It is often the case that providers cannot expand their business models arbitrarily. The reason for this is that the market is limited in many areas for services. A human expert is not able to execute an unlimited number of orders. But Artificial Intelligence (AI) can do just that – and open up new market access and target groups.
Scarce resource expert
In the past, many services were directly linked to the person of an expert providing the service. This means, for example, that without experts there would be no strategic consulting.
But now AI applications are on the advance and can change these connections. They offer the opportunity to scale exactly what was previously the limiting factor in many markets: the expertise in the minds of the experts. Considerable consequences for supply, demand and corresponding pricing on the markets can be expected.
Data, Memory, Algorithms
Nearly all the data mankind has produced so far has been produced in recent years. At the same time, it is becoming increasingly cheaper to store this wealth of data. In addition, computing power and algorithms are getting better and better. Methods such as deep learning methods are able to enormously reduce the time required to develop new applications.
Markets in upheaval
This makes it possible to decouple a service offer from a human expert. This removes the previously limiting factor: scarce time. Offers based on AI can be offered to many customers at lower prices at the same time. On the one hand, the effects are that consumers for whom there has been no attractive offer up to now get their money’s worth. On the other hand, AI applications are delivering ever better results due to their ever-increasing distribution and use. Gradually, AI solutions can be used for more complex scenarios.
One example of this is the use of chatbots that are equipped with AIs and can respond to different customer enquiries and learn by themselves. The bots can expand their vocabulary, remember previous dialogues and create cross-connections.
Another example of an AI technology is the virtual doctor and health coach on the wrist. With such a system – such as a watch – relevant health risks are calculated, behavioural recommendations and individual health tips are given.
An installed camera system in an intelligent supermarket can also use AI-supported image recognition software to recognize which items the consumer puts in the shopping basket. The customer can leave the store with his goods without having to go through the checkout process – payment is made by app.
A wide range of applications for AI applications
Especially in marketing and sales there are already a multitude of application possibilities for AI:
Automation enables human decision makers to be supported by decisions being made by machines. Examples are product recommendations in e-commerce or dynamic pricing.
Another trend is forecasts, which use mathematical methods to examine a large amount of historical data in order to develop models for future scenarios of customer behavior, for example.
Furthermore, personalization is an important trend. The results of forecasts are used to place individualized promotions, price and product suggestions – at exactly the right time on the right channel. Based on purchasing patterns, KI is able to predict the behavior of customers and recommend appropriate, individualized offers.
The automated expert
On the one hand, AI solutions show their strengths in an environment full of complex, nested decision-making processes. Here, developers use sets of rules to model processes that imitate people’s cognitive abilities. On the other hand, the use of AI applications makes sense when experts have to work with large amounts of data. AI solutions that recognize structures and relationships based on any number of parameters are often superior to human capabilities.
AI beats human reason
Our Predictive Analytics applications developed by Dastani Consulting, which are based on AI, are always geared to the respective task. They learn and forecast without human support. Both their ability to deal with complexity and their speed open up interrelationships and enable results that cannot be achieved with conventional methods.