AI creates new business models
Artificial intelligence is revolutionizing the market. Machine learning creates new business models that were not even conceivable a few years ago. Anyone who, at the turn of the last century, predicted that a company would soon offer virtual customers to other companies and even earn money with that would have been ridiculed. But this has become reality today. The structures of the new Artificial Intelligence Economy are beginning to emerge.
New forms of communication
Artificial intelligence enables companies to use new forms of networked communication with customers and with each other. Here, it is important to note that every company is on the one hand a provider of products, services and information, but at the same time it also consumes data and knowledge. Today, the economic success of every market participant depends on the availability of data and the qualified analysis of information. This is where artificial intelligence comes into play. New business models with AI address these five points, for example:
- Data evaluation: Artificial intelligence optimizes the evaluation of data. It makes data sources, whose analysis was difficult or impossible with previous methods, accessible, understandable and usable. More data leads to improved and refined results.
- Employee productivity: Employee productivity improves with access to AI tools. This enables the targeted use of employees for truly innovative tasks.
- Technology: AI software can provide a competitive edge through the efficient use of machine learning. In addition, existing hardware becomes more powerful through intelligent programming.
- Customer convenience: AI makes communication with customers easier, more efficient and less expensive. Chat bots can be used for standardized requests. If things get complicated, a human being intervenes and attends to the customer. In this communication, the person also supplies the algorithm with new information.
- Efficiency: The use of AI is rapidly replacing experts. This makes products with previously high secondary costs more affordable.
Financial services are improving and becoming more affordable
The last item on the list is clearly visible in the financial services sector. The trend is clear. The private sector ‘s demand for shares in order to accumulate assets is steadily increasing. This is not surprising as long as, for instance, the state pension guarantees ever less prosperity in old age. However, selecting profitable shares or ETFs as retirement provisions requires expert knowledge, experience and, above all, a thorough understanding of the market situation. This is the only way to fend off negative developments at an early stage and anticipate positive trends in order to benefit from them.
However, the human factor in the form of a financial expert considerably increases the prices of share-based retirement provision packages. New banks and financial service providers that rely on machine learning based on Big Data currently offer much more affordable financial products – with the same or, in some cases, even better performance. They have a clear competitive advantage over providers who work with traditional methods – not only in terms of attractive pricing, but also by eliminating human error.
Increased production with AI
There are also interesting developments in the technical area. Creative start-ups are cooperating with large companies to boost performance in the production sector. AI is shifting the focus of development away from physical machines and towards programming them. Machine Learning automates work processes and at the same time ensures that the producing machine better “understands” what it is doing. This means that its work performance is gradually optimized.
Mega groups and opportunities for start-ups
Currently, it is mainly global companies that offer their artificial intelligence services to customers and other companies, for instance: the intelligent AI platforms offered by Google, IBM and Microsoft. These platforms are used to
- promote networked production in plant and mechanical engineering,
- optimize customer relationship management with artificial communication programs,
- or, for example, improve the payment transactions of financial institutions.
However, every economic and technical revolution is not only dominated by large corporations, but above all by creative new companies. Artificial intelligence needs human intelligence to improve. Human creativity is still difficult to integrate into an algorithm. This is where there is an enormous potential for start-ups. The following are examples from Germany:
- The IndustrialTech start-up Panda based in Hamburg uses artificial intelligence to detect errors and improvement potential in production processes. This helps prevent costly production breakdowns right from the start.
- lengoo, based in Berlin, develops highly specialized AI programs for text analysis. The aim is to completely reopen the market for translations.
- The Cologne start-up ella is developing a new technology that automatically creates texts for the entertainment industry. Artificial intelligence writes texts? Today, this is no longer a utopia.
- buynomics, based in Cologne, simulates market developments in the B2C sector by providing virtual customers for product testing in advance. This provides companies with an optimal design and intelligent pricing even before the market launch.
It is new companies in particular that drive economies and conquer markets. As a result, artificial intelligence becomes an indicator for the future viability of economies.
Artificial intelligence creates innovations, new business models and new markets. The prospects look promising – and attractive incentives are also coming from the government. The federal government, for instance, is providing half a billion euros to promote artificial intelligence. This benefits young companies in particular.