Role of AI in Business and

Management
Three Types of AI
It is useful for companies to look at AI through the lens of business capabilities rather than
technologies. Broadly speaking, AI can support three important business needs: automating business
processes, gaining insight through data analysis, and engaging with customers and employees

Cognitive automation
RPA (Robotic Process Automation) is the least expensive and easiest to implement of the cognitive
technologies we’ll discuss here, and typically brings a quick and high return on investment. (It’s also
the least “smart” in the sense that these applications aren’t programmed to learn and improve,
though developers are slowly adding more intelligence and learning capability.) One might imagine
that robotic process automation would quickly put people out of work. But across the 71 RPA
projects we reviewed (47% of the total), replacing administrative employees was neither the primary
objective nor a common outcome. Only a few projects led to reductions in head count.

Cognitive insight
The second most common type of project in our study (38% of the total) used algorithms to detect
patterns in vast volumes of data and interpret their meaning. Think of it as “analytics on steroids”.
While the activity of data curation has historically been quite labor-intensive, now machine learning
can identify probabilistic matches—data that is likely to be associated with the same person or
company but that appears in slightly different formats—across databases. Cognitive insight
applications are typically used to improve performance on jobs only machines can do—tasks such as
programmatic ad buying that involve such high-speed data crunching and automation that they’ve
long been beyond human ability—so they’re not generally a threat to human jobs.

Cognitive engagement
Projects that engage employees and customers using natural language processing chatbots,
intelligent agents, and machine learning were the least common type in our study (accounting for
16% of the total). The companies in our study tended to use cognitive engagement technologies
more to interact with employees than with customers. That may change as firms become more
comfortable turning customer interactions over to machines. Vanguard, for example, is piloting an
intelligent agent that helps its customer service staff answer frequently asked questions. The plan is

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to eventually allow customers to engage with the cognitive agent directly, rather than with the
human customer-service agents.

The Future Cognitive Company

Our survey and interviews suggest that managers experienced with cognitive technology are bullish
on its prospects. Although the early successes are relatively modest, we anticipate that these
technologies will eventually transform work. We believe that companies that are adopting AI in
moderation now—and have aggressive implementation plans for the future—will find themselves as
well positioned to reap benefits as those that embraced analytics early on.

Through the application of AI, information-intensive domains such as marketing, health care,
financial services, education, and professional services could become simultaneously more valuable
and less expensive to society. Business drudgery in every industry and function—overseeing routine
transactions, repeatedly answering the same questions, and extracting data from endless documents
—could become the province of machines, freeing up human workers to be more productive and
creative. Cognitive technologies are also a catalyst for making other data-intensive technologies
succeed, including autonomous vehicles, the Internet of Things, and mobile and multichannel
consumer technologies.

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The great fear about cognitive technologies is that they will put masses of people out of work. Of
course, some job loss is likely as smart machines take over certain tasks traditionally done by
humans. However, we believe that most workers have little to fear at this point. Cognitive systems
perform tasks, not entire jobs. The human job losses we’ve seen were primarily due to attrition of
workers who were not replaced or through automation of outsourced work. Most cognitive tasks
currently being performed augment human activity, perform a narrow task within a much broader
job, or do work that wasn’t done by humans in the first place, such as big-data analytics.

Most managers with whom we discuss the issue of job loss are committed to an augmentation
strategy—that is, integrating human and machine work, rather than replacing humans entirely. In
our survey, only 22% of executives indicated that they considered reducing head count as a primary
benefit of AI.

(Harvard Business Review Jan-Feb 2018, Artificial Intelligence for the Real World, Thomas H.
Davenport and Rajeev Ronanki)

AI Adoption by Industry
AI is likely to affect various industries in the future.

77% of businesses are using or exploring AI. (Source: IBM)

Among them, 35% of companies are using AI and 42% of companies are exploring AI for its
implementation in the future. AI usage is constantly growing. It offers a number of advantages, such
as improved accuracy, efficiency, and productivity in a wide variety of tasks.

In 2022, large companies are twice as likely to use AI than small companies. However, 41% of small
companies are developing an AI strategy for the future. Chinese and Indian companies have the
highest levels of AI adoption at almost 60%. This is more than twice as high as AI adoption in
countries such as the US (25%), the UK (26%), Canada (28%), Australia (24%), etc.

In 2022, 53% of IT companies across the globe reported they have accelerated AI adoption for the
last 2 years. In 2021, there were only 43% of such companies.

15% of enterprises are using AI, and 31% of them say that it is their agenda for the next 12 months.
(Source: Adobe)

72% of execs believe that AI will be the most significant business advantage of the future. (Source:
PwC)

AI will increase labor productivity and optimize business efficiency by 67%, automate communication
by 70%, and improve data analytics by 59%, according to AI predictions. 27% of executives say that
their organization plans to invest in AI cybersecurity safeguards.

