The International Data Corporation (IDC) has released a new forecast predicting that worldwide spending on artificial intelligence (AI) will reach $154 billion in 2023, up 26.9% from the amount spent in 2022. This forecast includes spending on AI software, hardware, and services for AI-centric systems*. Spending on AI-centric systems is predicted to approach $300 billion by 2026, a 27.0% CAGR from 2022-2026 due to the widespread adoption of AI across industries.
Artificial Intelligence and data science have come together in the digital age to change how businesses work in every field. To stay competitive, businesses need to be able to tap into data’s potential and use AI-generated insights. Brickclay, a market leader in BI and data science services, investigates the far-reaching effects of AI and data science on today’s businesses as they attempt to adapt to the new environment.
AI and Data Science Ecosystem
Understanding the context in which AI and data science operate is essential before exploring their potential effects. AI is a subfield of computer science concerned with designing and implementing intelligent machines. This encompasses various disciplines, including NLP, computer vision, and machine learning (ML). The data science approach uses statistics, machine learning, and data mining to glean useful information from large amounts of raw data.
The ability of AI to make sense of large and complicated data sets is where AI and data science may complement one another. Let’s look at how this confluence is changing the corporate world.
1. Data-Driven Decision Making
Today’s businesses rely heavily on data-driven decisions, and data science and AI are at the forefront of making that possible. According to a survey by Business Wire, in 2022, 97% of surveyed organizations reported increasing their investments in data-driven decision-making. These days, organizations amass humongous troves of information from various channels, such as consumer interactions, sensors, social media, and more.
When paired with AI algorithms, this data may be used for predictive and prescriptive analysis, made possible by data science methodologies that allow enterprises to glean actionable insights. The ability to make educated decisions, enhance operations, and maintain a competitive edge are all made possible by adopting a data-driven decision-making strategy.
2. Enhanced Customer Experiences
Artificial intelligence and data science are crucial to providing better service to customers. Personalization drives a 15% average revenue increase, according to a report by Boston Consulting Group.
Business owners can use this data to learn more about their customers and tailor future interactions and product offerings to individual tastes and comments. AI-driven recommendation systems are widespread across industries like e-commerce, streaming services, and marketing. In addition, chatbots and virtual assistants use AI and natural language processing to have ongoing conversations with clients, addressing their questions and enhancing their experience.
3. Process Optimization and Automation
Regarding efficiency and effectiveness, AI and data science have been game-changers. A McKinsey report indicates that automation and AI in business processes can lead to productivity increases of 20-25%.
Businesses can save money and work more efficiently by looking at past and current data to see where to make adjustments. Predicting equipment failures, optimizing supply chains, and automating mundane operations are just a few examples of how machine learning algorithms save businesses time and money. As a result, productivity rises, and processes become more simplified.
4. Predictive Maintenance
Predictive maintenance has changed the game for manufacturers and other heavy industries. According to Grand View Research, the worldwide market for predictive maintenance was worth USD 7.85 billion in 2022, and it is anticipated to increase at a CAGR of 29.5% from 2023 to 2030.
Predictive maintenance models powered by artificial intelligence help companies prepare for the inevitable breakdown of expensive machinery and tools. Regular checks can be performed, saving time and money by avoiding unexpected problems. Predictive maintenance is a preventative strategy that extends the useful life of equipment with little downtime.
5. Fraud Detection and Security
Cybersecurity relies heavily on AI and Data Science. The average cost of a data breach is $3.86 million, as reported by the IBM “Cost of a Data Breach” study.
Cyberattacks and fraud are becoming more of a problem for businesses. AI-powered systems examine massive datasets for irregularities and patterns that could suggest fraud. Security in industries like banking and e-commerce is being bolstered by AI-powered verification methods like facial recognition and biometrics.
6. Market and Competitive Analysis
AI and data science have revolutionized the study of markets and competitors. According to a report by Grand View Research, the global AI in the market research industry is projected to grow at a CAGR of 42.2% from 2021 to 2028.
Data collection and analysis have enabled businesses to track market movements and rivalry in real time. Market trends are predicted, and opportunities and dangers are identified using machine learning techniques. This allows companies to improve their competitive position by swiftly adapting their strategy.
7. Healthcare Advancements
Artificial intelligence and data science are making great achievements in the medical field. According to a report by Grand View Research, from 2023 to 2030, the worldwide market for AI in healthcare is projected to grow from its current $15.4 billion at a CAGR of 37.5%.
