The Costs of AI Integration into Business
Many companies are looking to embrace the modern technology of artificial intelligence but are scared of the costs. Rightfully so it is a whole new field for many people and one that many aren’t sure of what options are right for them. Halsey wrote “Another software development firm estimates $6,000 to $12,240 for a simpler chatbot which isn’t, for example, designed to represent a major brand with the high standards that come with that. So in general, these numbers tell us that you can build a simple chatbot for a few thousand dollars, but developing something really advanced is going to run you 6 figures”(Halsey, 2017). These may look like steep initial start up costs but in the long run they can help a company be efficient and provide quality service to customers. While providing quality service it can help boost a companies customer base and customer loyalty.
Integrating AI into business’ may seem to be expensive in the short term but in the long term. Dashevsky wrote about how in the banking industry alone AI has saved billions. Specifically saying “Artificial Intelligence (AI) delivered $41.1 billion in cost savings for the banking sector last year, a figure that is predicted to swell to $300 billion by 2030. While many of these efficiencies take place “under the hood” in the form of intelligent digital infrastructure and automated back-end processes, new cognitive technologies such as Amelia are able to execute complex financial management processes on the front-end as well”(Dashevsky, 2019). These numbers are just the beginning of AI innovation. Being projected to save over $300 billion dollars over the next 10 years is a massive number and that is in the banking sector alone. While technology advances over time brick and mortar stores are becoming more and more obsolete. As Dashevsky said “This all-hours accessibility is increasingly important among banking customers: Consider this recent Gallup survey, which found that only 66% of millennials had visited a brick-and-mortar bank branch in the past six months compared to 81% of baby boomers. These sort of trends will only accelerate moving forward as the even more plugged-in members of Generation Z enter adulthood”(Dashevsky, 2019). As the next generation enters adulthood this number will only decrease, in my own personal experience I have only gone in person twice over the past two years. All trends point to modern digitalized banking, so why not embrace it in the banking sector to gain a competitive edge while saving money as well. The costs of AI for individual business’ should be evaluated thoroughly because the investment could benefit them tremendously in the long run.
Sources: https://medium.com/source-institute/what-does-ai-actually-cost-af6a3e5a1795
https://medium.com/to-the-power-of-ai/ai-and-the-era-of-the-on-demand-banker-f4ba48eabdfa
