“The AI Revolution”, it covers the brief history of AI, the industries that will be affected, as well as some key AI statistics. The modern iteration of AI works silently in the background without a face, and it’s starting to impact everything it touches. It’s also will transform our economy at warp speed.
How Artificial Intelligence Is Changing Businesses
Artificial intelligence is here and it’s transforming our economy.
One estimate by PwC puts the global impact of AI at $15.7 trillion by 2030, while Accenture says that AI could double the rate of economic growth in developed countries by 2035.
If either of these two predictions come true, it will mean big change for almost every industry.
The AI Revolution: By the Numbers
The following stats will give you an indication on the potential impact of the AI revolution, and how it’s already shaping the future of business thinking:
The number of AI startups has increased 14x since the year 2000
The amount of investment in AI startups has increased 6x since 2000
15% of enterprises in 2018 already use AI, but 31% more will come on board in the next 12 months
72% of executives see AI as being the most significant future business advantage
84% of global businesses see AI as providing a competitive advantage
41% of consumers believe AI will improve their lives in some way
By 2020, businesses using AI to drive consumer insights will see $1.2 trillion more per year than their less-informed competitors
So while the AI revolution is not led by the identifiable face of a friendly (or antagonistic) robot in a physical form, experts agree that impact of AI on business will be profound.
Coronavirus outbreak, which originated in China, has infected tens of thousands of people. Its spread has left businesses around the world counting costs.
Here are eight charts to help you understand the impact seen on different economies and industries so far.
Global shares take a hit
Investors have been worried about the impact of the coronavirus as it spreads outside of China.
Big shifts in stock markets, where shares in companies are bought and sold, can affect investments in some types of pension or individual savings accounts (Isas).
The FTSE, Dow Jones Industrial Average and the Nikkei have all seen sharp falls since the outbreak began.
In the second week of March, the Dow saw its biggest one day decline since 1987.
The markets overall have seen major swings and continued volatility.
The US central bank has slashed interest rates in response to mounting concerns. That should, in theory, make borrowing cheaper and encourage spending to boost the economy.
Growth could stagnate
If the economy is growing, that generally means more wealth and more new jobs.
It’s measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year.
The world’s economy could grow at its slowest rate since 2009 this year due to the coronavirus outbreak, according to the Organisation for Economic Cooperation and Development (OECD).
The think tank has forecast growth of just 2.4% in 2020, down from 2.9% in November.
It also said that a “longer lasting and more intensive” outbreak could halve growth to 1.5% in 2020 as factories suspend their activity and workers stay at home to try to contain the virus.
Travel among the hardest hit
The travel industry has been massively impacted, with airlines cutting flights and tourists canceling business trips and holidays.
Data from analytics firm ForwardKeys for the period up to 8 March shows international flights booked from the US are behind by 37% in comparison with the same period in 2019.
Restrictions introduced by the Trump administration on travel between the US and European airports, except those in the UK and Ireland, are likely to reduce overall traffic even further.
UK travel industry experts have expressed concerns about Chinese tourists being kept at home. There were 415,000 visits from China to the UK in the 12 months to September 2019, according to VisitBritain. Chinese travelers also spend three times more on an average visit to the UK at £1,680 each.
As more large-scale events are canceled and the number of flight cancellations increases, there are fears the industry could take a bigger hit.
Many countries have introduced travel restrictions to try to contain the virus’s spread.
Factories slowing down
China makes up a third of manufacturing globally and is the world’s largest exporter of goods.
But activity has decreased in the so-called “workshop of the world” as factories pause their operations to try to contain the spread of Covid-19.
Nasa said pollution-monitoring satellites had detected a significant drop in nitrogen dioxide over the country. Evidence suggests that’s “at least partly” due to the economic slowdown caused by the outbreak.
Restrictions have affected the supply chains of big companies such as industrial equipment manufacturer JCB and carmaker Nissan. Both rely on China’s production and its 300 million migrant workers. Jaguar Land Rover even said it had flown car parts in suitcases as some factories run out of parts for vehicles.
