Leveraging the AI Advantage

By Jeannie Cotter

“The global AI market is projected to reach a staggering US$15.7 trillion by 2030.” – PwC (Global Artificial Intelligence Study: Exploiting the AI Revolution)

The boundaries between humans and artificial intelligence (AI) continue to blur, rendering the concept of soulless, impersonal machines as archaic notions of the past. Who would have ever thought that AI bots, once imagined as such, would bear whimsical and evocative names like Bard, Bing, ChatGPT or Claude, each moniker hinting at the vast potential and enigmatic nature of these technological marvels?

In today’s fast-paced digital landscape, innovation is the currency of success, and AI is the game-changer businesses can’t afford to ignore.

As the world becomes increasingly digitalised, businesses are facing unprecedented challenges and opportunities. To stay ahead of the curve, companies must embrace the transformative power of AI and harness its potential to drive innovation, streamline operations and gain a competitive edge.

The global AI market is projected to reach a staggering US$15.7 trillion by 2030, according to a report by PwC. This exponential growth is fuelled by the increasing demand for intelligent systems across various industries, from healthcare and finance to manufacturing and retail.

A recent Kaspersky study has revealed that nearly two in every three (61% and 64%) companies in Asia Pacific (APAC) have implemented artificial intelligence (AI) and Internet of Things (IoT) in their businesses’ infrastructures. Additionally, 28% and 26% are planning to adopt AI and IoT within two years.

The Rise of Generative AI

Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation.”

One of the most exciting developments in the AI landscape is the emergence of generative AI models like ChatGPT, text-to-video and text-to-image tools. These cutting-edge technologies are revolutionising the way businesses approach content creation, product development, and customer engagement.

ChatGPT, a large language model developed by OpenAI, has captured the imagination of the business world with its ability to generate human-like text on virtually any topic. From writing reports and marketing materials to generating code and analysing data, ChatGPT has the potential to significantly enhance productivity and creativity.

According to a survey by Statista conducted across four Southeast Asian countries in 2023, 62% of businesses would likely or very likely use AI-powered chatbots such as ChatGPT for online search purposes in the future. This adoption rate highlights the growing recognition of the value these tools can bring to organisations.

Beyond language models, generative AI tools like text-to-video and text-to-image technologies are opening up new worlds of visual storytelling and content creation. These tools enable businesses to generate high-quality videos and images from simple text prompts, revolutionising the way they engage with customers and communicate their brand narratives.

A study conducted in 2023 by the software firm HubSpot found that video was the most popular and effective media format for companies, with 50% of marketers leveraging video in their marketing strategy, followed closely by images at 47%.

Improving Operational Efficiency with AI

While generative AI tools are capturing headlines, businesses are also leveraging AI to optimise their internal operations and streamline processes. From predictive maintenance in manufacturing to fraud detection in finance, AI is playing a crucial role in enhancing efficiency, reducing costs and minimising errors.

According to a report by Accenture, high-performing organisations that have successfully implemented AI in their operations have seen a 50% increase in revenue by using AI. On the other hand, fintech companies that implement chatbots were projected to realise cost savings of US$7.3 billion in 2023, according to a report by Juniper Research.

AI-Powered Customer Experience

“A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.”

Beyond operational excellence, AI is transforming the way businesses interact with customers. Intelligent chatbots and virtual assistants are revolutionising customer service, providing 24/7 support and personalised experiences. Additionally, AI-powered recommendation systems are enhancing e-commerce platforms, offering tailored product suggestions and increasing customer satisfaction.

A study by Salesforce found that 76% of customers expect consistent interactions across all channels, and AI can enable businesses to meet this demand by providing seamless, personalised experiences across multiple touchpoints.

KFC exemplifies how brands can use AI to deliver personalised shopping experiences. The fast-food chain teamed up with Chinese search engine Baidu to develop facial recognition technology capable of predicting customer orders. The system analyses estimated age and mood to recommend menu items tailored to each individual.

For instance, a 20-year-old male might be offered a crispy chicken sandwich, roasted wings and a coke, while a 50-year-old female could receive suggestions for porridge and soybean milk. This approach streamlines ordering while providing a level of personalisation that resonates with many patrons.

In the cosmetics industry, Sephora enhances its customer experience through an AI-powered Virtual Artist app. Leveraging augmented reality, the app scans users’ faces, allowing them to virtually ‘try on’ various makeup products before purchasing. This interactive feature guides informed buying decisions while injecting an element of fun into e-commerce.

