Bukhtueva I.
THE IMPACT OF AI TECHNOLOGIES ON BUSINESS PERFORMANCE *
Аннотация:
the article analyzes the impact of artificial intelligence (AI) technologies on business efficiency. It offers a review of AI's application in optimizing complex processes, forecasting trends, and personalizing customer interactions. The pivotal role of AI in enhancing operational efficiency across various sectors is highlighted. The study explores how AI-based solutions stimulate innovation, optimize workflows, and provide competitive advantages for businesses
Ключевые слова:
artificial intelligence, business performance, supply chain, predictive maintenance, digital marketing, operational efficiency, competitive advantage
УДК 004.8
Bukhtueva I.
bachelor’s degree,
Lomonosov Moscow State University
(Moscow, Russia)
THE IMPACT OF AI TECHNOLOGIES ON BUSINESS PERFORMANCE
Abstract: the article analyzes the impact of artificial intelligence (AI) technologies on business efficiency. It offers a review of AI's application in optimizing complex processes, forecasting trends, and personalizing customer interactions. The pivotal role of AI in enhancing operational efficiency across various sectors is highlighted. The study explores how AI-based solutions stimulate innovation, optimize workflows, and provide competitive advantages for businesses.
Keywords: artificial intelligence, business performance, supply chain, predictive maintenance, digital marketing, operational efficiency, competitive advantage.
Introduction.
Artificial Intelligence (AI) technologies have become a tangible and integral component of the contemporary business landscape. AI technologies have been instrumental in streamlining operations, enhancing decision-making, and fostering innovative business models. They have altered the landscape of competitive strategy, with machine learning, natural language processing, and robotics now central to business efficiency and growth.
The necessity of such research is underscored by the rapid integration of AI in business environments worldwide. In an age where data is a crucial asset and digital transformation an obligatoriness rather than a choice, understanding the role and potential of AI is paramount. The goal of this article is to conduct a thorough review of the impact of AI technologies on business performance.
Main part.
In recent years, there has been a significant expansion in the application of AI in business to enhance the efficiency of company operations. This is explained by companies seeking ways to improve customer service quality and reduce expenses. For example, as of June 2023 around 10.8 % of employees worldwide have attempted to use one of the most popular neural networksin the workplace at least once. The number of those who have input confidential corporate data into an AI-based tool amounted to 4.7 % [1].
In February 2023, the research company conducted a survey among 1 000 business leaders in the USA. It was discovered that 49% of companies are using ChatGPT (fig. 1).
Fig. 1. Directions of AI usage in business, % [2].
AI-driven marketing: transforming consumer engagement. AI is changing the field of marketing with its ability to personalize consumer interactions and automate complex decision-making processes. In the current milieu, AI's deep learning and data analytics capabilities enable businesses to craft highly targeted marketing campaigns that resonate with individual consumer preferences and behaviors.
During a global survey of marketers conducted in 2023, respondents stated that they most frequently use AI for optimizing search results (84 %) and improving user experience (80 %). In the USA 73% of marketers reported using AI [3].
For instance, an international chain of coffee shops has utilized AI to personalize their marketing efforts, analyzing customer data to offer individualized product recommendations through their mobile app. This approach has led to a significant increase in customer engagement and sales.
Another practical application is AI's ability to optimize digital advertising through real-time bidding and ad placement [4]. A notable example is a major American non-alcoholic beverage manufacturing company use of AI algorithms to analyze customer data and optimize their marketing spend across various channels, resulting in improved advertising efficiency and increased return on investment. In 2023, the company, in collaboration with neural networks, created a generative video advertisement. The video features AI bringing to life some of the world's most famous artworks.
The use of AI in marketing is a necessity for companies seeking to remain competitive in a rapidly changing digital landscape. The ability of AI to use consumer data for personalized marketing efforts has become an essential factor in the success of modern business.
The role of AI in financial decision-making. AI's capability to analyze complex datasets, predict market trends, and automate risk assessment procedures has transformed financial operations in various sectors.
