COVER STORY

The significance of artificial intelligence (AI) is being accepted across industries. The cover story examines how does AI influence financial, logistics, hospitality, education, and other sectors.

On January 23, 2020, almost immediately after CNN reported the confirmation of the first Coronavirus case in Washington, United States, Diana J. Flaherty, a Huston-based entrepreneur, wanted to cancel her entire Singapore itinerary, scheduled for the first week of February. After several hours of tiring attempts, her flight, hotel bookings, and transfers got canceled. She had called and emailed travel agents, transfer service providers, and third parties to get the job completed.

None of the chatbots, IVR interactions, or online ticketing services, which she reached out responded appropriately – the time difference between countries added more stress to the job.

Now; two years later, intelligent IVR assistants, conversational automation systems, AI-powered chatbots, and data processing tools automated not just the travel booking process but nearly 70 percent of the customer-business engagements ranging from inquiry to service delivery, from issue registration to technical support, and from itinerary design to meeting schedules, and more.

Pandemic-Ready IT Systems and Hybrid Work

Even though most of these technologies have existed back then, their implementation has been fast-tracked due to the COVID-19 pandemic. Cost, reduced workforce, travel restrictions, and several other constraints have forced enterprises to invest in technology that reduces human involvement. Besides building pandemic-ready IT systems, most enterprises have permanently shifted to hybrid work mode and most of them are functioning with less than 25 percent of their workforce from offices.

It is already proven that the abilities of AI are incredible and beyond imaginable limits especially when it collaborates with human intelligence and thought processes. While solution providers accelerate the potential of their tools with the help of AI, cybercriminals use AI systems to infiltrate into both public and private networks. Most of the cyberattacks recently reported are facilitated by AI-powered agents and applications.

Traditionally, AI remained as a classy technology stood only by commercial segments that demanded quick return on investments (ROI). But when the unrelenting rampage of COVID-19 variants impacted nearly all verticals, the idea of creating resilience with modern technologies had popped up. Since then, the healthcare, research, and drug sectors started to get benefits out of AI.

Dr. Jassim Haji, President at International Group of Artificial Intelligence articulated, “the use of AI in healthcare wasn’t adequate and much less compared with commercial verticals especially in modern societies, such as the United States, China, and Europe. Had there been the modern technologies used efficiently in hospitals, research labs, patient care units, and drug development centers earlier, we could have saved many lives that the COVID-19 pandemic claimed.” Read his exclusive interview.

Referring to the early trends, positive impacts such as enhanced customer engagement and revenue growth have been witnessed in some of the key sectors including finance, manufacturing, aviation, hospitality, and logistics.

Unlocked Revenue Growth in Finance

Finance Institutions believe in the potential of AI. Hence, they started using AI-driven solutions for reducing operating expenses and automating intensive processes. Eventually, it led to revenue growth. A survey by NVIDIA titled “State of AI in Financial Services,” also showed a substantial financial impact of AI for enterprises with 34% of those who replied agreeing that AI will increase their company’s annual revenue by at least 20%.

FinTech and investment firms use AI for the following benefits:

• Algorithmic trading
• Fraud detection
• Improved productivity
• End-to-end trading infrastructure
• Anti-money laundering (AML) and KYC
• Accurate insurance policies
• Automated call centers
• Risk assessment and management

Robots Replace Workforces in Logistic Sector

The logistic sector had a major setback due to the pandemic. The entire supply-chain process got tarnished due to worldwide lockdowns and the absence of workers – the crisis was visible even to transfer medical supplies between countries. Solutions providers considering the option of replacing workers with robots, introducing self-driving cars, automation in documentation, inventory, warehouse, and clearance processes.

In the logistic sector, AI-powered systems are calibrated for:

• Big data analysis
• Better demand prediction
• Planning and resources management
• Real-time route optimization
• Warehouse automation
• Product inspection

Dynamic Pricing Options in Hospitality Sector

Hospitality probably conducts an increased amount of customer engagements and it is higher than most other sectors. Thus, automation and AI implementation have been done focusing on offering customers a unique experience.

Eg.,

• Chatbots and virtual assistants: Commonly used to handle inquiry and complaints
• Apps and sophisticated UIs: Provide hassle-free booking and easy cancellation
• Revision of customer reviews: AI-powered applications can evaluate customer reviews that help organizations learn better customer handling
• Prediction and data analysis: Customers are offered dynamic pricing based on their engagements

The market intelligence firm IDC estimated the adoption of AI up to 70 percent by online travel agencies and 60 percent by hotels, worldwide before 2020. The prediction of SITA, an IT solutions provider to the air transport industry, was hinted about the investments in AI and machine learning (ML)-based programs by 52 percent of airlines and 45 percent of airports by 2021.

Robot Teachers and On-Demand Tutoring

AI-powered solutions influenced EdTech space for some time. Studies predict nearly all learning management tools will be enabled with AI capabilities in the coming years and that will be a complete transformation of the education sector worldwide. Plus, AI gives a completely different perspective of education not only to students and teachers but also to parents and institutions. When experts predict it as the future of education, the following are the merits of AI in education:

• Personalized learning programs
• On-demand tutoring using AI chatbots
• 24/7 learning from anywhere
• Better time management and task division for teachers

Conclusion

AI and ML are on the scope of defining the future for individuals, groups, organizations, industries, professional sectors, and governments. Robots outperform the existing workforce across the planet, in a decade or less, and there is almost nothing they can’t do in terms of labor. While there are positive and productive impacts, there could be, certainly, adverse impacts as well. Experts forecast massive job losses, unlawful cyber activities, cyberwarfare, etc. Therefore, active intervention of governments in both the implementation and the practice of technology is highly desired. Governments should deliberate schemes for employment protection and social cohesion (e.g., universal basic income (UBI). Simultaneously, states should encourage AI groups, societies, and think tanks to join forums and engage in regular conversations for value exchanges to have the future bright for everyone!