We are encountering artificial intelligence more and more frequently in our everyday lives. It does not matter whether we are talking about digital assistants in our smartphones, smart home devices or series recommendations from well-known streaming services. All these services, based on artificial intelligence, are intended to make the everyday life of users more comfortable and easier. In addition, to AI for the average consumer, more and more AI is also being developed for companies to ensure more efficient work, faster processes, more sales and smooth collaboration with other departments.
Find out below how artificial intelligence and the development of innovative software solutions can create competitive advantages for companies and which companies are already showing success with using AI.
AI for Business: What is Artifcial Intelligence?
Artificial Intelligence is a mix of many different and diverse technologies. AI allows machines and digital software to develop on intelligence comparable or like that of humans, to understand, to act autonomously or on demand, and to learn. The field of learning includes machine learning, natural language processing and deep learning. Machine learning teaches computers and machines to learn from data and to complete tasks better and better in this way. In addition, specific algorithms are created that recognize certain patterns in images or languages to subsequently make decisions autonomously.
Deep Learning does not require structured data in advance. The system works independently, similar to the human brain, with neural networks that link algorithms together. What is special about this is that the system does not need any external help and no pre-categorisation. The AI autonomously finds suitable differentiating features in the given data sets, compares the input for further specific features and subsequently decides independently how the input is to be evaluated.
AI in Companies – a Security Risk?
Many futurologists and analysts can no longer deny that AI will be an irreplaceable key technology for companies in the future. Because during digitalization, the basis for optimizing workflows and company structures will be due to the use of software solutions or machines. In addition to the use of AI for companies, the aspect of AI security is also becoming increasingly relevant. This involves both protection against unwanted external attacks, as well as freedom from errors within the company itself when using AI. A core issue in AI for business is above all the organisation, storage and controlled exchange of (highly) sensitive data records.
Artificial Intelligence is a dynamic system that changes continuously, even after it has already been put into circulation. This is also where the potential danger lies when using AI for companies. Because all the results and decisions that the system makes are based on the calculation and analysis of data. This data could be manipulated by outsiders, so that erroneous conclusions and discriminations could be made by the AI and entire business processes in the company could collapse or sensitive data could be passed on to third parties. At the same time, the AI processes are sometimes so highly complex that decisions cannot be immediately checked or reconstructed by employees.
A good measure to build trust in AI for companies is the external testing and certification of AI systems. This is because a tested and trustworthy certification helps to ensure that social standards are consisting of economic principles, such as legal certainty, data protection, interoperability or IT security, must be observed on a mandatory basis.
Who is liable for Damage caused by AI?
One question that comes up again and again in connection with AI for companies is that of liability. Who is liable for the damage if the AI makes a mistake? The system users? The manufacturer or even the artificial intelligence itself? Jurisdiction may differ from state to state. However, the prevailing opinion assumes that only those whom the law of legal personality applies to be liable. This is not the case with machines or robots. Thus, the question of liability is decided between the manufacturer of the system and the users.
First, it is obvious that the manufacturer of the AI is liable for companies in the event of a fault, as this is the person who is closest to the decision-making process of the AI due to programming and training. In terms of the manufacturer’s liability, product liability and so-called producer liability come into consideration. As a rule, product liability will fail, as it will be difficult for laypersons to prove the existence of a defect on the part if the manufacturer. The situation is different with producer’s liability. The special feature here is that the burden of proof is reversed. Thus, the manufacturer must prove that he did not bring a defective product onto the market with the AI. However, the question arises here at what stage of development of artificial intelligence the misconduct no longer lies in the direct sphere of the manufacturer, but rather with the AI itself, which continues to develop dynamically and autonomously. In the case of producer liability in connection with the topic of AI for companies, it will therefore always depend on the individual case and the argumentation in the event of a dispute.
The system users are only liable if culpable misconduct is attributed to them. If the AI was operated correctly, the system users are accordingly not liable.
