Also referred to as Generative AI, Artificial Generative Intelligence is generating a lot of interest across the globe. From text-based conversations to image recognition, Generative AI is gaining popularity with a variety of use cases. Gartner estimates that by 2025, Generative AI will generate 10% of the global data – up from just 1% in 2021. According to Statista, the adoption of Generative AI among Gen Z in the U.S. is the highest at 29%. What’s more, the global market for Generative Artificial Intelligence is expected to reach $110.8 billion by the year 2030.
In this blog, we shall define Generative AI – and its business benefits. So, let’s get started.
What is Generative Artificial Intelligence?
By definition, Generative AI is a subset of Artificial Intelligence that can generate new
content in the form of text, images, and videos from available data. Besides, it can also
generate synthetic data. Generative AI leverages the capabilities of machine learning and
deep learning algorithms to produce a variety of content based on the user’s content. The recently launched ChatGPT is among the successful examples of Generative AI.
Next, let’s discuss some of the business benefits of using Generative AI.
6 Benefits of Generative AI for Businesses
Here are some of the business benefits for organizations using Generative AI:1. Operational efficiency
By automating operational tasks, Generative AI can improve efficiency by
eliminating (or reducing) manual work. For instance, ChatGPT can write application
code to improve the efficiency of application developers.
Arun Chandrasekaran of Gartner says, “Generative AI has the ability to abstract lots of low-level tasks away from business users, thereby freeing up valuable time for them and unlocking productivity.”
Among other use cases, Generative AI can quickly generate images and videos from available data, which are useful in marketing campaigns and email marketing. Besides efficiency, this enables organizations to save both time and costs.2. Personalization
80% of companies are more likely to buy products or services from companies that provide personalized services. In the age of personalization, Generative AI can enable customer-centric companies to elevate personalized services to the next
level. For instance, using machine learning algorithms, retail companies can analyze their customer’s purchase history to generate customized content and provide relevant recommendations.
Besides, organizations can improve the quality of their employee training using personalization. Bill Bragg of SymphonyAI thinks, “Generative AI could serve as a teaching assistant to supplement human educators.”3. Cost savings
By automating time-consuming and repetitive tasks, Generative AI can easily enable organizations to reduce their operating costs. For instance, Generative AI in the pharmaceutical industry can accelerate the development of new drugs, thus helping in releasing them faster to the market. This can enable pharmaceutics to reduce
their R&D budget and timeline.
Similarly, Generative AI in the manufacturing domain can reduce overhead costs associated with unplanned downtime. With Generative AI, manufacturers can implement predictive maintenance that leverages real-time machine data to foresee
and prevent any downtime.
With Generative AI, organizations can also elevate their customer experience (CX).For instance, they can generate content that is relevant to their customers. Generative AI-based chatbots can provide “human-like” responses to customer queries. Similarly, advanced bots can leverage natural language processing (NLP) to
listen and learn from a customer’s interaction with a customer service agent.
Marketing agencies can also use Generative AI to research customer sentiment and behavior – and accordingly plan their marketing campaigns. With improved CX, organizations can improve their customer satisfaction and brand loyalty.5. Knowledge management
Generative AI in the domain of knowledge management enables organizations to gain a competitive advantage in the market. Generative AI tools can streamline the process of gathering relevant information wherever there is a massive corpus of
data. Additionally, companies can extract valuable insights from this information.
According to Arun Chandrasekaran of Gartner, there is a growing interest in Conversational AI in both search and knowledge management systems in industries like healthcare, financial services, and legal firms.6. Speed
Organizations can use generative AI models to create relevant content on the fly. Arun Chandrasekaran notes “rapid content creation” among the obvious benefits of Generative AI. For example, organizations can now create content such as marketing
newsletters and email messages.
According to Gartner, 30% of outbound marketing messages will be automatically generated by 2025. This is up from just 2% in 2022. Similarly, using generative AI, organizations can generate high-quality images and videos in a fraction of the time
taken by human professionals.
As a subset of AI technology, Generative AI is enabling organizations across industry domains create fresh and personalized content, solve business problems, and even create new products and services. Through automation and personalization, Generative AI has the
potential to transform business services.