What is the Role of AI in Business Analysis

The use of AI in business analytics is not a new phenomenon. However, it has only recently become available to a wide range of users thanks to the development of new-generation programs. Many AI tools offer balanced prices and can be operated without additional technical training due to simple interfaces. Thus, even small businesses can now use artificial intelligence. We will tell you what opportunities are available, what benefits you get, and what to expect in the near future. 

Impact of AI on Business Analytics

Artificial intelligence covers almost every aspect of business operations — from procurement of raw materials to sales, marketing campaign development, and customer support. If AI is not yet being used somewhere, the required solution will likely appear in the near future. The technology is still young, so it has huge potential. 

So, let's talk about how the combination of business analytics and AI can benefit businesses. 

1. Hyperpersonalization 

This term refers to the creation of marketing campaigns for very narrow segments of the target audience or even for individual consumers. According to Monetate, hyper-personalization increases the profitability of an enterprise by 10% and increases the probability of repeat purchases by 56%. Here are some examples that show how this mechanism works:

• A user opens a website, and artificial intelligence instantly analyzes their socioeconomic, demographic, geographic and behavioral characteristics. The system rebuilds the website in seconds, choosing the best multimedia elements, recommended products and calls to action.
• The mobile app recommends the delivery of certain dishes. After analyzing a user's location, order history, weather and several dozen other factors, it chooses the best option that will be difficult for a user to refuse.
• A subscriber is not satisfied with the SaaS service and is going to switch to a competitor. Artificial intelligence analyzes requests, compiles statistics on the usage of certain functions and identifies the interface elements on which the user most often stops. It creates a personalized guide and offers an individual discount to retain the customer. 

If you use hyperpersonalization in your marketing campaigns across communication channels, Claspo will ensure a consistent customer experience on your website. Set up your widget to be displayed only to visitors who came to your site from a specific campaign or traffic channel or after using a specific keyword that triggered your ad.

This way, your widget will also target narrow audience segments. By utilizing Claspo's A/B testing, you can pinpoint the most effective offer and trigger for each segment. This not only enhances your results but also provides valuable insights for further campaign improvements.

2. Protection against errors and fraud

According to Zipdo, the global economy loses 5-7% of its potential because of fraud and another 2-3% due to unintended errors. That amounts to trillions of dollars. Enough to solve many global social, economic, environmental and technological problems. And it seems that the situation is already improving. An Inscribe survey shows that 58% of financial institutions worldwide are already using artificial intelligence-based fraud prevention tools. They are able to detect suspicious transactions with an accuracy of 98%. 

The combination of business intelligence and AI is particularly effective in the following scenarios:

• To prevent money laundering/AML. Artificial intelligence is capable of processing tens of millions of transactions per second. It can trace money back to the source and identify transactions with suspicious accounts.
• To prevent corporate espionage. Data and digital asset management platforms can alert managers in case of violations of corporate policies regarding the use of information by individual employees.
• To reduce the number of mistakes. Artificial intelligence doesn't just build mathematical models; it can also check the raw data used in calculations. Experts at V500 Systems say that, based on their experience, artificial intelligence improves the quality of 80% of databases.
• To protect against hacker attacks. Artificial intelligence can cope with cybersecurity audits much better than a highly qualified specialist. Within a few hours, it will find all vulnerabilities and make recommendations for strengthening protections.

At the early stage of development, artificial intelligence simply sent warnings about possible problems. Today, it can act independently, blocking a transaction, correcting information in the database, or contacting a user via a chatbot to warn them of the consequences of violating the rules. 

3. Automated service

One of the key advantages of artificial intelligence is its ability to learn, modify its own code and make more effective decisions. A fairly simple AI-based business analysis system will help to implement new technologies and gain significant competitive advantages. 

Today, you can already see the following examples of artificial intelligence usage in customer service automation:

• Chatbots that have access to databases. They have information on product stocks and prices, the timing of marketing campaigns, delivery terms, and the history of interaction with a particular customer. Master of Code statistics show that such programs can increase conversions by 70%.
• Virtual text or voice assistants. The usual web surfing has been replaced by artificial intelligence. By forming queries with natural phrases, customers can find the goods, services or website page they need.
• Virtual personalities. No, this is not something from a cyberpunk movie — just look at the Samsung Neon project. Programs can already imitate human behavior, facial expressions, and speech on digital screens. We are just one step away from interactive holograms and androids in the service industry. 

You have most likely already dealt with artificial intelligence in this sector. According to Dashly statistics, 84% of retailers already use AI chatbots, and 80% of their customers have interacted with such programs at least once. 

Benefits of Using AI in Business Analysis

Artificial intelligence is the No. 1 topic of discussion in the business environment and beyond. Its effectiveness cannot be questioned. An Accenture report shows that using AI in business analytics increases workflow productivity by an average of 40%. In the future, the new technology can increase corporate profitability by 38%. 

And these are not all the benefits of artificial intelligence. Let us tell you more about the reasons it has become so popular. 

1. Entering new segments

If a particular group of consumers is interested in a company's product, it can take several months or even years to make a decision using standard methods about what new product to add to your assortment. With artificial intelligence, this period is reduced to weeks and days. Use Claspo widgets to check if a product will be in demand. For example, you can allow the audience to pre-order a new product. It will enable you to gauge interest in it, get contact details of excited buyers, and avoid overstocking or overproduction.

Try this template

2. Optimization of information flows

According to the CEO of MasterCard, data is the new oil. The only difference is that oil will run out one day, but data will always be here. You can share certain amounts of information with partners. For example, mobile app developers often share customer data with their colleagues to create joint offers. Important note: information can only be shared in an impersonal form without the ability to track a particular user. 

3. Improving customer experience

Sometimes, it seems that AI and business analytics are all-powerful tools in the hands of corporations that work only to enrich them. It is true that new technologies significantly increase workplace productivity, reduce labor costs and optimize budgets, but they also improve service quality by reducing the time it takes to find products, providing quick support and optimizing website interfaces. This improvement in bilateral relationships allows businesses to create better commercial offers and increases customer loyalty. 

Future Effects of AI on Business Analytics

A 40% increase in productivity is already a very serious achievement. At the same time, experts note that the potential of AI in business analytics is still enormous. They predict the emergence of new ways to apply the technology in the near future:

• Creation of complex business ecosystems. They will consist of many businesses that use shared data volumes but will not compete directly with each other. These conglomerates will combine their efforts to improve data processing and predict customer behavior more accurately.
• Precise forecasting of market fluctuations by improving the accuracy of predictive models. By combining AI with business intelligence, companies will be able to prepare for changes in advance rather than react to them. This will increase the resilience of enterprises and allow them to survive crisis periods better.
• Nanopersonalization. The increased performance of intelligent analytics systems will allow for the creation of individualized commercial offers for each user and the adjustment of prices, delivery times and other parameters. In the more distant future, it will be possible to see an individualized selection of characteristics of various goods such as clothing, household appliances, cars, etc. 

Many experts also see the future of AI in business analytics as an "all-inclusive" model. Smart assistants will track people's needs, automatically ordering the necessary goods and services for them within specified budgets. It is quite possible that such a post-information society will give impetus to the development of a new era of technology, arts and social sciences.