Every other day, we come across new generative AI tools. Globally, individuals and businesses tend to leverage this disruptive technology to accomplish various tasks. Be it writing a marketing copy or coding, generative AI looks unfathomable in its scope and potential. Recently, the language model ChatGPT crossed 100 million MAUs (Monthly Active Users) in just two months of its release and set the record for the fastest-growing application in history. Its most advanced model GPT-4 is capable of processing images and performing other humanlike activities.
No wonder many organizations tend to jump on the generative AI bandwagon in an attempt to reap its business benefits. However, companies need to consider the impact of generative AI and whether their existing infrastructure is capable of adopting this revolutionary technology trend. It is of utmost importance to figure out how generative AI fits into their business strategy and brings transformative changes to the current model. Integration of generative AI can drive digital transformation in companies and widen the scope of growth in multiple ways.
Background and the Impact of the Pandemic
The COVID-19 pandemic has made digital transformation a compelling necessity for modern enterprises. Be it managing customer interactions or internal operations, companies had to deal with the lack of resources and other challenges associated with stringent regulations. Many businesses faced existential challenges and others tried to deal with the crisis in one or another way. As we have survived that pandemic age, companies tend to find opportunities in generative AI and Large Language Models (LLMs) to continue their digital transformation campaign.
Role of Generative AI in Digital Transformation
Globally, spending on digital transformation is expected to remain at a CAGR of 19.1% between the period of 2021 to 2026. When we talk about the four pillars or dimensions of digital transformation, they are people or customers, products, employees, and processes. Data analytics can help businesses get actionable insights about these pillars. As a result, companies can optimize their processes, improve customer experience, and enhance their services.
Enterprises can start by maintaining their data and understanding future requirements. Here, generative AI and analytics can play a vital role. As a powerful subset of AI, generative AI can create new content in response to user prompts. It is essential for breaking innovation barriers and bringing transformation based on data. Let’s understand the importance of generative AI in all four dimensions of digital transformation.
It is about Customer Engagement
Generative AI has the potential to transform the way organizations engage with customers. It can create personalized and relevant content and identify new opportunities for sales and upselling by analyzing vast amounts of data.
Here are some specific ways generative AI can improve customer engagement:
Dynamic Content
Generative AI can create personalized marketing content, such as images and videos, that are tailored to the interests and needs of each customer. This can help to improve the effectiveness of marketing campaigns and generate more leads and sales.
Hyper-personalized Support
Generative AI can offer hyper-personalized support experiences, such as chatbots that can answer customer questions in a way that is tailored to their context. This can help to improve customer satisfaction and reduce the time and cost of customer support.
Lead Identification
Generative AI can be used to identify potential leads in real time, based on their online behavior and interests. This can help organizations reach out to these leads at the right time and with the right message, increasing the chances of conversion.
When we talk about people, we can also consider team members or employees of the company who remain at the center of digital transformation.
It Supports Employee Initiatives
Generative AI can create personalized and relevant content, improve employee training and development, and identify new ways for employee engagement.
Here are some specific ways that generative AI can work wonders in employee retention and training.
Informed Decision-making
Generative AI can supercharge the enterprise search, making it easier for employees to find the information they need to make informed decisions.
Personalized Training
It is possible to create personalized, virtual training programs for each employee, based on their individual needs and goals using generative AI.
Onboarding and HR Activities
Generative AI provides HR teams with insights about employee engagement and assists them in onboarding programs.
Another exciting use of generative AI in employee engagement is gamification. It motivates employees and assists them in facing challenges.
Ideal for Product Development
The complex product development lifecycle involves many steps, from ideation to prototyping to manufacturing. Its one of the most important steps is the design phase, where engineers and designers have to think of a product that meets the desired requirements in terms of function, performance, cost, and manufacturability.
Generative design, based on AI, is a new technology that can significantly expand the possibilities for product design. We can mention many benefits of using generative design for product development. First, it can help to improve the performance of products by identifying new and innovative designs that are not possible with traditional methods. Second, it can reduce the cost of products by finding designs that use less material or energy. Third, it improves the manufacturability of products by finding designs that are easier to manufacture.
Generative AI has also a significant role to play in concept simulation, validation, and performance optimization during the design and development phases of the product.
It Promotes Process Automation
Generative AI has the potential to automate and optimize a wide range of business processes. This innovative technology trend can identify patterns and trends that can be used to automate tasks, improve decision-making, and optimize workflows by analyzing corporate data.
Here are some specific processes that generative AI can automate-
Supply Chain Optimization
Generative AI can analyze historical data and auxiliary systems data, such as traffic patterns, to optimize supply chain planning and operations.
Knowledge Management
Generative AI can organize and structure knowledge, making it easier for your employees to find the information they require.
Issue Resolution
Generative AI can identify and prioritize issues, as well as recommend effective solutions for their quick and long-term resolution.
It is also possible to create self-help solutions such as chatbots using generative AI.
Major Concerns About Generative AI and How to Address Them
Generative AI is a robust technology with the potential to transform many industries digitally. However, it is essential to address some critical concerns related to this concept to leverage all the benefits. These concerns include personal data protection, moderation and governance of output, data security and protecting enterprise IP, quality assurance, and accountability for the result of generative AI.
Organizations should address these concerns carefully to ensure that generative AI is used in a responsible and ethical way. Here are some specific steps that organizations can take to achieve this objective-
– Develop clear policies and procedures
– Focus on data protection, privacy, and bias control
– Ensure the use of generative AI in a transparent and accountable way.
– Invest more in research and development to improve the reliability
– Work with regulators to comply with prevalent regulations
These steps will certainly help companies make the most of a revolutionary generative AI technology while embarking on digital transformation.
About Author
Vipul Makwana is a Digital Marketing Strategist at Silver Touch, a leading digital transformation company that provides end-to-end AI/ML, Blockchain, Big Data, and Analytics solutions. He’s keen on reading about new technology and marketing.
