Innovation has become the key mantra for so many organizations around the world which are looking for exponential growth and success in the marketplace. In this quest, Artificial Intelligence (AI) has become an important technology area which is redefining industries, providing greater personalization to users and automating so many of their business processes.
We cannot say that Artificial Intelligence is a new technology in the market, but yes it is true that its potentials have not been fully explored yet and only recently it is becoming a core part of the business strategies. Hence we should know how AI will change industries? And why entrepreneurs around the world are continually trying to understand how AI can help their industry so that they can get the best results in their businesses.
According to stats available on the internet about AI, it is predicted that by 2025, the global AI market is expected to be almost $60 billion; in 2016, it was just $1.4 billion. Another research says that AI bots will drive up to $33 trillion of annual economic growth and also power 85% of customer service interactions by 2020.
Therefore, virtually almost every industry is embracing AI and getting benefits of AI, but there are some sectors such as healthcare, retail, finance etc. which are expected to get the most benefits. They will be at the forefront of AI adoption. Most of the industries have now realized the importance of AI technology, and no one wants to lag behind.
So let’s now talk about the seven major industries which are likely to get most benefits from advancements in AI technology in 2019 and beyond.
We are seeing an important trend in the healthcare industry, which is the entry of the giant technology companies like Microsoft, Google, Apple and IBM in this space. These and other software development companies have created many healthcare mobile app solutions, and they are trying to transform the industry by applying data mining to the massive amount of healthcare related data to provide better and faster health services.
Governments and healthcare organizations have a huge amount of stored data, some of which is even many decades old and mining this data to gain insight is not an easy task. AI is now being used to mine and analyze this data to find out the patterns and carry out diagnosis and treatment of so many medical conditions.
For example, IBM Watson which is an AI tool works by first deriving the meaning and context of the structured and unstructured data which might be important for selecting a treatment plan and then combine different things from patient’s medical record to identify potential treatment plan for a particular patient. In other words, IBM Watson works like a human doctor.
IBM is acquiring more and more healthcare data as it has recently announced collaborations with many healthcare companies, and it has even acquired a few of them. It has collected an unparalleled body of diverse health-related data, including 300 million records related to clinical, claims and operational data.
AI and ML (a branch of AI) are also helping in medical imaging, Medication management, Drug discovery and even in robotic surgery.
With the recent technological advancements, the healthcare industry is expected to be the fastest growing industry in data generation.
As per Cisco, global machine to machine connection in healthcare is growing at a rate of 30% CAGR, which is the highest compared to any other industry.
Recent researches and experiments say that using machine learning, the AI system can more accurately spot the signs of heart disease than what even experienced doctors can do. Hence AI can be used for medical diagnosis, and this tells us about the huge potential of AI in the healthcare industry.
2) Retail & Ecommerce
Right now, retail and E-commerce is one of the fastest moving industries in the world. There is huge competition in this field, which is driving innovation and implementation of cutting edge technologies to generate more sales and win the trust of more customers. Recent advances in E-commerce has given the retail industry to fly in an open zone. However, all of this could not have been possible without the use of Artificial Intelligence. Therefore, many retail & E-commerce companies have developed AI based retail mobile app development solutions to get the most benefits.
The chances are that you might have already experienced AI in e-commerce, but you may not have noticed it. For example, the leading E-commerce companies like Amazon use AI for product recommendations. Complex AI algorithms are used to determine which products you are more likely to buy.
These AI-based algorithms use your demographic profile, your purchasing history, and what other products you have viewed to generate recommendations. Amazon uses AI on a vast amount of data to generate highly targeted and personalized recommendations.
Another amazing application of AI is the chatbot which you may have used on some websites. These AI-powered chatbots are perfect for automated customer service. Most of the customer service queries are based on some similar patterns and in so many times, customer service agents have to reply to similar kind of questions.
This process can easily be automated using AI-based chatbot, which can interact with the customers and provide satisfactory answers to most of their questions.
By automating these kinds of processes, humans can be freed to deal with more complex queries which AI is not able to answer perfectly right now. Many companies have already started using e-commerce mobile app solutions to automate their processes.
In e-commerce, AI-powered customer service is a major benefit, and AI can also be used in user personalization to provide more targeted recommendations and to give the best user experience to customers.
3) Banking & Finance
AI is bringing a kind of revolution in the banking and finance industry and we should know how AI is transforming business in this sector. Just imagine a situation when most of the loan applications are analyzed by an AI-based bot which takes a fraction of a second to do all of its tasks. Investment decisions may be done by Robo-advisors as they can easily analyze thousands of possible companies to make investment recommendations for you. Also, they can analyze your social media content, emails and other personal data to find out which sectors and companies best align with your interests and long term life objectives.
The AI algorithms can process huge amount of data in less than a second with much higher accuracy, therefore, It is predicted that AI could be managing about 20% of total assets within the next 5 years or so.
The financial market has also seen the rapid growth of Algorithmic trading in the stock market, which is possible only due to the success of AI automation. Now AI driven automated trading accounts for over 75% of all financial market volume, which tells you the immense potential of application of AI in the financial market.
AI is also helping large banks in cutting down the time spent on many tasks, such as analyzing the commercial loan applications. AI has reduced the time spent on these tasks from several thousand hours to a few seconds.
AI not only helps in reducing time spent on reviewing applications, but it also decreases the mistakes and ultimately saves lots of time and money.
AI is also helping the insurance sector by improving customer experience through chatbots and in creating many insurance plans and products for customers by analyzing their data. AI also reduces the claim processing time, thus helping customers as well as insurance companies.
