Research/Blog
Role of Artificial Intelligence in Digital Transformation
- November 6, 2017
- Posted by: CellStrat Editor
- Category: Artificial Intelligence Bots Machine Learning Robotics
![](http://learning.cellstrat.com/wp-content/uploads/2017/11/Digital-Transformation.jpg)
Digital Transformation is defined as the application of technologies to fundamentally improve all aspects of society. For businesses, this means transforming decision making with technology.
The percentage of organizations engaged in digital transformation is expected to double to 50% by 2020. But adoption and digital saviness still lag among many organisations. 67% of businesses (as per IDC research) fall into the “digital explorers” category, an early point on the maturity scale characterized as somewhat adhoc and opportunistic. Less than 5% are at an optimized stage, or “digitally transformed” level of maturity.
Key Drivers (trends or factors that catalyse change) of digital transformation within an organization?
- Evolving customer behavior and preferences.
- Growth opportunities in new markets.
- New standards in regulatory and compliances.
- Increased competitive pressure.
AI and machine learning promise to not only improve the customer experience, but also change the way companies operate. For this reason, enterprises should consider integrating these technologies into digital transformation plans to stay competitive. For example, we can now use AI for account management and customer service systems across industries. “The benefit isn’t just the fact that you get productivity, but the fact that you can scale very quickly.
Gartner predicted that by 2018, 20 percent of business content (such as shareholder reports, legal documents, and press releases) will be authored by machines. And IDC expects that at least 20 percent of all workers will use automated assistance technologies by that year.
AI tools and Machine Learning programming can help companies learn in ways that accelerate innovation. “AI and machine learning will be really helpful tools in companies getting closer to customers and objectives. If you better understand the context of the customer’s world, you can better help them accomplish their goals, and base digital transformation efforts on that information.
Business success
Several companies are already using AI and machine learning (ML) tools in digital transformation efforts. Large number of e-commerce companies are already deploying AI tools in their back end systems to personalize each of their multiple customer touches every day. Lot of companies have started replacing their call centre employees with bot based customer service centres. Companies have already been able to save billions of dollars in salaries by deploying bots in their customer service in 2016 alone.
Getting Started
How and where to start with integration of AI and ML into digital transformation efforts? First, research various approaches in implementing AI and ML technologies and determine which would best work for company. You also need to ensure you have access to large data-sets, trained manpower in ML technologies and data scientists to build the algorithms.
Most CIOs are caught up in driving operational efficiency, and are burdened with legacy systems. But to become relevant to current and future trends, “they have to take time out and also get their development teams trained and get onto the AI curve,’ because it would have a significant impact on their businesses now and in years to come
Pl share digital transformation approach and techniques
Thanks for the comment Indrakanti! However, we dont specialise in Digital Transformation. But, keep coming back as we will be occassionally sharing bytes on Digital Transformation, factors it depends on etc.