AI Value for Businesses

Categories : Blog

Posted:

Author: Digital Frontiers Institute

A basic definition of AI (Artificial Intelligence) is the use of computers to mimic cognitive capacities and functions of human beings. Artificial intelligence systems can mimic some aspects of human intelligence and produce impressive results, including detecting objects, playing chess, generating texts, completing tasks in a warehouse, and diagnosing difficult health conditions; where of recent, AI has proven that it is twice as good in detecting difficult tumours and cancers and much better in identifying patterns and analysing data at a speed of sound in weather.

AI depends, uses and is trained on data generated by humans. For example, training data can be the list of moves in a chess game, monitoring systems, the sequence and process flow of banking transactions and sports commentary which is currently being piloted in the United Kingdom (UK) on tennis. By training on a large enough dataset, AI can create a model of human behaviour on a given task. It should be pointed out that imitating human behaviour has its limitations thus the growing concerns of AI having a potential to cause profound harm to humanity such as AI generated Cyber and Bio-chemical attacks. The just ended first-ever Global AI safety Summit in the UK stressed on regulating AI as without backing actions with thoughts, AI systems can become brittle and make unpredictable mistakes especially when faced with uncommon situations.

Aside the growing safety concerns, AI presents to the world profound and unprecedented transformational opportunities hence the recent held AI summit across the globe should be highly commended. Artificial Intelligence technology is now poised to transform every industry globally, just as electricity did 188 years ago. Between now and 2030, it will create an estimated $13 trillion of gross domestic product (GDP) growth. While it has already created tremendous value in renown technology companies such as Google, Microsoft, and Meta, much of the additional waves of value creation have already gone beyond the technology sector to sectors as Banking, Health, Transport, Manufacturing, and the world of work thus the pivotal need for business executives to understand AI’s impact on corporate strategy, so are government leaders on development strategies.

For the dynamic world of business, leaders need to be deep-diving into understanding on what are the implications of AI for business, how will AI give businesses new ways of creating and harnessing business value, how do decision roles and processes change, once there is machine intelligence in the room, how will AI change the way organisations are set up and function, And what are the types of risks that AI itself creates or magnifies for businesses. For example, in Banking and Finance there is a renewed emphasis on consumer-friendly technologies especially in digital channels and AI is undoubtedly at the core of this, thus it should come as no surprise that the industry is projected to be valued at approximately $17,440 million by 2027 with a compound annual growth rate (CAGR) of 17.9%. In business, AI brings transformational opportunities and value in managing risk and fraud especially in banking and payments where implementing AI will seamlessly monitor customer transactions and detect potentially fraudulent activities helping to prevent unauthorized access and financial losses. AI also bring value and opportunities to various industries in automating operations, reducing costs, enabling transparency and compliance, and creating new business opportunities where for example J.P Morgan a global renowned investment bank uses AI powered algorithms to identify potential investment opportunities, assess market trends, and make data-driven decisions in trading and portfolio management. Agro-based economy countries like Malawi with a rapid growing population which is exerting pressure on the agricultural sector to increase production and maximise yields, Artificial intelligence can help explore the soil health to collect insights, monitor weather conditions and recommend the application of fertiliser and pesticides, and provides farmers with real-time crop insights, helping them to identify which areas need irrigation, fertilisation, or pesticide treatment. Additionally, AI has the capacity to help farmers analyse market demand, cost saving, data-based decisions and forecast prices as well as determine optimal times for sowing and harvesting. In legal, AI is poised to help lawyers reduce numbers of work hours, higher efficiency, and with higher odds of favourable outcomes in litigation which is considered as one of the most time-consuming tasks in law.

AI is here to stay and is impacting every industry and how we carry on our lives each day at the speed of light thus we ought to plan, embrace and align our businesses and lives towards an AI driven society and environment.

 

By Lumbani Gondwe

Country Manager at Flutterwave

DFI Alumni and Community Member

The Author is a Malawian Chartered Certified Digital Finance Specialist. He writes in his personal capacity.

 

Established in 2015, Digital Frontiers Institute is a proud brand of Digital Frontiers. Learn more about the Certified Digital Finance Practitioner (CDFP) programme and find out how to enrol: https://cdfp.digitalfrontiersinstitute.org/