Use Cases for AI in Business: Saving Time and Money

When implemented successfully, Artificial Intelligence (AI) has the power to transform how businesses operate, from customer service all the way through to risk management. Let's look at some practical AI use cases that businesses like H&M, Spotify, Walmart, and others are implementing today.

Improved access to customer assistance

AI-powered chatbots and virtual assistants are among the most popular tools for improving customer service. Available 24/7 to provide instant responses and resolve common queries, these bots, such as Domino's ‘DOM’, ensure customers have access to the information they need while freeing up human agents for more complex issues.

Similarly, H&M uses AI chatbots to assist customers with product searches and order management, significantly reducing wait times and improving the quality of service.

Key benefits:

Immediate response to customer queries, reducing wait times
Reduced operational costs through automation
Improved customer satisfaction with consistent, real-time support

Personalised marketing and content creation

Companies that use AI to analyse vast amounts of customer data are able to tailor their marketing campaigns very specifically to their different audiences, even down to the personal level. For example, Starbucks use AI to personalise their customer rewards program, analysing individual purchase behaviour and offering tailored promotions. In 2019, they attributed a massive 40% of their overall sales to the program.

Meanwhile, Spotify employs AI to curate personalised playlists for their users based on their listening habits, fostering deeper engagement and retention.

Companies can also use platforms like Jasper AI to generate customised marketing content, helping them to create more relevant communications with minimal effort.

Key benefits:
- Data-driven insights enable hyper-targeted marketing strategies
- Improved engagement and conversion rates through personalisation
- AI-generated content accelerates the creation of personalised messaging

Improved operational efficiency

Nothing beats AI for automating repetitive tasks and helping businesses improve their operational efficiency. AI-powered automation platforms like UiPath help businesses by taking over their administrative tasks such as data entry and invoice processing, which significantly reduces human error and speeds up operations.

Companies such as Walmart use AI to manage their inventory by automating the reordering process and reducing both overstock and stockouts, resulting in a more streamlined supply chain, reduced waste, and a better shopping experience for customers who can reliably find the products they need.

Key benefits:
- Automation of routine tasks increases productivity and reduces human error
- Real-time inventory monitoring leads to better stock management
- Optimisation of processes leads to enhanced overall performance across various business functions

Better risk management and fraud detection

AI can be a powerful tool for enhancing security and managing risks in the business environment, especially in industries that handle financial transactions. Companies like PayPal and Mastercard use AI algorithms to monitor transaction data and detect fraud in real-time, significantly reducing the risk of financial loss.

Additionally, federal agencies in the United States and beyond have adopted AI-powered compliance monitoring processes. By automating these processes, companies can reduce human error, ensure consistent application of rules, and quickly adapt to changing regulations.

Key benefits:
- Real-time detection of fraudulent activities reduces financial risks
- AI-based risk analysis enables proactive security measures
- Automated compliance monitoring lowers the cost of regulatory oversight

What’s next? Challenges and considerations

While AI offers significant opportunities, businesses need to approach it thoughtfully. Some of the key challenges include data privacy concerns, high implementation costs, and the steep learning curve associated with AI technologies. Successful AI projects require clear objectives, cross-functional collaboration, and consistent monitoring to ensure a positive return on investment (ROI).

Key challenges:
- Data privacy - ensuring compliance with regulations such as General Data Protection Regulation (GDPR).
- Cost of implementation - investing in AI tools and training staff can be expensive.
- Learning Curve - businesses must ensure their teams are equipped to integrate AI into workflows effectively.

AI has many use cases that can help businesses save time, reduce costs, and operate more efficiently. While challenges such as data privacy and cost must be addressed, the long-term gains of AI adoption are undeniable.