These use cases across the food and cosmetics industries exemplify how AI can significantly elevate customer experiences within diverse sectors by enabling personalised, seamless engagement.

Maximising AI in Customer Service

By incorporating these practices, businesses can harness the power of AI to optimise customer service while maintaining a human touch.

AI as Support, Not Replacement: Utilise AI to enhance customer service, focusing on streamlining processes rather than replacing human interaction. Identify areas for automation, such as handling routine queries, while reserving human intervention for emotionally charged situations.

Reducing Wait Times: Employ AI to swiftly address simple queries, minimising wait times and ensuring prompt customer engagement. By allowing AI to handle basic tasks, human agents can focus on more complex issues, fostering a seamless customer experience.

Automating Communication: Leverage AI to automate various aspects of customer communication, including follow-ups, email drafting and CRM data retrieval.

Crisis Detection and Alerts: Utilise AI’s natural language processing to detect shifts in customer behaviour or emotions, enabling proactive crisis management. Set up alerts to notify service teams of potential issues and intervene when necessary, maintaining customer satisfaction.

Ethical and Responsible AI

While the potential benefits of AI are undeniable, businesses must also grapple with the ethical and responsible deployment of these powerful technologies. Issues such as data privacy, algorithmic bias, and transparency are critical considerations that cannot be overlooked.

The 2024 Edelman Trust Barometer: Insights for Tech report reveals that AI stands at a critical juncture. Worldwide, 30% of participants welcome the innovation, while 35% oppose it. Over the last five years, trust in AI companies has declined globally, dropping from 62% to 54%.

Among those who harbour reservations about the increasing adoption of AI, their primary concerns include privacy issues, fears of AI dehumanising society, insufficient testing and evaluation and the potential for harm to individuals and communities.

In response, businesses must prioritise the development of robust governance frameworks and invest in AI ethics training to ensure their AI systems are fair, transparent and aligned with societal values.

As businesses integrate AI and other interconnected technologies, cybersecurity emerges as a critical concern. According to Adrian Hia, Managing Director for Asia Pacific at Kaspersky, “Undoubtedly, new technological tools play a vital role in improving the efficiencies and productivity of enterprises in the region. However, there are loopholes, particularly in cybersecurity, that need to be addressed.

“Our recent study showed more than half of the companies are using AI and IoT in their organisations, but 21% of them think AI and IoT are somewhat difficult to protect. It shows that there is a skills and knowledge gap that needs to be patched with urgency.”

Ivan Vassunov, Vice President, Corporate Products at Kaspersky, echoes this sentiment, stating, “Interconnected technologies bring immense business opportunities, but they also usher in a new era of vulnerability to serious cyberthreats. With an increasing amount of data being collected and transmitted, cybersecurity measures must be strengthened.

“Enterprises must protect critical assets, build customer confidence amid the expanding interconnected landscape, and ensure there are adequate resources allocated to cybersecurity so they can use the new solutions to combat the incoming challenges of interconnected tech.”

The Road to Unlocking AI’s Full Potential Responsibly

The AI revolution is here, and businesses that fail to embrace it risk being left behind. As the world becomes increasingly interconnected and data-driven, the ability to harness the power of AI will be a defining factor in determining long-term success.

However, the journey towards AI adoption is not without its challenges. Companies must navigate the complex ethical and security landscapes that come with these powerful technologies. Building a robust AI governance framework, prioritising responsible and ethical AI practices and investing in cutting-edge cybersecurity solutions are crucial steps in mitigating risks and ensuring the safe and trustworthy deployment of AI systems.

Ultimately, the true competitive advantage lies not just in adopting AI, but in doing so in a way that aligns with societal values, respects privacy and fosters trust. By striking this delicate balance, businesses can unlock the full transformative potential of AI, driving innovation, enhancing efficiency and delivering exceptional customer experiences.

Those who approach it with foresight, responsibility and a commitment to ethical practices will be the ones who truly unleash the power of this revolutionary technology and secure a lasting competitive edge.

Securing the AI Revolution

Given the scale of change that interconnected technologies like AI are likely to bring, organisations must develop a strategy to implement and protect them. Based on research findings, Kaspersky recommends four effective ways to ensure organisations are prepared to protect interconnected technologies:

By following these recommendations, organisations can harness the power of AI and interconnected technologies while mitigating the associated cybersecurity risks.