AI and automation: The benefits for business and industry

AI and automation in businesses is an increasingly hot topic in company boardrooms.

According to the Office for National Statistics’ Business and Insights Conditions Survey (BICS), “approximately 1 in 6 businesses (16%) are currently implementing at least one of the applications asked about in the survey.

“Of those businesses currently using or planning to use one of the specified… applications, the most common reasons for doing so was improving cybersecurity (35%) and creating efficiencies (35%).”

Artificial intelligence (AI) has actually been in existence since the 1950s. It entered many people’s consciousness when, in 1997 the then-world chess champion, Garry Kasparov, was beaten by Deep Blue, a supercomputer created by IBM.

However, it was the launch of ChatGPT in November 2022 that opened up generative AI to a general audience.

Whereas traditional AI manages numeric data plus small amounts of text, generative AI systems are capable of carrying out research and generating completely new content.

AI has the potential to launch a new industrial age in which automation drives enormous improvements in productivity, manufacturing capability and analysis.

It’s beginning to revolutionise industries through efficiency, cost savings, and insights into customer behaviours.

This kind of automation can take on manual repetitive tasks to free up teams to do more interesting, rewarding work—work that only humans, rather than machines can do. This includes interacting with colleagues and listening to their ideas and concerns.

The distinction between AI and automation is often blurred because AI frequently underlines automation. Just as it’s difficult to separate machine learning from AI.

What is this new industrial revolution?

AI is an all-encompassing term that covers all technology that can mimic human intelligence and it’s been in development since the 1950s.

It wasn’t until the advances in machine learning were realised that scientists had a breakthrough and the acceleration of AI-powered products was made possible.

Machine learning is a specific technique that allows computer software to learn both from experiences and data, and this self-learning is what underlines the new era of AI.

Secondary to the development of machine learning, advancements in cloud computing have reduced the cost of processing power and have increased processing capacity.

This too has allowed the algorithms of machine learning programs to realise their full potential.

As a result, manufacturing and business is on the cusp of the mass adoption of AI and automation, which will mean both greater productivity and efficiency, and cheaper production costs.

AI is powering apps and systems that make everyday life better for all of us.

When it comes to manual, repetitive tasks, artificial intelligence systems are less prone to mistakes than a fallible human.

Specifically, AI and automation in business has the power to process data many times faster than a human brain. It also has the ability to unlock insights and make sense of data that we humans don’t have.

Everyday examples of AI and automation

Automation predominantly is about automated tasks and processes set by rules and AI is about self-learning and thinking.

Automation is applied to monotonous tasks such as:

• Manufacturing processes
• Managing spreadsheets
• Sending out invoices
• Personalising mailing lists.

AI is being in numerous ways, such as detecting cancer in radiographs as it “learns” from previous images what cancer looks like, compared to scans of healthy tissue.

Many of us already use home assistants that can answer our questions about travel or the weather, for instance, and order our shopping.

There are also AI apps that monitor security systems for any disruptions to usual patterns.

We are already surrounded by artificial intelligence both in our everyday lives and in business.

We may not realise that Google Maps uses machine learning to calculate the fastest routes based on previous traffic flows. Predictive texting is another example of this technology.

Amazon suggests products we may like based on our shopping habits and the habits of others buying similar items.

Netflix suggests what we may enjoy watching based on our viewing habits. Siri and Facebook are both powered by AI as an integral part of the user experience.

It is a tool increasingly used in business to help make the lives of employees easier.  

For example, cloud-based automation and AI-powered software in a new development. Tools, like Sage Intacct, can offer an upgraded experience since it runs in the cloud and can link your offices, departments, or regions and provide financial insight on all levels. 

It can suggest and draft an email to a customer, if they haven’t paid their invoice in an acceptable amount of time, compile and send a customised report to key stakeholders or it can simply provide a more efficient dashboard to manage clients’ or employees’ accounts, for example.  

