Artificial Intelligence is at the core of the business world nowadays. According to Gartner, the number of companies using AI services grew by 270% from 2015 to 2019, while 83% of executives believe AI is a strategic priority, as stated by Forbes. From autonomous driving to detecting cancer in hospital patients – machine-powered intelligence seems to reform every industry in an unexpected way.
But, what is behind the AI revolution in business? AI helps organize data, draw relevant insights from it, and plan future paths based on its autonomously developed recommendations. And, it has the power of creating the seamless and personalized experiences that customers expect today while saving costs and boosting sales – a dream every business wants to become true.
Now, the use cases of AI for achieving greater financial health in the banking world are multi-faceted. Let’s see the seven ways AI can optimize a company’s revenue:
1. Automation of tasks
Smart machines allow companies to automate repetitive tasks, saving money and time. An ideal example of this is the use of chatbots, which can give personalized answers 24 hours a day, increasing customer satisfaction and allowing the staff to focus on more beneficial assignments. According to Juniper Research, chatbots are predicted to save businesses $11 billion annually by 2023.
2. Big Data analysis
AI can process vast amounts of data quickly and efficiently, which provides institutions with powerful insights that they can use to make quicker and more accurate business decisions. It starts with identifying where costs can be cut as well as what inefficiencies processes have. Especially when used to improve financial health, big data analysis can give insights into costly, recurring transactions, spending behavior of the company, investments that don’t pay off, and understand each business's pain points, needs, and preferences.
3. Empathize with clients’ preferences
With AI, you can leverage data to know what clients want and need… before they do! This knowledge enables companies to customize their products and services to fit their customers’ expectations providing personalized experiences, which is one of the biggest marketing trends right now. According to Accenture, 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. To achieve real empathy, AI systems need to analyze customers’ sentiments by understanding the context as well as emotional intent of voice and text messages, considering the use of language, the speed of response, and other factors.
4. Target ideal audiences
AI can provide smart algorithms to target the ideal audience and create relevant campaigns that convert. These campaigns can include any digital service to increase engagement and build better relationships with your audiences, including web and mobile app development, email campaigns, tailored content, social media management, gamification, and Influencer Marketing. AI is able to identify users segments in much more nuanced ways than a marketer alone. Paired with a customer survey, as it can collect, analyze, structure, and synthesize millions of data points in only a few seconds. What an AI-empowered system can do within one day – a person would need their lifetime.
5. High-quality leads
Big Data processing and analysis through AI also provides high-quality leads that become real sales opportunities. As the technology is able to process information in real-time, it can track users’ behavior and understand when it’s the right time to send a personalized marketing message or sales offer. For example, a user who has filled their shopping cart with items, but doesn’t take immediate action to close the deal, can be easily enticed with a personal shopping reminder and discount on the shopping cart.
AI enables businesses to develop a real-time strategy that may include auditing and improving customer experience, leveraging Influence Marketing and corporate gifting, creating SEM and native ad campaigns, and website optimization for maximum conversions.
6. Pricing optimization
Long gone are the times when prices were set according to the “gut feelings” from the sales team. Thanks to AI, data can be processed, and from historical data sets, it can predict the price of financial products that will guarantee a profitable deal for the individual customer. It can also help companies decide which level of discounts will work (and won’t break the bank), and even which incentives (like free products or membership specials) will promote customer loyalty.
7. Avoid human error
Once installed, AI can help financial institutions avoid human error, which results in more efficiency, productivity, and cost savings. This is also a great deal when it comes to cybersecurity: 95% of cybersecurity breaches are due to human error, according to Cybint. Compliance Week reports that an average data breach costs public companies already $116 million. Automated alerts when risks occur and digital responses to attacks can save IT systems from severe data leaks.
AI has become an essential technology for any company that wants to optimize its revenue and stay competitive. Banks should leverage AI’s cost-cutting features, its ability to analyze the financial health status, and its sales-boosting abilities to improve their financial health and to create deeper relationships around the customer lifecycle.
However, as machine learning advances, disruptive businesses are going even further than simply analyzing collected digital data. BOND.AI, for example, has developed an intuitive conversational chatbot that can pose users questions, analyze their sentiments, and find out how they react to different product suggestions – thus, employing empathy to gain deeper insights than the average AI platform.
What do you imagine? How far can an AI-driven Empathy Engine go? Find more information on how digital empathy is driving greater insights here.