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AI is in the front and center of businesses, and using customer insights is the key to the success of companies and the way forward for digital transformation. AI is becoming the fastest emerging priority, inspired by the increasing popularity of “conversational” interfaces like Siri and Alexa. AI strategy is a must for businesses to survive; interpretation of AI was limited to science fiction but now it is at the center of business strategy.

AI Systems consist of five key components.

1 Detection. Components receive inputs such as text, voice, image, video, or data triggers from systems.

2 Understanding. Components that recognize what the data means (e.g., converting the speech to text and even the underlying semantic meaning).

3 Analysis. Components use algorithms (rules) and data sets to get an informative answer or act.

4 Orientation. If required, the system checks with people for the certainty of the correct answer.

5 Action. Action could be an answer to the user or taking an automatic reaction, sending a message, paying an invoice, or even firing a rocket. To make an action meaningful, the underlying data is important.

Businesses expect the users to interact through websites and apps. However, this behavior is changing now and it will further change significantly in future. User interfaces are becoming AI interfaces where inputs and outputs are in a natural language and systems are making predictive/proactive decisions on behalf of the users, where tolerance of errors is low. For example, in conversational banking, users are even getting used to conversational interfaces to manage their money.

Ramshanker Krishnan, General Manager, EMEA Azure Cloud and AI, Microsoft Consulting Services, Microsoft

“Transformation is about creating a customer-centric culture, an agile technology platform and a data-driven business. The issue most organizations will be facing, with a black swan event like the COVID-19 pandemic, is a loss of signals or need for new ones to be captured. Digitally mature organizations will have a clear advantage, as recalibrating their existing systems to the new signals will be a lot faster than creating an entire system to capture and process signals. Data will continue to be at the center of Digital Transformation and leveraging the innovations around ERP and CRM can help speed up the transformation journey.”