A Digital Transformation Driven by Artificial Intelligence
Digital transformation is one of the most important drivers of how businesses deliver value to their customers in a competitive, fast-changing business environment. The process aims to leverage digital technologies to create or modify user experiences and business processes, thus meeting users’ changing needs and the market.
Artificial Intelligence (AI) is now recognized as one of the main enablers of digital transformation in multiple industries. AI can help companies become more innovative, flexible and adaptive than ever before. Many think of it as a future or visionary technology, but the opposite is true. AI is already being cost-effectively deployed in numerous companies, accelerating productivity and competitiveness, while helping speed digital transformation.
What is Digital Transformation?
Digital transformation is a set of processes, tools, and methodologies used by businesses to optimize their operational activities, such as offering differentiated service, increasing performance and expanding their reach. More than a concept, digital transformation is a dynamic movement; it attracts organizations looking to review processes, innovate and gain competitiveness with the help of technology. Artificial intelligence is a critical strategic factor for businesses to expand their impact.
AI and Digital Transformation
Digital transformation took a big step forward when AI and machine learning became part of business strategy. Aside from boosting productivity, these technologies are essential because they enable better use of the data collected by a company. With useful data, businesses can expand, improve their current products and services, and create innovative strategies.
Here are three examples of how digital transformation coupled with AI can deliver top results:
1. 360-Degree View of Customers
AI helps businesses, especially their marketing sector, understand customer needs and preferences. Every digital transformation success depends on gaining accurate buyer personas and audience discovery. It is crucial to gain a comprehensive understanding of the customer at the beginning of the digital transformation, and AI is ideally suited to this mission.
AI helps reveal consumer behavior trends, purchasing history and digital channel engagement to create a buyer’s detailed view. Today, buyers expect personalized experiences along their journey. AI is essential to quickly unlocking consumer insights to create and reinforce those personalized experiences. This way, companies can gain a competitive advantage through higher customer satisfaction, increased customer loyalty and more effective marketing campaigns.
2. Dynamic Analytics
As already mentioned, collecting useful data is essential to digital transformation strategy. But what powers the success of the strategy is how that data is capitalized. AI processes thousands of data points to gather insights and identify trends in real time. This is how companies can accurately pre-empt consumer needs rather than react to consumer actions. With these insights, companies can create highly personalized experiences for their buyers and make data-driven decisions to develop more effective marketing campaigns. Success is reflected in significant savings across budget allocation and in more cost-effective media and advertising purchases.
3. Growth and Profitability
AI helps businesses profit through their digital transformation by increasing operational efficiency, mitigating risks and accelerating growth and innovation. For business leaders, marketing, sales and customer service are the top three areas where AI can make the most impact. According to Accenture, AI can increase profitability in multiple industries by an average of 38 percent by 2035. By that same year, AI will boost additional revenue by $14 trillion!
AI-Driven Automation for Customer Service
Digital transformation that incorporates AI is redefining and revolutionizing the end-user experience in countless ways for both B2B and B2C organizations. The new capabilities offered by AI-driven Conversational RPA for Customer Service can auto-resolve 65 percent of user requests and reduce issue resolution time by 90 percent—improving customer satisfaction scores by 80 percent. Sophisticated workflow automation integrates AI and RPA to automate customer workﬂows across product support, upgrades, troubleshooting, case management and more. The horizon for new revenue streams, cost-savings, and productivity is nearly unlimited.