Why is artificial intelligence the next big competitive advantage for industry?
maalis 6
2 min read
0
3
0
Artificial Intelligence (AI) has emerged as one of the most significant technologies that offers significant business benefits to companies. In this text, I will review research I conducted with a Finnish industrial player.
Integrating artificial intelligence into business processes not only improves operational efficiency, but also enables strategic reforms that support a company's competitiveness and long-term growth.
The study produced 107 probable use cases, which were evaluated with key personnel using various variables from the perspective of strategic fit and feasibility.
According to my research, AI solutions can achieve significant performance impacts in the company in question, equivalent to up to 6% growth in revenue and up to 150% improvement in the company's earnings before taxes (EBT).
The results depend on the speed of implementation and the extent of investments. In particular, the use of AI in the areas of production optimization and decision-making support proved to be very profitable, as the results achieved in these areas formed a significant part of the overall improvement.
The key use cases identified in the study, such as AI-based demand forecasting, production planning, and decision-making support with AI, clearly showed that AI can achieve significant efficiency and cost benefits, especially in the areas of operational processes, decision-making, and innovation.
The most significant business benefits of artificial intelligence
Improving operational efficiency:
Artificial intelligence enables the optimization of production processes, predictive maintenance of machines, and automation of quality control. This reduces downtime, improves productivity, and significantly reduces manufacturing costs.
Decision-making speed and accuracy:
AI-powered analytics help business leaders make informed decisions faster. Demand forecasting and production planning using AI can reduce warehousing costs and improve delivery capabilities.
Increasing customer value:
Personalized customer experience and AI-based customer communication increase customer satisfaction. AI can analyze customer needs proactively, which improves customer loyalty.
Accelerating innovation:
Artificial intelligence can empower innovation teams by providing new perspectives and solutions, which speeds up product time to market and improves their competitiveness. This not only reduces product development costs but also makes innovation processes more efficient.
Future prospects
AI is more than just a technology; it is a strategic tool that can fundamentally change the business models of industrial players. The study also addressed key AI capabilities, such as data management, technical expertise, and developing an AI culture , which are critical for successful AI adoption. I will write about these key capabilities in more detail in future blog posts, where I will delve into how they can strengthen competitive advantage in all organizations.
The roadmap developed in my research provides a concrete plan for the phased adoption of AI. The roadmap focuses on three areas in particular: developing data capabilities, strengthening technical infrastructure, and increasing technical expertise.
In the short term, I recommend implementing artificial intelligence pilots in, for example, production quality control and demand forecasting.
In the medium term, the focus will shift to large-scale adoption of technology and increasing customer value.
In the long term, the goal is to integrate artificial intelligence into core business models, which would enable the development of innovative services and products.
By following the roadmap, a company can leverage AI in stages and achieve incremental business value.