They help with things like analyzing medical images, finding new drugs, and caring for patients. Medical imaging studies like X-rays and MRIs can benefit from analyzing machine learning algorithms challenges. Artificial intelligence chatbots are also utilized in telemedicine to assist with patient care and increase their involvement in their treatment.
8. Personalized Marketing
Using AI and data science in marketing has led to new approaches. According to Epsilon, 80% of customers are likelier to do business with a company if it offers a personalized experience.
By studying consumer actions and preferences, businesses can develop targeted advertising strategies. As a result, marketing campaigns are more successful, and customer engagement and loyalty are boosted.
9. Supply Chain Optimization
By sifting through mountains of data on stock levels, shipping times, and expected demand, enterprise data science and AI are helping to streamline supply chains. From 2023 to 2030, the worldwide market for supply chain analytics is projected to expand from its 2022 valuation of $6.12 billion at a CAGR of 17.8%, as per a report by Grand View Research.
As a result, supply chain operations may be streamlined, prices can be reduced, and deliveries can be made on time for enterprises.
10. Product Innovation
Businesses may use AI and data science to speed up the creation of new products. According to a PwC survey, 61% of business executives believe AI will drive product and service innovation.
Companies can fill voids in the market by evaluating client comments and market data to create new items or enhance existing ones. The design process can also benefit from AI applications, such as generative design’s use in engineering.
Market Potential for Artificial Intelligence
Despite its futuristic ring, artificial intelligence has been a part of everyday life since at least the 1990s. Early artificial intelligence applications were in relatively rudimentary technologies like chatbots, dictation programs, and even the Furby. A 2018 Harvard Corporate Review study concluded that AI improved corporate operations more than revolutionary innovations.
A process application is about automating a routine process like data extraction, verification, or calculation. Automation made possible by AI can do repetitive activities in a fraction of the time it would take a human, allowing workers to devote their time and energy to more strategic endeavors. The following are typical process uses:
- Calculating Optimal Schedules: Using a Computer-Aided Facilities Management (CAFM) system, businesses may ascertain the best delivery time, arrange more efficient appointments, and create ideal work schedules for their personnel.
- Facilitating Real-Time Decision-Making: The essential data can be retrieved in fractions of a second, making it far easier for customer service and administrative staff to access extensive customer histories, full inventory inventories, employee records, future timetables, and even projected weather delays on demand.
- Delivering Custom Reports: Artificial intelligence can help run periodic reports so humans don’t have to. Reports can be automatically tailored to each recipient, time period, set of metrics of interest, and whether or not they contain any personally identifiable information. Supercomputers on the cloud can process huge amounts of data in minutes rather than hours.
An insight application is like a process app built to recognize and learn from patterns. Natural Language Processing (NLP) and Optical Character Recognition (OCR) are utilized to decipher textual and aural data, respectively, while Computer Vision is employed to classify visual data. Data can also be used by insight applications to make predictions, giving consumers a sense of the future. Applications that provide insights can:
- Analyzing Records: Both public and private data can be used to learn more about a specific topic, from a single person to an entire region. Reviewing one’s social media accounts can reveal one’s preferred places to shop and the media consumed. A more accurate diagnosis may be reached by examining medical files and doctors’ notes.
- Personalizing Content: Businesses may better serve customers by creating relevant, personalized content after they better grasp their tastes and habits. Personal preferences can be taken into account when recommending media. People more inclined to purchase can be singled out and offered specials. Insurance and banking companies can develop individualized risk assessment algorithms.
- Identifying and Predicting: Now that NLP has matured, it can be used in any field. Fraud, bogus news, sarcasm, and even emotion may now be detected by NLP technologies. Predicting the likelihood of fraud or other components of interest enables firms to take preventative measures before any actual damage is done.
An engagement app uses data from processes and insights to have meaningful conversations with people. These AI apps can communicate with users in a natural and straightforward way, often approaching the level of human discourse. Typically, people utilize engagement apps to:
- Chatbots: As the first AI point of contact with a business, these “conversational agents” can help bring in new clients. Simple queries can be answered, links can be provided, and data can be gathered to be delivered to a human agent via chatbots on websites and apps.
- Employee Resources: Businesses can build internal information resources that staff can use to get answers to their questions on things like standard operating procedures, information technology problems, and human resources assistance. The onboarding process is another area where managers and supervisors can save time using chatbots.
- Assisting Diagnoses: Symptom and health history data, educational types of data sources, and appointment reminders are just some things that chatbots in healthcare may do for their users. Both doctors and patients in outlying areas can benefit from this development.
