An introduction to Artificial Intelligence (AI) for business leaders. What is AI, HOW IT WORKS, and how does it impact your business?

You want to enable your product or services with AI. But where do you start?

To understand this better let’s examine a hypothetical scenario of a SAAS product company. We will show how strategically enabling an AI feature changes the business scenario for this SAAS product.

This exploration will help you understand the story behind of AI-enabled services and set the ground for taking the first and the most important step towards enabling AI in your products or services.

Our legendary SAAS company is called DataSphere, which is based out of Texas, Austin.

“DataSphere” specializes in cloud-based data management solutions. The platform is widely used by businesses of all sizes, accumulating vast amounts of data daily.

Sarah, the founder of the company, wanted to bring an AI innovation to the product and differentiate it from the competitors.

She recognized that certain insights from the platform’s analytics tool were popular among the customers. She wondered if Artificial Intelligence could revolutionize how customers interacted with their data on her platform. She thought how about bringing in AI-enabled insights.

Under her leadership, DataSphere embarked on an ambitious project: developing an AI-powered analytics tool within their platform, named “InsightAI.”

This tool was conceptualized to analyze customer data in real time, providing users with actionable insights, trend predictions, and personalized recommendations.

Sarah’s goal was to make AI-enabled decision-making accessible to even those without extensive technical knowledge.

However, Sarah knew that with great power comes great responsibility and regulatory compliance. Two aspects became important – data privacy and ethical AI use. So, in their AI solution, DataSphere implemented strict data governance protocols, ensuring that all AI algorithms were transparent, fair, and compliant with international data protection laws.

The launch of InsightAI became a game-changer for DataSphere. Small businesses that previously couldn’t afford sophisticated data analysis tools now get access to insights that were only available to larger corporations. DataSphere’s clients can now personalize their services based on predictive models, provided by DataSphere.

Moreover, Sarah initiated the use of machine learning algorithms internally to improve DataSphere’s customer service. These algorithms analyze customer support tickets and feedback, identifying common issues and patterns. This leads to proactive improvements in DataSphere’s platform adoption, reducing support tickets and increasing overall user satisfaction.

Under Sarah’s leadership, DataSphere experienced hypergrowth.

Her foresight in harnessing the power of AI for both customer and business benefit positioned DataSphere as a trailblazer.

Sarah has attracted more investors, customers, and additional streams of revenue. Product churn has gone down. Her customers are benefiting by sticking around with DataSphere.

Enabling AI for products or services involves identifying suitable opportunities, developing user-friendly AI features, addressing ethical and regulatory concerns, and conducting iterations.

Most importantly the AI concept should be deeply linked to the data your service or product captures.

As a business leader, look at the type of data your organization is accumulating as part of the service or product offering.

Is it service data reflecting customer interactions and preferences?

Perhaps it is production data, detailing the efficiency and output of your manufacturing processes.

Or maybe it processes data related to workflow tracking and efficiency within your company.

Now, imagine the potential of drawing insights and actions using this data through the power of Artificial Intelligence (AI).

Can it transform the approach to customer service?

Can it optimize your production lines for better efficiency and lower costs?

There are many possibilities.

Just like Sarah, you too can leverage AI to transform your business. But it starts with an understanding of data and AI beyond buzzwords. If you get this right even a simple AI-enabled feature if strategically positioned can be a game changer for you.

Here are two self-assessment questions. It will help you gauge where you stand in your understanding and readiness for AI. Score yourself 1 to 5 for these two questions.

Q1: How well do you understand the basic principles of AI and ML?

1. 1. I know what ChatGPT is. That’s all. Score 1
   2. I am generally aware of what AI is. Score 2
   3. I use AI tools. I understand AI and ML in general and grasp what the latest trends are. Score 3
   4. I can have conversations about AI and ML in business. Score 4
   5. I can have a conversation with an AI expert. Score 5

Q2: We all make decisions based on the information we have. But how often do you make decisions by analyzing data in your business?

1. 1. I only make financial decisions based on simple calculations. Score 1
   2. Besides financial decisions, I also make data-driven decisions for resource allocation. Score 2
   3. I use data for production planning, scheduling, shipping, and supply chain management. Score 3
   4. I also make sales and marketing decisions based on data. Score 4
   5. I use data for all of the above. Score 5

• If your score falls between 2 and 4, it’s time to delve deeper into the realms of AI and Data Analysis. Embarking on this journey will enrich your knowledge and skills in these pivotal fields.
• If you scored between 5 to 9, congratulations! You possess a solid foundation in AI, along with an appreciation for the power of data. To harness these technologies effectively, further cultivating a more nuanced and intuitive understanding of AI will empower you to leverage AI and ML for your strategic advantage.
• Achieved a perfect score of 10? You’re at the forefront, fully equipped and ready to implement AI in your business endeavors. Embrace this opportunity – the time to act is now!

In the end, answer this question.

Q. If I were to integrate AI into my business I would use it for,

1. 1. Enhancing customer experience and personalization.
   2. Improving operational efficiency and reducing costs.
   3. Developing new products or services or improving your existing products or services.
   4. Gaining insights from data analysis for better decision-making.
   5. Automating repetitive and time-consuming tasks.

By answering the questions above you have taken the first step toward enabling AI in your business.

In the next article, we will see how you can take an area of your business and conceptualize an AI service.

We will illustrate the steps with a Hotel Business example and show how a business leader can go about enabling AI to differentiate their services.