18 Most effective AI business examples
AI is a powerful digital tool that can help many industries improve and grow. Companies that fail to adopt AI may soon fall behind their competitors.
Even more, AI boosts efficiency by automating processes, speeds up and improves customer care, and uses past insights to guide decisions. It also helps uncover new product and service opportunities.
AI applications range from marketing to fraud detection to customer service. This article explores 18 of the best examples of how forward-thinking businesses are using AI today.
AI’s role in customer engagement and personalization
To begin, let’s look at how organizations use AI to create personalized experiences for customers:
- Netflix’s recommendation engine for personalized viewing
AI algorithms help Netflix analyze data like what you watch, how often you click on videos, and how long you watch them. Based on this, personalized recommendations are made.
It also identifies your favorite types of content by comparing it with others. Factors like your completion rate of shows and what other users with similar tastes are watching are considered.
Each time you watch, the system updates to suggest more relevant content. Netflix first applied AI to promote ‘House of Cards’ by creating ten distinct trailers to appeal to different audience segments.
- Amazon’s AI-powered shopping recommendations
Amazon adopts AI to suggest things you might like to buy. It looks at what you’ve bought before and what you’ve looked at to make better suggestions.
In the future, Amazon might suggest things for special occasions, like holidays or sports. They are also testing a chatbot called ‘Project Amelia’ to help sellers on Amazon.
- Sephora’s AI-driven virtual assistant for beauty advice
Sephora started its AI-powered shopping experience through its Innovation Lab feature. With the help of ModiFace, the company created AI tools to engage customers.
Using augmented reality (AR), the Sephora Virtual Artist allowed customers to try on products virtually through their mobile devices. Customers could find the right product shade and purchase it directly through the app with Sephora Color Match.
Sephora also adopted an omnichannel retail strategy to offer a seamless experience. In-store beauty hubs featured interactive mirrors and iPad stations for virtual product trials.
Operational efficiency and cost savings with AI
Want to use AI to streamline processes, reduce costs, and allow employees to focus on strategic work?
Take a look at these companies for inspiration:
- BMW’s predictive maintenance in manufacturing
Unplanned downtime in car assembly lines can disrupt production and lower efficiency. Traditionally, maintenance was done based on set schedules. This often led to problems.
BMW solves these challenges with AI and sensor data collection. Sensors are placed on load carriers and machines to track power use and movement patterns. The data is sent to a cloud-native platform where AI algorithms analyze it in real-time.
AI detects unusual patterns, like sudden power changes or abnormal movements, that could mean a malfunction. If an issue is found, the system sends alerts to maintenance staff, allowing them to fix problems before they get worse.
Currently, BMW is also testing an advanced humanoid robot at its Spartanburg factory. The goal is to see if robots can safely assist in production.
- DHL’s AI-driven warehouse logistics
DHL uses AI to make shipping more efficient. AI helps DHL predict how many packages it will ship and how much stuff it needs to store. It also helps them find problems that could slow down shipping and improve their warehouses.
As a result, DHL can deliver packages faster and more accurately. For example, DHL’s AI software, OptiCarton, packs boxes more efficiently, saving 50% more space. This means fewer trucks on the road and less pollution.
- Automating administrative and back-office tasks
KPMG uses AI to improve back-office operations. Tools like robotic process automation (RPA) and machine learning automate tasks like data entry and invoice checks. This reduces manual work in finance, procurement, and human resources.
AI also analyzes large datasets to provide insights and make better decisions. Recently, KPMG added generative AI to its audit platform, KPMG Clara. This change will help 90,000 auditors worldwide. This AI function will improve risk assessments, testing, and audit documentation.
AI’s impact on data-driven decision-making
Want to discover how some businesses use AI to turn data into actionable insights?
Read on below:
- Google’s AI for user behavior analytics
Google’s generative AI-powered search improves accuracy, relevance, and user experience. It processes natural language, personalizes results, and filters out low-quality content. Features like spell correction and autocomplete are now more precise. Google also uses AI to analyze and detect images effectively.
The AI can also analyze and recognize images more effectively. It tailors results based on your behavior, search history, and location. By filtering out spam, it ensures you see reliable information. The system learns from what users do to improve suggestions, making results more relevant and useful.
- JPMorgan’s AI in fraud detection
J.P. Morgan has been using AI-powered language models for payment validation screening for over two years. This technology speeds up processing by reducing false positives and improving queue management.
AI analyzes transaction data to spot suspicious activity and detect fraud more accurately and quickly than older methods. This has helped the bank cut financial crime losses. J.P. Morgan also uses AI to give clients helpful insights, like cash flow analysis, when needed.
- Walmart’s demand forecasting for inventory optimization
Walmart uses generative AI to improve inventory management and the employee experience. By gathering all relevant information in one place, employees can quickly answer product questions. For example, if a customer forgets the name of an item, the AI can find it. When an item is out of stock, the AI shows when it will be restocked or if it’s already on the way.