This is one of our most vital AI facts. You might plan to go slow on AI implementation, but with
cyber-attacks growing every day there’s no benefit in holding back. The more AI systems you use in
your organization, the easier it will be to defend from cyber-attacks. There are some companies that
are already building AI-enabled cloud-based threat lakes and more.

17. Financial services are the future of AI. (Source: emerchantbroker)

AI statistics predicted financial services companies to spend $11 billion on artificial intelligence in
2020. Experts claim that it will be well-spent money since it will improve areas such as fraud
prevention, improving user experience, and streamlining underwriting.

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18. About 250 million cars were predicted to have an Internet connection by the end of 2020.
(Source: Flexis)

You might have heard that there could be driverless cars in the future. While this could be just
speculation, internet-connected vehicles are already here with us. We already have automobiles
that can give real-time alerts regarding accidents using the net. Experts predicted that internet-
enabled vehicles would reach 250 million by the end of 2020.

19. Machine and asset maintenance in manufacturing takes 29% of AI automation. (Source: Forbes)

According to AI stats in 2020, nearly 30% of AI adoption in manufacturing goes to maintenance. The
technology senses when machines are about to fail and recommends a suitable time for repairs.

20. AI implementation in consumer packaged goods has led to a 20% reduction in forecast errors.
(Source: Forbes)

AI and machine learning statistics show that manufacturers are now using technology to predict
demand. A lot of times, companies spend a lot of resources on advertising and activations.
Eventually, the orders ended up being more or less than these companies had anticipated. AI has
eliminated nearly a 1/4 of such mishaps in this industry.

21. 70% of manufacturers still haven't adopted digital operating systems. (Source:
McKinsey&Company)

A whopping three-quarters of manufacturers haven't brought the Fourth Industrial Revolution (4IR)
innovation to scale. However, 30% of companies using this digital innovation say that it has
generated value in terms of relationships between customers and suppliers.

22. Automation could free up 10% of nursing activities by 2030. (Source: EIT Health)

AI in medicine statistics shows that humans will still do 90% of nursing activities by 2030. The
surprising thing is that the World Health Organization (WHO)predicts that there will be a shortfall of
18.2 million healthcare workers during the same period. It's either that nursing institutions are not
producing the required number of qualified nurses, or AI will be the only way out.

AI in The Retail Industry

Technology is revolutionizing the retail world, and the following stats support that claim.

23. Global AI in the retail market is predicted to be valued at $31.18 billion in 2028. (Source: Fortune
Business Insights)

In 2021, AI in the retail market was valued at $4.84 billion and is expected to grow at a CAGR of
30.5% from 2021 to 2028.

24. In 2021, 73% of retailers planned to introduce AI to optimize their pricing. (Source: Aiiot)

AI in retail statistics shows that 3/4 of retailers will use artificial intelligence to determine prices.
Without the systems, it's hard for sellers to know when to raise costs, for instance, when there's an
increase in seasonal demand.

25. 75% of companies plan to use AI systems to eliminate fraud. (Source: Aiiot)

Money lost to fraudsters was predicted to reach $35 billion by 2020. AI efficiency statistics show that
smart algorithms are great in reducing credit card fraud. Hence, 3/4 of retailers plan to adopt such
technologies in the coming years.

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26. With machine learning, Amazon reduced its “click to ship”. (Source: McKinsey)

According to McKinsey’s research into AI statistics, Amazon strategically acquired Kiva, a robotics
company that automates the process of picking and packing in the warehouse. With Kiva, the
average click-to-ship time is 15 minutes, which is a 225% improvement from where it was.

27. 87% of AI adopters said that they were using, or at least considering using, AI for sales forecasts
and to improve their email marketing. (Source: Statista)

Statista conducted an online survey of 1,028 respondents in 2017 and found that 61% of them were
planning to use AI for sales forecasting.

How Many Jobs Will AI Replace?

28. It is estimated that 85 million jobs worldwide could potentially be replaced by AI and other
automation technologies by 2025. (Source: World Economic Forum)

However, 97 million new jobs will be created. New roles may be created to manage and maintain
the automation technology, as well as roles to manage the ethics, safety, and security associated
with the technology.

AI Replacing Jobs and Employment Market

AI might replace most jobs in the coming years, but the big question is, are we ready for it?

29. Intelligent robots could replace 30% of the human workforce globally by 2030. (Source:
McKinsey&Company)

Experts predict that the adoption of automation will contribute to job losses in the coming years. By
2030, the labor force will have reduced by over 1/4 of what it was in 2017. This shift will be similar to
that of the 1900s when Americans and Europeans moved away from agricultural labor.

30. AI will automate 16% of American jobs. (Source: Forrester)

Forrester has forecasted a few of the major AI adoption statistics, saying that cognitive technologies
like AI will also create a few jobs; however, even with that addition, automation will replace a net of
7% of US jobs by 2025.

