How Artificial Intelligence is Impacting Business Processes

The latest contribution from Jori Hamilton looks at the impact of enterprise AI on business processes. Jori is a regular contributor to 21st Century Tech Blog. She lives in Oregon and loves to research and write about technology, artificial intelligence, machine learning, cybersecurity, and sustainability. She graduated from Boise State University and you can learn more about her by following her on Twitter: @HamiltonJori

The robots aren’t just coming, they are already here. And with artificial intelligence (AI) increasingly being used by industry at the enterprise level, businesses are paying attention to how AI can impact their processes.

Advancements in enterprise AI have been widespread impacting social, environmental, and financial processes. For a look at the current state of enterprise AI and how its changing business and outcomes read what follows.

The State of Enterprise AI

AI opens up a world of new capabilities for business. The AI of today exploits the big data revolution and machine learning (ML). The convergence of these two is leading to hyper-automation, a technological trend that’s taking the world of business by storm.

What characterizes hyper-automation? It removes human labour from business processes by using machines to monitor, assess, and streamline practices for greater efficiency. Hyper-automation is creating breakthroughs in manufacturing, making it possible for industries to use robots from the design processes onward, streamlining parts production with AI insights, and reducing waste using tools like nesting software.

AI gathers, models, and assesses data to produce the most algorithmically sound solution for a problem. As a result, a business can rapidly develop better methods of doing just about anything. 

One element of hyper-automation allows a business to create a digital twin of its processes. This is done using sensor-collected data which is then paired with a virtual model of equipment and workflows. The AI and ML software then produces insights and predicts outcomes using computational models. 

As you might imagine, the impact on business processes using these tools can be revolutionary. But some of the outcomes may have negative consequences. 

The Effects of AI on Business Processes

From science fiction films, AI often gets a bad rap. Fears of automation displacing human labour are common. But is automation actually replacing people or creating new opportunities for more fulfilling work?  

Three factors need to be taken into account when gauging AI’s impact on business enterprise. These include social, environmental, and financial implications.

Social Factors

Enterprise AI is known for its ability to automate processes. This has two primary consequences, one good and one not so much.

First, there are time-saving features to highly automated business processes. In fact, 78% of business leaders believe AI automation frees up three hours of work daily. This translates into time that can then be applied to other areas of the business.

For example, freeing up human labour through automation has already seen beneficial social impacts in healthcare, where AI-assessments of CT scans help diagnose cancer better and faster than medical professionals. That’s because AI can evaluate thousands of scans and learn what is normal and abnormal using pattern recognition to become better at diagnosis. AI sees things that may be overlooked by a radiologist and help with triage to streamline treatment for those most at risk. 

Second, what AI serves to improve may have a negative impact on jobs. Reports indicate that by 2025, 87 million jobs may be lost to automation and AI. The same reports however also note that new technologies will add 97 million jobs. I would say the jury is still out, therefore, when considering the negative consequences of AI when looking at job displacement. 

Environmental Factors

AI is improving both the efficiency and productivity of businesses all over the world. This has potential environmental benefits. AI-assisted production and Computer Assisted Design (CAD) build parts with fewer resources. Research shows that AI can yield more sustainable and environmentally-friendly processes from the supply chain to manufacturing, distribution, consumption, recycling and reuse. 

Financial Factors

Financially, the impact of AI on business processes is positive across the board. From the automation benefits to the avenues for market growth, enterprise AI produces cost savings and efficiencies. That’s why there is a high demand for AI developers, set to grow by 22% over the next decade yielding applications for improved customer service, product development, and workflow monitoring. AI-powered innovations like chatbots and robotic process automation (RPA) represent investments today that are saving companies time and money.  

An AI-Powered Future

As we see the potential of enterprise AI expand, its capabilities and benefits are growing. Through hyper-automation, there is little that machines cannot achieve. The resulting boosts in efficiency and productivity mean financial savings and a substantial boost to the business’s bottom line. It will be interesting to see if social and environmental impacts are equally as effective.  

Time savings from AI implementation can mean a business workforce can focus more on real social and human issues. And AI focused on modelling and delivering sustainability can yield a greener world.

For the future of work, the effects of AI on business processes should lead to positive benefits for all three facets of business: the social, environmental, and financial.