Why Generative AI Is Important To Make Digital Transformation Strategy A Success?

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%.