The role of artificial intelligence in business in 2024

In business, artificial intelligence (AI) is more than just a trend; it’s a crucial tool reshaping how we approach marketing and customer engagement. According to our research, nearly 9 out of 10 business leaders are gearing up to boost their investments in AI and machine learning (ML), especially in marketing.

Why this surge? At the heart of this AI revolution is the ability to segment behaviors and target specific customer groups with precision. It’s about making smarter decisions, crafting more personalized strategies and understanding customer needs on a deeper level, all of which are crucial across various business units.

This article will explore the diverse roles AI plays in enhancing business functions like marketing, operations, product development, human resources, customer support and security. Each domain benefits from AI’s ability to streamline processes, improve efficiency, and provide actionable insights, making every interaction and decision more meaningful and effective.

What is AI?

Artificial Intelligence refers to the simulation of human cognitive functions by machines. It includes a wide range of technologies that enable machines to perform tasks traditionally requiring human intelligence, such as reasoning, problem-solving, decision-making, and learning from experience.

Today, AI is an umbrella term that includes various subfields, such as machine learning, deep learning and natural language processing.

The development of AI has led to the creation of numerous applications, including chatbots, virtual personal assistants (e.g., Siri, Alexa), recommendation systems, autonomous vehicles and medical diagnosis systems. These applications demonstrate the practical implementation of AI in performing specific tasks with high accuracy and efficiency.

Which functions of AI are used in business?

Let’s explore the core AI functionalities transforming businesses today, from machine learning and natural language processing to deep learning for AI automation. Each plays a critical role in enhancing decision-making, optimizing operations and driving innovation.

Machine learning (ML)

Machine learning algorithms analyze data, identify patterns and make predictions based on their results. They power AI tools that enable businesses to gain valuable insights from disparate data to help decision-making. While ML models learn independently as they process data, they can also be updated manually based on your specific needs.

NER and semantic search

Named Entity Recognition (NER) identifies entities defined in the ML model as important to a business, such as geographic locations, brand names, famous people, etc. And semantic search helps provide a contextual understanding of a query input by a user. Together, they help process and analyze large volumes of unstructured data to help you improve search accuracy, automate data processing and extract meaningful insights for informed decisions.

NLP and sentiment analysis

Natural Language Processing (NLP) and sentiment analysis enable businesses to understand and interpret human language, making them essential tools for analyzing customer feedback, social media content and other textual data while automating report generation.

Deep learning (DL) for AI automation

Machine learning uses algorithms and learns independently but may need human intervention to correct errors. Deep learning, on the other hand, uses neural networks to learn and adapt to new data patterns with little to no human input. It’s utilized to automate complex data analysis tasks and processes, including image and speech recognition, enabling businesses to streamline operations and improve efficiency.

How artificial intelligence helps in business functions

AI has revolutionized various business functions, including marketing strategies, product development, sales efficiency, customer support, human resources, operations and security. Marketers and business professionals leverage AI to create stronger campaigns, make smarter decisions and streamline workflows. AI is changing the game and setting new benchmarks for business excellence.

Artificial intelligence in marketing

With marketing, AI transforms how businesses interact with their customers in several ways, offering tangible benefits that directly impact a company’s bottom line.

Social listening

AI-powered social media management tools like Sprout Social integrate AI into social listening to help you analyze social media conversations, translating vast amounts of data into actionable insights. This helps you understand customer sentiment in real time, monitor brand health and respond swiftly to market trends, ultimately fostering stronger customer relationships and brand loyalty.

Content personalization

AI personalizes content based on customer behavior, preferences and demographics. For example, Netflix uses AI to provide personalized movie and show recommendations, enhancing the user experience and engagement for its audience.

Sprout Social’s Enhance by AI Assist uses AI to personalize customer interactions at scale. It tailors responses based on the tone of the incoming messages, ensuring that replies are relevant and resonate with the customer’s emotional state. This capability enhances customer engagement by delivering personalized experiences at scale.

Market research

AI tools dissect large datasets, revealing market trends, customer preferences and competitive landscapes, enabling businesses to make data-driven decisions.

Content generation

AI is also impacting content creation and the way we write. For instance, Sprout’s Message Ideas by AI Assist generates engaging content suggestions, helping marketers quickly craft messages that align with their brand voice and audience interests. This tool streamlines the content creation process, allowing users to focus on the strategic aspects of their campaigns.

Competitor analysis

Competitor analysis using AI offers detailed insights into competitors’ strategies and customer perceptions. By tracking essential metrics such as audience growth, engagement and post volume across various networks, marketers can benchmark their social presence against competitors. This comprehensive analysis, including share of voice, engagement, sentiment and impressions, helps identify key areas where a brand stands out or needs improvement.

Sprout’s powerful competitor analysis features aid in discerning which content types are most effective, helping to refine strategies to resonate with target audiences. Regular use of these AI-powered tools for competitive analysis empowers businesses to stay agile, adapt strategies and maintain a competitive edge in their industry.

