There's no doubt about it. Artificial intelligence (AI) is the buzzword of 2023.
The launch of ChatGPT has signaled the beginning of a new era in AI, and while technologists may have been aware of the power of generative AI, the capabilities of the new chatbot have shown how transformative the technology is.
Already, it's posing a challenge to Google's (GOOGL 10.22%) (GOOG 9.96%) search empire. ChatGPT is being used for everything from legal contracts to medical advice to recipes to online content, and the implications for both businesses and everyday users are vast.
Understanding artificial intelligence
Understanding artificial intelligence
Artificial intelligence refers to the ability of computers and machines to perform tasks with human-like intelligence. Often, this refers to machine learning or an AI application that allows a computer to teach itself things as it's given information. For example, machine learning is what enables tools like spell check or grammar check to work.
Other forms of AI include robotics, natural language processing, computer vision, neural networks, and deep learning, which use human-like intelligence to do things that are beyond the scope of a typical computer or machine.
For investors, one of the ways you can take advantage of this new opportunity is with an AI ETF, which gives you exposure to a range of companies working with AI.
It's not a surprise that Microsoft (MSFT 1.82%) said that Azure OpenAI saw its customer base grow by more than 10 times quarter over quarter to more than 2,500 customers in the quarter that ended in March.
With AI at a turning point, it's becoming a more valuable tool in business than ever before.
In this article, we'll discuss many of the ways that AI is being used in business, including AI in customer service, AI business tools, and applications of AI in business.
Use Cases for AI in Business
Use Cases for AI in Business
For businesses, these technologies have a wide range of applications, and many publicly traded companies have begun experimenting with AI tools or using them in everyday functions.
1. AI for customer service
1. AI for customer service
One of the most common applications of AI in business is for customer service.
Businesses have eagerly embraced AI chatbots as at least an initial tool for solving customer problems. For example, airlines use chatbots to answer customer questions about flight status and baggage requirements or even to help rebook a flight when applicable.
Some AI stocks have gone even further with AI customer service. Lemonade (NASDAQ:LMND), the insurance company, uses AI chatbots to handle customer queries about new policies and claims. Lemonade's AI bots, AI Jim and AI Maya, run on an AI-powered decision-making layer, which takes data on the applicant, other available data, and comparison data to help price insurance premiums.
AI chatbots can also help businesses serve customers faster and help them save on customer service labor, and they're likely to become more commonly used as the technology gets even better.
Voice assistants are another form of AI used for customer service.
2. AI for hiring
2. AI for hiring
Customer service is a key function for almost any business, but hiring might be an even more important one.
Companies use AI to screen applicants who submit resumes online. They use predictive analytics to help sort through candidates more quickly and analyze things like resumes, social media profiles, and other available online behavior to screen candidates for interviews.
Microsoft's Linkedin has used artificial intelligence tools for years and recently added a feature that helps recruiters write job descriptions. It has also used AI tools to match job seekers with opportunities and help users connect to others who might have similar interests.
Amazon (AMZN 3.43%) has developed its own internal AI hiring tool called an Automated Applicant Evaluation that determines how qualified job applicants are by comparing their resumes to the resumes of current Amazon workers in that same role.
3. AI for marketing
3. AI for marketing
AI tools are also used in marketing in a variety of ways. Much like AI is used in customer service for a quick response to customers, AI is used in marketing strategies when speed is at a premium.
AI can help serve customized messages based on profiles, and it's also used for automated ad campaigns, controlling media buying in order to maximize ROI.
Increasingly, AI is also being used for content generation. Coca-Cola (KO 0.0%) just launched a contest open to anyone to make digital art using Coca-Cola's brand assets and OpenAI's DALL-E image generation AI. The company is expected to announce the results of the contest this summer, and the winning submission could appear on a billboard in Times Square and in London's Piccadilly Circus.
Recommendation AI is another example of AI in marketing. Companies like Amazon use AI to recommend items based on past purchases, and Netflix (NFLX -0.63%) uses AI to recommend what to watch. These algorithms play a key role in customer satisfaction, and services like Netflix are dependent on predictive AI to choose the right programming to offer subscribers.
4. AI for sales
4. AI for sales
Increasingly, AI is also being used in sales, and sales teams seem to be among the early adopters of generative AI tools like ChatGPT.
Microsoft launched Viva Sales, a generative AI application that helps salespeople write customized emails and recommendations to their customers. Salesforce (CRM 0.42%) launched a similar tool called Einstein GPT, which creates personalized content across every Salesforce cloud to make employees more productive.
AI can also help organizations analyze the large volumes of data that are generated from sales pitches and agreements and learn and apply them to improve success rates.
Additionally, AI tools can simplify and even completely handle some administrative tasks. It can help employees write better emails and generate better responses.
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5. AI for cybersecurity
5. AI for cybersecurity
Finally, AI is also commonly used in cybersecurity. Artificial intelligence tools help organizations analyze large amounts of risk data to accelerate response times.
Machine learning and natural language processing are being used to recognize patterns and develop threat intelligence from papers, blogs, and news stories.
Cybersecurity software companies like CrowdStrike (CRWD 2.03%) also use AI to generate alert signals, test hypotheses, and use other tools to investigate threats.
Machine learning tools help CrowdStrike recognize distributed denial of service (DDOS) attacks and are able to assist analyst insight and decision making with real-time data and intelligence.
Overall, AI in cybersecurity eliminates time-consuming tasks typically done by human experts, allowing humans to focus on more important security needs.
Is artificial intelligence the future of business?
There's little doubt that AI will have a significant impact on business in the coming years. Pundits are already forecasting massive shifts in the labor force and several industries that could disappear or significantly evolve from where they are today.
AI also presents obvious opportunities for businesses to save money by cutting costs, and that has helped it become eagerly embraced by companies big and small.
Expect businesses to lean even further into AI in the future as the technology gets even better. The new race set off by ChatGPT should only accelerate business demand for AI tools.