31. 375 million people will have to switch careers by 2030. (Source: McKinsey&Company)

According to AI technology statistics, robotics could replace about 800 million jobs, making about
30% of occupations extinct. With this significant shift, nearly 400 million people will have to adapt
and change and careers.

32. 52% of experts believe that as much as automation will displace people from their careers, they
will still innovate more jobs. (Source: Pew Research Center)

The future does look gloomy, with almost a billion qualified people becoming unemployable.
However, there's a light at the end of the tunnel. Experts have faith in human ingenuity to create
more careers that won't require AI. Just like humanity rose after the industrial revolution, it also will
after the AI takeover.

33. The current educational structures aren't ready for the effects of AI on employment in 2030 and
beyond. (Source: Pew Research Center)

Scary facts about artificial intelligence show that learning institutions are not preparing today's
generation for the future. If we're to cope with automation in the coming decades, we need to equip

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ourselves with the right knowledge and skills. Therefore, the education sector needs to do more in
this area.

Machine Learning and AI Stats

Machine learning is the core of artificial intelligence, and it's widely used in numerous industries.

34. Machine learning is predicted to grow by 48% in the automotive industry. (Source: Tractica)

Both semi- and fully autonomous vehicles will rely entirely on AI systems. However, the impact will
not be restricted to autonomous driving. Suppliers will also be able to use AI to personalize their cars
and make them more convenient. With this, the compound annual growth could increase by 48.3%.

35. Google’s Machine Learning Program is 89% accurate. (Source: Google)

With 89% accuracy, Google’s deep learning program is 15% more effective than pathologists.

36. In 2017, Netflix saved $1 billion by using machine learning. (Source: Forbes)

Customers will give up on a search after 90 seconds, according to research conducted by Netflix,
supported by other artificial intelligence statistics from 2017. With this in mind, Netflix implemented
a working machine learning algorithm that now automatically recommends personalized movies and
TV shows to subscribers. Other big OTT services1, like Amazon Prime and Hulu, are also using
artificial intelligence to garner the 30-crucial seconds of user attention. In order to have a hold on it,
video streaming providers are considering the viewing habits and patterns as key factors.

37. 36% of executives say that their primary goal for incorporating AI is to optimize internal business
operations. (Source: Harvard Business Review)

The project report on HBR says that AI can support three types of business capabilities: automating
business processes, engaging with customers and employees, and gaining insights through data
analysis.

38. 20% of C-suite uses machine learning. (Source: McKinsey)

A paper by McKinsey shows that 20% of C-level executives across ten countries consider machine
learning to be a core part of their business.

Artificial Intelligence Usage Statistics for 2023

39. AI technology can enhance business productivity by up to 40%. (Source: Source: Accenture)

Accenture researched the impact of AI in 12 developed countries. The study revealed that it could
double economic growth rates by 2035. AI will enable people to use their time efficiently, which will
increase their productivity by 40%. This is especially true for global IT economics.

40. Businesses with more than 100,000 employees are more likely to have a strategy that
implements AI. (Source: MIT)

Some AI stats published in MIT Sloan Management Review show that three-quarters of executives
believe AI will enable their company to expand and many believe that it will allow their enterprise to
gain a competitive advantage.

41. 47% of established organizations have a defined AI strategy for mobile. (Source: CMO)

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Over The Top, also known commonly as OTT, is a technology that enables content owners to manage the
process of delivering video content across multiple devices using the internet.

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Well, this is one of the best artificial intelligence stats from 2018 that every business owner needs to
know. As a part of their marketing efforts, 47% of the more advanced enterprises have applied an AI
strategy to their mobile apps; additionally, 84% use a personalized strategy.

42. 41% of consumers believe artificial intelligence will improve their lives in some way. (Source:
Strategy Analytics)

There’s no denying that artificial intelligence has also dominated the technological landscape. With
that said, consumers in India and China are more likely to embrace this technology.

43. Only 33% of consumers think they’re already using AI platforms.,(Source: PEGA)

This is one of the more interesting AI facts; only 33% think that they use technology that features
artificial intelligence. The actual number is, shockingly, much higher. In reality, 77% use an AI-
powered service.

44. 84% of global business organizations believe that AI will give them a competitive advantage.
(Source: Statista)

84% of business organizations will adopt AI because it gives them a competitive advantage over their
rivals. That is the conclusion, according to a 2017 artificial intelligence Statista study.

45. Only 17% of email marketers planned on using artificial intelligence in 2018. (Source:
Econsultancy)

17% of in-company respondents and 21% of agencies planned to innovate with AI in 2018. However,
after a number of studies, AI has already proven to be a prominent technology in the marketing
medium. That's why the best email marketing tools are implementing AI to boost their efficiency.

