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May 29, 2024

How Does Gen AI Reduce Operational Costs: Safety Tips


Edwin Lisowski

CSO & Co-Founder

Reading time:

7 minutes

Generative AI is set to transform the global business landscape in many different ways. A study by McKinsey on the implementation of AI across 63 use cases found that generative artificial intelligence could contribute an additional $2.6 to $4.4 trillion to the global economy [1]. This figure could double if you include the integration of the technology into software for tasks beyond the 63 use cases.

While the figures are quite promising, most business owners are still indecisive about incorporating artificial intelligence and machine learning into their workflows. That’s because, according to them, the high cost of deployment upsets the delicate balance between operational costs and revenue. But is that really true?

Read on as we explore how generative AI reduce costs for businesses. We’ll also discuss some safety tips on how to incorporate AI tools safely into your company’s core operations.


How Can AI Reduce Costs?


Organizations can use generative AI to automate mundane and repetitive tasks, saving a tidy sum in the process. Solutions like Robotic Process Automation (RPA) help streamline workflows. The technology lets organizations define a set of instructions for a robot or “bot” to perform automatically. That way, organizations can automate repetitive, rule-based activities like data entry, invoice processing, and customer support.

Without unnecessary manual intervention, tasks get completed faster with little to no error, and employees can focus on more high-value tasks. Organizations also don’t have to spend money on additional labor but can instead allocate resources toward activities that drive growth and increase profitability.

Improved Efficiency

Generative AI can significantly boost operational efficiency with enhanced decision-making and optimized resource allocation. AI not only automates mundane tasks but can also analyze large data sets in seconds to draw relevant conclusions and make sound, data-based decisions for maximum efficiency.

For instance, businesses can utilize computer vision and sensors to identify product defects. This is far more accurate than manual inspection, leading to reduced errors and enhanced quality control.

Assists Human Roles

AI can help employees save up to 10 hours a week [2] in their respective roles and has become an incredible asset for workers, especially in technical fields. AI technologies like deep learning and robotics have taken a huge load off of workers by handling the repetitive or overly complex aspects of their work. That way, they can focus on more creative elements and bring organizations closer to their bottom lines without incurring additional costs.

Reduce Customer Service Costs

Businesses in the US risk losing a whopping $856 billion annually [3] to long customer service wait times and other customer service disruptions. Also, more than half of customers will stop spending on a brand after a single negative experience, underscoring the importance of having effective and responsive customer service.

Artificial intelligence can streamline customer service by replacing customer service agents with chatbots and virtual agents. These virtual agents will provide prompt answers to questions and relevant information with human-like responsiveness and accuracy. Thanks to natural language processing (NLP) technologies and machine learning, they’ll also answer all follow-up questions and positively interact with customers.

Reduce Energy Costs

Electricity, water, and HVAC costs can eat into business profits, especially for large businesses. Businesses can use AI to reduce their energy spending and adopt more efficient and eco-friendly energy-saving practices for improved profitability and sustainability. Generative AI can, for instance, analyze real-time data and energy consumption patterns to identify energy inefficiencies and areas of wastage. That way, businesses can take steps to eliminate energy-inefficient processes and replace them with more sustainable ways.

AI technology can also suggest energy-saving upgrades and investments, such as energy-efficient appliances, insulation upgrades, and smart building systems. It can also come up with ways to incorporate renewable energy sources, like solar panels or wind turbines, to supplement or even replace grid energy.

Predictive Maintenance

Maintenance and repairs take up a considerable portion of a company’s budget, especially for manufacturing businesses. Most businesses take a repair-when-broken approach to maintenance, which leads to higher maintenance costs, increased downtime, and decreased productivity.

Can AI reduce costs via predictive maintenance on business equipment and machinery? Yes. Predictive maintenance is a proactive approach to maintenance that utilizes machine learning and data analytics to anticipate equipment failure. Organizations can reduce maintenance costs by making necessary repairs before the issues get out of hand and become more expensive to repair. Doing so also extends the lifespan of equipment and reduces downtime, saving businesses a lot of money.

Tips for safe AI implementation for organizations

Generative AI holds immense promise for both small and large organizations. However, given the technology’s complexity and potential risks, it’s best to take a cautious approach towards AI implementation. Here are a couple of tips for safely implementing AI technology in your organization:

Employ Robust Data Governance Policies

Ensure your AI implementation strategies align with your organization’s data governance policies. For starters, you should prioritize seeking customer consent on data use and develop guidelines for being transparent about what data you obtain from customers. You also need to develop methods of encrypting and anonymizing sensitive data when necessary.

Ensure Proper Employee Training and Awareness

You should prioritize training your staff exhaustively on how to properly utilize AI for maximum benefits. Training shouldn’t exclusively focus on theoretical knowledge but should also include practical hands-on experience and real-world scenarios.

You should also encourage a culture of vigilance and ensure the staff are aware of the potential threats to data security when using AI tools. To ensure foolproof security, you need to consider:

  • Conducting regular training sessions on responsible AI use
  • Establishing clear data disclosure policies
  • Clearly defining employees’ roles and responsibilities in ensuring AI security

Partnering with Reputable AI Vendors

With new AI companies popping up every day, it’s essential for you to partner with reputable AI companies to reap the most out of the technology. Essentially, you should choose vendors that align with your business goals and can match your technical needs or AI companies that customize their models to help achieve your organization’s bottom line.

You should also pay special attention to the company’s security features and track record to ensure the protection of sensitive data and intellectual property. Additionally, you should consider the vendor’s level of support and responsiveness and their ability to adapt and evolve with emerging AI technologies and industry trends.

Final thoughts: Can AI reduce the costs of your company’s operations? Of course!

Although AI technology is still in its infancy, it has the potential to revolutionize the business landscape and drive innovation across various industries. Generative AI can, for instance, reduce costs by increasing efficiency, improving customer service, and scheduling maintenance and repairs appropriately. It typically does this by automating mundane tasks, optimizing resources, and enabling predictive maintenance, leading to higher profit margins.

Generative AI has the potential to significantly reduce costs for businesses by automating complex tasks, improving efficiency, and driving innovation. However, it is crucial to implement AI tools in a proper and safe manner to ensure they are used ethically and effectively, safeguarding both the organization and its stakeholders, said Edwin Lisowski, COO and co-founder at Addepto.

Adopting AI can, therefore, promote sustainable business growth and give your organization a competitive edge in the market.


[1] The economic potential of generative AI: The next productivity frontier. URL: Accessed on May 23, 2024
[2] How many hours are employees saving due to gen AI? URL: Accessed on May 23, 2024
[3] Study Quantifies the Growing Cost of Bad Customer Service. URL: Accused on May 24, 2024


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