This recession is deeper and more sudden than any other we have experienced. While we would all prefer this recession to be a short one, that is currently unlikely. A deep and prolonged recession puts tremendous pressure on CEOs and Boards of all but the most successful companies.
Let's assume this recession will last longer than we would like. In this recession, some companies will emerge as winners, and many companies will fail. How can AI help? Why would senior executives even think about AI at a time like this? Why invest now?
AI is more important and more transformative than any other type of technology because it can improve every day, all by itself. If you apply AI solutions to the right business opportunities, you can emerge as one of the winners out of this recession.
AI can make a meaningful impact on reducing costs, optimizing financial functions, and finding new revenue streams. Let's briefly examine each of these.
Some healthcare providers are using AI for registration-related tasks, like ensuring the availability of a patient's medical history. Removing this function from staff members not only increases their efficiency but dramatically reduces errors. Error reduction can be very costly as it can require staffers to re-do work. Oliveai is one company providing solutions in this area.
If AI replaces some employees, such as in customer service, the cost-savings can be profound. Not only can an AI chatbot work 24/7, but they are also less expensive than an employee, and can improve customer satisfaction. Examples include Liveperson, Ibenta, and Ada.
AI can reduce costs by focusing on predictive maintenance. Without AI, machine maintenance often uses a mean-time-to-failure analysis to estimate when to replace specific components. With AI, machines can report on what is happening with that particular machine, helping to target components that are likely to fail soon, and only replacing those parts in the devices that require replacement. Companies providing predictive maintenance capabilities include H20, Dataiku, and Industlabs.
Certain functions become more important than others in a recession. Imagine you can do real-time demand forecasting, inventory management, and accounts receivables using AI. You will be in a position to react extremely quickly to the changing environment. You will be able to predict where to allocate your funds as opposed to only responding to historical data.
What if you are charged with closing retail stores due to the pandemic? Without AI, decisions about which stores to close are likely to be based on individual store performance metrics and demographic analyses.
With AI, you can layer in much more intelligence in your store-closing decisions. For example, Accenture has built AI solutions that predicted what will happen with customers in the region being served by a particular store.
