers and students to do more than ever before. The vision of AI in the education sector is providing an environment where they can work together for the betterment of students. Since the students will tackle this technology in the future, we must expose this technology to them and use this technology in our educational institutions.
AI tools assist people to create global classrooms in which students can participate from different countries. There are many free plugins that help us to make our assignments automatically. One of them is Presentation Translator, which auto-generates subtitles of the topics in real time when the teacher is speaking. There is also paid software of AI that helps to produce a complete essay. We just have to give him a title and it can generate a whole essay about that topic with the help of AI. Astonishing?
AI in Finance
Finance institutions are using AI to empower their institutions by minimizing operational costs, automating manual processes, and unlocking revenue growth opportunities.
According to a Survey Conducted by NVIDIA, financial services professionals showed 83% of respondents agreeing that AI is important to their company’s future success. Another survey is conducted by “State of AI in Financial Services” that shows substantial financial impact of AI for enterprises with 34% of those who replied agreeing that AI will increase their company’s annual revenue by at least 20%.
Every finance firm is using AI according to their needs and requirements. Algorithm trading, fraud detection, portfolio management and optimization are the most used applications among fintech and investment industries. This assists you to retain your clients and maximize customers.
On the other hand, Banks and other financial institutions focus on marketing, sales, fraud detection, and recommended systems. Banks not only focus on fraud detection and prevention but also assist bankers to make AI-based applications. Additionally, these applications help them in customer acquisition and retention.
AI in Law
AI has already been used to analyse legal documents and to help with proper research on or during a case. AI can help ensure that documents containing specific keywords are pushed to the top of the stack, especially in cases with a large amount of paperwork that would take a significant amount of time to sieve through the papers.
Another way AI is being used by legal professionals is to understand risk and advise their clients in the best possible way. AI can analyze agreements much more efficiently than humans, both in bulk and individually. AI enables lawyers to do comments, quickly review the documents, and reduce mistakes and overlooked details. AI is extremely efficient in law which means it can perform legal actions much faster than classical lawyers.
It also assists in predicting the success rate of a recent case by examining the relevant data and proceedings from the past cases. This will tell the lawyers the probability of winning or losing the case. It will help them to make better decisions to win the case.
AI in Manufacturing
Artificial intelligence (AI) applications in manufacturing are widespread and revolutionary. It has altered the way products are designed, providing actionable insights at every stage of design and manufacturing. This assists in identifying bottlenecks, resolving issues, and delivering flawless end products.
For instance, machinery failure is common in every industry. If you don’t know how to detect failure in the machinery, it will affect the product badly. To prevent this, AI helps you to detect machinery failure in advance through predictive learning. This will reduce the time, cost, and ensure improved productivity.
It also helps to detect flaws in the product rather than machinery failure. When you produce a thing/product through streamline operations, you can’t find the internal issues in the product. When you ignore these minor flaws in the product, you may face big troubles in the future.
For example, AI easily identifies the minor flaws in product and machinery. It enables designers to tackle that issue before it becomes a major flaw.
AI in Banking
AI is very helpful in the banking sector as it comprises the following benefits.
- Fraud Detection
- Customer Service
- Credit Service and Loan Decisions
- Regulatory Compliance
Theft, fraud is very common when it comes to financial services. Since banks have sensitive information and cash, there are high chances of fraud and theft there. Security is the most important aspect when you want to gain customer trust.
Reputed banks are ahead of the competition when it comes to embracing artificial intelligence and machine learning as a business strategy–a critical task for any significant organization looking for a competitive advantage. With a particularly large and imparted client base, the bank must continue to develop in order to best serve their clients. They use artificial intelligence to improve the objects and efforts for their clients.
Client service is an essential component of banking and frequently has the greatest influence on which bank a prospective client chooses. It’s clear that this is the area where banks are putting AI to the most use in order to improve client connections and overall client bank communication. Communicative AI and machine learning are now changing financial client support by incorporating chatbots, feedback, and other features that provide a more personalized web experience and a more flexible financial experience for the client.
