When people mention artificial intelligence or similar buzzwords like digital transformation, they immediately think of complicated stuff and the changes they’d need to make in their everyday work.
Most organizations (and their employees) fear big changes, but digital transformation has many benefits. In fact, digital transformation means companies can use artificial intelligence to their advantage.
So, yes, changes will happen, but for the better. Thanks to artificial intelligence, you can streamline operations, fight industry disruption, and, most of all, reduce costs.
However, it’s not just about changing some software and hardware. It’s never that simple.
In addition to upgrading their tech stacks, you’ll have to reshape corporate culture, standard operating procedures (SOPs), business processes, and many other things. Plus, you’ll have to change how you interact with customers.
Why? Because you need to keep up with ever-evolving market demands. In this guide, we’ll define digital transformation, discuss why it’s important, and end with six ways to use artificial intelligence to your advantage in streamlining digital transformation.
Let’s dive in.
Don’t mistake digital transformation for digitization, as they are not the same.
Digitization is how you make things digital from their original analog sources.
Digitalization is a similar term but has a different meaning. It refers to using the data mentioned above to improve upon existing processes. In short, digital transformation rebuilds fundamental business operating procedures.
Implementing digital transformation is a huge step for industrial enterprises. Digital transformation will help battle competition and mitigate cost pressures. In addition, it can empower businesses to think outside the box and effectively invent more innovations.
This will boost operational efficiency and deliver better outcomes, including faster decision-making, real-time data analysis, and enhanced customer experiences.
In addition, digital transformation allows for a more flexible approach in many instances. Businesses that adopt digital transformation can better adapt to customer needs and align with market changes much faster.
Embracing digital transformation has great benefits. According to McKinsey, companies that implement it will boost efficiency and increase customer satisfaction by 20-30%.
Digital transformation improves many aspects, like overall efficiency and better disruption adaptability, but it also drives higher revenue growth.
McKinsey also shows that, on average, companies adopting digital transformation experienced a profitability surge of 26%.
In a highly saturated market with competitors fighting for a slim market share, it’s important to understand that leverage is the key.
That’s why all businesses should consider integrating digital tools like AI into their workflow to obtain this leverage. Only then can you truly find your place in today’s market.
If you’re not familiar with what’s been happening in recent years, let us explain: AI is changing how people start businesses.
Smart online tools now guide new business owners through setting up an LLC. These AI systems help create legal documents, choose the right business type, and even design logos.
This makes starting a company easier and faster for anyone with a good idea. By simplifying this process, AI is helping more people become entrepreneurs and turn their ideas into real businesses.
So, investing in digital technologies is a must. By doing so, you’ll follow modern trends and remain competitive. Marketing trends and customer expectations are ever-changing, and businesses must do everything possible to adhere to these changes.
Why is all this important?
It’s crucial to employ new digital tools to help with task automation and improve decision-making processes.
However, that’s not all. AI tools can also help enhance overall employee and customer satisfaction. A staggering 70% of CEOs believe digital transformation and AI will have a huge role in future success (PwC’s Global NextGen Survey 2024).
The things AI can do and help with are vast, influencing many segments of every business. AI can help with advanced data analytics, processes, decision-making, finances, security, customer experience, and many other fields.
Let’s dive deeper and see how it can help and why it is so important.
Artificial intelligence can analyze massive amounts of data and offer fast solutions based on this data. It will deliver real-time insights and ways to utilize the provided information.
With this information, your employees can make decisions much faster, which is especially important in the health industry.
A good example in the healthcare industry is IBM Watson and how AI helps them make fast and actionable decisions. Their digital transformation approach and use of AI help doctors make faster, more accurate diagnoses.
What AI does is it processes massive amounts of medical data. Doctors can provide the necessary treatments much quicker with all the processed data. Bear in mind that these treatment recommendations consider the patient’s history and the latest research.
Another excellent example is finance. In 2021, JP Morgan Chase invested $11.4 billion in various technologies, and part of it went to AI-driven algorithms.
These algorithms help them reduce human error, save time, optimize investment decisions, and detect potential fraud. Can you imagine how many people JP Morgan Chase employed to do all this work? A lot. But even with the entire workforce at hand, it takes a lot of time.
A prime example of how big of an impact AI has on decision-making is Google’s personalized search results. Leveraging machine learning (ML) helps Google to provide user-based, relevant, accurate, and personalized results.
All of this happens thanks to users’ previous searches, as ML learns what users look after and tailors future results based on the previous ones. ML learns users’ preferences, past searches, and locations to gather necessary information.
In addition to providing unbiased and personalized experience to its users, it also collects valuable insights for advertisers. No wonder Google is a giant—it’s a win-win.
Today, everything revolves around being more direct and personal. Netflix does best by understanding the given data and using it to create a much better user experience.
Netflix took this to the next level, as its AI knows how to boost customer satisfaction. It’s all about real personalization. Besides retaining users by understanding what they want and need, this approach also helps with decision accuracy.
