Everything You Should Know About AI and Revenue
Continuous advancements in AI technology have made small businesses and big corporations alike ask this same question: How will this change affect us?
As AI technology continues to improve, the matter of does every company needs to adapt to the upcoming changes in order to survive is becoming a more serious concern.
According to most experts, companies will need to adapt in time. A core trait that every successful digital titan like Google, Netflix, and Amazon shares is the ability to evolve constantly by adapting to the new changes in order to survive.
In this post, we will discuss everything you should know about how AI is related to the revenue of companies. So without further ado, let’s dive in.
How Revenue of Tech Giants Is Affected by AI
Tech Giants like Netflix is growing at a rapid pace and have surpassed Disney as their market capitalization is estimated at $152.7 billion according to Forbes.
Machine learning has played a key role in Netflix’s recent growth. Because they have applied it to analyze user data such as what shows they watch, the running length of the show, who’s the lead actor or actress, and so on to create a solid recommendation system.
So the suggested shows on Netflix are evaluated through the use of AI. And that’s not the only place where they use AI to ensure user satisfaction.
They have also used AI to determine what people want to see in the TV series. And then created TV series that give people what they want to see to ensure success beforehand. House of Cards is a prime example of this.
So it seems AI has played a key role in the success of the tech titan. And it’s not only Netflix. Others, including Google, Yahoo, and Amazon, are doing all they can to leverage AI to the best of their ability.
Overall, the tech giants seem to be doing great with the advancement in AI technology.
How Revenue of Most Companies Is Affected by AI
It seems like any company that wants to stay relevant and succeed as a business must leverage AI technology for a better and more secure future.
According to this study, 89% of finance teams are NOT leveraging AI currently. This is leading to a seriously negative impact on their revenue growth.
The study was conducted over 700 global finance leaders out of which the vast majority have not yet deployed AI to their advantage even though there is a clear correlation between AI and revenue growth.
Why? Because most companies believe they don’t have the necessary skills for achieving their ideal digital ambitions.
Another report titled “Agile Finance Unleashed: The Key Traits of Digital Finance Leaders” highlights an important point that 46% of tech-savvy finance leaders report great revenue growth. Whereas, only 29% of tech-challenged leaders report great revenue growth.
According to the same report, companies that have reported revenue growth are much more likely to deploy AI technology to increase their growth potential even more.
Companies that are facing a decline in revenue have not been so open to deploying AI technology to change their business strategies.
So it’s clear that with advancements in the AI sector, companies that are getting up to speed right now are much more likely to see a brighter and safer future than those who won’t.
How Digital Finance Leaders Succeed
It’s clear that tech-savvy companies have a bright future. So everyone’s wondering what these companies do that others don’t to ensure their digital success.
According to a report, tech-savvy finance leaders have 3 common traits that make them special:
1). Data Insights:
These companies are somehow able to connect disparate data from different applications.
They rely on AI to compare the continuous flow of data to discover hidden patterns, recommendations and to uncover valuable new insights.
Companies that are growing in financial profits are more likely to invest in AI than those who don’t.
2). Business Influence:
Finance leaders are not only using AI for statistics and reports but they’ve also started using them to choose the direction they will take as a business.
These decisions are completely data-driven (logical) and save a lot of time that is typically spent on manual reporting processes. Thus, finance leaders have more time to influence new business strategies.
3). Modern Business Processes:
According to a report, tech-savvy leaders use advanced technologies and methods to build operational excellence.
The vast majority of them have a digital and cloud-first mindset. So they give more access to intelligence process automation that results in fewer resources being wasted.
If you’re still (for some reason) not convinced that AI technology has a significant impact on the revenue growth of a company, then here’s more proof that will change your mind.
Proof of AI’s Potential Positive Impact on Revenue
Harley Davidson, the popular and iconic motorcycle manufacturers, grew its lead volume by 2930% all thanks to AI. Yes, that’s not a typo. And that’s not even the best part. They did it only in 3 months!
Here’s more proof of AI’s potential. According to a global agency called Capgemini, 3 out of 4 organizations that have introduced AI to their business have experienced an increase of 10% in sales of their products and services.
Researchers at MIT conducted a survey on 3076 business pioneers and found that 67% of them have AI pilot programs. Some have even already deployed the technology in the real world and plan to scale it quickly.
So most companies are already preparing beforehand. But that does not mean that you should introduce AI to your company. Right now, it’s best to learn more and see how the pioneer companies fare before you start investing in AI yourself.
AI has proven to directly impact the revenue growth of companies. Many organizations, corporations, and tech giants are already benefiting a lot from it.
So companies that are not yet taking AI seriously. Wake up because it’s time to get yourself up to speed and learn as much as you can about this game-changing technology.