The global AI market in the financial sector is expected to grow at an average of 23.37 % from 2021 to 2028. By 2025, the volume of AI in the financial industry is projected to reach $ 26.67 billion [5].
A notable example of AI application in finance use of machine learning algorithms for risk management and investment strategies. By leveraging AI, banks can analyze vast quantities of financial data to identify patterns, assess risks, and make informed decisions about asset allocations and investments.
Another example is a large American provider of payments services, which employs AI for fraud detection. Their advanced AI systems scrutinize transaction data to identify unusual patterns that might indicate fraudulent activity. This not only enhances security for the company and its customers but also streamlines the process of fraud detection, making it faster and more efficient.
In both cases, AI's integration into financial decision-making processes has led to significant improvements in efficiency, accuracy, and security. These examples demonstrate AI's potential to revolutionize financial strategies and operations, offering businesses a competitive edge in the rapidly evolving financial landscape.
The impact of AI on the capitalization of companies and income levels.
Boosting company valuations. As AI technologies enhance operational efficiencies, personalize customer experiences, and open new revenue streams, they significantly contribute to the increased market capitalization of firms that effectively leverage these advancements.
Boston Consulting Group (BCG) implements artificial intelligence (AI) through a comprehensive and strategic approach that integrates AI into the very fabric of organizational processes and culture. They focus on creating AI-driven organizations by combining strategy, process redesign, and the development of human and technical capabilities. This holistic method ensures the successful deployment and scaling of AI technologies, maximizing business impact and fostering innovation.
The implementation of AI has significantly contributed to the revenue growth of BCG by fostering innovation and digital transformation, enhancing operational efficiency, and improving strategic decision-making (fig.2).
Fig. 2. BCG revenue from 2018 to 2022, billions of dollars [6].
Through BCG Gamma, the firm's dedicated AI and data science arm, BCG has been able to offer cutting-edge AI solutions, opening up new revenue streams and delivering substantial value to clients. Additionally, BCG's investment in AI for internal processes led to cost savings and improved margins. The strategic use of AI-driven insights has enabled BCG to provide effective advice and solutions that improve business outcomes, leading to client satisfaction and repeat business.
The Big Four accounting firms – Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG – have been at the forefront of integrating AI into their services and operations, significantly enhancing their market capitalization and overall business value. For example, Deloitte demonstrated significant revenue growth in both 2021 and 2022: $50.2 billion and $59.3 billion, respectively [7].In 2023, the figure amounted to $64.9 billion.
By leveraging AI, these firms have revolutionized traditional accounting, auditing, and consulting services, offering more efficient, accurate, and insightful solutions to their clients. AI enables the automation of routine tasks, such as data entry and analysis, allowing these firms to focus on higher-value activities like strategic advisory and decision support. AI-driven analytics provide deeper insights into financial data, market trends, and risk management, enabling more informed business decisions for their clients and reducing operational risks. This strategic adoption of AI technologies not only improves service delivery but also attracts a broader client base seeking to capitalize on the benefits of AI for their businesses.
Furthermore, the Big Four have invested heavily in developing proprietary AI platforms and forming partnerships with leading AI technology providers to expand their capabilities.
The advent of AI has demonstrably transformed business models, leading to a notable escalation in market capitalization as companies harness these technologies for competitive advantage. The strategic deployment of AI not only streamlines operations but also fosters innovation, driving investor confidence and financial growth in the long term.
Using AI for HR: recruitment and employee engagement. In the domain of HR, AI has become a vital asset, significantly enhancing both recruitment processes and employee engagement strategies. AI's capability to process vast datasets enables HR professionals to make more informed decisions, streamline operations, and personalize employee experiences.
The global market size for AI recruitment was estimated at $610.3 million in 2021. It is forecasted to reach $890.51 million by 2028, growing at an average rate of 6.5 % [8]. As of 2023, the global market for the recruitment industry using AI reached $590.5 billion. Marketing research shows a consistent growth trend in this market. From 2022 to 2023 alone, the volume of investments increased by more than $50 million (fig.3) [9].