Customers buying less
Fear of the coronavirus outbreak means that some people are choosing to avoid activities that might expose them to the risk of infection, such as going out shopping.
Restaurants, car dealerships, and shops have all reported a fall in customer demand.
Chinese car sales, for example, dropped by 92% during the first half of February. More carmakers, like Tesla or Geely, are now selling cars online as customers stay away from showrooms.
Shipments of smartphones are also expected to take a big hit in the first half of 2020, before seeing a recovery later on.
Some bright spots
It can be hard to find positives when people’s jobs are affected, or – as in the case of the coronavirus outbreak – lives are being lost.
But in purely business terms, there are some bright spots. Consumer goods giant Reckitt Benckiser, for example, has seen a boost in sales for its Dettol and Lysol products.
The disinfectant is seen as protection against the spread of the disease, although its effectiveness has not yet been scientifically proven.
Gold – The Winner
The price of gold – which is often considered a “safe haven” in times of uncertainty – has also increased. Its spot price hit a seven-year high of $1,682.35 per ounce in February.
Investors are looking to it amid fears the coronavirus spread outside of China will further hit the global economy and demand.
Many people believe that artificial intelligence (AI) will replace our jobs but it’s a myth. The new technology is going to replace tasks, not jobs. Just like email, computers, and the internet elevated employees to new proficiencies in past decades, AI’s purpose is to increase worker proficiency by eliminating time-consuming tasks.
Always a lot of people are afraid of new technologies and the progress of science. They don’t have the knowledge and they don’t like changes in their life or work. But the technology is here to change the world and nobody can stop it!
A famous example from the 19th century. A group of English textile workers wants to destroy newly invented textile machines for fear they’d lose their jobs. Their fear was unfounded, however, as instead of being replaced, the machines made it cheaper to produce fabric, leading to more customers, and more demand for workers.
Technology like AI is giving us a unique opportunity to rethink how work is done, and how people use their skills and talents to complete critical tasks. AI works by applying pattern recognition to categorize structured and unstructured data, to flag anomalies and make recommendations.
It can take care of the repetitive tasks so that all employees — from the back office to the CEO — can focus on higher-value projects that help them stay competitive.
For example, chatbots are already being used to alleviate the pressure of increasing customer inquiries. Chatbots can be set up to answer the most basic requests of customers, such as delivering order status updates, scheduling appointments, answering common user questions, and providing simple automated services during the hours when a business is closed.
For B2B organizations specifically, it can take over many of the lead nurturing tasks that happen at the top of the sales funnel – allowing humans more time to interact with prospects during the critical decision phase of the sales process.
Artificial intelligence takes over many of the time-consuming tasks and augments data-driven research by more quickly finding patterns and making recommendations, while human intelligence supervises, guides and manages.
So people will do their jobs faster, better and smarter. Automation replaces useless redundancy and decreases the amount of data an employee must wade through to accomplish an assignment.
The artificial intelligence will improve all industries and verticals– back-office tasks such as payroll, administration, invoice approvals, etc. As we’ve seen with the increasing use of chatbots, more businesses have come to understand what processes they are able to streamline, and executives and employees alike have become more comfortable working alongside automation programs.
A recent Deloitte survey of business executives concluded that more than 80% of executives gained a financial return from AI investments. Automation can create economic growth, reduce prices and increase demand while also creating new jobs that make up for those that disappear.
We’re seeing this in the ERP market especially; many software vendors have recently created their own versions of digital assistants like Siri, Alexa, Cortana – or are creating applications that allow users to have a conversation with their ERP software through one of these bots.
These consumer chatbots can also streamline tedious employee tasks such as scheduling appointments, directing payments, following up on invoices – all from within a conversational interface. Soon you may be asking Siri, Alexa or Wanda to find the best deal and book your flight for an upcoming business trip!
It is more important than ever to prepare yourself, your team, and your organization to develop a strategy to leverage artificial intelligence. And keep in mind – AI, when used correctly, is about empowering people to do more and better than humanly possible.
The future is here! The artificial intelligence is your helper, not your enemy! Take action now and don’t look back!
Artificial Intelligence Sales Funnel for Your Business
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