Last month, I was discussing with one of my customers. During the discussion, I found that Artificial Intelligence applications have changed the business landscape and helping Business Owners. Post Cloud ERP solution, my Customer was saving around USD 2000 per month by not having Hardware and it’s maintenance, IT Persons etc.
I was just wondering how Artificial Intelligence (AI) and Machine Learning (ML) could change the life of Business Owners and industry? Today we see them in every stages of our life, but can’t distinguish them separately. They are part of our life.
How Artificial Intelligence and ML are disrupting the industry?
AI, in manufacturing industry along with IOT tools, is suggesting CNC Machines on what to produce, when to produce and how much to produce. This has improved the efficiency and usage of machines, manpower etc. The production line has become smooth without many surprises as the Demand and Supply are met by ERP and IOT as this decision information are passed to different touch points that would execute the same. Define a standard patterns and rest is done automatically. Hardware and its preventive maintenance are controlled and maintenance to AI, its Data Centre issues and maintenance are impacted.
AI and ML are changing the way we are buying items, doing Sales, Buying rental or selling houses etc. Even dating applications are helping many to match and find the right partners. AI and ML’s are controlling Amazon’s recommendation of book, Google’s suggesting right information or pushing Ads etc. Jobs market is shrinking. Lot of mundane work is replaced with technical tools.
How Much AI and ML have improved?
AI and ML have improved the life of online shoppers with right messages, supporting information on the additional items etc. Now ML is automatically learns the user patterns and suggest what to purchase. These tools have helped many online eCommerce companies to target the products to right cohort of Customers and learn more about their purchase habits, when and where they can purchase etc.
Based on your “social” credit history few companies helps to get you Loans or ensure that you get housing etc (Ant Financials)
AI tools have disrupted Agriculture sector too. The activities that are too data sensitive, difficult to sit and analyse have been simplified now. Now we can measure and monitor crops yields, productivity, soil fertility and lack of nutrition etc. Many Agritech companies are depending on the AI and ML to feed the data back to algorithm and see what happens.
How our personal life is disrupted to make it simple?
Earlier, we use to hail for the taxies by roadside or call Taxi Companies to book a Taxi. Now we use Apps and no more hailing by the roadside. UBER, Ola, GoJek have changed the need to own a car and pay for the maintenance. Money saving is huge considering savings in car maintenance cost, insurance and parking charges etc. This reduced the traffic on the road and getting blocked during peak hours, saving millions of Dollars in fuels.
Google is releasing the Driverless Car economy. AI’s supervised learning helps to check the car movement; it’s surroundings, nearby cars or any other vehicles etc. This is helping to protect the passengers and other surrounding properties. Already UBER is talking about buying these cars for their fleets and also developing its own Driverless Cars.
AirBnB and Oyo have increase the quality of the hotel’s experiences, while prices are push down. OYO redefined the End users experience at Hotel by uplifting the standard of rooms and services. Guest is ensure to receive the same treatment across multiple hotels. Now a day customers are NOT checking Hotel name and its credibility etc. Customer is checking whether the hotel is qualified by OYO or not. That assures the quality and minimum standard of services.
Many large companies that don’t own any thing, but they are controlling the majority of our life
1. Uber, Ola – Car services company, that integrated the distributed taxies
2. AirBnB and Oyo – Helped to integrate the smaller hotels and increased customer experiences.
3. Google – Search engine and Ads
4. Amazon Web Services, Microsoft Azure, Google Cloud – Provides the infrastructure to manage and run the applications at the fraction of original cost of buying a server.
So what is happening here?
Many IT Jobs are already suffering. Development tools are reducing the number of Developers required, Selenium like tools are replacing the Manual testing. We have built the tools that reduces the web application testing duration by 80%.
But the side effect of this is, many have lost jobs and income generation opportunities.
How Artificial Intelligence & Machine Learning works?
If you see the above business they don’t own any properties, but they control the activities as they use Artificial Intelligence and ML that gives the information back to the application. One of the ways ML works is, it need a huge amount of transaction data to analyse and arrive at the patterns and learn from it.
To make the Machine learning’s Algorithm to work it requires a huge amount of data and feedback for it to create its own patterns, test, learn and deploy new ones. Many healthcare start-ups are using the AI and ML to scan the digitized the reports and it feeds the data to AI and its recreating the models to analyse.
Most of the ERPs are transactional one. Thanks to AI and ML, Manufacturing Industry is changing. There is an opportunity to integrate AI and IOT with mundane ERP and it could be a powerful tool in the hands of Business owner.
We developed a cloud solution, AcTouch.com, where customer has an option to use the product while we manage all software upgrades, regular DB backups and make sure that he runs his business without any problems.
Nityananda Rao is an alumni of INSEAD Business School with a mechanical engineering background and this helps him to understand the business problems and their challenges.