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  • Writer's pictureTheodor Ciolan

The Impact Of AI On Business Operations


AI isn’t just cool tech; it’s a global game-changer. With over 63 years under its belt, AI’s popularity has soared thanks to hardware evolution. It’s faster, more efficient and more accurate, shaping Industry 4.0. AI is now integrated into our daily lives, powering our phones, voice assistants and favourite apps that life wouldn’t be the same without. But what’s in it for businesses?

I took the initiative, did my research and interviewed Dan Ciorăscu, a successful entrepreneur in his 20s, using AI to start up his app, ClevGo Driver. 


Big Companies' AI Game


Satya Nadella, CEO of Microsoft recently stated: “The core currency of any business will be the ability to convert their data into AI that drives competitive advantage”. 

Large firms worldwide are investing in AI for a competitive edge, with Microsoft overtaking Apple as the most valuable company. 

ChatGPT is not really a startup, but rather a shelf company for Microsoft like many other brands, that have similar artificial intelligence startups so as not to endanger the image of the main company in case of failure.

AI not only smartens products but optimizes costs, enhances marketing, and automates production. As some of the experts in this domain describe it, it represents a moving target, and “It is hard to reach a leading edge that’s always advancing”. Fortunately, this benefits us, as competition always motivates better service or products.


AI for Startups


Startups leverage AI from the get-go, helping them better shape their core ideas and future development paths. AI compensates for a lack of employees, offering a more accessible alternative, and a faster way to grow. It can help entrepreneurs develop a complete business model, marketing schemes, and financial estimations that would normally necessitate at least a Bachelor’s Degree. Many startups use AI for self-administration and improvement, offering an almost entirely automated process.


Entrepreneurial Insight


Successful Entrepreneur Dan Ciorăscu agreest startups have a lot to benefit from AI, from streamlining the processes and optimization to adapting the content to the user. He said that strategically using this type of tech can gain a business a competitive edge and young entrepreneurs should learn more about how to make better use of it, however, underlining the importance of maintaining the privacy and encryption of user data. 



AI and Humans: Friends or Foes?


AI's speed, accuracy, and versatility raise concerns about job displacement. This technological advancement has created as many jobs as it has eliminated, if not more, so we needn’t worry. The “Dark Side” of AI refers to the economic disparities that AI is building between the more technologized countries and the developing countries, the AI divide amplifying the digital divide. 


Conclusion 


AI is reshaping interactions, replacing some human connections with chatbots and virtual assistants, with infinite patience and knowledge. There's talk of introducing AI into schools and education, as part of future jobs. While AI enhances our quality of life, its downsides can and should not be ignored.


Sources:

Influence of artificial intelligence (AI) on firm performance: the business value of AI-based transformation projects | Emerald Insight. (2020, May 12). Influence of Artificial Intelligence (AI) on Firm Performance: The Business Value of AI-based Transformation Projects | Emerald Insight. https://www.emerald.com/insight/content/doi/10.1108/BPMJ-10-2019-0411/full/html 


Evaluating the impact of AI on insurance: the four emerging AI- and data-driven business models | Emerald Insight. (2019, October 1). Evaluating the Impact of AI on Insurance: The Four Emerging AI- and Data-driven Business Models | Emerald Insight. https://www.emerald.com/insight/content/doi/10.1108/EOR-01-2023-0001/full/html


Artificial Intelligence in Business: From Research and Innovation to Market Deployment. (2020, April 16). Artificial Intelligence in Business: From Research and Innovation to Market Deployment - ScienceDirect. https://doi.org/10.1016/j.procs.2020.03.272 


Tarafdar, M., Beath, C. M., Ross, J. W., & of Technology, M. I. (2019, June 11). Using AI to Enhance Business Operations - MIT Sloan Management Review. MIT Sloan Management Review. https://sloanreview.mit.edu/article/using-ai-to-enhance-business-operations/ 


Measuring the impact of AI on jobs at the organization level: Lessons from a survey of UK business leaders. (2021, November 23). Measuring the Impact of AI on Jobs at the Organization Level: Lessons From a Survey of UK Business Leaders - ScienceDirect. https://doi.org/10.1016/j.respol.2021.104425 


Artificial Intelligence in Business: From Research and Innovation to Market Deployment. (2020, April 16). Artificial Intelligence in Business: From Research and Innovation to Market Deployment - ScienceDirect. https://doi.org/10.1016/j.procs.2020.03.272 


Akerkar, R. (2018, August 12). Employing AI in Business. Employing AI in Business | SpringerLink. https://doi.org/10.1007/978-3-319-97436-1_6 


What AI can and can’t do (yet) for your business. (2018, January 11). McKinsey & Company. https://www.mckinsey.com/capabilities/quantumblack/our-insights/what-ai-can-and-cant-do-yet-for-your-business 


Soni, N., Sharma, E. K., Singh, N., & Kapoor, A. (2019, May 3). Impact of Artificial Intelligence on Businesses: from Research, Innovation, Market Deployment to Future Shifts in Business Models. arXiv.org. https://arxiv.org/abs/1905.02092v1 


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Very well written!

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