The Role of Artificial Intelligence (AI) in Digital Transformation    

Jul 18, 2023 | Automation, Development, RPA

The connection between Artificial Intelligence (AI) and digital transformation is becoming more and more related as these technologies continue to develop. Although leaders may only refer to one of these developments when discussing this space, they often mean both.  

AI is already driving digital transformation initiatives, which will create opportunities for improvement not previously possible. It will undoubtedly continue to do so as AI capabilities increase. 

Relationship between AI and Digital Transformation 

Regarding digital transformation, AI has a narrower meaning than that of general software imitating human behavior. In this context, AI refers to an algorithm with a well-defined set of inputs designed for a predetermined task, commonly seen in CAD applications that operate within specific parameters.  

AI sets itself apart from standard automation by adapting its behavior in response to new and unexpected information. Its ability to learn from both success and failure is the greatest advantage of AI in the realm of digital transformation. It can analyze data, self-correct, and address new challenges before human intervention becomes necessary. 

How is the adoption of AI by companies?

Digital technology has the potential to revolutionize our physical world by driving innovation and enhancing productivity. AI plays a critical role in digital transformation because this process often generates vast amounts of data that surpass human capacity for timely analysis. Moreover, AI not only enables data collection and analysis but also leverages that data to optimize processes such as product manufacturing, leading to improved efficiency and reduced error rates

Consequently, organizations that neglect to embrace AI initiatives as part of a comprehensive digital transformation strategy risk falling behind in competitiveness. According to a 2021 PwC study, 86% of respondents consider AI to be a mainstream technology, with one-third already implementing it to varying degrees. Furthermore, a quarter of the respondents in the study had fully implemented AI processes on a large scale. 

According to this same study, companies that take a more holistic approach to AI, focusing on achieving these three business goals (1) enhanced decision-making, (2) systems modernization, and (3) business transformation, see greater success compared to those that take a singular approach.

All-in on AI. AI in Digital Transfomation

Use Cases of AI in Digital Transformation 

  • Limited use cases of AI include applications that rely on GPS or QR codes, where the necessary data is stored within the software’s functionality. In contrast, more scalable AI solutions utilize cameras to identify parts based on their shape and other visual cues. This capability entails the presence of a database containing images of parts, which the program can compare to the actual visual input it receives. 

  • Another use case of AI for digital initiatives is generative design. Modern engineers commonly utilize CAD software to accelerate the creation and development of designs compared to traditional paper-based drawings, even though this approach may not be fully optimized. Typically, engineers are still required to manually create a design from scratch based on a set of requirements. However, generative design leverages machine learning (ML) to automate the CAD design process by generating an optimal design with minimal user input. 

  • Companies can enhance their digital transformation by leveraging a combination of AI, machine learning, and data analytics. Among the numerous cases handled by NTConsult, one involved the implementation of an omnichannel solution to centralize data analysis for an insurance company. The result was a 90% increase in the sales closure rate, showcasing the effectiveness of the right strategy in connecting customer satisfaction, digital transformation, and revenue growth. 

>> Read this article to gain a detailed understanding of this business case. 

Future Developments of AI 

AI is already having a significant impact on digital transformation, introducing new possibilities like generative design that can lead to faster production times and reduced material costs.  

Executives aiming to enhance operational efficiency across multiple locations are increasingly utilizing AI-based analytics to extract valuable insights from previously untapped data, enabling them to develop more effective strategies. This improved visibility into large-scale initiatives can expedite design and production processes, shortening time-to-market without compromising essential steps. 

Having a tech partner with expertise in driving the digital transformation of other clients and staying up-to-date with the latest technologies is a significant advantage to consider when you need to augment your team or hire a managed squad. 

Schedule a free call with us today, and we’ll discuss the next steps for your business regarding leveraging AI to accelerate your digital transformation. 

Philippe Alencar - NTConsult

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