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What is the role of Artificial Intelligence in business analysis?

What is the role of Artificial Intelligence in business analysis?

With the advancement of technology, the world has been changing at a fast pace, and this is also true for business analysis. Nowadays, we generate and consume data at such a hectic pace that any operation or manual input made by human beings is unthinkable, given the scale and difficulty of analyzing millions of data per second.

In this context, concepts such as Internet of Things (IoT), Machine Learning and Big Data are all connected. Risk analyses, potential forecasts, and financial and business analyses in general are all carried out taking into account numerous factors and “signals” that the consumer society generates daily, in the form of data.

All of this allows for a very comprehensive view of the macroeconomic scenarios in which the business is inserted – but it also demands an unprecedented workforce. After all, it is necessary to survey and analyze many variables at the same time, and always in an agile way. This is where Artificial Intelligence shows all its strength.

In today’s post, we will talk about the role of AI in transforming current businesses. We will see on which fronts it promotes disruption, in the medium and long term, and why it is necessary to start investing in this technology as soon as possible. Ready to start? Then keep reading!

Business management in the data age

The rise of data has radically changed the way we do things, but it has further impacted business management and analysis. Nowadays, those who have the right data in their hands have the key to bring great returns to the company, through competitive advantages and market predictability power.

“Data is the new oil. The difference is that someday oil will run out. Data will not”. This statement is from Ajay Banga, CEO of Mastercard, who recognizes the power of management through data in one of the most profitable sectors in the world market.

This comparison with oil, by the way, is quite interesting. As it is a natural resource, it is in the process of depleting in the coming years, unlike data, which only tends to increase, bringing both great benefits to the industry and even greater challenges.

AI and its power in business analysis

In a nutshell, we can say that Artificial Intelligence is a technology capable of making decisions similar to, or better than, human beings based on the information collected or previously provided. It is a tool that bases its decisions on technical parameters, thus, without any relation to simulations of consciousness or sensitivity: it completely adheres to the facts presented or represented by the data.

For business analysis, in particular, the great advantage of Artificial Intelligence is that it is able to automatically collect and process much more information than a human being (or even a team of human beings) would be capable of, in the same amount of time.

From this, with the help of Machine Learning and human-machine learning processes, AI begins to learn and further improve its analyses, until it autonomously solves problems that, until then, mobilized dozens of employees in any company.

The fronts that AI can revolutionize in companies

According to Accenture, Artificial Intelligence should, by itself, increase the productivity of organizations by about 40% in up to 15 years. However, it is already possible to notice revolutions happening today on some important fronts within companies. We will talk a little more about them below.

Statistics and business analysis

Indeed, manually analyzing data is no longer the reality of the vast majority of companies. However, even if there was some automation in data collection and grouping, nothing compares to the power of Artificial Intelligence in generating business analysis.

This technology is capable of automatically scanning large layers of data, revealing patterns and creating alerts to try to predict or prevent problems, in addition to extracting insights and market opportunities in a fast and automated way.

Fraud prevention

Large financial institutions have been using AI for some time to monitor abnormal behaviors in their customers’ consumption patterns, preventing fraud and money laundering.

In the beginning, the tool was responsible only for generating alerts to an analyst, who would look at each case with greater care. Nowadays, however, it is already capable of identifying behaviors that do not fit the pattern and generating immediate blocks, or even contacting the customer by chatbots to confirm whether or not there has been fraud.

Automated service

Another front on which Artificial Intelligence has been making strides is the automated service. In this context, its objective is to make the relationship with the customer as humanized as possible, providing service whether by assistants with their own voice and “personality”, or by super-realistic renderings of people – for example, Samsung’s Neon.

Most likely, you have already been assisted by a chatbot or an AI, and you might not even have noticed. A great sign of how advanced we are on that front.

Automatic optimizations

Technology has also shown many fruits in the field of process optimization. Currently, any analyst can drastically decrease the time spent fine-tuning A/B testing routines, for example, as AI observes and learns from patterns in order to suggest improvements autonomously.

In this regard, large media buying and selling companies, such as Google, Facebook, Amazon and many others, are at the forefront.

Recognition, loyalty and increase in the average ticket 

Have you ever wondered how interesting it would be if your favorite restaurant app already knew what you like to eat on Fridays and sent you a reminder on that day, or even ordered it for you automatically?

Recognizing customer preferences and, based on them, being able to recommend products and services is one of the great advantages of Artificial Intelligence. It is as if each of your customers could have a private sommelier. This helps to build customer loyalty and increases the average ticket, due to the recommendation of products that actually interest the consumer.

Why invest in Artificial Intelligence for business analysis?

 Well, you must have realized that AI not only has the power to transform business analysis, but also to bring disruption to different areas of operation in the market. Still, why invest in it now? Does it fit with your business?

Absolutely! The most important thing to keep in mind is that this technology no longer belongs to the future: it is already the present. Therefore, whoever invests in it now will be well ahead in four or five years – and whoever does not will have difficulty in keeping up with the market in the near future.

Finally, Artificial Intelligence may seem a little complex when viewed from the outside, but it is a technology that your business can very much benefit from.

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