The advancements in artificial intelligence (AI) and machine learning (ML) brings productivity benefits to overcome recession and other sudden business disruptions. The following discussion demonstrates the various applications of AI and ML to survive the unfavorable economic climate.
AI and ML have high value for business and enable the introduction of automation, digitalization, and cost-saving processes thereby resulting in increased efficiency and performance. These technological advancements could reduce the negative impact of sudden business disruptions or recessionary conditions.
Automation and digitalization eliminate redundant tasks, saves time, and increases organizational productivity. It delivers accurate data for business analysis and supports informed decision-making. The top management can identify the loopholes in their operations and devise better strategies within the limited budget.
Recessions require organizations to cut down on their expenses and improve operational efficiency. AI and machine learning are fast emerging as tools to achieve these objectives and maintain business continuity.
Applications of AI and ML to improve the business efficiency
Here are the prominent applications of AI and machine learning that would help organizations survive economic downturns.
- Automation – Artificial intelligence and machine learning applications can introduce automation to replace labor-intensive processes with machines. This can improve process efficiency and save time. There is also better adaptability to the economic cycles as the technology can be altered to meet the changing business demands. It also increases labor productivity as people can use work hours more efficiently.
- Better sales and marketing strategies– Improved data mining and data analytics capabilities support forecasting and decision-making. Organizations can analyze the customer engagement and success of different marketing strategies. Proactive measures can be initiated to address the falling engagement levels of the clients. This would improve customer satisfaction and retention. Companies can also cut costs and enhance customer experience using tools such as CRM data automation. AI also provides advanced tools for relationship mapping to uncover cost-effective business development strategies.
- Increase the repeated customer base – Existing customers are the best revenue source for companies as they are more likely to buy new products and spend more compared to the new customers. AI and machine learning allow companies to use quantitative methods for identifying upselling and cross-selling opportunities. Repeated customer base supports the organization during a dire crisis and is also cost-effective than acquiring new customers.
- Improves the data quality – AI can provide better data accuracy to the businesses. The CRM database becomes obsolete in a year and requires regular updating which is an expensive process. CRM data automation has enabled passive data collection whereby new information is updated without disrupting the workflow of the sales team. The professionals can integrate the new contacts and the associated tasks from the email client to the CRM. This can reduce the data entry burden of the sales team and improve their productivity. Data automation also increases the accuracy of contacts and leads and supports the business development efforts.
- Reduce the errors – Artificial intelligence automates several business processes such as scheduling meetings, sending business proposals, arranging training sessions, and so on. This reduces the possibilities of human errors in these processes, saves cost and time, and improves efficiency.
- Increase the production output – Automation improves the manufacturing processes to increase operational efficiency and output. Businesses that are not into the manufacturing sector can also benefit from automation by eliminating the redundant process.
- Enhanced customer service – Chatbots support 24/7 customer service. Many companies use chatbots and virtual assistants as the first point of customer contact. This reduces the workload on the customer support team and also makes the service available at any time. During the recession, this could act as a significant cost-cutting measure. Besides, chatbots have also been proven to improve customer engagement and experience.
- Reduce the operating costs– Artificial intelligence and machine learning applications can bring substantial cost savings by cutting the expenses on salaries, repair and maintenance, office rent, marketing cost, and many other related overheads. During downturns, companies can resort to layoffs and use AI-supported machines at a significantly lower investment. Implementing remote working can help to save overhead expenses for maintaining a physical workspace. Besides, predictive maintenance would save repair costs and eliminate unnecessary downtimes.
Artificial intelligence and machine learningcan increase productivity and the competitive edge of the business during economic downturns. Businesses should embrace these technologies as it is a cost cutting strategy that gives high ROI and ensures continuity during disruptions.