Market Potential for Data Science
Data science has far-reaching implications for organizations in various sectors. Here are some real-world examples from four distinct sectors illustrating how businesses put data science to work for them.
Data Science in Healthcare
The health sector is approaching a tipping point where the potential of big data can finally be realized. Predictive analytics during diagnosis, new approaches to therapy, and better patient outcomes are just a few areas where data science is gaining traction in the healthcare industry. According to McKinsey’s estimates, using big data in the US healthcare system “could account for $300 billion to $450 billion in reduced healthcare spending or 12-17% of the $2.6 trillion baselines in US healthcare costs.”
Some healthcare breakthroughs made possible by data science include:
- Precision Medicine And Genomics: Providers have rapidly designed and innovated more effective treatments using machine learning tools to assess data from single-cell sequencing, biomarkers, and genetics.
- Claims and Clinical Information: Utilizing and evaluating markers from readmission forecasting, comparative and efficacy analytics, medication adherence, and market access analytics, providers are enhancing patient outcomes and lowering healthcare costs.
- EHR Data Usability: Healthcare practitioners can read and act on EHRs faster and better with NLP. EHR interfaces can be analyzed, scanned, and organized into sections to help doctors locate hidden data and make diagnoses they might have missed without NLP.
Data Science in Manufacturing
Keeping ahead of the curve is crucial for manufacturers in the modern digital environment. The best method for contemporary manufacturers to compete is to use data in various ways, such as predictive process control, supply chain forecasting, predictive maintenance, and picture classification.
Some current applications of data science in manufacturing are as follows:
- Supply Chain Forecasting: Retailers may reduce inventory costs and improve supply-chain efficiency by analyzing transaction data, purchasing history, demographics, and trends.
- Predictive Maintenance: No manufacturer can afford unscheduled downtime, but with data science, failure rates can be reduced, and maintenance schedules can be predicted using data from risk sensors.
Data Science in Retail
Customers contribute 2.5 quintillion bytes of data daily, making it the most important resource for merchants in the modern digital age. Leveraging data to innovate has become the norm in many fields, including tailored offers, goods, inventory optimization, and next-generation shop design.
Here are a few ways merchants might profit from data science:
- Dynamic Optimization of Prices: Retailers can utilize data science to optimize pricing in response to customer engagement by analyzing past sales history, rescheduling, and adjusting prices for certain customer demographics.
- Data-Driven Inventory And Ordering: Data from demand plans, predictions, trends, sales history, and local events/weather patterns can help retailers optimize their stock levels.
- Forecasting Trends: Data scientists can “scrape” the web for popular subjects and the degree to which people are interested in certain topics using natural language processing. Using topic modeling, stores can rank popular movements by customer approval and use the results to guide the acquisition of fresh stock.
Data Science in Financial Services
Leveraging data to innovate is a hallmark in the financial services industry, used for anything from financial modeling to risk and fraud detection to customer and credit analytics. Many businesses rely on data science and machine learning to keep up with the latest developments in their fields and their competitors. Without compromising on privacy, data science enables businesses to gain insights from their data and make informed decisions.
Uses of data science and machine learning in the banking and insurance industries include the following:
- Credit Analytics: Data from CRMs, credit bureaus, risk agencies, merchant databases, product and service records, and regulatory agencies are all fair game for risk and compliance management analyses.
- Customer Analytics: Sentiment detection can be applied to call transcripts in the financial services industry to help businesses understand which customer service representatives are more likely to interact positively or negatively with clients.
AI and Data Science: Shaping the Future of Business
There is no denying the influence that AI and data science have had and will continue to have on today’s enterprises. Businesses will have to change along with new technologies to stay competitive. The data-driven economy will reward businesses that adapt to the new normal by incorporating AI and data science into their operations.
Companies that want to remain competitive should collaborate with industry leaders such as Brickclay, who provide cutting-edge business intelligence and data science services. Brickclay has a team of AI and enterprise data science experts who help businesses use this cutting-edge technology to their fullest potential in decision-making, customer service, process optimization, and innovation.
The effects of AI and data science on contemporary enterprises are far-reaching and complex. These tools fuel a move toward data-driven decision-making, which also improve consumer experiences, streamline operations, and seed creative thinking. The importance of AI and data science in running a business will grow as these fields mature. Companies today must adapt to and embrace these game-changing technologies to succeed in this data-driven world.
To help businesses adapt to the ever-changing business environment, Brickclay is prepared to assist them in realizing the full potential of AI and data science. Contact us today to find out how we can help you in your quest to become data-driven.