The AI also analyzes customer interactions. It suggests products based on their preferences. Unlike regular search tools, it understands complex details. As a result, Walmart’s AI makes shopping easier for customers and employees.
AI in marketing and content creation
Various companies use AI to enhance marketing strategies and automate content production.
These examples include:
- The Washington Post’s AI-generated news summaries
The Washington Post has a new AI tool called ‘Ask The Post AI.’ This tool can quickly find answers to your questions using articles from the newspaper. It searches for articles from 2016 onwards and gives you the most relevant results. To make sure the answers are accurate, the tool only answers questions when it finds good articles.
‘Ask The Post AI’ is part of the Post’s plan to use AI more. They have also created other AI tools, like AI-powered news and a tool to answer questions about climate change. The Post has used AI before to predict how many people will subscribe to the newspaper.
- Facebook’s ad algorithms for targeted marketing
Facebook uses AI to personalize ads by analyzing user data, like profiles, likes, and websites visited. The AI identifies patterns and groups users based on their interests. It then shows relevant ads, boosting engagement. The AI also adjusts real-time ads to improve performance, leading to higher sales and happier users.
Industry-specific AI applications showcasing innovation
Below are examples of AI applications that address specific challenges in various industries.
These include finance, healthcare, retail, and manufacturing:
- Goldman Sachs’ AI for trading algorithms
Goldman Sachs uses AI to improve efficiency across its operations, from banking to back-office tasks. Its AI-driven risk management system analyzes trading data in real-time to spot risks like market fraud and predict changes. The system learns from each trade, refining its strategies and reducing risks through the trading platform.
- PathAI’s advancements in healthcare diagnostics
PathAI is using AI to help doctors analyze images of body tissue. This helps doctors find things they might miss, like early signs of cancer. The AI tool makes it easier for doctors to make accurate diagnoses.
It has teamed up with Roche to create new AI tools that can help doctors give patients the right treatment. Together, they want to make AI a common tool for doctors so more patients can get the best possible care.
- Zara’s AI-driven inventory management in retail
Zara uses AI and real-time data to improve its business and respond quickly to customer needs. By combining just-in-time inventory management with advanced analytics, Zara has made its supply chain faster and more flexible.
To achieve this, Zara uses microchips in clothing tags to track inventory. AI has brought major benefits to Zara. Production times are weeks instead of months, allowing the company to act on new trends faster than competitors. Better inventory management means less storage and fewer unsold items, which reduces costs and avoids big markdowns.
- Siemens’ AI for quality control in manufacturing
Siemens is using smart machines (AI) to make factories better. AI helps fix problems like broken machines, high energy costs, and safety issues. It can also help make products better and faster.
Recently, it bought a company called Altair Engineering. This will help Siemens make even smarter products and factories.
Leading companies demonstrating AI leadership
Here are the best instances of how some best companies have integrated AI into their strategies:
- Microsoft’s integration of AI in 365 Copilot for productivity
Microsoft added a new AI feature called ‘Copilot’ to its Microsoft 365 apps, including Word, Excel, PowerPoint, and Outlook. Copilot uses AI to help users with tasks like writing drafts, creating presentations, and analyzing data. It aims to make work easier and more efficient by automating tasks and generating content quickly.
The AI behind Copilot is built on large language models (LLMs) and powered by Microsoft Graph. Microsoft Graph stores user data like emails, files, meetings, and calendar events. This helps Copilot offer personalized suggestions based on each user’s needs.
- Pfizer’s AI-driven drug discovery processes
Finding new medicines is a slow and expensive process. Scientists often rely on luck. But Pfizer is using AI to change this.
Since 2014, Pfizer has used AI to speed up the process of finding and testing new drugs. AI also helps make the approval process easier. AI tools can analyze huge amounts of data to find patterns and predict results, making drug development faster and more successful.
- Tesla’s advancements in autonomous driving
Tesla uses AI to make its business better. Most of these smart tools are built by Tesla itself, which helps them improve quickly.
AI is used to make self-driving cars smarter. It learns from millions of drivers to make better decisions. AI also helps Tesla build cars more efficiently and with higher quality. A supercomputer called Dojo helps train the AI even faster.
Learn from these AI business examples to drive future growth
AI in business has many uses. It can personalize services, offer product recommendations, and detect fraud. AI also helps automate responses and provide data-driven insights. It personalizes newsfeeds, recognizes language, converts voice to text, and forecasts trends. When used correctly, AI can improve business transformation.
To make the most of AI like the above organizations, it’s important to understand data collection and analysis. By learning how AI works, you can see how it can benefit your business. Start with small projects and track results. This will help you scale AI later. It’s also crucial to have controls, training, and contingency plans to manage risks and avoid mistakes.
FAQs
An example of AI in business is fraud detection in banking, where AI systems detect fraud by spotting suspicious transactions using data patterns.
Some of the biggest businesses that use AI include Microsoft, Walmart, Google, Apple, and Victoria’s Secret.