Artificial intelligence has become the biggest technology to disrupt the economy in the past decade. Businesses of all sizes are investing in AI tools like Claude and Sonnet to increase their competitive advantage in a rapidly changing world.
One recent survey found that 68% of business executives plan to invest between $50 million and $250 million in generative AI within the next 12 to 24 months. Another survey found that 54% of business leaders are encouraging their teams to use AI in some capacity.
AI is Becoming a Gamechanger for Countless Businesses
There are a lot of reasons that AI has become an invaluable technology for businesses in all industries. Some of the biggest reasons companies are investing in AI are listed below.
Providing Personalized Recommendations to Customers
Personalization has become a lot more important to many customers. One recent survey found that 71% of customers want personalized recommendations when working with a business.
AI has made personalization easier than ever. Companies can use AI to keep track of customer purchases and other forms of engagement, so they can recommend products tailored to their tastes and interests.
Making Better Data-Driven Decisions
Data analytics has become crucial for companies trying to survive in the modern economy. Around 60% of all businesses currently use data analytics to make better decisions.
Unfortunately, some businesses don’t know how to use data effectively. Startups and smaller businesses often lack the technical expertise needed to mine and analyze data to make better decisions. They often can’t afford to hire seasoned data scientists to help them.
The good news is that AI technology has made data analytics capabilities more accessible to businesses with tight budgets. They can share raw data with generative AI tools and request detailed analyses to help them with their decision-making processes.
Identifying New Opportunities to Expand Their Market Share
Some businesses have tunnel vision when it comes to developing new products and pursuing new markets. This can hinder their growth and sometimes cannibalize their sales.
This is another area where artificial intelligence can be very helpful. Businesses can simply instruct generative AI tools to provide a list of new ideas that they can consider. These tools are often trained on large datasets that include whitepapers of SWOT analyses made by similar companies. Therefore, they may have some great insights into new opportunities to expand market share.
Companies may even be able to get more nuanced insights by uploading documents about market research they have conducted. This can help them get a better idea of where to invest their resources if they want to conquer new markets.
Reducing Regulatory Penalties by Minimizing Human Error
Human error is one of the costliest problems facing most businesses. It reportedly costs businesses about $18.67 billion a year.
One of the biggest ways that human error can damage your business is by making mistakes that violate various regulations. This is especially common in tightly regulated industries, such as finance and healthcare.
More businesses are likely to use AI to automate certain processes that are highly scrutinized by regulators. This can minimize the risk of mistakes, which will lead to fewer financial penalties.
Developing New Processes to Automate Workflows
Workflow automation is extremely important in many industries. It can be especially useful for solopreneurs trying to compete in saturated markets, such as graphic design and e-commerce.
Generative AI helps businesses with limited budgets take advantage of automation in ways that were unimaginable a couple of years ago. They can use AI to create applications with Python, VBA, JavaScript and other languages in a matter of minutes. They can use these programs to streamline many mundane processes. This saves businesses from having to pay for specialized tools or hire developers that will create the code for them.
Creating More Scalable Content Marketing Campaigns
A growing number of companies are using artificial intelligence to streamline their content marketing strategies. One analysis found that around 90% of online content will be made with AI by the end of next year. Global businesses are expected to spend $17.6 billion on AI for content marketing by 2032.
Some business leaders were initially skeptical that AI could be useful for content marketing. Earlier forms of generative AI created illegible content that had low engagement and trust rates. However, that is no longer the case. Generative AI creates excellent content these days, which can be very engaging for readers. In fact, one study found that 56% of readers prefer content created by AI over that made by humans.
AI is the Future of Business
More businesses are using AI technology than ever before. The benefits can’t be overlooked, and more small businesses are going to use AI to develop a competitive advantage in a changing world. It will be interesting to see how much AI changes the economy in the next couple of years as more companies integrate AI into their business models.