These are the Benefits AI can offer Businesses
The use and investment in AI for companies brings a wealth of benefits for companies to remain competitive in the future and form more efficient structures in the company. Below we have listed some of the advantages for you in a brief overview:
- Less costs: AI for business helps to digitize and automate business processes. This reduces error rates to a minimum and saves costs.
- More efficient work and process optimization: AI for business creates new standardization in workflow, which is reflected in the form of higher quality, efficiency, and productivity.
- More insights through business insights: The us of AI in the company allows you to draw concrete company-related conclusions from analyses and data collections.
- Trend forecasts: Future trends are easier for companies to anticipate with AI, for example, to take customer wishes into account more efficiently.
- Real time response: AI for business enable real-time analytics and helps make significant decisions quickly and accurately.
- Saving many hundreds of work hours per year: Thanks to the support of AI for companies, resources are saved, and additional capacities are gained, which in turn can be used for work in other core areas.
AI for Business: Best Practice Examples for Successful AI Use
Many leading multinational companies and large corporations have long relied on AI in business and are constantly developing it further. All these AI companies see artificial intelligence as the means of the future to generate long-term competitive advantages and grow dynamically.
Alibaba Group: Alibaba is the Chinese equivalent to Amazon and is based in e-commerce, retail, and technology sectors. In addition, Alibaba operates Alibaba Cloud, China’s largest cloud computing platform. DAMO Academy, Alibaba’s research division, conducts ongoing research on AI for business. Specifically for industrial design, robotics, manufacturing, and voice assistants. Since 2018, the company has been developing its own AI chips.
Amazon: Amazon also uses AI for companies to make suitable product suggestions to customers on its site. With Alexa, it has also launched its own digital assistant, which is intended to simplify the everyday lives of many users. Just like Alibaba, Amazon has also developed its own cloud with Amazon Web Services (AWS), which is used by corporations such as Siemens or the American federal agency NASA. Amazon also provides customers of its own platform with in-house AI systems, such as recommendation algorithms, image recognition or forecasts.
Alphabet and Google: Alphabet is the parent company of Google, Waymo, X and many more. At Google, artificial intelligence is used to display relevant search results and ads. It is also used for spam filters, image recognition and the Google Assistant. In addition, to pure product development, research is being conducted to integrate AI into companies for previously untapped branches of the industry. Google has been focusing on the independent development of AI chips since 2015 and is developing the AI framework TensorFlor, which is used by researchers and companies around the world to further develop AI.
Coca Cola Company: Coca Cola European Partners, the largest independent beverage bottler of the Coca Cola Company, uses process mining technology internally. This AI for companies analyses a multitude of data from all existing IT systems to first localize and the model internal processes. This should reveal possible potential for improvement and significantly accelerate decision-making. The system has also optimized the order-to-cash process. Delivery times were shortened, and invoices were paid more quickly.
Daimler Group: Mercedes-Benz Group Research uses AI for companies to recognize and analyse decisive patterns in components, test data or driving and usage situations. The findings can then be used to further develop and improve existing functions or to develop entirely new functions based on prototypes. In addition to these research activities, AI is also used to ensure optimized knowledge transfer within the Group. For example, new designers are trained by an automated AI system that can provide a wide range of assistance because it knows all the designs and data in the Group.
Is the Use of AI for Companies worthwhile? A Conclusion.
The use of artificial intelligence is very well suited to building autonomous technology competences in the company. This can take place independently in every area of a company: Be it in marketing, sales or in the legal department with an automated contract review. It is another level that benefits from digitalization and will provide significant competitive advantages over competitors in the future.
AI in a company helps to improve the rapid analysis of large amounts of data, especially in the text area. This benefits text-heavy departments such as the legal department. AI and legal operations go hand in hand. Here, AI minimizes risks for the company, enables more through work, automatically checks whether company standards are being adhered to and reduces internal operating costs in the long run. The new capacities gained with AI for companies per year can in turn be used for other core areas or for improved strategic planning and alignment of the company.
Thus, the use of AI can lead to a real advantage for companies that are in a dynamic competitive environment and have to manage with an accompanying high cost pressure compared to direct competitors who are not using AI.