Marketing 0

Artificial Intelligence
AI is probably the most popular, yet the least understood technology
in recent times. It is intimidating when we think of it as human-level,
as seen in science fiction movies. This form of AI is known as
artificial general intelligence (AGI), which has human-level
consciousness but is still in development for at least another 20
years.
But it does not need to be that sophisticated. Narrow applications of
AI are already common, being used extensively to automate routine
tasks in several industries. Financial services companies have been
using it to automate fraud detection and credit scoring. With AI,
Google has been recommending searches even as you type each letter

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on the search bar. Amazon has been using it to provide book
recommendations, and Uber to set dynamic pricing.
In its narrow form, AI uses computer algorithms to perform specific
tasks that once required human intelligence. The way the computer
learns is either supervised or unsupervised. In supervised learning,
human programmers map the algorithm in input–output or if–then
format. An early form of this is known as the expert system,
primarily found in customer service chatbots. When interacting with
a simple chatbot, customers can only ask questions from a
predetermined list. Companies that have recurring and standardized
processes may utilize the expert system for automation.
In unsupervised AI, the computer learns and discovers previously
unknown patterns as it feeds past historical data with minimum
human involvement. The AI analyzes and transforms unstructured
data into structured information. The applications in the marketing
field are plenty. One of the most important is to interpret and draw
insights from big data. From social media posts, transaction history,
and other behavioral data, AI can group customers into clusters—
enabling companies to perform data-driven market segmentation
and targeting. It is a foundation that allows companies to provide
customization and personalization in product recommendation,
pricing, and content marketing campaigns. As customers respond to
these offerings, the computer continues to learn and modify its
algorithm.
Although AGI is not yet available, an integrated AI in a company is
possible. Take Ant Financial, the parent company of online payment
Alipay and an affiliate of Alibaba. The company utilizes AI and other
supporting technologies to automate all its core business processes:
payment security, financial advisory, loan approval, insurance claim
processing, customer service, and risk management. It reimagines
car insurance, for example, using image recognition and machine
learning. Customers can submit a car insurance claim with a
smartphone photo. The AI engine will analyze the image and
determine if the request is legitimate.
AI is simply the brain of automation. It needs to work with other
technologies such as robotics, facial recognition, voice tech, and
sensors to deliver the next-generation customer experience.

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Previously in the domain of the computing research lab, AI has now
reached far and wide into the everyday lives of customers. AI will
create value but must be carefully managed. Biases, coming from
human preferences and historical decisions, may sneak into the AI
algorithm. And without inclusive development, AI may lead to a
widening income disparity.