How does Artificial Intelligence change business models?

Specialists tell that artificial intelligence is now the most important general-purpose technology in the world. New products, processes, and improvements in business models are being made possible by better vision systems, speech recognition, intelligent problem solving, and many other capabilities that machine learning delivers.

Surely AI gets start-up companies to find their advantages and to get better development. Along with business processes in a company, and its occupations, AI can drive the changes at existing business models.

Some of the examples can be:

  • Usage of machine vision systems to identify potential cancer cells. In such way radiologists can focus on truly critical cases, to communicate with patients, and to coordinate with other physicians).

  • The reinvention of the workflow and layout of Amazon fulfillment centers after the introduction of robots and optimization algorithms based on machine learning.

  • Intelligent music or movies recommendation in a personalized way. Instead of selling songs on the basis of consumer choices, a better model might offer a subscription to a personalized station that plays music a particular customer would a hundred to one like, even if the person had never heard it before.

What is so important is that AI and particularly machine learning systems will hardly ever replace the entire job, process, or business model. Most often they complement human activities, which can make their work ever more valuable. So you can not simply “give all tasks to the machine.”

Designing and implementing new combinations of technologies, human skills, and capital assets to meet customers’ needs requires large-scale creativity and planning. It is a task that machines are not very good at. And that actually makes actually an entrepreneur or a business manager occupation one of the society’s most rewarding jobs in the age of AI.