Unleashing AI’s potential: transforming business challenges into growth opportunities
In an era where Artificial Intelligence (AI) is rapidly evolving from a futuristic concept to a cornerstone of modern business strategy, understanding how to leverage its capabilities is crucial for any organization looking to stay competitive.
At CIM Scotland’s first breakfast Social event on Thursday 29th August, John Hughes, Lead Data Analyst at Storm ID, presented a compelling guide on how businesses can identify and solve real-world problems using AI. Here are the key takeaways:
The Growing Importance of AI
AI’s impact on the global economy cannot be understated. According to the UK’s Centre for Data Ethics and Innovation, AI could contribute up to £272 billion to the UK economy by 2030. This highlights AI’s transformative potential across various sectors, from improving operational efficiency to driving significant revenue growth. But the key question remains: how can businesses harness this potential?
Ewan Anderson, CIM Scotland's Vice Chair of Communications and Marketing Director at Eden Scott, introduces speaker John Hughes at the CIM Social event, hosted in Eden Scott's Edinburgh office.
Identifying the Right Problems to Solve
The foundation of a successful AI strategy lies in identifying the right problems to solve. Hughes emphasised the importance of starting with the basics: What are the routine or complex challenges your business faces? Are there manual processes that create bottlenecks? How could a better understanding of your data improve decision-making? These are critical questions every business should ask when considering AI implementation.
Finding answers requires leveraging existing data and customer feedback. Engaging your team in discussions about process pain points and aspirations can uncover valuable insights. Once these problems are identified, businesses can collaborate with experts to brainstorm AI-driven solutions, utilising methods like SWOT analysis and thinking without constraints. It is also important to keep a human in the loop.
Hughes said: “Often, you cannot rely solely on AI to fully automate a process. Humans and AI working together is likely to deliver the best outcomes. Rethink the role that humans can play in a business process. You may think about ways to limit the role that humans take in certain processes. For example, they may do validation, editing, or overseeing of AI responses, rather than generating them.”
Not every AI application will deliver equal value. Hughes advised prioritising potential AI use cases by their impact on user experience, service quality, efficiency, and alignment with business goals. For instance, if an AI solution can significantly cut costs or add revenue, it should be at the top of the list.
Assessing Feasibility
After identifying and prioritising AI use cases, businesses must assess their feasibility. This involves several key considerations:
- Data Access and Quality: Do you have the necessary data? Is it accessible, clean, and of high quality? Permissions and data security are also crucial factors, especially in light of regulations like GDPR.
- Automation Suitability: Not all tasks are suitable for automation. High-stakes decisions, tasks with significant contextual variability, and those requiring nuanced human judgment may still need a human touch, though AI can assist in reducing administrative burdens.
- Effort and ROI: Implementing AI can be resource-intensive. Hughes highlighted the need to consider the effort required—whether it’s model development, system integration, or acquiring the necessary skills—and weigh this against the expected return on investment.
Ethics and Sustainability in AI
As businesses integrate AI into their operations, they must also consider the ethical implications and sustainability of their solutions. It’s essential to ensure that AI use is lawful, ethical, and responsible. Additionally, the environmental impact of AI—such as the CO2 emissions from data processing—should be weighed against the potential environmental benefits, such as reducing travel through AI-driven automation.
Practical Applications of AI
Hughes illustrated AI’s potential with real-world examples, showcasing how leading companies are already using AI to solve specific challenges:
- Content Personalisation: Netflix uses AI to recommend movies and shows based on individual viewing history, significantly enhancing user engagement and reducing churn.
- Market Research: Coca-Cola analyses social media and sales data with AI to spot emerging trends and refine its product offerings.
- Fraud Detection: NatWest Group employs AI to analyse transaction data, identifying patterns indicative of fraud, thus protecting customers and minimising financial losses.
The Road Ahead
Hughes concluded with a clear message: AI has the potential to transform businesses by reducing costs or expanding revenue, but its implementation must be carefully planned and executed. By identifying the right problems, assessing feasibility, and prioritizing high-value use cases, organisations can ensure that they are not just adopting AI for AI’s sake but are driving real business impact.
As the AI landscape continues to evolve, businesses that embrace and intelligently apply these technologies will be well-positioned to lead in the digital age.
Wish you’d attended and had seen this presentation first hand? Don’t miss out on our next CIM Scotland Social – sign up now.