How AI Changes Markets Across Industries

Nowadays, the Internet giants such as Google, Facebook, Microsoft, Amazon and Baidu are exploring a wide range of technologies that can lead to breakthroughs in AI, and their decisions will change the revenues of many companies in various markets. In order to decipher the term itself, let’s agree that AI includes subfields as:

  • machine learning;
  • natural language processing;
  • general intelligence;
  • robotics;
  • expert systems;

At the moment, we witness the market development which is just beginning to grow. Countries and powers try to become the leader in this field. The AI industry in China has gathered the most funding on a global scale, accounting for 48% of international investments in 2017 claims China’s AI Development Report 2018 released by Tsinghua University. Intel Vice President Jason Waxman comments on the situation: “We are at the foot of a new big wave of growth, and it is fed by the AI.” But now even the computer scientists of these online giants do not know exactly what awaits us in the future.

However, some industries are happy to embrace a string of new opportunities that software development companies offer right now. For example, the recent report by Qualtrics claims that AI is largely seen as a beneficial thing for the marketing domain.

  • 93% of researchers consider AI solutions as an industry opportunity;
  • 80% are sure that AI will make a positive impact on the market research industry;
  • only 7% of respondents see it as a sort of a threat;

It worth noting that both older and younger generations share the same opinion. In spite of those rumours claiming that AI will take jobs from humans, the respondents say that:

  • AI will create more market research jobs than today – 26%;
  • 35% believe it will reduce the overall number of jobs;
  • 39% don’t think it will change the job market;

If we talk about jobs, it would be hard not to mention this recent story. JPMorgan Chase took another, a quite surprising turn in using AI. If you want a full-time position at the bank, you have to… play video games. The recruiting program of the firm, developed by AI-oriented startup Pymetrics, grades applicants using a bunch of metrics as attention, memory, and altruism.

Matt Mitro, JPM’s head of campus recruiting said that the gaming profiles are analyzed in comparison with those of the company’s best employees to figure out the appropriate job placement. The data from the game helps HRs get a bigger picture of a candidate so they don’t have to rely on resumes’ bluff or guesses. “Our re-imagining of how we hire is part of a broader objective at the firm where we are asking ourselves: ‘Can we better meet our diversity goals by broadening the pool of candidates we are considering?’, – commented Mitro.

In the domain of retail, E-commerce marketers are constantly striving to improve the mechanisms of online stores by studying the process: how customers search for the products they need, what obstacles they face and how they can be helped to increase the number of sales. In a nutshell, it’s all about making the buying process enjoyable and useful. NorthFace, an American product company specializing in outerwear, also faced such a challenge and moved beyond web technologies to artificial intelligence.

Kol Bouchard, NorthFace Online Sales Director explains: “We developed a product search and site navigation system, but the consumer still had to make efforts to find a product. We wanted to offer the buyer an adviser, some kind of service. So that the buyer sees our offer and decides: Yes, this is what I need. This is what I want”.

Imagine that a customer has visited the site for a jacket: there are 353 options in the catalogue. The buyer is likely to get confused trying to find the right thing for a number of parameters: protection, weight, appearance, etc. In such scenarios, the standard “add to cart and pay off” does not work, because this particular client wants to get an answer to the questions without being distracted by the search for information in Google. And here’s where AI might come real handy.

No wonder that companies in this field do not cease to invest in AI development. A report by Capgemini’s Research Institute indicates that global annual spending on AI by retailers is estimated to make it to $7.3 billion by 2022 all in the name of significantly improving the customer experience and optimizing inventory. Retailers are accelerating AI deployment, the same report claims. Slightly over a quarter of respondents – 28% – deployed AI in 2018, compared to just 4% in 2016.

Let’s move on to one of the most traditional industries – real estate. The advertising on the housing market is still performed the same way as 40-50 years ago: it’s all about real estate agents, advertising services and transactions. In most of the cases, the industry’s services aren’t digitized, while other industries are looking two steps ahead in the future.

It’s surprising to know that, considering that fact that in big cities such as San Francisco, New York and Boston, 60% of the residents are renters, and there’s been stable growth in rental demand within the country. So, at first, artificial intelligence and real estate might not share much in common, but AI solutions may revamp their marketing activity. First of all, such solutions can aggregate the data and offer the best option at each point of contact with a customer. Meanwhile, AI development companies are now ready to show convincing 100% implemented and working solutions.

For instance, it can use messages and images based on what’s worked fine for similar clients. Big data could be a great helper when it comes to pricing homes according to popularity. Besides, it allows customizing the listings that real estate agents show to their potential buyers. By recognizing relationships and patterns in large data arrays, the implications of possible future development scenarios can be further explored. Subjective assessment is replaced by conclusions based on evidence, according to which weighted decisions are made taking into account the specifics of a particular property. The so-called “smart contracts” (Smart Contracts) allow you to extract the necessary information from contracts and documents and use it effectively, reducing labour costs and time of the transaction.

The mobile market also sees a change. The fast operation of a smartphone depends on the proper management of resources. Artificial intelligence analyzes the habits and behavior of the user and ensures that the device over time remains as productive as it was immediately after the purchase. A smart smartphone turns off processes that are not being used at the moment, and temporary files are automatically regularly deleted from memory. Besides, all these measures extend battery life.

The market for mobile artificial intelligence is globally expanding at a significant pace, due to the use of artificial intelligence and machine learning techniques. According to this report, the mobile artificial intelligence market is expected to reach a CAGR of 28.6%, within the timeframe of the forecast period (2018 – 2022).

This way, it would be fair to conclude that for the next decade, AI will become the main market trend and business opportunity for markets within any business domain.

 

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