THE FUTURE OF BUSINESS

AI and machine learning are shaping industries – Sanjeewaka Kulathunga

AI and machine learning (ML) have been at the forefront of technological innovation over the past decade; they are transforming industries and business processes. Once confined to science fiction, they’re reshaping businesses by streamlining operations, enhancing decision-making and improving customer experiences.

As these technologies continue to evolve, they are expected to bring even more profound changes and create a new business ecosystem.

Significant strides have already been made in numerous industries. According to McKinsey’s 2023 Global AI Survey, 56 percent of companies have adopted artificial intelligence in at least one business function.

Key sectors such as retail, finance, healthcare and logistics have integrated AI, to improve operational efficiency and enhance customer satisfaction. AI driven technologies – such as chatbots, fraud detection systems and recommendation engines – are becoming commonplace while companies use ML models to analyse vast amounts of data, uncover patterns and make predictions.

A major development is hyper personalisation – particularly in marketing and customer engagement. Though companies are already leveraging artificial intelligence to analyse customer data and offering personalised recommendations, the future promises even more refinement.

Algorithms will analyse past interactions, and consider external factors such as environmental conditions and social influences, to predict customer needs before they arise.

This level of personalisation will transform how businesses engage with customers.

A Salesforce study (2023) shows that 88 percent of consumers now expect personalised experiences from brands. As AI improves, businesses will be able to deliver these experiences in real time, increasing customer satisfaction and loyalty.

AI powered automation is expected to drive massive efficiency gains. Many routine tasks such as data entry, custo­mer support and supply chain management will be automated, so that employees can focus on more complex and creative tasks.

PwC’s 2024 report predicts that automation could contribute up to US$ 15 trillion to the global economy by 2030.

For example, artificial intelligence will enable logistics companies to manage inventories, optimise delivery routes and even automate warehouses. Manufacturing processes will also see increased precision and speed with AI powered robots managing production lines. AI models will soon handle decision-making tasks such as demand forecasting and resource allocation.

And AI is poised to play a growing role in business decision-making as companies are increasingly relying on it to guide their strategic planning.

Machine learning algorithms can process massive datasets in real time, providing actionable insights that humans would struggle to derive manually. Predictive analytics is already being used to forecast market trends and customer behaviour with AI advancing from its current advisory role to a more central position in decision-making.

As highlighted by the Harvard Business Review (HBR), AI powered tools will soon be indispensable in data driven industries such as finance, healthcare and retail.

Despite these advancements, the widespread adoption of AI and ML brings with it significant ethical challenges. Data privacy, transparency and bias remain major concerns.

AI systems are only as reliable as the data they’re trained on; and biased data can lead to prejudiced decisions, potentially causing harm in areas such as hiring, loan approvals and criminal justice. Addressing these ethical issues will be critical as artificial intelligence becomes more embedded in business operations.

The emerging field of ethical AI aims to create transparent, accountable and fair algorithms. Companies must ensure that their systems align with legal and societal expectations by adhering to regulations such as the EU’s Artificial Intelligence Act. Failure to comply can lead to reputational and legal risks.

Moreover, the global workforce will also be greatly impacted by AI and ML. While automation will displace certain jobs, particularly those involving repetitive tasks, it’ll also create new roles.

Workers will need to develop new skills – especially in areas that require human creativity, empathy and critical thinking. Upskilling will become a priority as businesses prepare for the future workforce.

The World Economic Forum (WEF) predicts that by next year, 85 million jobs will be displaced due to automation but 97 million new roles will emerge, requiring advanced technological skills.

Companies that can effectively harness AI and ML, while fostering a responsible and adaptable workforce, will be well position­ed to lead the next wave of inno­vation and economic growth.

AI powered tools will soon be indispensable