How does AI boost competitive advantage for businesses?

Artificial intelligence essays the role of the lead in the play of life in the present world. From transportation to transplantation, it is impacting almost every field. Specially when it comes to businesses, it helps businesses to boost their competitive advantage. 

 

It assists the organizations to earn a position and standard in the market. In this blog we will read about the role of artificial intelligence (AI) in boosting competitive advantage for business.

 

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Important terms

 

Before beginning the actual topic, first let us some basic yet important terms related to it.

 

Artificial intelligence (AI)

 

AI is basically defined as a technology that embeds intelligence in machines. In other words, the technology that helps machines think like humans. This helps in making the system of artificial and machine worlds more efficient and convenient.

 

Competitive advantage

 

Competitive advantage is basically defined as the capability of the company. How strong it stands in front of its competitors. The competitive advantage is the ability of a company or business to produce more goods and services than its competitors. 

AI offers automated services that offer non-existent errors. These services thus help in achieving competitive advantage and positioning it to the best position according to customers perspective. 

 

Competitive advantage is important as it helps the businesses to create a greater value for themselves and their shareholders. Competitive advantage increases the profit margins of a business and its presence in the market.

 

Differential advantage

 

Differential advantage happens when the products and services of one company are different from another, and one of them is superior in nature.

 

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How AI boosts competitive advantage in business?

 

There is no doubt that AI has revolutionized business and its principles. It helps in boosting competitive advantages. AI assists the businesses with improved employees, satisfied customers, decision making, deeper insights, edge computing and real-time optimization. 

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Areas where AI boosts competitive advantage for businesses

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AI has boosted up different fields of a company to boost its competitive advantage. When companies apply AI in their business, the technology helps them to sharpen predictions, boost efficiencies and optimize stock control. The major areas where AI has boosted the competitive advantage of business are as follows:

 

1. Improved employee

 

AI helps in improving the conditions of employees. Employees are the most productive part of any business. And AI helps in improving the employees, by virtual training programs, PPE check measures and guidelines. Thus, indirectly boosting the competitive advantage for the business.

 

2. Onboarding customers

 

Satisfied customers are another sign of healthy and successful business. AI and its technologies ease the overall journey of the customers. 

 

It makes the recommendations for the customers; these suggestions and recommendations enhance the customer experience and your chances to get pretty approval and recommendations of your service from them. Further chatbots provide immediate response to the customers.  

 

The chatbots help each customer to personalize their experience, solve real time queries, and suggest areas of interest. This immediate attention helps in attracting new customers and managing them more efficiently. 

 

In simple words, AI has taken customer onboarding to the whole next level. According to a survey, around 67% of the consumers are likely to suggest your business to others if they themselves are satisfied with the services.

 

3. Real time optimization

 

AI allows the companies to carry out tasks in real time. It helps the organizations to shift strategies. The real time optimization tracks the current activity of the customers and updates the companies with the same. Thus, AI boosts the competitive advantage for the companies by keeping it updated with on time data.

 

4. Edge computing

 

Edge computing is an advanced and distributed computing technology of artificial intelligence that allows data storage and machine learning models to remain more local.

 

5. Predictions

 

Predictions and forecasts are the hands of AI that assist the entire body of the business. AI gathers the data from different networks and systems and analyzes it. It helps in generating reports that predict the trends in data and helps in detecting the future trends with respect to the company point of view.  

 

By making connections and improving characteristics, AI prepares companies for disruptive events. Thus, AI helps businesses to stand out in the crowd.

 

6. Detection of fraud

 

An integral role is played by AI in fraud detection. It helps in recognizing fraud, disruptors and thus ensuring safety to the businesses. The warning system provided by artificial intelligence helps in detection of bots, malware, and ransomware.

 

7. Market shock adaptive ML

 

AI provides market shock adaptive machine learning algorithms. It is an important feature for investing companies and businesses. This feature assists the banks and larger companies to manifest their investment portfolios and mitigate potential bankruptcies in their procedure.

 

8. Content creation

 

AI helps you in creating content for your business, when we say content, it means original content and meaningful text. This helps in driving new traffic to business sites.

 

From personalizing email marketing campaigns to offering advanced predictive content analytics, developing fresh topics and keywords and automating the initiatives taken relating to content, AI tools play an integral role in Content Creation. 

 

9. Personalized content

 

Personalized content is another competitive advantage that can be availed from AI. It collects and analyses already existing data and personalizes the content for each user according to his needs and interests.

 

10. Advanced ads

 

AI helps the organization with programmatic publicity. This area works well in the digital marketing process. The advanced ads help in bridging the gap between the brands and targeted audience as well as customers.

 

11. Cost optimization

 

AI helps in optimizing the cost of production of business process through the use of chatbots for areas like customer service, through AI based Email Marketing, by automating the process of recruitment and hiring, by enhancing the cybersecurity measures and by improving efficiency in communication through tools such as Microsoft’s Cortana

 

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Limitations of AI

 

Despite several advantages, there are some fields where AI lags. The major limitations are as follow:

 

1. High implementation costs.

 

2. Require advanced machineries.

 

3. Reduces employee’s turnover.

 

4. Complex procedure.

 

5. Risk to personal data.

 

6. Dependence on network and internet.

 

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With so many advantages and merits, AI drives business growth. There's no doubt that AI is assisting the business to accelerate at an unprecedented pace. 

 

It improves the different aspects of business from operational efficiency to customer service. Thus, it helps in boosting the competitive advantage for businesses and organizations.