Benefits that MNCs are getting from AI/ML

In the dynamic and competitive global market, multinational corporations (MNCs) are consistently striving to innovate and lead the way in their respective industries. The advent of Artificial Intelligence (AI) and Machine Learning (ML) has provided MNCs with a transformative edge, empowering them to harness data-driven insights, enhance their products, and solidify their positions as top-notch companies in this generation. In this article, we will delve into the comprehensive benefits of AI and ML for MNCs, supported by data and real-world examples.

Uses and Applications of Artificial Intelligence and ML in Business

1. Enhanced Customer Experience:

AI and ML have revolutionized how MNCs interact with their customers, leading to unparalleled levels of personalization. According to a survey by Salesforce, 64% of customers expect personalized offers based on their preferences. MNCs are leveraging AI-powered recommendation systems to fulfill this demand. Netflix, for instance, uses machine learning algorithms to recommend content tailored to users’ viewing history, leading to a reported 75% of user interactions originating from these recommendations.

2. Data-Driven Decision Making:

Data is the lifeblood of modern businesses, and MNCs are collecting vast amounts of it from multiple sources. However, without AI and ML, extracting valuable insights from this data would be nearly impossible. A report by McKinsey suggests that data-driven organizations are 23 times more likely to acquire customers, and six times more likely to retain those customers.

AI-powered analytics tools enable MNCs to process and analyze data at scale, empowering them to make informed decisions quickly. Companies like Amazon and Walmart use predictive analytics to forecast customer demand and optimize their inventory management, resulting in a reduction of stockouts by up to 80% and substantial cost savings.

3. Product Innovation and Personalization:

AI and ML have given rise to a new wave of innovative products that adapt and cater to individual users. Personal assistants like Siri, developed by Apple, and Google Assistant, developed by Google, are prime examples. These virtual assistants continuously learn from user interactions and behavior to deliver increasingly personalized experiences. Google Assistant has shown impressive language understanding capabilities, answering 92.9% of user queries correctly, reinforcing its utility and popularity.

Moreover, AI-powered chatbots have enhanced customer service experiences. IBM’s Watson Assistant and Salesforce’s Einstein Chatbots provide human-like interactions and handle a wide range of customer queries. According to Juniper Research, businesses are expected to save up to $8 billion annually by 2022 through the implementation of chatbots.

4. Streamlined Business Processes:

AI and ML have automated mundane and repetitive tasks, leading to significant improvements in operational efficiency. A study by Accenture reveals that AI can boost business productivity by 40%. MNCs are applying automation to various processes, such as customer support, HR management, and data entry.

For instance, Siemens, a global manufacturing company, implemented AI to automate invoice processing. This resulted in an 80% reduction in manual effort and processing times and an increased accuracy of invoice processing by 99.9%.

5. Fraud Detection and Cybersecurity:

MNCs face an ever-increasing risk of cyber threats and fraudulent activities. AI and ML offer robust solutions for detecting and preventing such incidents. Financial institutions, in particular, have been early adopters of AI-based security systems.

For example, Mastercard employs AI to analyze historical transactions and real-time data to detect anomalies and suspicious activities. This approach has reduced false declines by 40% and saved the company $192 billion in potential losses.

Companies That Use Artificial Intelligence:

1. Alibaba

Chinese company Alibaba  is the world’s largest e-commerce platform that sells more than Amazon and eBay combined. Artificial intelligence (AI) is integral to Alibaba’s daily operations and is used to predict what customers might want to buy. With natural language processing, the company automatically generates product descriptions for the site. Another way Alibaba uses artificial intelligence is in its City Brain project to create smart cities. The project uses AI algorithms to help reduce traffic jams by monitoring every vehicle in the city. Additionally, Alibaba, through its cloud computing division called Alibaba Cloud, is helping farmers monitor crops to improve yield and cut costs with artificial intelligence.

2. Alphabet

Alphabet is Google’s parent company. Waymo , the company’s self-driving technology division, began as a project at Google. Today, Waymo wants to bring self-driving technology to the world not only to move people around but to reduce the number of crashes. Its autonomous vehicles are currently shuttling riders around California in self-driving taxis. Right now, the company can’t charge a fare and a human driver still sits behind the wheel during the pilot program. Google signaled its commitment to deep learning when it acquired DeepMind. Not only did the system learn how to play 49 different Atari games, but the AlphaGo program was also the first to beat a professional player in the game of Go. Another AI innovation from Google is Google Duplex . Using natural language processing, an AI voice interface can make phone calls and schedule appointments on your behalf. Learn even more about how Google is incorporating artificial intelligence and machine learning into operations.

3. Amazon

Not only is Amazon in the artificial intelligence game with its digital voice assistant, Alexa, but artificial intelligence is also part of many aspects of its business. Another innovative way Amazon uses artificial intelligence is to ship things to you before you even think about buying them. They collect a lot of data about each person’s buying habits and have such confidence in how the data they collect helps them recommend items to their customers and now predict what they need even before they need it by using predictive analytics. In a time when many brick-and-mortar stores are struggling to figure out how to stay relevant, America’s largest e-tailer offers a new convenience store concept called Amazon Go . Unlike other stores, there is no checkout required. The stores have artificial intelligence technology that tracks what items you pick up and then automatically charges you for those items through the Amazon Go app on your phone. Since there is no checkout, you bring your bags to fill up with items, and cameras are watching your every move to identify every item you put in your bag to ultimately charge you for it.

4. Apple

Apple, one of the world’s largest technology companies, sells consumer electronics such as iPhones and Apple Watches, as well as computer software and online services. Apple uses artificial intelligence and machine learning in products like the iPhone, where it enables the FaceID feature, or in products like the AirPods, Apple Watch, or HomePod smart speakers, where it enables the smart assistant Siri. Apple is also growing its service offering and is using AI to recommend songs on Apple Music, help you find your photo in the iCloud, or navigate to your next meeting using Maps.

5. Baidu

The Chinese equivalent of Google, Baidu, uses artificial intelligence in many ways. They have a tool called Deep Voice that uses artificial intelligence and deep learning that only needs 3.7 seconds of audio to clone a voice. They use this same technology to create a tool that reads books to you in the author’s voice — all automated with no recording studio necessary.

Conclusion:

The integration of AI and ML has proven to be a game-changer for multinational corporations, propelling them to the apex of the technological revolution. The data-driven decision-making capabilities, enhanced customer experiences, product personalization, streamlined business processes, and robust cybersecurity measures provided by AI and ML are empowering MNCs to stay ahead of the curve in their industries. As these technologies continue to evolve, MNCs must embrace and invest in AI and ML to secure their positions as top-notch companies of this generation, continuing to shape the world’s economy and define the future of business.

Thank You

Rachit Gautam