Digitization and Friendly Artificial Intelligence will form the basis for life in the future. Digitization and Artificial Intelligence applications already affect our daily lives and business. Digitization has led to digital transformation in many industries. While the projected benefits of Artificial intelligence are so enormous it has been compared with the advent of the internet.
The invention of the World Wide Web by Tim Berners-Lee was seen as a defining moment of human history. Decades after the internet took its recognizable form in 1990, many people can not imagine life without it. It caused the creation of millions of unprecedented jobs and services. It seems Digitization and Artificial intelligence will have a similar or greater impact.
- Benefits of Digitization
- Future of Digitization
- Benefits of Artificial Intelligence
- Future of Artificial Intelligence
Benefits of Digitization
Digitization involves the conversion of text, pictures, or sound into a form that can be processed by computer. This process has led to the digital transformation of our lives and jobs. Digital transformation is a process of embedding digital technology into all aspects of an organization or all areas of a business that results in increased value to customers. Hence, digital transformation can not be done without digitization.
The key benefits of digitization include:
- More effective business models develop when digitization is embraced. The employees benefit from cloud computing and data analysis which makes their work easier but improves their productivity. In the following ways:
- better management of available resources
- integrated operations
- improved transparency
- efficient task delegation
- improved communication between the business and the customer.
- It drives innovation-based growth that creates a digital culture that improves teamwork and results. Compared with traditional methods, it presents a new way of thinking and envisaging the context. Leading to quick solution creation and productivity.
- It leads to fundamental changes in how businesses operate beyond traditional analog methods. This directly benefits the customer since processes become smoother and more efficient. Customer satisfaction from an enhanced experience leads to more business.
- Data based insights are easily gleaned from digitization solutions. These have the capability to track metrics and analyze them in real-time. The instant feedback gives insights and allows the company to restrategize.
Future of Digitization
Despite digitization being a large part of our lives today, there is still a large and unrealized opportunity. This opportunity stretches across companies, sectors, and economies. The growth of digitization has been progressively uneven since certain industries benefit quicker. For example, aviation will more often have digitized solutions while construction will lag behind.
In the future, using digitization in companies, sectors, and industries that are lacking could be crucial. These measures should include the digitization of assets, digitization of operations, and digitization of the workforce. According to a McKinsey report, Europe could gain an additional €2.5 trillion of GDP in 2025 through further digitization. Yet within Europe data protection and privacy laws are being established. One of these regulations is the GDPR law.
Benefits of Artificial Intelligence
Artificial intelligence is the use of algorithms to perform cognitive functions and solve problems through interactions. Therefore, Artificial Intelligence technology is capable of learning from data inputs and how to process it creates its own data outputs. These processes involve machine learning, deep learning, neural networks, predictive analytics, and many others.
Artificial intelligence can create competitive advantages across different industries as it has a multitude of uses. However, it is not a one-size-fits-all solution. Since the goals and uses of Artificial Intelligence will vary by organization and industry it will take foresight to channel this innovation. The following shows some key aspects of its benefits:
- Artificial Intelligence is a supportive tool and it is being used effectively in Human Resources. Artificial Intelligence Automation is being applied to repetitive and low-value tasks. It has streamlined processes such as Administrative Tasks, onboarding, talent acquisition, and analyzing datasets. Gartner reports that by 2022, more than 40% of large organizations will be utilizing AI-based solutions for Human Resources.
- Artificial intelligence is also changing CRM or customer relationship management systems. Since this also involves large datasets, Artificial Intelligence transforms it into a seamless and automated process. It ensures that the records are updated and errorfree.
- Smart energy management systems based on Artificial Intelligence leads to collect data from sensors affixed to various assets. Artificial Intelligence algorithms analyze the data and deliver real-time feedback to decision-makers. The analysis leads to better understanding, better energy usage, and maintenance demands.
- Cybersecurity is another aspect of Artificial Intelligence that plays an important role. It is said that Artificial intelligence has a wider latitude of decision-making ability. As opposed to traditional software, these features enable cybersecurity solutions that can handle scale and increasing complexity.
Future of Artificial Intelligence
An important concern for Artificial Intelligence is security. Some developers believe the use of blockchain technology and encryption keys will protect the data. However, the European Union has placed data protection policies that could hinder Artificial Intelligence innovation. Yet, those who support the policies argue that it would rather cause a surge in development. The new policy requires that Artificial Intelligence systems should have:
- human oversight
- respect for privacy
- unfair bias
(data from Bloomberg)
Artificial Intelligence is only as efficient as those who initially program its running algorithms. It is true that there have been incidences where Artificial Intelligence was affected by a programmer’s bias. The same can be said of any software. The future of Artificial Intelligence surely involves having the right regulations that will protect uses yet will allow the free flow of innovation. (Business News Daily)
Developed countries like Germany hope to use Artificial Intelligence to improve or at least maintain their GDP per capita. Artificial Intelligence can be particularly useful in such a country. The aging population means that automation provided by Artificial Intelligence will be welcomed. This will increase productivity and it is projected that early adoption of Artificial Intelligence could lead Germany to exceed its 2030 GDP targets.
As for Artificial Intelligence innovations, anything is possible. For instance, self-driving cars are now a reality whereas 5 years ago, the technology available would support it. It could have an impact on augmented and virtual reality. Artificial Intelligence has already had applications in healthcare and even assisting doctors in diagnosis. There are plans from Artificial Intelligencedigital agents to aid the elderly, to more sophisticated plans to form solutions to improve urban systems and smart cities.
In summary, digitization and artificial intelligence are already having an impact on a global scale. In the near future, these technologies will have even more impact on our lives. Besides the clear advantages, there will problems of ethics and reliability as well. Overcoming these challenges will certainly lead to a happier and more technologically advanced future.