Leveraging Artificial Intelligence for Business Transformation

Leveraging Artificial Intelligence for Business Transformation

InCorp Editorial Team

Table of Content

The widespread adoption of artificial intelligence (AI) is transforming how businesses operate, providing a competitive edge by optimizing processes, enabling data-driven decisions, and enhancing customer experience. 

AI technologies, ranging from predictive analytics to chatbots and virtual assistants, are utilized in various industries to enhance efficiency and optimize operations.

AI on Today’s Business Landscape

The intended purpose of artificial intelligence is not to substitute human intelligence and creativity but rather to aid and bolster them.

Although AI currently struggles with common sense tasks in the real world, it excels at processing and analyzing large amounts of data much faster than humans can. 

AI software can then provide synthesized courses of action to human users. It helps to streamline decision-making processes and consider potential consequences.

According to Amir Husain, founder and CEO of machine-learning company SparkCognition, AI is like the next generation of software that can make decisions independently and act in unforeseen situations.

These qualities make AI highly beneficial in various industries, from simple tasks such as guiding people around a corporate campus to complex tasks like monitoring wind turbines to predict necessary repairs.

What is Artificial Intelligence?

Artificial Intelligence is a computer system that can carry out tasks that traditionally necessitate human intelligence, such as decision-making, problem-solving, learning, and reasoning. 

AI can analyze large amounts of data, recognize patterns, and make predictions or recommendations based on that data. As a result, this technological innovation has become increasingly prevalent in today’s world, powering everything from voice assistants to self-driving cars.

Machine Learning and Deep Learning

What is Machine Learning?

Machine learning is a type of AI commonly used in businesses to process large amounts of data quickly. It is an algorithm that improves over time as it receives more data. 

Machine learning is a broad category and has given rise to deep learning. But, overall, machine learning is beneficial for making vast amounts of data understandable for humans.

Understand Deep Learning

Deep learning is a machine learning approach that utilizes neural networks to perform nonlinear reasoning. It is essential for advanced functions like fraud detection, as it can analyze multiple factors simultaneously. 

Deep learning has significant potential in business and continues to improve performance as more data is received, making it more scalable and detailed than older machine-learning algorithms. 

Deep learning models are more independent in their capability to improve performance.

Read more: How Important Is Modern Technology in Education Systems?

The Role of AI in Digital Transformation

As customers increasingly demand better and quicker experiences, digital transformation has become crucial for businesses to remain competitive and survive.

AI catalyzes innovation and data-driven decisions and keeps up with consumers’ increasing speed. Statistics show that 80% of business and tech leaders believe that AI boosts productivity, and 61% of marketers consider it an essential aspect of their data strategy. 

Companies incorporating AI into their digital transformation strategy achieve profitable results, with 98% generating an additional 15% in revenue.

5 AI’s Roles in Business Transformation

Leveraging Artificial Intelligence for Business Transformation

Artificial intelligence and machine learning can benefit businesses in numerous ways.

With the AI market projected to attain a value of $500 billion by 2024, it highlights its increasing significance. Below are five methods in which AI can revolutionize businesses:

1. Automated Operations

AI enables automated operations, freeing the workforce to focus on more critical tasks due to optimized day-to-day tasks. 

2. Informed Decision-making

Artificial intelligence broadens the range of scenarios where decision-making can be applied. It aids in detecting trends, forecasting outcomes, and proposing optimal actions. 

As a result, it supports businesses in charting their course of action and accomplishing their objectives and mission.

3. Enhanced Productivity

AI enhances productivity by streamlining day-to-day tasks, automating routine processes, and eliminating repetitive manual work.

4. Recruitment and Talent Sourcing

AI helps recruiters and talent-sourcing teams find skilled candidates more efficiently. 

For example, AI-powered talent-sourcing solutions can recommend top candidates based on job descriptions, while chatbots can help with screening. 

In addition, ML algorithms can analyze data patterns in resumes, social media profiles, and interview answers to score and summarize candidates’ qualifications.

5. Adopting A Customer-centric Approach

Artificial intelligence (AI) empowers companies to comprehend their clients better and personalize their products and services by analyzing vast amounts of data from customer interactions, social media, and online behavior. 

How Businesses Manage AI Transformations

Analyzing real-world initiatives has identified four essential business AI transformation guidelines. These golden rules, when implemented collectively, mutually support each other.

1. Aim for Simplicity

Breaking down complex initiatives into smaller and manageable parts.

2. Establish a Brisk Rhythm

Maintain a brisk pace, shorten the intervals between milestones, document lessons learned, and share them with the team.

3. Identify Problems at An Early Stage

Implement proper monitoring and avoid adjusting targets to evade red flags, execution problems, and lower realization rates.

4. Leverage Expertise

Assigning suitable individuals to appropriate roles and valuing experience and accountability are crucial factors for organizational success.

Legal and Ethical Considerations for AI Implementation for Business

Indonesian regulations mandate that paid AI services must possess an electronic system operator license (PSE) registration.

Six categories of PSE and businesses that offer those services must register themselves. 

This registration is regulated under Government Regulation No. 71 of the Year 2019 and Ministry of Communication and Informatics Regulation No. 5 of the Year 2020, further amended in 2021. 

For companies utilizing AI services for daily operations, ensure these services are correctly registered as required. InCorp Indonesia (formerly Cekindo) provides services that look into legal compliance and business licensing that would ease this process for businesses. 

Benefits of Using Registered AI Under PSE Regulations for Business

PSEs that do not register themselves will be sanctioned, such as termination of access to the electronic system or access blocking. 

The Ministry of Communication and Informatics claims that registered PSE companies would provide transparency, increase public trust towards electronic service providers, and help build an ecosystem for Electronic systems and Transaction Operations. 

In conclusion, businesses looking to gain a competitive advantage and utilizing artificial intelligence should pay extra attention to the legality of the technology. 

As this is a new development, the regulations are still being formulated. Nevertheless, companies should remain vigilant to ensure adherence to legal compliance.

Tjhia Edy Tarlesno

Legal & Compliance Manager at InCorp Indonesia

Edy Tarlesno holds various certifications and a respectable degree to be an expert on internal and external legal compliance in Indonesia. His experience starts from bankruptcy and insolvency, leading to a prominent social foundation consultancy in Indonesia.

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