4 Oct 2022| ONPASSIVE
AI Design Principles in Digital Business
In the present conditions of a highly competitive and ever-changing business environment, digital transformation is very crucial for all businesses for future growth and expansion. Artificial Intelligence (AI) is considered a central enabler for the digital transformation of many organizations.
The transformation process of businesses requires leveraging digital technologies to enhance customer experience, business process and culture to meet the changing customer needs and the market environment.
Artificial Intelligence is the primary driver of significant digital transformation of businesses because of its cost optimization, ease and high-speed performance. Despite most people considering it as future technology, many organizations are already using it to optimize their business.
AI plays a crucial role in the digital transformation of many business strategies because of its possibility of automating various daily tasks and integrating different systems and efficient for faster business operations. Since AI allows better use of data collected by the company, it is an essential technology for transforming business.
AI helps organizations reduce labor costs, improve business process and customer service and generate new business models. However, some of the AI technologies remain immature. To overcome this problem, the Chief Information Officer (CIO) needs to ensure that applications are intended to serve a strategic business purpose.
There are six design principles that help organizations evaluate all AI applications proposed to help organizations achieve overall business results strategically than just improving the functional movements.
The six Design Principles for AI in Digital business are as follows:
Digital Businesses thrive on knowledge of customers and markets. AI applications need to be close to customers to support the digital initiatives of the business. The chief information officer (CIO) needs to properly use popular AI-powered technologies to get between customers and companies quickly.
Alexa and Siri, for instance, are frequently used by consumers to access other companies’ capabilities, and as a result, Apple and Amazon can gather better data about customers. Similarly, strategic AI applications need to be used by organizations to capture critical customer information and build a connection with the customers.
AI applications help automate manual processes of organization and go a step further, enabling business processes automation. Strategic AI application can act autonomously without human direction or intervention enabling business with significant productivity gains by augmenting human tasks allowing them to perform more personalized tasks.
Companies need to ensure that AI application is located close to the area where the work is being done, especially when designing AI applications for autonomous operations, to understand what is going on and make intelligent decisions on the spot.
Strategic AI applications should make a difference in the physical world and enhance other technologies’ power by having a physical impact. GE Aviation, for instance, is now using 3D printing to create fan blades, a critical part of jet engines. Adding AI can extend 3D printing for even more complex use cases like adjusting print processes to accommodate manufacturing where many factors need to be controlled.
AI helps manage business operations in a way humans cannot, and strategic AI applications can take much faster decisions than humans in increasingly complex situations. For example, high-speed trading applications are powered by algorithms that take into account variables like political development, stock prices, and weather enabling traders to execute millions of dollars in just a matter of seconds, thereby providing a considerable advantage to their organization.
AI generates insights in digital business that directly leads to business execution. Strategic AI applications help companies with granular insights on what enterprises can do to influence customers and what customers, other companies and markets are likely to do in specific situations in future. With trustworthy insights, enterprises are more likely to rely on them for future execution systems.
Risk, privacy and security are the most significant barriers for developing AI applications and are even more severe when AI applications serve strategic business purposes. Therefore, risk management is crucial because a mistake disrupts operations and tends to harm the enterprise and the brand.
These design principles can be used to evaluate the proposed AI application for your organization. Depending on the business’s specific needs and requirements, the Chief information officer (CIO) needs to prioritize these principles accordingly.
Artificial Intelligence (AI) is the top protagonist of the digital transformation of businesses, and most of the digital tools that are developed recently are based on AI. This technology provides increasingly effective and innovative solutions for businesses that directly impact the competitiveness and acceleration of the market and customer expectations.
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Tags: Technology Artificial Intelligence