We’ve all heard of artificial intelligence, but do you really understand how fast it’s growing, and what it might mean for your relationships with your customers?
Artificial Intelligence as the Future of Economic Growth
Accenture recently released new research findings on artificial intelligence (AI) and its potential impact on economic growth. While traditional means of production struggle to fuel economic growth, AI could change how work is done and introduce new sources of growth.
In fact, Accenture speculates that AI could double annual economic growth rates by 2035 by recreating the relationships between humans and machines.
Once AI is accepted as a new factor of production, it can drive economic growth in three important channels:
- Intelligent automation is an advancement on traditional automation in that it’s capable of self-learning. AI-powered innovation automates complex physical tasks requiring agility and adaptability.
- Labor and capital augmentation allows companies to use their existing labor and capital much more effectively. With AI, workers can spend less time on operational details and more on what they’re good at – imagining and creating.
- Innovation diffusion is the idea that innovation diffuses throughout the larger economy. At the moment, this is one of the lesser-discussed benefits of AI.
Accenture’s research gets more specific about creating value and propelling growth with a look at the productivity of individual countries. For a range of developed countries AI can act like a labor-capital hybrid, and push economies beyond current capacities for growth by as much as 37 percent.
Certain actions, if taken now, can clear the path for AI to have its great impact on economic growth. Encouraging these actions would be ideal for advertisers looking to incorporate AI with their brand strategies.
- Integrate human and machine intelligence to help them successfully co-exist, reinforce the role of humans in driving growth and prepare future generations for the future of AI.
- Close the gap between lawful regulation and technological change with AI-powered regulations. These laws would be adaptive and self-improving.
- Supplement the development and use of AI with a code of ethics, tangible standards and best practices.
- Highlight how AI can lead to tangible positive results while also proactively addressing any concerns or drawbacks of the technology.
When consumers come to trust AI and see how it benefits the economy, they’ll be far more likely to embrace its use by their favorite brands.
Using AI Growth to Fuel Consumer Loyalty
As we can see from Accenture’s findings, there’s really no denying the future of AI and its potential economic value. The question for advertisers, then, is how to use AI in a world that also demands increased personalization.
Fueling consumer loyalty is a great place to start, and several sources are already talking about the opportunities in this space. We’ll visit a few of them for further explanation.
Boomtrain begins by mentioning the pervasiveness of AI, and goes on to discuss three ways it improves customer loyalty:
- AI makes it easier to find flaws in your products. While monitoring customer behavior and engagement with various features, AI becomes a data mine for these features. Brands can use this data to improve their products and promote a customer-centric experience.
- AI can personalize customer experiences in a one-on-one way. With significant user bases, and without AI, such personalization is impossible, and brands resort to segmenting audiences into groups based on similarities. AI can glean enough information for real, effective personalization.
- AI understands that customers use multiple devices and expect omnichannel engagement. Details on interests, time frames, preferred devices and more let AI communicate with customers when they are most receptive.
Allerin supports the idea of personalization over segmentation for brands dealing with thousands or millions of customers, and talks about three areas where AI treats consumers as individuals:
- AI can protect users from fraud and theft to develop an honest relationship with customers. This is especially important for financial institutions, for example, and as we hear more about cyber crime in general.
- AI improves the customer experience. From providing a greeting to a new online visitor to virtual chat assistants, robots can attend to customers far more quickly than humans (who can certainly follow up when needed).
- AI presents workforce benefits by allowing employees to shift attention from mundane tasks. Those employees see their performance augmented while also spending more time on the things that must be done by humans.
Finally, CloudTags reminds us that loyalty is about building a lifetime relationship with consumers, and in three particular ways:
- AI gathers a great deal of data on individuals, and while this is great for brands, it also benefits the consumer. After a couple of years, the data collected by AI lets the brand make nearly perfect product recommendations, as well as a level of personalization consumers can’t get when trying a new brand.
- AI facilitates real time communication. Features like geolocation services make it possible to alert consumers about relevant nearby sales, and even tell someone where the nearest bathroom is in a store.
- AI personalizes not just the overall customer experience, but the shopping process itself. Websites can adapt as users shop through questions about needs and wants, and then narrow down options in an intelligent way.
How any one brand integrates AI into an advertising strategy will depend on a variety of factors, but it will undoubtedly bolster customer loyalty when done well. Take advantage of AI’s potential now to build customer relationships that last well into the future.