How to Reduce Costs and Increase Revenues with AI
The adoption of Artificial intelligence (AI) brings unprecedented advantages, ranging from enhanced efficiency to ground-breaking innovations.
Data suggests for example that AI has the potential to boost employee productivity by approximately 40% by 2035 and AI in business has become a top priority for 83% of leading corporations today.
The adoption of AI in businesses isn't a mere trend – it's a necessary strategy to stay competitive in the ever-evolving market.
A 2022 McKinsey survey analysis the economic returns of AI investment across a strong majority responding companies. 63% reported at least a 5% annual revenue increase thanks to AI adoption and 32% claimed AI-driven cost decreases of up to 10%+ year over year.
The purpose of this article is to provide some hypotheses but keep in mind that there are plenty of ways AI can improve your business. From processing large sets of data to powering warehouse operations and automating customer interactions, AI has myriad applications that can significantly impact business revenue and costs.
Choose the best one for your needs and enjoy the benefits of this fantastic technology to stay ahead of the competition.
This article is proposed by Lampi, a confidential AI copilot aiming to provide AI to your business and supercharge your work. If you want to discover more about Lampi, you can find more information by following us on Twitter, Instagram, and Linkedin!
Smarter Data Analysis with AI
AI can retrieve and analyze large data sets in real-time, translating the information into a digestible format for decision-makers.
This capability can help businesses develop smarter pricing strategies, reduce operational costs, and uncover production inefficiencies. By making data-driven decisions faster and more accurately, businesses can optimize their operations, leading to substantial cost savings.
Businesses can unlock marketing strategies that target the right market segments with customized advertising by employing AI-enabled tools analyzing data. AI can analyze social media patterns and search history to identify consumer trends. This valuable information can then be used to segment target buyers and prepare tailored marketing messages. Such AI-powered marketing strategies are integral to maximizing the effectiveness of marketing efforts and, ultimately, increasing revenue.
Error Reduction with AI
Errors can have costly implications for your company, potentially delaying product releases and draining your resources. However, AI significantly enhances your company's efficiency by reducing the incidence of such errors. Let's illustrate this with a scenario.
Suppose you operate an e-commerce platform specializing in fashion, working with a variety of suppliers. Each supplier offers a similar assortment of items, but the quality varies. As a result, you source shoes from one supplier, bags from another, dresses from a third, and so on. Due to the plethora of suppliers, maintaining effective communication is crucial. You need to coordinate calls and meetings, send specific product requests, and more. But what if a request mistakenly goes to the wrong supplier? Or what if you double-book important meetings with vendors?
AI technology can help mitigate such errors, enhancing your company's efficiency. For instance, an AI-powered personal assistant could be the solution for the aforementioned issues. By reducing the possibility of human error, the AI assistant ensures that your resources are not wasted on rectifying mistakes, thus improving overall operational efficiency.
Boosting Sales with Chatbots
AI-powered chatbots play a pivotal role in modern sales strategy by ensuring consistent 24/7 customer engagement. They effectively break down geographical and time boundaries, allowing your business to offer products and close sales at any hour, without needing human agents present.
Implementing omnichannel communication through chatbots not only makes your brand more accessible to customers but also enhances your brand's presence across digital platforms such as social media, instant messaging apps, SMS, and online portals.
In terms of cost-effectiveness, chatbots are a boon. They can reduce customer service costs by up to 30%. They engage with multiple customers concurrently, substituting several human agents, thereby saving time and cost. Adopting chatbots results in reduced operational hours, lesser need for physical office space, and optimized operational expenditure, thus contributing to a leaner and more cost-efficient business model.
Internal AI-powered chatbots can also play an important role for your business by supporting your teams in their operations, thus enhancing productivity and decision-making.
Automating Workflows with AI
AI-powered automation of workflows enables businesses to save on time and labor costs. By relieving employees of repetitive tasks, businesses can allocate more resources towards more productive work.
A Forbes analysis found AI could save the average Fortune 500 company $4.7 million per year via automation.
By eliminating the need to engage in repetitive, tedious tasks, AI automation can also contribute to higher levels of job satisfaction and employee morale. Employees can be given the opportunity to engage in more fulfilling, intellectually stimulating tasks, improving their skill sets, and further contributing to the company's success.
Enhanced Decision-Making Through AI
An impressive 54% of corporate leaders acknowledge the substantial role artificial intelligence plays in refining the decision-making process.
By leveraging AI to boost efficiency, you can effectively scrutinize customer behavior data or market trend data, enabling you to formulate more knowledgeable, data-driven business decisions.
Businesses can employ AI not just to elevate efficiency but also to forecast trends, streamline logistics processes, determine pricing strategies, and devise personalized promotional offer.
Consider the integration of an AI system with a CRM. It generates actionable insights for sales teams - identifying high-value customers and potential churn risks, allowing teams to focus their energy strategically.
Revolutionizing the Recruitment Process with AI
AI is reshaping the recruitment landscape in numerous ways. It is streamlining the candidate screening process, traditionally a time-intensive task for recruiters.
AI facilitates the automatic identification of candidates matching specific role requirements, empowering recruiters to devote their time more effectively by engaging with qualified candidates instead of manually filtering applications.
Chatbots can also be deployed on various platforms, including social media and job boards, these bots interact with candidates, answering queries about the company, job roles, and application processes. They can also schedule interviews and follow up post-interview with candidates.
The introduction of chatbots illustrates just one aspect of the evolving recruitment process, and as technology continues to advance, we can anticipate even more transformations in the recruitment strategies of companies.
Increase Revenue with Recommender Systems
Netflix's recommendation engine alone is worth $1 billion annually. Their research indicates that without a satisfactory recommendation within 60-90 seconds of browsing, there's a significant risk of a subscriber disengaging, potentially costing Netflix over $1 billion a year.
But it's not just Netflix; Amazon also leverages recommender systems. In fact, personalized product recommendations account for a whopping 35% of their revenue. Amazon's approach involves a variety of strategies, from 'Frequently bought together' suggestions to 'Your recently viewed items' reminders and even personalized email marketing campaigns based on a user's buying patterns. All these are driven by analyzing user browsing history, purchase patterns, product information, and more.
This high-tech strategizing substantially boosts marketing performance indicators and overall sales.
Adopting AI: The Path to Business Success
Early adoption of AI-driven solutions can result in substantial benefits, including increased revenues and cost savings.
By integrating AI into your strategies, you can stay competitive in the future and navigate the challenges of the ever-evolving market landscape.
At Lampi, we're passionate about enabling businesses to fully leverage the potential of AI.
Our experts are always ready to guide you on your AI journey, helping you understand and navigate the complex world of AI and prompts.
So, why wait? Step into the future with Lampi and embark on your AI journey today!
Don't forget to follow us on Twitter, Instagram, and Linkedin!