Current Sage 50 users can explore all these additional benefits of cloud-based AI-powered accounting by migrating to Sage Intacct, to power-up the next stage of growth for your business.  

Personal and home assistants

Assistants such as Siri from Apple, Alexa from Amazon, Cortana from Microsoft and Home from Google all run on a natural language interface, which means you can converse with the device for a series of tasks and responses.

The standard of query recognition has improved drastically over the past few years and some devices are now even identifying different users through their voice.

Banks are also using ‘my voice is my password’ for telephone banking. These assistants use machine learning to understand the behaviour of the owner and offer relevant options based on their habits.

Basically, they learn what you like and tailor themselves to respond to those preferences.

The more you work together, the more they know you and can facilitate your needs.

Personal assistants are designed to take over repetitive and mundane tasks and, as the Internet of Things grows, they will begin to integrate more with other devices.

In time, they will manage our home lives from ordering our groceries when the fridge is empty, to controlling our heating and energy consumption more efficiently, to organising our family schedules and even monitoring our health with a prompt if we need to seek medical attention.

AI and online content

It’s highly likely you have already read content online that has been generated by a machine but not realised this was the case.

In another effort to replace mundane tasks, copywriting for basic content such as descriptions and reports is now being created by AI-powered systems.

Chatbots will increasingly use AI

The very first chatbot, ELIZA, was developed by a professor at MIT in the 1960s. Fast-forward to the last few years and there has been a huge adoption of ‘conversational agents’ acting as automated customer representatives.

Currently a chatbot can simply be a basic, pre-programmed automated bot that can only operate within limited rules to answer set questions.

Or, it can be an AI driven bot with machine learning that understands language and can constantly self-learn and get smarter, using the same natural language processing as a personal assistant.

A chatbot can even mimic human speech and simulate a conversation.

Usually employed as a live-chat representative to answer basic questions and enquiries, chatbots also enables consumers to order food, book flights and get recommendations.

Impact of AI on social media

Social media is at the cutting edge of AI and automation in businesses, as it uses this fast-evolving technology to create relevant content for users and ensure that advertising is properly targeted.

AI can analyse visual content, automatically tagging objects and people. AI-powered sentiment analysis tools can gauge the public’s attitude towards your brand and products. It can even identify potential influencers who could promote your brand effectively.

Amazon has been using an algorithm for several years that makes suggestions for personalised products based on your purchase and search history.

Both Facebook and Google also employ AI to generate newsfeeds and search results that are personalised to you.

The application of machine learning to learn a user’s habits and preferences are well-exploited but are nothing new when you consider that supermarkets have been scanning our consumer habits and offering unique vouchers for years.

Credit card security

If you have a credit card, then you might well have experienced a ‘hold’ or ‘false decline’ on your card for no apparent reason.

Frustrating and time-consuming, this is all down to the algorithms that banks use to scan for the kind of abnormal activity on an account which might indicate fraud.

The system will suspend the card and highlight to an operator who may call you, or you will simply receive a text with the instruction to contact your bank.

Predictive analytics: Make better predictions

Predictive analytics are becoming more accurate and sophisticated, allowing you to make projections for your business, which is particularly during these uncertain economic times.

It can predict increases in raw material prices, the impact of macro-economic factors and it can help you to model possible changes to the way in which your business operates.

One of the biggest applications of AI is within data analysis, which can unlock insights for many areas such as security, healthcare and transport.

It’s no surprise that the keepers of vast amounts of data such as Facebook, Microsoft and Google have been leaders in AI, as they try to unlock more insights from their mountains of data.

How AI is impacting key business sectors

Some industries that are experiencing the biggest impact from AI include:

Healthcare

As an industry, healthcare is already benefiting from AI in many areas.

Diagnostics have seen the application of algorithms that can scan radiology images for tumours and which can detect lung and skin cancer far more effectively than the best radiologists.

The processing time it takes to analyse scans is reduced and treatments can be applied much faster. AI can analyse large datasets for the detection of diseases and help medical practitioners to make better, more informed decisions.