4) Logistics & Transportation
There is no doubt that Artificial Intelligence (AI) is revolutionizing the logistics and transportation industry. You can consider it hype or a buzz, but it is true. AI technology is basically changing the way packages move around the world, from predictive analytics to autonomous vehicles and robotics. Many companies are also building transportation mobile app solutions to get the maximum benefits of AI.
You talk to any person who has little bit of interest in modern technology. He must have heard about the self-driving cars, which may take over autonomous driving systems in the next few years.
For example, take the collaboration of Uber with Volvo, which has developed a fleet of self-driving cars, and they are spending millions of dollars in its research, development and implementation. Right now, these cars are being tested simultaneously in many US cities.
Another self-driving car project from Google has collected the equivalent of nearly 300 years of driving experience on the city streets since 2009.
These projects are not yet complete, but they will definitely displace the manual driving and reduce road accidents in the years to come. These self-driving cars use lots of image processing, machine learning, data mining and other AI techniques to roll out fully autonomous cars on the road. We can say that these vehicles are actually driven by AI. These kinds of vehicles will make the road safer for passengers, and as there will be no human error, therefore it will also reduce traffic accidents.
AI can also be used to manage the traffic flow. The relevant data can be collected, and AI can be applied on it to do better traffic management, which will ease congestion on the roads.
AI algorithms can be highly useful in optimizing public transport in terms of scheduling and routing, and even the traffic light algorithms can be improved a lot using AI techniques.
The education sector is getting a major boost due to the advancements in artificial intelligence (AI). It is now becoming more personalized and convenient for students. AI has so many applications that are changing the way students learn. AI is also making the education more accessible to students using computers, smart devices and e-learning mobile app solutions. Other than students, AI is also helping to automate and speed up the administrative tasks and reduce the time spent on many complex tasks.
A recent research report says that the use of AI in the education sector will grow by 47.5 % through 2021 as the world is getting more connected.
AI can also help in grading assignments, recording marks and in many other computational tasks where machines do better than humans. For example, AI is already used to mark multiple-choice tests, and advancements in machine learning could also enable it to evaluate and efficiently mark written responses. AI can also be used to make the enrollment and admission processes of students at educational institutions more efficient and fast.
With these benefits of AI in the education sector, teachers can focus more on finding ways to fill the gaps in learning and fulfil the individual needs of the students.
Although the basic concept of education has not changed even in the past so many years but it is obvious that some change is really needed. AI can bring that positive change, and it can create a more personalized, dynamic and effective learning path for students which can really bring a revolution in the education sector.
6) Travel & Tourism
A Research report says that the size of the global travel and tourism industry was around $1.6 trillion in 2017, and this industry accounts for about 10% of the world’s GDP.
AI helps in personalizing the travel experience; therefore, it brings many benefits for the travel and tourism sector. Already about 40% of Millennials use chatbots on a daily basis. Application of AI in the travel and tourism industry also focuses on customer service and engagement. So many organizations in this sector are also partnering with travel mobile app development companies to develop their AI based mobile apps which are helping them to reach more customers.
Thanks to AI, travel businesses are also now adopting chatbots to communicate with their customers. Chatbots are ideal for customer-centric businesses as they can serve as 24*7 front-end customer care executives. Chatbots can also help customers in their trip planning. Chatbots can send out feedback forms post trip and use that information to further improve the customer’s travel experience, which will benefit your business.
Other than the use of AI-based chatbots, there are many other benefits of AI and machine learning which happen behind the scenes and help travel and tourism businesses by increasing conversion rate and engagement from the backend. Many businesses have started to look for tourism mobile app development services as they help them in developing AI-based mobile apps having inbuilt chatbots.
AI now affects almost all elements of the travel process. As we said, website chatbots, personalized search platforms and in-room virtual assistants are being used to improve customer engagement and personalizing the entire guest experience.
Due to AI, people can now reach their destination a lot more easier. Google has even started an AI-based service called “Predicting Flight Delays” which announces the Flight delays before the airlines do.
7) Real Estate
AI is really transforming the real estate industry. Thousands of real estate agents and homeowners are already using it, and so many other people are highly influenced by the benefits of AI in real estate.
AI has the ability to collect, analyze and learn from a huge inflow of data and it makes agents more efficient and effective, brokers more strategic and clients more empowered and certain to make their buying or selling decisions.
There is already a competition between Broker and AI Bot about who can find the perfect match for the customers. Obviously, Bot is winning. AI will continue to help real estate business to function more efficiently and profitably, other than helping the people who are looking to buy, rent or sell their properties.
AI can analyze the huge amount of data on the real estate searching websites and can help to surface the perfect properties personalized for each different. Hence it will work smartly in helping you to do what you are already doing but in a much more effective manner. In short, AI can help you to better sell to people.
Also AI based chatbots can work 24*7 and can talk and satisfy your customers who visit your website at odd hours. These chatbots can chat with your customers on your behalf and help you to earn money even when your office is closed, and you are sleeping.
We have just discussed how AI is revolutionizing major industries around the world. AI is now becoming an essential part of our everyday lives, and now we understand there are so many benefits of artificial intelligence in business which we run. AI is reaching far beyond what people have imagined. Whether you talk of healthcare, retail & E-commerce, travel or real estate, AI technology is used to analyze a huge amount of data to get some crucial insights which are helping the businesses to thrive.
Companies which have adopted the AI based chatbots have witnessed huge growth in their businesses, and they have definitely got a competitive advantage due to the usage of AI-powered solutions. So many businesses have started to look for mobile application development services as they also want to develop an AI-powered mobile app and launch chatbot with this app to serve their customers better.
These are the reasons why there is a huge demand for software development companies in India as benefits of AI-based software applications have started to be felt in almost all industries across the world, and no business wants to miss this opportunity.