Almost all companies have some form of Artificial Intelligence (AI) project, while others are in the planning stages. This reflects the reality that AI has become an integral part of the business landscape.
AI is evident in both consumer and business domains. For instance, the recommendation engines of companies like Amazon and Netflix are powered by AI. Although these engines incorporate machine learning, their ubiquity means that they are often taken for granted.
The initial applications of AI have been focused on new products or enhancements to existing products. Examples include AI assistants, chatbots, and AI’s contributions to autonomous cars, with significant investment in AI technologies driving this focus on innovation.
AI has brought about a wave of change in organizations, impacting areas such as predictive analytics, credit scoring, fraud detection, and personalized customer experiences. This ongoing innovation fueled by AI has become a key driver of organizational success.
As AI becomes more prevalent, its integration into organizations has evolved. It is no longer just a force for innovation but is increasingly being incorporated into key performance indicators (KPIs) to drive business growth.
There are two approaches to leveraging AI to improve KPIs: maximizing existing AI projects and purposefully developing AI for specific KPI improvements.
Companies can begin by conducting an innovation audit to assess how existing AI projects align with their current KPIs and long-term goals. This involves communication and collaboration to leverage innovation in new ways that benefit the organization.
The second approach involves incorporating AI into the planning stage by identifying company KPIs, particularly revenue-related KPIs, and exploring how AI can enhance them. For example, AI can increase app usage, improve content relevance, and enhance user engagement, all of which can impact revenue.
For organizations embracing AI as an integral part of their products and operations, AI is not only a KPI multiplier but also a revenue multiplier.