Data analysis can also offer input for optimised treatment plans enabling them to be better managed.

Virtual Health Assistants are chatbots that can take care of time-consuming tasks such as appointment scheduling. Bots can also prompt people to take medication on time. On a more sophisticated level, they can provide both medical advice and answer patients questions.

The benefit to patients will be increased recovery rates and a more efficient healthcare system.

Education

The major areas of education that can benefit from AI are through the personalisation of learning methods. A system can analyse how a student processes information and then provide tailored support to their learning needs.

When dealing with students with learning difficulties, a bespoke approach can help where they need it the most.

Intelligent Tutoring Systems are another form of AI bot that can interact with students to analyse their ability and then offer tailored learning programs.

The other major area to benefit from automation is the mundane task of grading papers. This currently takes away teaching time from the student but, by freeing up this time, the teacher can provide more hands-on teaching.

The classroom structure could evolve dramatically over the coming years from the impact of AI. More efficient learning environments, shaped to every possible learning style and ability, could be created so that every student gets the maximum support and help that they need.

Finance

As mentioned previously, machine learning algorithms can monitor the use of an account and put a stop on it when any unusual activity arises. AI systems are far more subtle and forensic in their detection than any person and can more accurately spot fraud. As a result they can reduce the number of false declines which currently hampers both credit card users and commerce.

Thanks to the increasing use of AI and automation in businesses, algorithms can be employed in credit scoring and mortgage applications, which benefit from more accurate predictions and assessments.

The trading industry has been leveraging the power of AI for years. Automated Trading Systems are algorithms that can wade through vast amounts of data for better analysis and for speeding up trading decisions.

One of the more interesting applications of chatbots is in the managing of money and savings. For those willing to offer full access to an AI of their bank accounts, they can get financial and savings advice on a micro level.

An app called Plum, monitors your spending habits and analyses your income to make recommendations of when and how much you can save. It will take small deposits out of your account and put them into a savings account.

Other banking chatbots do much the same and many can also offer financial advice and give money management tips.

Transport

As mentioned above, self-driving cars and lorries have the potential to radically change the transport system, from haulage to hail-and-ride autonomous cars.

The major benefit to the roads would be the impact on safety by reducing the number of accidents through the use of self-driving cars as well as predictive analytics software for improved traffic flow. The paths of pedestrians and cyclists can be predicted and more allowance built into the road systems based on this data.

Traffic flow, especially in cities, could be monitored and analysed, with smart traffic light systems altered for the optimum flow of traffic at different times, resulting in less congestion at key junctions.

In another application of AI and automation in businesses, haulage and courier services already use systems to plot the most efficient route for their drivers, both for speed and fuel efficiency, cutting costs of delivery and CO2 emissions.

Google Maps also uses AI to predict the best routes based on previous driver and traffic flow data, resulting in a more optimised sat nav system which is available to anyone.

How can a small business implement and take advantage of AI and automation?

The possibilities of AI and automation are vast and are set to radically change many levels of manufacturing and business. This is all well and good for a big business that has the resources to invest in new technology, but how can a small business start taking advantage of the new technology now?

Because of the internet and cloud computing, there are many applications of AI that are accessible to anyone and as we highlighted previously, AI is already integral in everyday life much more than we realise.

AI and automation in businesses can free up our time from repetitive and mundane tasks so that business leaders can focus on innovation and strategy instead. It can also provide us with more information about what’s going on in the business.

Sage Ai, for instance, goes beyond automating routine tasks such as invoice processing to boost your productivity, it also provides a dynamic, real-time view of your business performance, and gives you actionable insights.

The main areas of benefit for any small business lie in the automation of repetitive tasks and in the managing of teams and customer-facing assistants:

Automated email

The core function of automated email platforms is to allow automated marketing emails following a triggered action. The system allows you to send tailored emails at the right time in a sales cycle to capture engagement.