International marketing

AI’s ability to analyze and interpret multilingual sentiment plays a crucial role in helping businesses navigate the complexities of international marketing by providing language support, cultural adaptation, market analysis and customer insights. This enables businesses to create more effective and targeted marketing strategies for diverse international audiences.

Predictive analytics

AI’s predictive analytics are pivotal in forecasting future customer behavior, a crucial factor in marketing decision-making. By analyzing customer data, AI predicts trends and preferences, enabling businesses to tailor their marketing efforts more effectively. This foresight leads to smarter, data-informed choices, ensuring that marketing strategies are relevant and timely, catering to evolving customer needs and preferences.

Targeting decisions

AI enhances targeting decisions by sifting through extensive customer data to pinpoint the most appropriate audiences. It identifies patterns and preferences within customer interactions, allowing businesses to focus their products or services on the groups most likely to engage. This targeted approach, driven by AI’s deep learning capabilities, ensures that marketing efforts are concentrated where they have the highest potential for impact and conversion.

Media buying

Companies like Volkswagen utilize AI to optimize their advertising strategies. AI analyzes vast amounts of data to determine the most effective channels and placements for advertising, enhancing the efficiency and effectiveness of media spend. AI’s application in media buying improves campaign performance and provides valuable insights into consumer behavior and media consumption patterns.

Artificial intelligence in product development

AI in product development helps teams move beyond traditional design and customer preferences. Its capabilities extend to creating more intuitive and customer-centric products driven by data and innovation.

Product design

AI modernizes product design by analyzing market trends, customer feedback and historical data, leading to products that meet current and future market needs. For example, AI prompts can guide designers in creating products that satisfy market demands and predict future trends. This approach enables exploring a broader range of possibilities, ensuring products are both innovative and relevant.

Project management

In project management, AI automates routine tasks, optimizes resource allocation and provides real-time progress insights. By analyzing historical project data, AI enhances risk assessment and mitigation strategies, leading to more productive and proficient project management.

Predictive maintenance

AI’s role in predictive maintenance is pivotal, using data-driven methods to analyze historical data, identify patterns and anomalies, and generate proactive maintenance recommendations. This approach significantly reduces downtime and maintenance costs, increasing overall efficiency.

Integrating AI into product development marks a new era of innovation, where products are functionally superior and deeply aligned with customer expectations and market dynamics.

Artificial intelligence in sales

AI is creating a new paradigm of efficiency and customer engagement. From email campaigns and lead scoring to proposal writing, AI is enhancing both the sales process and the outcomes.

Email campaigns

AI-driven analytics optimize email strategies by creating narratives that strike a chord with customers. By analyzing customer data and behavior, AI crafts engaging and contextual content. It automates the drafting and sending of personalized emails at scale, ensuring each communication is tailored to the recipient’s interests and needs.

Lead scoring

In lead scoring, AI processes huge quantities of customer data to improve accuracy in identifying potential customers. It considers various factors, including website behavior, demographics, firmographics, job title, purchase history and social media engagement. This results in a ranking system that prioritizes leads based on their conversion likelihood, streamlining the sales process.

Proposal compilation

AI also plays a key role in generating personalized, evidence-based sales proposals. By utilizing AI tools, sales teams can create compelling visuals, presentation slides and text that directly address customers’ needs and aspirations, significantly increasing the chances of closing deals.

Artificial intelligence in customer support

AI enhances customer support by enabling businesses to offer more personalized and optimized service. AI enables teams to customize customer interactions, automate the ticketing process and leverage trend analysis to provide deeper insights into customer preferences and behaviors. These applications streamline operations and elevate the overall customer experience.

Personalize customer support

AI empowers businesses to offer personalized support by analyzing customer data and interaction history. This leads to tailored support experiences and recommendations. For example, KFC China’s introduction of facial recognition technology to predict customer orders based on age and mood is a testament to AI’s capability to enhance customer service.

Customer Care by Sprout equips teams to create authentic customer connections at scale. With tools like AI-powered sentiment analysis, Sprout uses this technology to turn customer interactions into insightful data, helping businesses fine-tune their care strategies and content.

Sprout’s social listening solutions further automate FAQs and identify customer sentiment, respectively, supporting a comprehensive and personalized customer service approach. This AI integration is not just about responding faster; it’s about understanding customers better and providing a consistently excellent experience across platforms.

Automate ticketing process

AI streamlines the ticketing process by efficiently routing customer queries to the appropriate agent or department and providing standardized responses for common queries. It also offers self-service portals for customers to find solutions independently, boosting efficiency in customer service.

Trend analysis

AI analytics tools gather and examine large amounts of customer data, offering valuable insights into customer behaviors, preferences and trends. These insights are crucial for businesses to refine their service strategies and product offerings, ensuring they stay aligned with customer needs.

Artificial intelligence in human resources

AI is transforming the HR landscape by streamlining recruitment, enhancing employee engagement and understanding employee sentiment.

Understand the voice of the employee

AI analyzes employee feedback from various sources, such as surveys, performance reviews and social media. By providing insights into employee sentiment, engagement, and satisfaction, AI helps businesses understand and respond to their workforce’s needs more effectively.

