Artificial Intelligence (AI) is revolutionising both large and small consumer companies, albeit in different ways. Let’s explore how AI is impacting these businesses and how they are using AI to innovate commercial and operations.
AI’s Use in Big Multinational Companies
AI’s is used in 4 main areas:-
1. Consumer Insights:
- Trend Analysis: Big companies use AI to analyse vast amounts of data from various sources, including social media, search trends, and sales data. This helps them understand what is happening in the market and predict future trends.
- Predictive Analytics: AI tools like IBM’s Watson analyse consumer behaviour to forecast demand and tailor marketing strategies accordingly.
2. Speed to Market:
- Prototyping: AI accelerates the development of new products by quickly testing and iterating on product concepts. This reduces the time from idea to market launch.
- Innovation: Companies like Unilever use AI to innovate and develop new product lines that meet emerging consumer needs.
There are a various AI based eye tracking services from companies like Brainsuite and Dragonfly where you can upload your image of a pack, or of a shelf, and it will give you feedback instantly, at low cost, on whether it thinks the pack or shelf or POSM etc will ‘work’ for you.
Companies are buying into these services often blindly, because they are ‘wowd’ by the AI tech, but then after they work out how it actually works, they’re struggling to apply it in a practical way in their business. I personally love these services, but think we are in the embryonic stages of people understanding how to get the most from them.
Mike Cassidy, founder Story Insights https://storyinsights.com.au
3. Operational Efficiencies:
- Supply Chain Optimisation: AI improves supply chain operations by predicting demand, managing inventory, and optimising logistics. For example, Tesco uses AI to enhance demand planning and inventory management, reducing wastage and improving customer satisfaction. The big QSR chains like McDonalds and KFC are doing similar
- Cost Reduction: AI helps in reducing operational costs by automating routine tasks and improving staff efficiency.
4. Workforce Changes:
- Outsourcing: With AI handling more tasks, companies may reduce in-house staff and increase outsourcing for specialised functions, reducing overheads
AI in Small Companies
1. E-Commerce:
- Targeted Marketing: Small businesses use AI to create highly targeted marketing campaigns, improving customer engagement and conversion rates4.
- Personalised Recommendations: AI tools analyse customer data to offer personalised product recommendations, enhancing the shopping experience.
2. Digital Content Creation:
- Automated Design: Tools like Canva use AI to help small businesses create professional-quality designs for social media, email campaigns, and other marketing materials.
- Content Generation: AI assists in generating content for blogs, social media, and advertisements, saving time and resources.
3. Regulatory Compliance:
- Export Compliance: Exporters use AI to check regulatory compliance for first-time imports, ensuring they meet all legal requirements.
Challenges with AI
1. Data Integrity:
- Quality and Security: Ensuring the integrity and security of data is a major challenge. Companies must be cautious about sharing confidential data with AI platforms.
- Bias and Accuracy: AI systems can produce biased or inaccurate results if the underlying data is flawed.
2. Ethical Considerations:
- Privacy Concerns: Handling personal and sensitive data responsibly is crucial to maintain consumer trust.
- Transparency: Companies must ensure that AI decisions are transparent and explainable to avoid mistrust.
Conclusion
AI offers immense potential for both large and small consumer companies, driving innovation, efficiency, and personalised experiences. However, it also presents challenges, particularly around data integrity.
In my opinion, whilst AI may be able to explain what is happening, it may not always be able to explain why.