Exploring the Top 10 Benefits of AI in Business

Artificial intelligence (AI) is a technology that allows machines to learn, understand, solve problems and make decisions, much like a human brain does.¹ By using AI, companies have the potential to make their processes more efficient and profitable.² Generative AI, in particular, can transform business operations by enabling more intuitive interactions and automating routine tasks.

That explains why firms are increasingly turning to AI. A McKinsey survey shows that 56% of organizations were using artificial intelligence by 2021, up from 50% the year before.³ According to Gartner’s 2023 research, about eight out of 10 corporate strategists expect AI to be critical to their success over the next two years, suggesting that the technology’s adoption rate will increase in the future.⁴

In this post, we’ll explore the myths of AI and delve into the benefits of AI applications in business.

Why Is AI More Than a Buzzword in Modern Business?

AI has evolved far beyond just being a buzzword in modern business due to its tangible and transformative impact across various industries. It’s critical to understand both the myths surrounding AI and its real-world applications to appreciate fully how it is reshaping the global economy.

Common myths include:

• AI Will Replace All Jobs: One prevalent myth is that AI will lead to mass unemployment by replacing human jobs. While AI can automate repetitive and mundane tasks, it also creates new roles and opportunities that didn't exist before. The focus is shifting towards more complex, creative and interpersonal skills where human interaction is essential
• AI is Smarter than Humans: Another misconception is that AI has already surpassed human intelligence. In reality, AI excels in specific tasks or narrow domains due to its ability to process vast amounts of data faster than humans, but it lacks general intelligence and common sense reasoning 
• AI is Only for Tech Companies: It’s often thought that AI is relevant only to the tech industry. However, AI applications span various sectors including healthcare, finance, manufacturing, retail and logistics, demonstrating its versatility and broad applicability

AI usage in business can lead to:

• Increased productivity
• Innovation and new business models
• Cost reduction
• Empowered decision making
• Global connectivity and accessibility

Learn more about the benefits of AI.

What Are the Benefits of Using AI in Business? 

Artificial intelligence benefits businesses in many ways. Below are the top 10 reasons organizations should incorporate AI in their operations.

1. Automates Repetitive Tasks

Every minute employees spend on manual, repetitive tasks is time lost that companies could use on more important functions.⁵ AI is excellent for automating repetitive tasks, such as:^{6, 7}

• Data collection and entry: AI automatically pulls out data from a source, such as spreadsheets and feeds it into business systems for storage, processing or analysis
• Data preparation: AI corrects errors in business data. It then converts the data into a suitable format to ensure it’s accurate and ready for analysis. The automation fastens data processing

2. Provides Data-Driven Insights

Artificial intelligence can analyze company data and extract valuable insights to inform business decisions. With powerful algorithms, AI tools quickly sift through troves of information to identify hidden patterns that may not be readily visible to the human eye.⁸

Apart from data-driven decisions, insights from AI data analysis can help organizations anticipate what might happen in the future (predictive analytics) and prepare in advance. Predictive analytics help forecast sales, marketing and supply chain trends.⁹

3. Streamlines Operations and Reduces Costs

As we know, AI automation can automate repetitive tasks, eliminating the need to hire employees to do manual tasks. As a result, organizations decrease their labor costs.10

AI also makes business operations more efficient by completing tasks faster and reducing wasted time and resources.¹⁰ According to McKinsey, implementing AI in business can increase process efficiency by 30%.¹¹ This can lower the costs of producing an item or running day-to-day operations.

Additionally, a human error caused a global bank to mistakenly wire $900 million to the wrong recipient.¹² AI, which is more accurate than humans, helps minimize such costly blunders.¹⁰

4. Enables Personalized Recommendations

AI-powered product recommendation systems in e-commerce can suggest items to customers based on their:

• Previous purchases
• Browsing habits
• Personal preferences

Personalized recommendations can boost customer satisfaction through product suggestions that people want. They can also increase revenue via cross-selling and upselling—sales techniques that encourage customers to buy complementary, additional or more expensive items they might be interested in.

Artificial intelligence can also personalize customer support. Instead of buyers waiting for business hours to talk to human customer service agents, they can get tailored assistance at any time from AI chatbots.¹³

5. Drives Product Development

AI can quickly analyze user feedback to reveal insights that help companies create better products faster.

The technology can also go through customer behavior data to identify emerging trends and predict shifts in customer preferences. These insights enable businesses to innovate products that meet current and future demands. They can give organizations a competitive advantage by helping them stay ahead of their rivals.¹⁴

6. Detects and Prevents Fraud 

AI-powered fraud detection tools can sift through large quantities of financial data to identify suspicious transactions. The systems are trained to recognize normal payment processes and detect unusual ones that may indicate fraud.

Because of artificial intelligence, fraud prevention systems can learn and adapt. When cybercriminals change their tactics, the AI-driven solutions automatically retrain themselves to flag emerging fraud patterns. As a result, companies can stay ahead of new malicious techniques.¹⁵

7. Improves Resume Screening and Candidate Selection

Manually reviewing resumes can be hectic and time-consuming, especially when numerous job seekers apply for a position. The hiring process can be significantly improved with AI-powered resume screening software, which streamlines the process.

Using powerful algorithms, it can swiftly scan multiple resumes at once and rank them based on how well they meet job requirements. The ranking could be based on relevant experience, achievements, education or skills. This makes it easy to spot and hire the right candidate.¹⁶

Keep in mind that it is important to combine AI with human review processes and regularly audit AI decisions for bias, as some models have been known to discriminate if they have been trained on biased data.

8. Enhances Demand Forecasting

For too long, supply-chain leaders have been clinging to manual, outdated demand forecasting systems. However, global distribution challenges and increasingly sophisticated supply chains are forcing them to use next-generation tools powered by artificial intelligence.¹⁷

These new, AI-driven applications are faster and more accurate in predicting how much of a product customers will want in the future.¹⁸ Precise forecasts ensure businesses maintain just enough inventory to meet customer demand—no more, no less.¹⁹

9. Accelerates Research and Development

One of the biggest benefits of artificial intelligence in business is that it speeds up research and development.

Instead of taking months or years to create and test the first physical version of a product, also known as a prototype, AI can help businesses quickly develop and experiment with virtual ones. Organizations can use AI-powered simulations to examine how the virtual prototypes perform in different real-life conditions. They can then fix any arising design issues before starting physical production.²⁰

10. Boosts Product Quality

Traditional quality control in manufacturing is labor intensive and prone to errors mainly because it relies on human inspection. AI systems with image recognition features and advanced photo analysis algorithms can automate and enhance the process.²¹

These powerful capabilities make AI inspection more precise at catching flaws that human inspectors might miss. The technology can scan products in real time during manufacturing to spot defects, even the smallest ones. Businesses, in return, can reduce the number of faulty items leaving the factory.²¹

Maximize the Benefits of Artificial Intelligence in Business With an Online MBA

As you look to stay innovate by applying AI tools to business processes, consider leveling up your credentials by earning an online MBA from the Milwaukee School of Engineering. Our curriculum, particularly for the online MBA in Advanced Business Strategy Using AI and Analytics, will prepare you to lead as an AI-savvy business professional in your field.

The AI and analytics specialization prepares you to make data-driven decisions through courses in predictive analytics, data visualization and more. This specialization imparts the in-demand and often hard-to-find skills employers are looking for.

Ready to pursue a worthwhile MBA? Get started on your application today.