Artificial intelligence is among the most popular topics nowadays, but not everyone understands the scale of its value for the business. Thus, the existing AI technology can increase the productivity of the business by 40%. With the help of machine learning, Netflix managed to save USD 1 billion in 2017. When a company is using AI, 34% of customers spend more money on their products and services. Apart from this, 49% are thinking about buying something from the company more often in case it uses AI. These facts should be enough to assure you that artificial intelligence can be very helpful. And here are a few ways of how you can use AI to reduce costs, improve efficiency and make your business more successful.
Improve Efficiency, Reduce Costs and Minimize the Errors with AI
Errors can not only postpone the release date of your product, for instance — they can also cost your company a lot. However, you can use AI to minimize the number of errors and improve the efficiency of your company. Here is an example for you.
Imagine that you own an e-commerce fashion website and cooperate with numerous suppliers. They offer a more or less similar range of products, but the quality is different. Therefore, from one of them you buy shoes, from the second one — bags, from the third one — dresses, and so on. Due to the number of suppliers, you have to pay a lot of attention to communication. You have to schedule calls and meetings, send them requests regarding the right products, etc. But what if you send a wrong request to a wrong supplier? Or arrange an important meeting with a vendor at the time of another arranged meeting?
Artificial intelligence can help to minimize the mistakes and improve the overall efficiency of your company. For example, for the above-mentioned issue, you can use an AI personal assistant. Using your calendar, it will schedule calls and meetings, send you reminders, and so on. The probability of a human error will be reduced significantly, which means that you won’t waste the budget on fixing mistakes. Moreover, you will be able to spend the time saved on something more important.
Obviously, this tip applies not only to e-commerce websites. Just take a look at your company, analyze its processes, and think about which of them can be automated with AI. Then, automate them and enjoy the results.
Improve the Production Output and Efficiency using AI
Automation and optimizations using AI are possible in many spheres of business, and production output is one of them. With the help of artificial intelligence, you can automate certain manufacturing processes. They won’t require human intervention — probably, only a bit of an oversight. By the way, the oversight itself can also be improved thanks to AI. In this way, you can improve the efficiency of the manufacture, increase the production output and reduce costs on dealing with human mistakes. We already talked about something like this in the previous paragraph but from a slightly different point of view. In any case, AI is a way to go both for manufacturing companies and businesses which have nothing to do with production. All of them can become more efficient with their help.
Deal with the Sticking Points of Customer Service
Here are several interesting facts about customer service. First of all, 96% of consumers claim that customer service plays an important role when it comes to brand loyalty. Secondly, 89% of clients tend to switch to the company’s competitors exactly because of bad customer service. Thirdly, 68% of customers think that a polite agent is key to really amazing customer service. And, finally, 54% of consumers say that their customer service expectations have increased.
Actually, all these facts mean the same — if you haven’t implemented artificial intelligence yet, you should do this right now. It can significantly improve your customer service and, therefore, increase your brand loyalty. And, obviously, it will allow you to reduce expenses on service.
Use AI to reduce costs on the following sticking points of customer service:
A lot of people think that a good company should provide customer service 24 hours a day, 7 days a week, regardless of the time zone and the size of the company itself. As for us, 24/7 service sounds great, but it leads to numerous challenges, such as hiring agents speaking different languages, training them and arranging their shifts. This requires a lot of money, and may be okay in case your company is a huge corporation with an endless budget. But if you are a start-up or a small local business, providing 24/7 service can be impossible for you. AI chatbots can provide help at any time of the day, in diverse languages. Besides, you will also reduce expenses on the agents’ salaries — you won’t need an entire team working on you. You may only have a small department instead, which will work on specific customer inquiries.
As we mentioned before, consumers think that a good company should provide service in a polite way. We agree with this, but unlike humans, artificial intelligence is ALWAYS polite. It doesn’t care if a consumer is too demanding and even rude — it just helps to solve a problem, and that’s it. Good agents know how to deal with their emotions in such cases, but they still can make a mistake, while AI always behaves well. That’s exactly what consumers expect, and retaining already existing consumers is cheaper than attracting new clients.
Reduce Operating Costs with AI
Operating (or operational) costs are expenses related to the core operations of your company. These costs depend on the type of business, but they can consist of the following components:
- Salary expenses
- Maintenance and repair costs
- Office rent
- Travel expenses
- Marketing costs
- Bank charges
- Office supply costs
- Costs of the production materials
This list is not full, but now you know what operating costs are. Obviously, some of them cannot be reduced with the help of artificial intelligence. For instance, bank charges — even the most efficient algorithms can’t make the banks change them. But some other expenses can still be cut, and salaries are the most obvious example here.
In some cases, software powered by artificial intelligence can partially or even fully replace certain employees. Their tasks will be automated, and you won’t have to include their salaries in your budget. This factor can be especially important if your company is a start-up that is low on funds. A one-time investment in AI software is likely to be less stressful for your budget than hiring a full-time worker (or even the entire department!). Apart from this, you can reduce costs with AI during the crisis — such savings can be crucial when your business is facing not the best time.
Artificial intelligence and machine learning can also be used to cut maintenance and repair costs. So if your business is related to manufacturing, check our detailed guide on predictive maintenance.
Reduce Costs and Improve Efficiency with Investing in AI
Don’t be afraid to invest in data science consulting — it brings numerous benefits and gives high ROI (Return on Investment). Moreover, implementing AI technology is virtually a must in the modern world. In case you don’t do this, it may be pretty difficult for your business to survive in an extremely competitive market. And by the way, if you still have any questions about artificial intelligence and its advantages, feel free to ask us. Sell more and spend less with the help of AI, and we will assist you with mastering it.