2017-02-08 00:00:00 Running a Business English Learn about artificial intelligence, how it will affect business in the future, and why your small business must embrace it. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Artificial-Intelligence-Helps-Business-Owners-Run-Businesses.jpg https://quickbooks.intuit.com/ca/resources/business/how-artificial-intelligence-affect-business/ How Artificial Intelligence Will Affect Your Business

How Artificial Intelligence Will Affect Your Business

2 min read

Quite simply, artificial intelligence is recognizable intelligence that is performed by and exhibited by computers and machines. This field, which started around the late 1950s, is increasingly becoming an important part of everyday personal and business lives. Learn more about some of the major aspects of artificial intelligence that are changing business now and will continue to affect it in the future.

Automation and Virtual Assistance

The first major areas where artificial intelligence is changing business are automation and virtual assistance. Low-level and some mid-level employees are being replaced with low-cost intelligent machines, even chatbots. A great example of this automation is the automated checkout systems seen at most modernized supermarkets, pharmacies, and corner stores. The retailer makes a one-time outlay of cash to buy a machine that is much smarter and much more efficient than an hourly employee. This trend towards replacing employees with technology will occur across almost many industries, and it is something your business should immediately think about.

Patterns in Data

Artificially intelligent software is magnitudes faster than wetware – that is to say, human brains. Based off of speed alone, machines can recognize patterns in data faster and in a more meaningful way than any human analyst. A simple monthly subscription to an artificially intelligent analyst in the cloud may be immensely more valuable to a business of any size than a typical college-trained human analyst. Artificial intelligence can quickly and efficiently analyze data of all sorts and with better insight – all at an extremely low cost.

Financial Market Increased Efficiency Affects All Businesses

With the advent and advancements in artificial intelligence, the global financial markets will become more efficient, to the point of zero transactional inefficiencies. Whether your business is a small mom-and-pop shop or a multinational entity, this financial market efficiency will directly impact multiple areas of your business, such as its financial statements. Commodity transactions will become perfectly information-efficient. Business-to-business transactions will occur without resulting in any waste, and business-to-consumer transactions will be done in such a way that prices will be driven down to perfection.

Higher Return on Investment

Artificial intelligence is set to provide higher return on investment for small business through a few different key features. Artificially intelligent machines can learn; someday, they will be able to learn more efficiently than humans. The initial capital outlay for the hardware and software many mean huge returns for small businesses. Artificial intelligence’s ability to anticipate a business’s needs in advance and avoid common pitfalls humans experience could help a business’s production and service output. Beyond this, the eventual elimination of human error will occur, employee work-life balance and quality of life will improve, and the artificially intelligent machines will help make businesses more transparent through sheer quantities of automated data. All of these items combine to create a higher return on investment for a business.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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