46. The Washington Post’s “AI Writer” wrote more than 850 stories during the Rio Olympics.
(Source: The Washington Post)

The Washington Post tried leveraging AI to report on key information during the 2016 Rio Olympics.
They developed a writer, named Heliograf, who was used to generate multi-sentence updates to
readers. It processed a combination of different data sources and then customized around 850
stories, depending on user requests.

How Many People Use Voice Assistants?

With helpers like Siri, Alexa, and Google Assistant, AI and voice search go hand in hand. Let's check
out the numbers that prove it.

47. 97% of mobile users are already using AI-powered voice assistants. (Source: IDAP)

According to a study by IDAP, only 2% of iPhone owners have never used Siri, and only 4% of
Android owners have never leveraged the power of OK Google. When it comes to usage, 51% use
voice assistants in the car, 6% in public, and 1.3% at work.

48. More than 4 billion devices already work on AI-powered voice assistants. (Source: Statista)

More than 4 billion devices already have AI-powered assistants, and this number is set to reach 8.4
billion by 2024.

49. Nearly half of Americans use digital voice assistants. (Source: Pew Research)

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A 2017 Pew Research study showed that 46% of Americans use digital assistants to interact with
their smartphones. Voice assistants are present on a diverse range of devices, so 42% of users have
the tech on their smartphones, 14% of them use it on a computer or tablet, while 8% of them use it
on a standalone device such as Amazon Echo or Google Home. We can also see AI technologies in
use by some CRM platforms. For instance, Salesforce and Zoho are offering virtual assistants to their
customers.

How Many People Use Voice Search?

50. 40% of people use the voice search function at least once every day. (Source: Location World)

With this percentage, it’s clear that the use of voice search is slowly becoming commonplace in
people’s everyday lives.

51. 30% of web browsing and searches were done without a screen by the end of 2020. (Source:
Gartner)

Audio-centric technologies like Amazon Echo have access to dialogue-based information. According
to the AI statistics provided by Gartner, the voice-first interaction will gain prominence in no time.

How Many Companies Use AI Chatbots?

52. 25% of travel and hospitality companies around the world have implemented chatbot technology
to give users an easier way to ask general inquiries or complete bookings. (Source: Statista)

53. 23% of customer service organizations are using AI chatbots. (Source: Salesforce)

AI chatbots are becoming increasingly popular in customer service organizations due to their ability
to provide quick and accurate responses to customer inquiries. According to the Salesforce report,
23% of customer service organizations already use AI chatbots to provide better customer service.

Chatbots and Artificial Intelligence Facts and Figures

The best chatbots are becoming increasingly sophisticated and make use of AI and machine learning
to provide a better user experience.

54. 85% of customers’ relationships with business enterprises will be managed without human
involvement. (Source: Gartner)

Currently, virtual assistants like Alexa and Siri have an excellent understanding of our (English)
language. They decipher the meaning of what humans say and, at times, make a judgment as well.
With increasing innovation, these chatbots can also be used to automate even more responses to
basic client queries.

55. 67% of people expect to use messaging apps to talk to a business, which makes chatbots quite
significant. (Source: Chatbots Magazine)

Live chat has taken over customer care. Chatbots are one of the simplest ways to solve a problem.
They give consumers an immediate response, and this real-time exchange has changed consumers’
communication preferences.

56. 38% of consumers on a global level prefer to use chatbots. (Source: Business Insider)

A survey of 5,000 consumers across six countries found that 38% rated their overall perception of
chatbots as positive. 11% had a negative perception, while 51% gave a neutral statement.

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https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-what-the-
future-of-work-will-mean-for-jobs-skills-and-wages

https://www.fortunebusinessinsights.com/artificial-intelligence-ai-in-retail-market-101968

Digital readiness
Digital became a mandate for every business in the last year, with e-commerce and mobile
commerce exploding. Adobe’s Digital Economy Index shows that consumers spent $813 billion
online in 2020, which is up 42% from 2019. The surge in digital resulted in a massive shift in how
people buy goods and services, which has been a catalyst for positive change.

According to Rajamannar, the brands that were able to stay resilient, successful and innovative
during the pandemic were those that were the most digitally mature, unique and empathetic. The
organizations that were already masters in digital content, processes/workflows and experiences
didn’t have to deal with the last-minute shuffle online. Instead, they could focus on ways to
creatively stand out from the masses and support their customers and communities.

“When everyone is coalescing around the same set of themes, and the same priorities and the same
pressures, the best of the brands still managed to keep themselves unique and differentiated as
opposed to become a part of this sea of sameness,” Rajamannar said. Empathy and leading through
the lens of serving and not sell, he added, both for consumers and for society at large was of the
utmost importance.

https://business.adobe.com/blog/the-latest/agility-empathy-purpose-steered-mastercard-during-
pandemic (May 2021)