Simplify recruitment process

AI automates several recruitment tasks, including resume screening, candidate sourcing and interview scheduling, thereby saving time and enhancing recruitment efficiency.

For example, Unilever uses AI to screen video interviews and analyze candidates’ body language, tone of voice and word choice. Thanks to AI’s ability to eliminate bias, Unilever saw a significant increase in new hires from various gender, racial and socioeconomic backgrounds.

Trend analysis

AI tools gather and analyze employee data, offering insights into behavior, preferences and trends. These insights help refine HR strategies and boost employee engagement, fostering a more satisfied and productive workforce.

Artificial intelligence in operations

AI enhances operational processes by increasing efficiency and supporting innovation via automated processes and optimized asset management.

Automate processes

Intelligent automation blends AI with robotic process automation (RPA) to enhance decision-making and streamline workflows. AI’s cognitive capabilities and big data understanding enable predictive outcomes, allowing companies to proactively refine processes.

AI-powered automation is critical for Business Process Management (BPM). BPM automatically analyzes optimal methods at different stages, creating replicable models. An example of BPM in procurement is automating the entire purchasing process. Advanced automation increases profitability, accountability, productivity and flexibility. It saves time and reduces errors.

Inventory management

AI plays a critical role in optimizing inventory management. A notable example is Heineken, which uses machine learning algorithms to forecast demand and maintain optimal inventory levels. AI-driven inventory management lowers storage costs and increases profitability and customer satisfaction by ensuring products are readily available when needed.

AI is also shaping a more proactive, data-driven approach to business management. This sets a new standard for business agility and customer responsiveness, where operational excellence is intrinsically linked to intelligent technology.

Artificial intelligence in fraud detection and security

The global cybersecurity AI market is poised to reach $38.2 billion by 2026. Utilizing advanced algorithms, AI proactively detects, counters and minimizes potential risks, processing extensive amounts of information in real time to spot patterns and anomalies that could signal breaches or fraudulent activities.

Monitoring media threats

AI helps monitor media dangers by continuously scanning digital spaces for potential security threats to brands. This capability is vital in today’s digital-first landscape, where threats can emerge from numerous online channels.

Identifying physical anomalies

AI algorithms are also adept at detecting unusual patterns, significantly contributing to sectors like retail, banking and public safety. Swift recognition and response to physical threats are made possible by AI’s keen pattern recognition, enhancing security measures in these critical areas.

For example, Mastercard is helping banks predict scams in real time and before any money leaves a victim’s account. This enables the organization to thwart fraudulent attempts swiftly and effectively, minimizing potential damage.

What does the use of AI in business mean for different stakeholders

Integrating AI in business encompasses a spectrum of benefits and use cases for diverse stakeholders.

For employees

AI’s role in business processes translates to an enhanced employee work experience. By taking over routine tasks, AI frees employees to focus on strategic, creative activities, increasing job satisfaction and opening up avenues for career development. This shift towards high-value work fosters a dynamic and innovative work environment.

Education and training in AI ethics and application enable businesses to inform their workforce about AI’s potential and limitations and how to leverage it responsibly.

For businesses

AI equips businesses with tools for enhanced efficiency, deeper customer insights and innovative product development. It drives a competitive edge and lays the groundwork for future growth, enabling businesses to make informed decisions, create stronger marketing campaigns and develop more effective workflows.

Defining an organizational structure for AI governance is key. This includes assigning roles and responsibilities and introducing an independent body to oversee AI compliance for responsible and ethical usage.

For investors

Investors should focus on AI solutions that enhance a company’s existing strengths. AI should drive long-term impact and act as an ‘exoskeleton’ to business processes. It’s crucial to select strategic AI partners who understand the nuances of control, ownership and accountability. Look beyond the immediate allure of AI and focus on sustainable, value-driven integration.

For the public

As AI integrates deeper into our lives, it becomes vital to digital literacy. Ethical AI frameworks set clear guidelines and principles for AI development and deployment. This ensures AI systems prioritize transparency, fairness, privacy and accountability, serving the greater good without harming individuals or communities.

Continuous monitoring and auditing are critical to upholding these ethical standards. Regular audits by trained experts are necessary to assess AI performance and identify potential issues like biases that may emerge over time. Informed consent is another crucial aspect, where the public’s voluntary and informed agreement is obtained for AI-related processes, and individuals are fully aware of how their data is used.

Adopting these measures allows businesses to respect privacy rights, handle sensitive information securely and mitigate potential risks associated with AI.

Future of AI in business

AI and automation solutions provide businesses with targeted insights and capabilities to navigate the complexities of today’s digital landscape.

By embracing AI with a focus on strategic and ethical implementation, businesses are preparing for the future and actively shaping it. They are creating a landscape where technology and human ingenuity converge to drive unprecedented growth and customer satisfaction.

By leveraging Sprout Social’s AI-driven tools, businesses can anticipate customer needs, speed up personalized content, craft messages that resonate, and develop data-driven and customer-centric strategies.

Schedule a demo to discover how Sprout can transform your marketing and care strategies.