Mars teamed up with Alibaba Group to obtain data on the consumption of spicy products. The data provided them with information on the preferable flavors, which in turn helped them develop a candy bar that appeals specifically to local consumers, thus resulting in increased revenue. By using AI, they were able to tailor products to better meet customers’ preferences and needs.
AI algorithms can perform tasks instantaneously - it also has limitless capacity and can operate around the clock. Rio Tinto has explored how AI can better forecast and speed up deliveries in an Australian mine, which led to generating more revenue for their business. AI recommendation is enhanced by context awareness where machines are programmed to learn beyond the initial programming. When these intelligent machines learn, they acquire consistent information on consumers that helps serve them with fine-tuned recommendations that accurately match their preferences. The AI technology therefore promotes relevant products that in return, add to the company’s revenue.
Another benefit of AI is that it can also customize user experience. It can automate the decision-making process and personalize customer-facing actions. For example, Netflix’s algorithms take into account customers’ preferences and provide them with personalized content without any human intervention. A lot of companies discovered how to implement AI solutions to develop new streams of income. For instance, Rolls Royce offers predictive maintenance services to their aircrafts; insurance companies have increased their revenue by selling extra products that were not designed for the initial market; Amazon is using AI to provide loan facilities to customers by luring them away from commercial banks.
Consumer businesses such as L’Oréal, has benefitted from AI technology by applying personalization to their skin care products. The company has AI-enabled equipment that scans the complexion of customers to produce foundations that perfectly match their skin tones. Consequently, each customer can accurately acquire their ideal skin care products, which results in increased sales. With AI solutions, companies can also ensure that sales are not lost from product unavailability. In this case, L’Oréal was able to detect the most common skin complexion purchased with their customer base, thus stocking up on the frequently demanded foundations.
Minimizing the cost of labor and making services faster than in-traditional methods, AI assists companies in generate revenue. During the Covid-19 pandemic, AI has been used by companies to compensate for a reduced workforce and also helped guide logistic teams on the most economical route to use during delivery of products in order to reduce expenses.
AI has been vastly adopted by top companies, generating more revenue with a larger competitive advantage within their industries. In summary, these companies are increasing their revenue by innovating new products that match consumer preferences and customizing products to tailor specifically for each customer. Also, AI has been used to personalize recommendations depending on the customers’ trends, all recorded by the powerful technology. These techniques attract consumers to convert on specific products, yielding in increased sales. Companies need to identify which AI solution aligns best with their core needs for their business objectives. Once they execute AI technology for their business, the return on investment will be so impactful they would have wished they implemented it sooner!