Information technology is the wellspring of many innovations that have changed the way the entire business sectors operate. These innovations include cellular phones, wireless connectivity, and cloud-based software. Industry analysts are already on the lookout for the next generation of these “disruptive technologies” and one of the most anticipated is artificial intelligence.
Though systems that utilize artificial intelligence are still expanding their capabilities and functions, they’re already making an impact in aspects of business management. These organizations see AIs as more efficient and more productive than older systems, particularly when it comes to supply chains and inventory management. In a commercial environment that’s embracing IT solutions, such as apps for return merchandise authorization and task tracking software, how can AIs change the playing field?
The Game Has Changed
Companies can look forward to using AI programs in their processes. Forecasters expect these programs to make waves in two aspects of commercial operations, namely inventory management and supply chain management.
Inventory, along with accounts receivable and payable, amounts to approximately $1.1 trillion. This is equal to about 7 percent of the GDP of the United States. By using AIs, businesses can ensure that this portion of their operations remains efficient and profitable. Corporations that use AIs can optimize it to predict what the correct amount of stock levels they should have. With enough data from previous orders, AIs can inform suppliers and distributors on purchase trends and predict rises in demand.
Companies can avoid the fiscal consequences of overstocking inventory if they optimize their AIs to warn them of unnecessary purchases. Artificial intelligence with advanced enough predictive capabilities and sufficient data can pinpoint when is the right time to order stock. It could schedule these orders before sudden influxes of demand for limited products and supplies.
Organizations are also investing in increasing the utility of artificial intelligence in supply chain management and logistics. These aspects of businesses require and consume large amounts of data; this gives them the data capacity to actually use AIs to their full potential. Conversely, AIs can process and analyze data in enormous quantities, giving them the information they need to reduce costs and boost the efficiency of operations. This could mean the AIs can examine the management performance of supply chains and make necessary alterations to increase productivity.
These are only some of the advantages that AIs can theoretically offer organizations. Even the promise of increased productivity and efficiency is enough to fuel interest and investment in their development.
Integration of Automation
A survey of IT and business decision makers revealed that although 91 percent of the respondents expect barriers to AI integration, 61 percent of them are preparing to employ chief AI officers in the years to come. Also, 80 percent of the survey participants said that they already employ a form of AI in their organization, but about 42 percent recognize there is more room for these programs in their operations. Companies are also looking forward to a return of investment of $1.23 for every dollar they will invest in AI in the present.
Competitive businesses stay at the forefront, at the cutting edge. This allows them to stay ahead of the pack, and keep their organizations upgraded and ready for the future. Artificial intelligence is looking more and more likely to be the next great leap into the future. If these numbers and results are anything to go by, businesses are looking forward to taking that leap.