The development of automated email platforms has dramatically changed the face of direct mail marketing and is an essential channel for any business to leverage.

Share documents

For several years, Google Docs and GSuite have allowed for synchronised updates by automating document sharing. With more flexibility and agility in collaboration on documents, this facilitates the growing trend of teams operating from remote locations.

Job applications

The recruitment process has been automated with Applicant Tracking Systems which help to manage job applications. Systems such as SmartRecruiters or Zoho will sort and filter applicants based on keywords, skill set and years of experience, etc.

Other time-saving systems can free up more one-to-one time for you to interview candidates to ensure that you find the right hire.

Invoicing and online accounting

Bookkeeping is a classic area of mundane paperwork that is being revolutionised with automated invoicing systems such as Sage Business Cloud Accounting, which remove the need for manual data entry and automate invoice payments. Instead, more time can be spent on financial planning and strategy, to make your business more efficient.

Automated process tools

If This Then That (IFTTT) is a powerful tool which allows a user to make their own processes, or ‘Applets’, to automate any task by syncing a multitude of platforms to facilitate the power of the Internet of Things.

IFTTT has many processes for a small business such as, logging time spent for time tracking, saving email attachments to Google Drive, logging calls to a spreadsheet, recording a Salesforce event to Google Calendar and countless others.

Team management

It’s difficult to remember a time before the use of task management tools such as Basecamp, Trello and Google Calendar. The new breed of team management platforms such as Asana can facilitate teams in various locations with ease and automate both reminders and reports to assist in managing a remote (or not) team.

Slack is a well-known example of the use of AI and automation in businesses and is fast taking over from email as a communication tool within large organisations. It has many features that can be automated such as, using a bot to reach out to every member of the team via a private message that is then shared with the team.

This saves time wasted in traditional meetings where every person can say what they are working on by collating a report for everyone else to see simultaneously.

HR management tools such as, Sage Business Cloud People, can also help you to run and manage your workforce more efficiently.

As well as relieving HR departments of repetitive, time-consuming tasks by drafting emails and summarising meeting notes, AI can help identify potential candidates, enabling recruiters to overcome human biases and even predicting how well the people you’re interviewing will perform in the job.

Chatbots

The use of chatbots is a huge area of growth and for a small business they can be easily implemented on a basic level via Facebook Messenger.

Using a bot to answer frequently asked questions and to manage enquiries removes time spent answering calls, leaving more time for focused customer management.

If you’re a business with more resources, a bespoke bot can be coded to suit your customers’ needs and to automate more customer or client handling.

Service businesses can automate ordering or bookings without the need for a phone agent and other businesses can offer a knowledge assistant to respond to questions about your service or product.

The future of AI and automation in businesses

Although there are concerns about the loss of jobs to automation, the bigger picture is that people carrying out mundane tasks can be deployed to other areas in the business which offer more value and efficiency.

More specifically “Deep Learning,” will step up AI and automation in businesses. This rapidly evolving technology teaches computers to process data in a way that’s similar to the workings of the human brain. As Amazon Web Services explains: “It can recognise complex patterns in pictures, text, sounds, and other data to produce accurate insights and predictions. You can use deep learning methods to automate tasks that typically require human intelligence, such as describing images or transcribing a sound file into text.”

The next generation of AI includes neuromorphic computing, another kind of technology which is based on the way in which the human brain works. Not only will this massively increase computing power without driving up energy requirements, but it can respond to external stimuli in real-time, developing and reorganising connections in the way our brains do.

As a result, customer service apps or infrastructure such as self-driving cars will be able to make faster, better decisions, similar to the way in which human beings respond and decide to what’s happening around us. The implications for AI and automation in businesses are significant and exciting.

The workplace will evolve and restructure to accommodate this new revolution, as it has always done.

AI and automation have many more benefits to offer. For a small business, it could mean a vast difference to profits through increased efficiency that otherwise could not be realised.