Fig. 3. Growth of AI recruitment, million dollars [9].
One of the prominent examples of AI in HR is its use in talent acquisition. For example, an American social network for finding and establishing business contacts, leverages AI algorithms to match job seekers with suitable positions. By analyzing user profiles, job descriptions, and previous hiring patterns, AI system efficiently recommends potential candidates to recruiters, significantly reducing the time and resources spent on talent searches. In 2023, this AI-driven approach has become a standard practice in recruitment, aiding companies in finding the right talent quickly and effectively.
AI's integration into HR functions has not only streamlined recruitment and employee management processes but also provided deeper insights into employee behavior and needs. These advancements in AI technologies are enabling businesses to optimize their HR strategies, leading to more effective talent management and enhanced overall organizational performance.
Process optimization.
AI has become a transformative force in operational management, fundamentally reshaping supply chain optimization, predictive maintenance, and inventory management. The advent of AI in operations has enabled businesses to predict and respond to potential disruptions, optimize logistics, and manage resources more efficiently.
Table 1. Overview of AI-Enhanced Business Process Optimization [10, 11].
|
Process area |
AI application |
Impact |
|
Supply chain optimization |
Machine learning algorithms for demand forecasting and logistics planning. |
Improved accuracy in inventory levels, reduced overhead costs, and more efficient distribution networks. |
|
Predictive maintenance |
Predictive models for equipment failure and maintenance scheduling. |
Decreased downtime, extended equipment life, and reduced maintenance costs [10]. |
|
Inventory management |
Systems for real-time tracking and optimization of stock levels. |
Lower holding costs, minimized stockouts or overstocking, and better cash flow management. |
|
Quality control |
AI-driven inspection systems for defect detection and process optimization. |
Enhanced product quality, reduced waste, and improved compliance with standards. |
|
Customer service |
Chatbots for customer inquiries and automated service platforms |
Increased customer satisfaction, 24/7 service availability, and reduced operational costs |
According to current research, AI-supported supply chains are over 67 % more efficient than conventional ones. This leads to reduced risks and overall costs for companies. The global market for cloud-based AI as a service in supply chain management is expected to exceed $3.7 billion by 2028 [12].
The world's largest American e-commerce platform has been using AI to improve its delivery logistics, employing algorithms to optimize delivery routes and schedules, reducing shipping times and costs [13].
In the manufacturing sector, the use of AI-enabled digital twins allows for the simulation and analysis of production processes before they are implemented in the real world. This leads to more efficient resource use, better product quality, and less downtime due to maintenance [14].
Another example is the experience of one of the major international banks, which has utilized digital twin technology to create virtual replicas of their banking operations. These digital twins, powered by AI, enable the bank to simulate and analyze various operational scenarios, helping to optimize processes, reduce risks, and improve decision-making.
Conclusion.
The convergence of AI with various business functions has resulted in a profound transformation, offering unprecedented efficiency. In the realm of operations, supply chain management, predictive maintenance, and inventory control, AI has redefined traditional methodologies, introducing automation and precision in forecasting and decision-making processes.
In marketing, AI has enabled hyper-personalized customer experiences, driving engagement and conversions. In human resources, AI's influence in talent acquisition and employee engagement has led to more efficient and inclusive hiring practices. In the financial sector, AI's prowess in risk assessment, fraud detection, and investment strategy formulation has provided businesses with a competitive edge in a data-driven world. The integration of AI into business processes has led to significant improvements in efficiency, accuracy, and strategic decision-making. The implementation of AI by companies enhances their competitive advantages in the market by providing advanced analytical capabilities, driving innovation, and fostering more efficient and intelligent business operations.
REFERENCES:
Номер журнала Вестник науки №3 (72) том 5
Ссылка для цитирования:
Bukhtueva I. THE IMPACT OF AI TECHNOLOGIES ON BUSINESS PERFORMANCE // Вестник науки №3 (72) том 5. С. 467 - 476. 2024 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/13603 (дата обращения: 17.05.2024 г.)
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