The Long-term Advantages of an AI-Powered Virtuous Circle
The many (unsuspected) benefits of early AI adoption
The IT world is now enjoying a new phase – one, in which the unity of artificial intelligence (AI), big data, and fast computing is redefining the boundaries of customer centricity and demand-driven offerings. Businesses and manufacturers have become adept at generating data – collecting it at every step of the manufacturing process and the subsequent consumer journey. Industrial IoT sensors facilitate this process in manufacturing facilities, while usage tracking apps accomplish the same task throughout the consumer journey. Thus, not having enough data is rarely the issue at hand today.
In manufacturing, the adoption of AI offers companies a huge opportunity to generate better insights through the exploration of data with the help of machine learning. While various types of data are easy to come by today, operational insight and predictive maintenance intelligence aren’t. With the help of machine learning, however, any manufacturing organization can reap the benefits of such insights, thus entering the Industry 4.0 stage.
What’s in an AI virtuous circle?
The virtuous circle or cycle of AI, while simple, is one of the most promising concepts in the field of artificial intelligence. Its premise is that when AI tech is coupled with product development, a continuous improvement cycle can be initiated, with the goal of achieving higher product adoption and profitability over time.
In manufacturing, the virtuous circle of AI means that AI-powered insights generated from raw data improve decision-making ability at all levels, ultimately leading to the development of better products. Better products, in turn attract more consumers, and generate higher profits. More consumers and higher product usage result in additional data about product adoption, and thus the virtuous circle keeps on going.
This innovative concept, can, of course, be applied to service offerings as well. As the product or service receives more usage and, respectively, more consumer feedback, data is generated that can then be used by machine learning or other data models to provide predictive intelligence. The latter, when applied correctly by management and R&D departments, can result in direct product or service tweaks and improvements.
What we refer to as the virtuous circle of AI here is also bound to generate many new unsuspected solutions with enormous impact on the way we do business in the future.
Translating an AI-first mindset into consumer benefits
By now you know that AI is not about the technology; it’s about your customers and how you serve them with the solutions that most closely match their wants and needs. Whether you’re a tech company that enjoys a direct relationship with your consumers or you use third-party resellers or distributors, your goal as a business is to understand those you serve better than the competition does.
While in some business models it is easier to access and analyze consumer feedback, ongoing feedback loops can be implemented in virtually any industry. The data on how consumers or customers use and interact with your products is very beneficial as it can shape product and service development and create better user journeys and experiences. As your offerings improve, their usage generates even more data, which further fuels the cycle of innovation and new product development.
Improving products with the help of AI
When market research and development functions are driven by AI, this results in an efficient, streamlined, and much faster product development and innovation cycle. Modern technologies like machine and deep learning ensure that the ongoing processing, mining and analysis of data continues to generate consumer behavior, product, and service insights that would have previously been impossible to conjure up with simpler tools. As data enriches consumer understanding, it also transforms your core products and services for the better, leading to higher ROI and customer retention.
Building an AI-first ecosystem
While we have made tremendous advances in machine learning in the past decade and big data mining is commonplace today, less than 5% of the world’s data is used for predictive intelligence. The reasons behind this trend are complex and often have to do with a lack of understanding, lack of strategy, lack of technological ability, lack of budget, or a combination of these. Going beyond the 5% means that greater resources will be needed on a global scale, in terms of computing power, manpower, and know-how. Thus, while we collect and generate heaps of data that we’d like to extract knowledge from eventually, we’re often not realizing its full potential. To do that, we need to mine and analyze data with the proper technological tools and solutions.
In the end, organizations that manage to get a grip on their data and extract valuable insights from it, will be well-positioned to gain a competitive advantage and succeed in the coming decade. For that, businesses like yours will certainly need a reliable technological partner. Pegus would like to discuss the possibilities with you – simply get in touch with us for a no-obligation consultation on how we can help you get the most out of your data, now and in the future.