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Artificial intelligence: 4 key opportunities and challenges for businesses

See all articlesAI
Corporate advisory
August 25, 2023
minute read

Recent developments in the field of Artificial Intelligence (AI) have ushered in new opportunities for business owners. As the business landscape continues to evolve, embracing AI-powered solutions will become increasingly crucial for long-term success and growth.

Leading this technological revolution are generative AI models, a subset of AI that uses machine learning to generate data, images, ortext that closely resembles human interactions. There are many types of AI models, however, for the purpose of this article we are going to focus on Generative AI.

An example of a generative AI is ChatGPT, where ‘GPT’ stands for Generative Pre-trained Transformer. In this article, we discuss both the positive aspects and potential pitfalls that businesses should be aware of when assessing new AI opportunities such as ChatGPT.

Understanding ChatGPT & Generative AI

ChatGPT is a language model that utilises GPT architecture. This allows it to process and comprehend natural language in a human-like manner. ChatGPT can generate coherent, contextually relevant responses and simulate human-like conversations. This is through harnessing vast amounts of data and training on diverse language patterns. This makes ChatGPT a powerful tool for various business applications, including;

  • Chatbots
  • Customer service assistants
  • Automating repetitive tasks or functions

However, its capabilities also pose several ethical considerations and challenges. There are potential data security and privacy concerns. There could also be the potential for spreading misinformation. Collectively, these are key risks that need to be carefully managed by organisations.

Challenge 1: Integration complexity

Given the complex nature of AI, incorporating this technology into an existing business ecosystem is no easy task. Business owners should be prepared to invest significant time and resources into understanding the underlying technology, identifying suitable use-cases within their organisation, and appointing professionals to manage the integration process.

Opportunity: Increased business productivity

Whilst complex to setup, ChatGPT is designed to handle routine and repetitive tasks, freeing up human resources for other areas of the business. From analysing large subsets of raw data to managing meetings and appointments, AI systems can automate various internal processes and administration functions, resulting in higher overall productivity.

Challenge 2: Data privacy and security concerns

Training AI systems like ChatGPT requires access to vast amounts of data, most of which includes private business and customer information. When implementing AI systems, organisations should prioritise data privacy and security best-practices to ensure the protection of privileged information and maintain customer trust.

Opportunity: Greater marketing analytics and data insights

Once security protocols have been correctly implemented, generative AI can safely monitor live customer analytics data and create more targeted marketing campaigns. AI systems trained on large volumes of internal data can recommend optimal product layouts for eCommerce stores based on previous sales metrics. This level of dynamic analysis can significantly increase customer engagement and conversion rates, driving business growth and increasing customer loyalty.

Challenge 3: Quality control

Although generative AI models are highly advanced, they may occasionally produce inaccurate or out-of-context responses. Business owners should establish robust quality control mechanisms to ensure that AI-generated content aligns with their brand image, values and target market.

Opportunity: Enhanced customer experience

Robust quality control mechanisms can allow for safe integration of ChatGPT into customer support functions, which can lead to quicker response times and more personalised interactions. The ability of AI to understand natural language and provide relevant responses to customer queries can improve satisfaction rates and customer loyalty. It could also help reduce labour costs that would be otherwise spent on customer support functions.

Challenge 4: Training and maintenance costs

Properly training and maintaining AI systems can be a costly endeavour, especially for smaller businesses with limited budgets. Businesses should weigh the potential benefits of AI adoption against the ongoing development costs required to maintain such systems. Note that implementing AI systems may necessitate hiring additional qualified staff to upskill employees.

Opportunity: Competitive Advantage in the market

Whilst expensive, training staff on how to use AI systems can increase employee productivity and provide businesses with an edge over its competitors. Businesses who integrate AI systems into their operations will attract talented employees and stay ahead of the technological curve. To attain this first mover advantage, businesses should focus on attracting and retaining forward-thinking staff to autonomously manage the roll-out of new AI initiatives.


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