How AI drives revenue for MNCs?

watch_later 28 June, 2022

Artificial Intelligence has helped companies across the globe reduce costs and boost revenues in more ways than one.

Artificial Intelligence has the power to replace irreplaceable human decision-making. It came to the rescue of many companies during the COVID-19 crisis, which had led to the disruption of work in offices. Since then, businesses hire freelancers to deploy AI to grow revenue in myriad ways.

According to the MIT Sloan BCG Report, only 10% of companies attain noteworthy financial benefits with artificial intelligence technologies. These companies don’t just change processes to use AI but also change processes in response to organization learning with AI. This is what makes all the difference.

Artificial Intelligence

Take, for instance, Pinterest. The company sorts what its users are looking for through Machine Learning. It curates the existing content to reveal relative and relatable content for the visitors. Pinterest had acquired Kosei (in 2015) for content discovery and recommendation algorithms. This helped Pinterest prompt users to stay longer on the site.

Read: Tор 10 lаrgest соmраnies in the USА by Revenue

8 ways AI helps boost revenue

With the help of AI, companies can quickly increase their accuracy and decision-making skills. AI drives revenues and growth for the MNCs.

1. Speed up new product development – Companies have been forecasting the demand for new products using AI. By finding out causal factors that influence the demand for products, MNCs can develop new variants in the products. This boosts the pace of new product development.

In 2018, General Motors introduced the concept of generative design. It helped engineers to feed basic parameters into the system. Using this, AI facilitated hundreds of variations of the original design. As written by The Drive, General Motors experienced as much as a 40% reduction in weight and even a 20% increase in strength, which is commendable.

2. Tailor recommendations and actions – AI Algorithms tailor the recommendations of the users by predicting their choices and analyzing past behavior. It suggests products and experiences for the clients depending upon their preferences. Earlier, this task was dependent on the understanding and research of humans. 

By minimizing human intervention, AI not only helped reduce the time lag but also enhanced the customer experience, making it a win-win situation. JP Morgan capitalized on AI to generate ads.  This is because a pilot project uncovered that there was a five times increase in click-through ads when they were developed through Artificial Intelligence.

3. Personalize products – AI helps segment the customers based on their lifestyle, preferences, health, and spending behavior. Further, it helps analyze large amounts of collected data. AI has reduced the speed of segmentation and analysis considerably when compared to humans. This has helped MNCs to personalize products for the customer base. 

The most common example of AI contributing to product personalization is Apple. The most favored cell phone brand uses Siri, the AI-powered assistant for tailoring the tastes and preferences of the users. Apple has been able to up the customer experience through AI-powered features in the phones. 

4. Automate operations – AI has been helping MNCs eliminate repetitive processes in their system. Deploying an AI system makes it easier to improve performance and safety standards in the company. This way companies can reduce time wasted on recurring and unnecessary processes. 

Exxon Mobil deployed an AI-powered algorithm for the deepwater prospecting teams, making it easier to drill at the bottom of the sea. This helped optimize the drilling parameters automatically. The company was able to transform the experience into a useful algorithm, simplifying the process for future jobs. 

5. Corporate Strategy – AI is here to ease the lives of customers through efficient analytics and automation. MNCs have been using AI to understand the pain points of the customers and solve business challenges. AI algorithms help formulate plans targeting particular accounts with tailor-made, engaging, and informative content. 

Amazon devised a recommendation engine, making it simpler for users to contemplate things that they might want to try or buy. At present, the entire distribution system of the company runs on Artificial Intelligence. In addition, Amazon warehouses are powered with robotics and innovations to speed up the delivery process. 

6. Identify and solve problems – AI provides technical support and processes returns by diagnosing a problem and delivering a perfect solution. Healthcare companies have been driving innovation by automating their processes for the benefit of their customers. With the introduction of AI-powered customizations, healthcare MNCs can surface solutions promptly and accurately. 

CVS Health automated the process of patient intake at their 1100+ Minuteclinics across the U.S. with the help of Buoy Health. Herein customers were asked a series of questions regarding their symptoms and health history. AI processed these answers, depending on which, patients were directed to on-site healthcare professionals or webcam medical consultation, or over-the-counter solution. 

7. Optimize operations – Artificial Intelligence helps scour information as well as insights. MNCs begin by deploying AI to address the most critical challenges faced in operations. Based on favorable results in one area, leaders plan to deploy AI to other areas and systems. Using AI for a specific project wherein companies can measure ROI immediately helps smooth the transition for the entire system. 

Chevron adopted cognitive intelligence to identify new locations of the well. Further, the company used AI to analyze the performance information of their equipment. This resulted in a 30% increase in their productivity. 

8. Drive customer engagement – AI has been helping MNCs deliver stellar brand experiences to their customers. Artificial Intelligence has moved out of the board rooms and stepped into the markets, making interactions with the customers. People can now get a virtual makeover thanks to AI.

Target, the American big-box department store chain, scans the shopping history, purchasing behavior, and other information of the customers with the help of AI predictive analysis. Based on this data, the father of a customer started receiving baby ads. AI had figured out that this customer, a teen girl, was pregnant, even before she revealed it to her father. 

The biggest companies in the world have been deploying artificial intelligence to clock in profits. 

The use and deployment of AI have evolved since its introduction in the business to solely generate insights. The need of the hour is to adopt AI-driven solutions for a positive impact on the business revenue.

Author Bio

Hetvi works as a Product Associate at Refrens.com - Online Invoice Generator & India's most powerful platform for freelancer's growth. She has worked for some renowned companies as a Brand and Digital marketing associate. You can follow Refrens.com on Twitter, LinkedIn, and Instagram.

Codingvila provides articles and blogs on web and software development for beginners as well as free Academic projects for final year students in Asp.Net, MVC, C#, Vb.Net, SQL Server, Angular Js, Android, PHP, Java, Python, Desktop Software Application and etc.

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