For Instance, Virtual assistants supported by AI, Alexa, Siri, and Cortana use predictive analysis to decide the best paths to collaborate with clients and seamlessly draw in with the bank. Clients can communicate with these artificial intelligence banking bots via messaging or by tapping orders on their screens.
AI in Healthcare
They say that mitigation is more favorable than cure. However, today’s healthcare software development is still primarily focused on treating illnesses rather than focusing on prevention methods.
The latest advancements in medical research and technology have resulted in becoming significantly better at diagnosing and treating problems in their early stages.
However, despite tremendous progress, we are still largely limited to responding to problems as they arise.
AI and predictive analytics will assist in understanding the factors that may lead them to certain illnesses in the coming decade. We specifically designed algorithms to retrieve data from a variety of sources. Here, healthcare AI will be able to enhance information from health records, wearables, genetic tests, and socioeconomic factors to establish a comprehensive view of a person’s health. It can generate a disease risk profile and recommend personalised interventions that may reduce a person’s hypersensitivity to specific diseases.
NHS conducted a survey on which following stats are collected:
“By using records from 22,000 appointments, the system could identify 90% of those patients who would not show up to their appointments. They estimated that utilizing AI in this way could save the NHS a significant £2-3 per appointment.”
I have mentioned all the industries that are gaining traction in this era of technology. Since everything has its pros and cons in their respective fields, here I will discuss some of the advantages of AI. Let’s begin with it!
Advantages of Artificial Intelligence
Reduce Human Error
It is natural that humans often make mistakes. On the other hand, computers rarely make mistakes if they are well programmed. With the AI, decisions are taken with the help of previous data using certain algorithms.
For Instance, In Weather Forecasting using AI they have reduced most human errors.
Humans are always frightened of taking risks but machines are not. It is a significant advantage of AI that they perform risky tasks for us. For instance, defusing a bomb, going to mars, and other activities that can be performed effectively by using AI.
Have you heard about the Chernobyl nuclear power plant explosion in Ukraine? There were no AI-powered robots that could help to minimize the effect of radiation by controlling the fire in early stages, as any human that went close to the core was dead in a matter of minutes.
A typical human can work for 4–6 hours per day excluding breaks. Humans are designed in such a way that they take some time off to refresh themselves and prepare for a new day to work, and even they take holidays on the weekend to keep up with their work-life and personal life. But we can use AI to make machines work 24 hours a day, seven days a week, with no breaks.
Help in Repetitive Jobs
We may perform many repetitive tasks on a daily basis, such as sending thank-you email and checking certain documents for errors. We can use artificial intelligence to automate these mundane tasks efficiently and even remove “boring” tasks for humans, freeing them up to be more creative.
Daily applications such as Apple’s Siri, Microsoft’s Cortana are frequently used in our daily routines for searching for a location, taking a selfie, making a phone call, responding to an email, or many other tasks. It has made our lives easier than ever before.
Some of the most advanced associations interact and communicate using digital assistants, which reduces the need for human resources. Many online sites also use virtual assistants to provide users with what they want. We can discuss what we’re looking for with them. Developers design some chatbots in such a way that it is difficult to tell whether we are interacting with a chatbot or a human being.
Using AI in combination with other technologies, we can make machines make decisions and carry out actions faster than humans. When making a decision, humans consider many factors, both emotionally and practically, but an AI-powered machine works on what it is programmed to do and delivers results faster accordingly.
AI is revolutionizing the world with the latest technologies and its predictive algorithms. Almost every industry is using AI to enhance the functionality and productivity of their organizations. AI works on algorithms and makes decisions based on past knowledge and data. A developer feeds the data in the robotic machine and it works according to the data. It can’t make decisions on its own. In the healthcare industry, AI is used to fix appointments of the patient to the doctors. It also helps in identifying the diseases and treatment accordingly.
In the end, I would say there is nothing better than this technology. If we programmed it well and enhanced its algorithms of working, we wouldn’t need humans for working.