Can AI give businesses a competitive edge? Artificial Intelligence is becoming an increasingly integral part of businesses, enabling smooth and efficient operations. AI tools can handle time-consuming tasks and automate manual processes.
According to a survey by Gartner, 79% of corporate strategists agree that AI and analytics are critical for a business’s success. Similarly, a separate survey by PwC found that 73 percent of US companies have already adopted AI in some aspects of their business. It means they are leading the companies that have not integrated AI.
ERP systems are at the forefront of this change, which integrates AI-powered tools to automate processes and deliver actionable insights that drive growth and operational efficiency. If you are ready to implement AI in your organization, you must understand the role of AI in business strategy.
What Is AI in Business?
Artificial intelligence in businesses is the use of AI tools such as machine learning, natural language processing, and computer vision to optimize business functions, increase employee productivity, and drive business value.
AI is the key driver of the digital transformation in business analytics across various industries, such as enabling automated fraud detection in finance and early disease identification in healthcare. By integrating AI, you can effectively adapt the latest technology and innovate within your organization. However, AI is a smart way to manage and use the growing flow of customer and partner data.
How Is AI Used in Business?
As you’ve seen, AI systems for businesses range from chatbots to business intelligence tools. Businesses are using AI technology in various ways, from enhancing social media management to improving forecasts.
Therefore, businesses are making partnerships with or subscribing to services from AI companies such as OpenAI. It is also possible for firms with development teams to build their own AI solutions. However, this requires team members with a deep understanding of AI, machine learning, and the impact these technologies have on modern businesses.
What Are The Benefits Of AI In Business?
You’ve learned the specific uses and advantages of AI in businesses. Here are some more specific uses of AI that many businesses are taking advantage of.
1. Predictive Analysis
Predictive analysis is a branch of advanced analytics that utilizes historical data, statistical algorithms, and machine learning techniques to identify future outcomes. AI in businesses enhances predictive analytics by enabling the analysis of large datasets accurately and identifying complex patterns that human analysts may miss. It allows businesses to forecast trends, anticipate market changes, and make data-driven decisions with great confidence.
2. Innovation
Generative AI is excellent for brainstorming and creating new ideas. However, analytical AI in businesses can be a creative force. However, an understanding of current and future trends, which are powered by millions of gigabytes of data, helps research and development (R&D) departments. With the right data, they can ensure the creation of a market-fit product for competitive advantage.
3. Risk Management
Risk management has become simpler because of AI integration. It can make recommendations that are only based on data with virtually no bias. AI can also assess much larger volumes of data than a human. It ensures the utilization of information from multiple sources. Insurance is just one industry that benefits from this, with AI making recommendations about costs, claims, and client behaviors.
4. Cost Reduction
Cost reduction is one of the great benefits of using AI in businesses. AI can help reduce costs and the need for human intervention by enhancing business operations. In manufacturing, AI can streamline quality control procedures using pattern recognition, among other techniques. However, a high-quality product with less wastage is a major saving for manufacturers.
5. Increased Efficiency
AI brings high efficiency in businesses by automating repetitive tasks. Data entry is a time-consuming task that is not the best use of a skilled professional’s time. If done manually, the process is prone to human error. AI-powered tools can instantly detect changes, receive notifications, and automatically update all related systems in real time. Moreover, some AI tools can even scan handwritten documents, further improving overall business efficiency.
What Are the Challenges of AI in Businesses?
AI has numerous benefits, but it poses significant ethical challenges that companies must address proactively. These include risks such as privacy, security, and job displacement that are explained below:
1. AI and Privacy
Mass data collections by AI systems can put the privacy of users at risk. Without proper control, it can result in unethical surveillance. Businesses must comply with regulations to ensure transparency.
2. Security and Risks
Cybersecurity is the key challenge in the future of AI for businesses. Therefore, investment in robust protection has become crucial for businesses to protect their data.
3. Job Displacement
A McKinsey study shows that automation could replace many repetitive jobs. This means that 25–35% of workers may have to change roles in the next 10 years. It can bring inequalities worse if workers aren’t given new skills training during the change.
What Is The Future Of AI In Businesses?
If you are wondering what AI will look like in the future, the key lies in its ability to integrate seamlessly into everyday business processes. According to Gartner, AI agents will become one of the top emerging technologies in 2025. Here are the top emerging trends in the use of AI in businesses:
- Human-AI Synergy: It enhances human capabilities and improves decision-making processes in companies.
- Advanced generative AI: Models such as DALL-E will be common in creative industries and advertising agencies.
- Intelligent automation: Its integration into business processes for operational efficiency and decision-making to streamline business workflow.
- Ethical data analytics platforms: Ensuring AI adoption follows ethical and compliance standards.
- AI agents: Autonomous systems capable of managing complex tasks, streamlining operations, and improving the customer experience. Google has based its new Gemini 2.0 AI model on ‘agents,’ confirming that the future of this technology is independence and process automation.
Is Your Company Ready To Lead The Change?
AI is no longer a “future technology.” It’s the present driver of efficiency, innovation, and growth. Businesses that integrate AI today will not just keep up; they will lead tomorrow. Whether it’s automating workflows, predicting market trends, or making smarter decisions, the competitive edge is in your hands.
Start your AI-powered transformation with Sumato ERP, where intelligent automation meets industry-specific precision. It helps you streamline your business operations, increase productivity, and stay competitive in the digital race.
