Digital transformation is one of the main impetus for businesses in delivering value to their customers in the contentious and ever-changing business environment. The process aims to harness the digital technologies that can create new ways to provide value, exceptional customer experiences, and match with the changing needs of the customers and the market.

Generative AI a sub-branch of AI, is the core of the digital transformation strategy. It is an innovative technology helping businesses to develop artifacts that previously were dependent on humans. Emerging technologies are creating a lot of hype nowadays. Hence, it is going to become quite challenging to determine the value of the business in real and to measure the level of influence of AI in digital transformation. AI is helping companies to transform into a flexible, innovative, and resilient than ever before.

AI-Driven Digital Transformation

The true meaning of digital transformation lies in leveraging the set of processes, tools, and methodologies to optimize the operational activities of the businesses, like offering differentiated services, reaching out to more customers, and performance enhancement.

When AI and ML became an integral part of business strategy, digital transformation leaped in every aspect. From boosting productivity to upgrading business efficiency, these technologies enabled better usage of the available data of a company. This further led to business expansion, product and service enhancement, and bringing of innovative strategies.

Companies using AI as an integral part of their digital transformation strategy began to achieve profits and positive transformation results. A recent survey at Infosys speaks, that 98% of the organizations leverage the power of AI in their digital transformation strategies generating 15% more revenue than last year. So, AI can be considered one of the most disruptive forces that have a deep impact on the digital transformation of a business.

How does AI Benefit Digital Transformation Strategy?

360 Degree View of Customers

AI supports businesses specifically in the areas such as marketing and knowing customer needs and preferences. The success of any kind of digital transformation is in getting accurate buyer personas and discovering the right audience. And it becomes so important to gain a holistic overview of the customer right from the beginning of the process. AI helps in completing this mission.

With AI, consumer behavior trends get revealed, along with purchasing history. Currently, all buyers want personalized experiences while on their digital journey. AI quickly unlocks consumer insights and reinforces those personalized experiences. In this manner, companies get a competitive advantage by improving customer satisfaction, adopting effective marketing campaigns, and accelerating consumer loyalty.

Dynamic Analytics

It is very important to collect data for implementing an effective digital transformation strategy. However, the real skill lies in the way the available data is capitalized so that the process turns into a great success.

With AI, thousands of data points get processed on daily basis. They reveal insights and recognize the trends in real-time. When companies provide customer experiences, they get proactive. The dynamic analytics empowered by AI helps brands to understand consumer needs.

The impact of predictive analytics uses AI and combines several insights and trends from diverse data points and algorithms such as purchase history or historical campaign data. With these insights, the marketers generate personalized experiences for consumers and make effective marketing campaigns. AI has become extremely vital now as it cuts through the noise and engages consumers during their digital journey.

Growth and Profitability

AI blunts the risks, enhances operational effectiveness, and amplifies innovation resulting in a profitable digital transformation. In one of the Forbes surveys, it was found that business leaders recognize customer service, marketing, and sales as the top three zones where AI makes an impact.

Accenture reports that by 2035, an average of 38% profitability increase shall be observed only with AI. AI is going to create an economic impact by boosting $14 trillion as an additional revenue across 16 industries at the end of 2035.

Moreover, startups that will adopt innovation and disruptive technologies are sure to succeed by leveraging industry incumbents that show a slower growth pace.

Operational Effectiveness and Faster Processes

The topmost benefit of AI is its efficiency to accelerate productivity and operational effectiveness. With AI-enabled systems, you can scale up the processes and deliver actionable insights to deliver speedy information to the users. Companies can make data-centric decisions instead of depending on intuition. The marketers can make informed judgments about the current trends and patterns and can undertake calculative risks and opportunities.

Hence, future bottlenecks can be identified at an early stage, and marketing budgets can be allocated to productive projects. Moreover, with Generative AI, companies can suggest the best course of action to achieve optimal results and can retain high-value customers. As Gartner reports, by 2025, the operational efficiency of the AI-powered customer engagement platforms will improve by 25%.

Automate Your Customer Services With AI

Over the last decade, AI has picked up a supersonic growth speed. Every day, companies are adding up in getting a competitive advantage by harnessing emerging technologies. As IDC finds it out, worldwide AI spending will reach $77.6 billion by 2022.

To acquire an edge over the competitors in this spiking digital revolution, every business must utilize the right technologies. The companies adopting AI technology will become more agile, profitable, and innovative.

The success of the digital transformation persists in understanding the deepest nuances of consumer behavior. The digital transformation without a consumer-centric approach shall involve great risks. So every company must utilize AI and get closer to the consumer’s mind to provide added value at every possible touchpoint.