How Business Models Are Evolving in the World of Artificial Intelligence
Artificial intelligence is no longer something we only see in science fiction movies and is not used to manage ‘spaceships’. On the contrary, we can say that it has become a part of real life and is starting to be used in many industries. Businesses all over the world, regardless of their type and size, are adopting artificial intelligence to optimize their business models and create more revenue. This is due to the flexibility of this technology. Here, we will talk about how AI is used in business models and how it evolves them.
Contents
AI-as-a-Service (AIaaS): Democratizing AI Access
You may not have heard this term before, but it is expected to reach over $100 billion in value by 2030. With a growth rate of up to 39%, it is one of the most promising markets in the near future and is creating a brand-new business model: artificial intelligence as a service (AIaaS).
We are sure that you have heard the term software as a service (SaaS) before: it is used to describe software platforms that a business can access remotely and over the cloud. We can say that AIaaS is a similar service, because it does more or less the same thing, that is, it allows businesses to access AI capabilities remotely and over the cloud.
For example, let’s say that the AI solutions on the market are not suitable for your company. In such a scenario, you need to train your own artificial intelligence, but it is not that easy. There are only a handful of companies that are advanced enough to train an AI on a global scale. However, you can solve this problem with AIaaS: you can remotely access features such as machine learning, natural language processing, and automation and customize them according to your company’s needs. In other words, you can have your own specific AI with this new business model.
The Emergence of AI-Driven Product-as-a-Service Models
The Product-as-a-Service (PaaS) model has been around for a long time and simply means selling a product or service for a subscription fee. In other words, the consumer does not own the product, they rent it. AI has the ability to take PaaS services to the next level, almost completely changing this business model.
It does this with deep personalization features that “humans” cannot provide. This technology can analyze huge amounts of data in a very short time and create a persona for each consumer. This persona includes many data points such as your personal habits, likes, dislikes, what you are interested in and what you spend more money on. Artificial intelligence can use these points to make any PaaS service much more personal. For example:
- On a service like Netflix, it may be easier to highlight content that you will like, and if you cancel your subscription, you may receive emails about the kind of content that will make you return (Netflix is already known to use machine learning for this).
- On a site like Amazon, you can see the products you are most likely to buy first and receive personalized discount offers specific to them. You may be able to get much higher discount rates for a product you added to your cart but did not buy.
The PaaS model becomes much more personalized and efficient with artificial intelligence: instead of segmenting customers, preparing special offers for each one is a job that only this technology can handle and for the same reason, it is possible to achieve much more effective results and return rates.
How AI Is Impacting Rewarding Systems in Online Gaming
AI is changing the way businesses operate, and online casinos are no exception. One source of impact is through casino bonuses. Gaming platforms offer plenty of them to their users, and no deposit ones are among the most sought-after options. They give players the chance to try out a casino without having to risk any money. Thanks to AI, the best virtual gaming hubs you can find on Slotozilla can now provide these deals in a more personalized way, using data about players’ habits and preferences. This not only makes the session more appealing for the player but also helps casinos attract new customers in a cost-effective way.
Data Monetization and Insights-Driven Models
We mentioned AI’s data analysis capabilities above. These capabilities are not only used for personalizing products or services. Any company can use big data analysis to gain insight into almost any subject. This is called the “insight-driven model “and can change how every business works, regardless of its type.
For example, in a company consisting of multiple departments, you can identify which department is creating a bottleneck with these insights and even see the reason for this. Or you can identify the problem of a new product that does not reach the sales figures you want. Artificial intelligence can analyze user comments and feedback to show what the pain points are and can even use social media in addition to customer support department records for this job.
Being able to make data-driven decisions is a significant advantage for all types of businesses and maybe what they need to stay one step ahead of their competitors. You don’t need to use your own AI model for this job: platforms like Mostly allow you to perform these analyses easily.
AI-Driven Automation and Cost Reduction
Automation is something that can be easily achieved by using AI in any type of business model, and it can make those models much more efficient because it will reduce costs. With AI, you can automate almost all routine and repetitive tasks. This will reduce operational costs, increase efficiency, and prevent losses caused by human error. Your human employees can focus on the tasks that really matter thanks to automation.
Companies like General Electric and Siemens are currently using AI to reduce downtime and identify maintenance needs. Using this technology for customer service is something that most companies have been doing for a long time. In other words, there are many different tasks that you can automate with AI, and all of these can make your business model much more efficient.
Hybrid Models and Application Modernization
Enterprise-level businesses and large sectors such as healthcare are starting to do this. Until now, it was preferable to use regular computer programs and applications together with AI platforms. However, it has become clear that this will not be effective in the long term: large companies and industries now find it more logical to switch completely to AI instead of a hybrid model.
This means that the programs and applications used by these industries and businesses will now also be created by AI. Human programmers can still be used in the testing phase, but a large part of the coding work will be done by artificial intelligence. This is a development that could change every business model in the long term: when we also leave the application management to AI, updates, new features, and optimizations will become much more seamless. In fact, at a certain point, it will be enough to tell AI what kind of program you want: it will be coded in a very short time, and you will be able to offer it to your customers almost instantly.
Artificial intelligence is changing and creating new business models. Businesses that can quickly adapt to these changes will gain a competitive advantage. Therefore, regardless of size and field of activity, we recommend you start leveraging AI’s power for your business.