AI also significantly impacts customer service. Using large language models like ChatGPT over preset chatbots makes all the difference.
Why is that?
Unlike its traditional counterpart, ChatGPT delivers personalized responses much faster and uses valid sources to gather intel. Chatbots use pre-made answers to provide users with the information they seek, while ChatGPT goes over and beyond.
Talk about thinking outside the box. It’s reasonable to say that ChatGPT is more useful as it provides incredibly accurate and valid information. This creates seamless customer satisfaction.
The switch from chatbots to more sophisticated AI-powered systems is happening. AI helps you share information backed with actual and legitimate data and enhances the reliability and depth of their responses.
Integrating AI into digital transformation strategies can create a more seamless and efficient customer experience. KLM Airlines has entered the AI race, too. They use AI chatbots to help with bookings, delays, and any other flight inquiries. This helps make the customer experience seamless while boosting their loyalty and satisfaction.
Robotic process automation (RPA) technologies work very well with AI, as AI drives advancements in process automation. Therefore, RPA provides businesses with an opportunity to streamline various back-office tasks.
Whether it’s data entry, invoicing, or even payroll processing, optimizing process automation is useful. It will help eliminate the need for any manual and repetitive processes.
A good example is UiPath, which helps DHL with logistics and data management automation. It reduces potential human errors and enhances operational efficiency. Bank of America uses AI-driven automation to help streamline fraud detection and improve customer service.
AI and RPA will work together to boost efficiency, allocate resources to areas that need them the most, and lower operational costs. This means greater flexibility in the evolving market and greater business growth support.
Advanced analytics use AI and ML for many purposes, one of which is to turn raw data into actionable insights. This is done by processing large and complex datasets, empowering companies to predict future outcomes, identify trends, and optimize processes.
Businesses with extensive global operations where data streams from multiple sources require real-time analysis find this very useful. It helps them remain competitive.
For instance, Triple Whale is a data analytics platform that uses AI to help eCommerce companies. It tracks key performance metrics, helping with customer acquisition costs and sales data, all in real-time.
Here’s another example.
An AI translator can convert insights and reports into multiple languages, making critical findings accessible to global teams and stakeholders. This not only enhances collaboration across regions but also ensures that decision-making is data-driven and inclusive, regardless of language barriers.
The result is a more agile and connected approach to digital transformation.
Another industry influenced by AI to move towards digital transformation is finance. AI is transforming financial services, significantly impacting personal finance management, such as personal loans.
This means that AI-powered platforms can analyze huge amounts of financial data and use this data to create tailor-made loan options. These smart systems can quickly assess an individual’s financial profile, consider current market rates, and suggest personalized loan plans.
Data breach is not something you want to take lightly. Per IBM, the average cost of data breaches in 2024 is $4.88M (worldwide). Therefore, enhancing your security is a must, and what better way to do it than with AI?
AI is significantly changing security within cloud environments. It can automate threat detection and enhance overall protection. AI-driven systems can process vast amounts of data, detect anomalies, and predict security threats in real-time.
Advanced ML algorithms also play a significant part in security processes. They analyze patterns in network traffic and user behavior to help predict potential vulnerabilities. This predictive capability allows companies to address security issues proactively rather than reacting after an incident already happens.
Enterprise cloud API management platforms like Apigee and Kong also utilize AI to enhance the security of their API gateways and give developers more flexibility.
However, when evaluating Apigee vs. Kong, you can find key differences in how both platforms leverage AI. They use it to achieve more intelligent traffic monitoring and anomaly detection. This provides an additional layer of security, reducing manual intervention and bolstering overall protection.
Another innovative application in this field is artificial intelligence for security posture management (AI-SPM). This technology goes beyond traditional security measures by continuously monitoring, analyzing, and improving an organization’s security stance.
For example, a large financial institution can implement AI-SPM to protect its vast network of online banking services.
The AI system detected and neutralized a sophisticated phishing attempt that traditional security measures had missed, potentially saving the company millions in damages and preserving customer trust.
Unlike many others, Triple Whale provides e-commerce brands with immediate access to key performance metrics. You will find sales trends, customer acquisition costs, and marketing ROI—all in one place.
One key differentiator is its powerful integrations with platforms like Shopify, Amazon, WooCommerce, and many others.
These integrations enable marketers to unify their data sources, giving them a clearer view of their business performance without switching between platforms. We’ve also recently launched Triple Whale’s next-generation platform powered by AI.
Triple Whale’s dashboard is intuitive, making complex data accessible and actionable for all users, regardless of their expertise.
These features translate into significant benefits for marketers and business owners. The platform’s advanced analytics help optimize marketing strategies, reduce wasted ad spend, and ultimately improve ROI.
AI will play a crucial role in digital transformation, but the topic is ever-evolving.
Today, we covered a few of the most significant reasons artificial intelligence will change digital transformation. So, keep an eye on the latest trends and adapt as needed.
One thing’s for sure: whether it’s enhanced security or improved customer service, AI is here to help.
If you want to learn more, book a demo with Triple Whale today!
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