We have covered the use of artificial intelligence (AI) in several different industries and aspects of the business, healthcare, and technological sectors. AI is transforming our world as we know it, and is only continuing to grow. Check out a few of these statistics gathered by Exploding Topics that show how big AI has become:
The global AI market is valued at over $279 billion
The US AI market is forecast to reach $299.64 billion by 2026
By 2025, as many as 97 million people will work in the AI space
In this blog, we will cover how AI is transforming business intelligence (BI). BI refers to the set of business processes and technologies that are used by organizations to collect, manage, and analyze large amounts of data in order to gain business insights that will help with informed decision making and strategy. AI has been impacting these processes greatly and will continue to do so in the coming year.
How is AI used in business intelligence?
Artificial intelligence is a powerful tool that has strong analytical and predictive capabilities. These factors make it a very useful option for reshaping business intelligence processes within many organizations. Instead of simply gaining descriptive business insights from BI, businesses can receive predictive ones that can help with foreseeing future results. In addition, AI-powered BI can handle much larger and more complex data sets. Here are a few specific examples of how AI is used in BI, as well as some real-world examples from major organizations:
Demonstrating various business scenarios in different situations in order to identify the best possible course of action
Generating personalized content recommendations
Enhancing the search experience with autocompletion, the ability to understand mistyped requests, and suggesting similar results
Microsoft has implemented Azure AI capabilities into its Power BI so that it now offers predictive modeling, anomaly detection, and more. Companies that use this can now predict their customer’s behavior, identify any potential issues in their supply chains, and adjust marketing campaigns after receiving customer feedback.
Amazon has been utilizing AI capabilities in their business intelligence to improve their organization. They can analyze customer purchase history and browsing behavior in order to personalize recommendations, launch specific marketing campaigns, and predict demand for certain products.
Benefits of AI in business intelligence
1. Analyze larger sets of data: AI has the ability to analyze vast amounts of data, making it a more efficient way to enhance BI than what humans alone are capable of. Using AI can also produce more accurate results in a much faster time frame.
2. Free up valuable time: Employees can rely on AI systems to do most of the time-consuming administrative tasks like adding numbers to spreadsheets, which can take hours to complete. Now, these workers can focus their attention on the actionable insights produced by the AI tools and develop relevant strategies.
3. Make more informed decisions: As described previously, AI can use predictive analytics to not only provide descriptive business insights, but ones that can present results for the foreseeable future. Using these predictive insights, businesses can make more informed decisions and relevant strategies to drive growth and achieve goals.
Challenges of AI in business intelligence
1. Upskilling workforce: With the introduction of new technologies, current employees will need to spend time training and learning new skills to be able to utilize them effectively. Sometimes, organizations may need to consider hiring new employees that have developed skills in AI and BI.
2. A need for suitable data: AI requires prepared data that is suitable for the systems in order to begin automation. This data also needs to be effectively managed to avoid any potential misuse and to address security issues.
3. Ethical concerns: With AI, there is going to be a concern of ethics, data privacy, and potential bias. It is highly important that customers are comfortable with AI systems handling their data and information, and it is critical that organizations regulate the use of AI and stay compliant with rules on data usage.
Overall, AI has certainly been transformative when it comes to business intelligence, and we can only expect even more evolution in the coming future. These new technologies have benefitted BI in tremendous ways, but not without their challenges. If organizations stay aware of both the advantages and drawbacks of using AI for their business intelligence processes, AI can prove to be a very useful tool to enhance their operations.
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