Artificial Intelligence Prioritized as a Business Asset Over Technical Innovation at Blogger's Park
In today's rapidly evolving business landscape, Artificial Intelligence (AI) has emerged as a powerful tool for driving growth and innovation. Two pioneering companies, Moderna and Netflix, have demonstrated the transformative potential of AI in different sectors.
Moderna, a leading biotechnology firm, managed to streamline regulatory processes, significantly shorten time-to-market, and efficiently utilize resources with the help of AI. When the SARS-CoV-2 genome was published, Moderna designed its mRNA vaccine candidate within two days, showcasing the speed and precision that AI can bring to complex scientific challenges. Moderna also embedded AI into its core processes, including vaccine dosage optimization and operational enhancements, to stay at the forefront of the industry.
On the other hand, Netflix uses AI to power its recommendation engine, with the primary business objective of boosting customer engagement and retention. AI capabilities help Netflix anticipate customer preferences, keeping subscribers engaged longer.
For businesses aiming to leverage AI effectively for customer engagement and retention, key strategies include hyper-personalization, sentiment analysis and context awareness, multi-channel engagement, automation and efficiency, predictive analytics, defining clear goals and tool selection, and proactive customer interaction. These strategies, as demonstrated by real-world implementations like Bradesco Bank’s AI-enhanced virtual assistant and Ally Financial's automated customer service, can lead to significant improvements in operational efficiency and customer loyalty.
However, it's important to remember that technology's value is determined by its alignment with business objectives, strategy, and competitive advantage. Google CEO Sundar Pichai has advised employees to prioritize AI tools over asking colleagues amid massive IT industry layoffs, reflecting the growing importance of AI in business operations.
Despite substantial investments in AI, productivity gains have been modest, with labor productivity in the U.S. growing by close to 2% annually since 2022. This phenomenon, often referred to as the "productivity paradox," underscores the need for a business-first mindset when it comes to AI. Organisations should treat AI as a strategic business capability first, and as a technology second.
As we move towards a future where AI becomes increasingly integrated into our lives and businesses, it's crucial for organisations to harness its transformative potential. By prioritising use-cases that enhance customer experiences, drive operational efficiencies, or create competitive differentiation, businesses can position themselves for sustained growth and success.
The author of this article is the partner and global leader of data and AI practice at Kearney. Global IT spending is projected to reach $5.74 trillion in 2025, marking a 9.3% increase over 2024, indicating a growing recognition of AI's potential. Embedding a business-first mindset is essential for securing sustained competitive advantage in an AI-driven marketplace.
- In the upcoming AI-driven marketplace, finance and investment sectors may leverage AI to boost customer engagement and retention, similar to Netflix, employing strategies like hyper-personalization, sentiment analysis, and context awareness.
- The market for Decentralized Finance (DeFi) could benefit from AI, as it could facilitate predictive analytics and operational efficiency, potentially streamlining regulatory processes like Moderna has done in the biotechnology sector.
- Artificial Intelligence can assist in various business domains, such as improving market analysis by integrating context awareness and automation, supporting data-driven decisions and growth strategies, thereby elevating a company's competitive advantage in the technology-driven market.
