There is an unprecedented wave of speculation and investment in Artificial intelligence (AI) sweeping the industry with ideas like machine learning (ML) appearing as a magic wand of business innovation. Beneath the seemingly boundless hype of AI, however, there is something quite simple at play -- the idea of finding ways to perform well-understood, common tasks more efficiently, according to leading data and analytics company GlobalData.
An analysis of GlobalData’s Disruptor Tech Database reveals that enterprise AI practitioners are primarily seeing very pointed benefits within problems that directly impact the bottom line.
For instance, one of the compelling areas where businesses have been using AI is generating leads. Harley-Davidson in New York chose AI to automatically craft the most appropriate digital marketing and advertising campaign on a customer-by-customer basis. The technology captures existing customer data from the company’s customer relationship management (CRM) system and analyzes user’s online and offline past purchasing behavior to scale up marketing campaigns across channels. Within three months of deployment, leads of the dealership grew by nearly 3,000% and more importantly the sale of motorcycles by 40%.
Another, pointed, pragmatic use cases for AI can be found in boosting operating efficiency. General Electric (GE), for instance, unlocked millions in cost savings using AI. Given its long operating record in multiple sectors and numerous enterprise resource planning (ERP) systems, GE has often faced challenges in arriving at a conclusion on its overall expenditure. AI enabled GE to combine all its 270 separate ERP systems into a single platform. The company realized more than $100 million in return on investment in different ways, including optimizing sourcing strategies, renegotiating contract terms, identifying cross-selling opportunities and reducing landing cost of products.
AI has been increasingly touted by enterprises as a key to customer personalization. Spotify stands a classic example in using AI to facilitate its customers with personalized music listening experience. Although players in the music streaming business such as Apple and Pandora offer curated playlists, they often fail to match individual listener’s music taste over time. Spotify’s “Discover Weekly” feature, curated algorithmically, became a sensation in personalizing music playlists more accurately at exceptionally large scale.
AI is of course the game changer of risk management to businesses in many ways. Online money transfers and payments company PayPal moved from using linear models to neural networks with deep learning (DL) for analyzing money transactions in real-time. The advanced platform helps to create scenarios related to positive and negative user behavior and contribute to improving the accurace of fraud detection over time. PayPal claims to have reduced the fraud rate to 0.32% of its total revenue, as compared to many peers at 1.32%.
The aforementioned are just a few in the expanding list of companies realizing tangible benefits with the use of AI.
“The operationalization of AI has allowed nearly every enterprise to grow smart, leveraging AI not globally but very specifically in solving well-understood problems, all without having to invest heavily in data sciences. However, while many are witnessing desirable results, potential AI practitioners should approach AI with caution, carefully weighing internal expertise against business needs,” concludes Brad Shimmin, Service Director, Global Technology and Services at GlobalData.
For more on how AI is being used in the AEC industry, and how the AEC industry can look to other sectors for how to best capitalize on the technology, check out BD+C's article, "Say 'Hello' to erudite machines," in the August issue.
Related Stories
| Jan 31, 2014
LEGO, Google partner to develop 3D modeling tool for LEGO structures
The free tool, called Build, allows Chrome users to create virtual 3D structures using any shape and color in the LEGO catalog.
| Jan 30, 2014
See how architects at NBBJ are using computational design to calculate the best views on projects [video]
In an ideal world, every office employee would have a beautiful view from his or her desk. While no one can make that happen in real life, computational design can help architects maximize views from every angle.
| Jan 15, 2014
6 social media skills every leader needs
The social media revolution—which is less than a decade old—has created a dilemma for senior executives. While its potential seems immense, the inherent risks create uncertainty and unease.
| Jan 12, 2014
CES showcases innovations: Can any of these help you do your job better?
The Consumer Electronics Show took place this past week in Las Vegas. Known for launching new products and technologies, many of the products showcased there set the bar for future innovators. The show also signals trends to watch in technology applicable to the design and building industry.
| Jan 12, 2014
5 ways virtual modeling can improve facilities management
Improved space management, streamlined maintenance, and economical retrofits are among the ways building owners and facility managers can benefit from building information modeling.
| Dec 31, 2013
Top 10 blog posts from 2013
BD+C editors and our contributors posted hundreds of blogs in 2013. Here's a recap of the most popular topics. They include valuable lessons from one of the first BIM-related lawsuits and sage advice from AEC legend Arthur Gensler.
| Dec 31, 2013
BD+C's top 10 stories of 2013
The world's tallest twisting tower and the rise of augmented reality technology in construction were among the 10 most popular articles posted on Building Design+Construction's website, BDCnetwork.com.
| Dec 17, 2013
IBM's five tech-driven innovation predictions for the next five years [infographics]
Smart classrooms, DNA-based medical care, and wired cities are among the technology-related innovations identified by IBM researchers for the company's 5 in 5 report.
| Dec 16, 2013
Is the metal building industry in a technology shift?
Automation is the future you can’t avoid, though you may try. Even within the metal building industry—which is made up of skilled tradesmen—automation has revolutionized, and will continue revolutionizing, how we work.
| Dec 10, 2013
16 great solutions for architects, engineers, and contractors
From a crowd-funded smart shovel to a why-didn’t-someone-do-this-sooner scheme for managing traffic in public restrooms, these ideas are noteworthy for creative problem-solving. Here are some of the most intriguing innovations the BD+C community has brought to our attention this year.
