AI and its uses in
driving efficiency
What are the changes? Efficiency is not just a goal, but a necessity when addressing the challenges and costs of doing business in the modern day. But there is help at hand. Artificial Intelligence (AI) is now a critical ally for businesses worldwide.
Governments are not usually known for being innovative with technology, often falling far behind the private sector. But AI has disrupted this. Marking a significant turning point, the UK government recently empowered civil servants to use AI while managing a staggering £805 billion worth of projects. The Infrastructure and Projects Authority (IPA) has introduced a framework to employ AI to enhance the efficiency and effectiveness of public project delivery. It puts an emphasis on responsible experimentation, upskilling in AI and data analytics, and removing barriers to data sharing.
The UK government's approach to AI is not just about adopting the latest technology. It's a strategic move to improve project outcomes, drive efficiency, and lead influential global change. There's much the private sector can learn from this bold move to enhance operational efficiency.
The Types of AI Explained
You don’t need to know the technical details of how AI works to make use of it, but you do need to know the types, capabilities, and limitations. There's a bit to learn, but the payoff can be immense.
Here are the two main types of AI that are changing the game for businesses.
1.
Traditional AI: The Predictive Powerhouse
Think of traditional AI as your business's foresight. It encompasses machine learning where AI models are trained to categorise, predict, recommend, or detect patterns and outcomes.
The core value it brings to your business is 'better prediction'. This means you can anticipate customer behaviour, manage inventory more effectively, or even spot potential system failures before they happen, saving you both time and money.
2.
Generative AI: The Creative Aide
Generative AI is the creative side of AI that can generate new content, whether that's text, images, music, audio, or video.
The main business value here is 'efficiency'. This technology can help you draft reports, improve written content, or even create visuals for your marketing campaigns.
Here are the top five capabilities of generative AI tools that you could tap into:
General chatbot & helper: This AI can interact with your staff and customers, providing them with information and support, just like a human would, or enabling creative tasks to be performed faster and with consistency.
Summarisation: It can read through vast amounts of text and give you the gist in no time, making research a breeze.
Text & image creation & modifications: Need a blog post or a new logo? Generative AI can boost the creative skills of anyone.
Data & text analysis (& maths): From crunching numbers to dissecting reports, generative AI can handle structured and unstructured text and data analysis tasks with ease.
Code generation & analysis: For those in the tech field, generative AI can even help write and review code, speeding up your development process. It can also boost anyone’s Excel skills, converting your written needs into the right formula.
Opportunities for the Private Sector
The private sector can reap a multitude of benefits from AI, such as:
- Predictive Analytics: By analysing historical data, AI can forecast future outcomes, allowing businesses to anticipate and mitigate risks.
- Process Automation: AI can automate mundane tasks, freeing up valuable time for your team to focus on more strategic initiatives.
- Evidence-Based Decisions: With AI, decisions can be grounded in data rather than intuition, leading to more accurate and successful project outcomes.
- Creative Cost Savings: With generative AI, you can save costs on creative activities.
What are the challenges for businesses?
However, the road to AI integration isn't without its bumps. Quality and quantity of data for traditional AI are of paramount importance. Without robust data, predictive AI cannot function effectively. Moreover, AI systems are complex, and without transparency, the 'black box' nature of generative AI models might lead to scepticism or misuse.
Business leaders must be aware of these potential pitfalls and invest in understanding AI systems and the data they rely on. The UK government's strategy comes into play here by focusing on data skills, better data availability, and responsible data use. It sets a precedent for the private sector to follow.
For business owners, this translates to having an AI strategy, upskilling your teams, standardising your data collection processes, understanding use cases, and fostering a culture of secure and compliant data sharing and collaboration.
What actions should your business take?
As a business owner, you can start small, just like the government suggests – 'think big, start small, and scale fast.' Begin by identifying processes and use cases that can be enhanced by AI, consider the necessary skills your team needs to develop, and take the leap into data standardisation and sharing. Identify the right AI tool for the job.
AI is not a silver bullet, but it's a tool that when used correctly can significantly bolster your business's efficiency. The government's initiative serves as a testament to AI's potential, and the private sector must take note and act.
For small and medium business owners, the opportunity is clear. AI is not just for the big players: it's accessible, cost effective and beneficial to businesses of all sizes. By learning from the government's approach, you can streamline operations, reduce costs, and set your business on a path to greater efficiency and success.