Beyond the hype: AI's tangible impact on industries

Artificial intelligence (AI) is the present-day reality reshaping industries across the globe. AI is driving unprecedented levels of efficiency and competitive advantage, but with rapid advancements come complex challenges: How can businesses leverage AI to support digital transformation initiatives? Which AI strategies yield the best results? What does the future hold for generative AI in industry?

In a recent panel discussion with The Business Reporter’s DigitalTransformationTalk, Baker Tilly’s Dave DuVarney, Principal, Peter Pearce, Principal, and Mark Brewer, VP Service Industries at IFS, offered a comprehensive view of AI’s transformative impact for businesses navigating the industry landscape .

The multifaceted nature of industry AI

Applications of AI extend far beyond the generative AI use cases that have recently captured public attention. Below are the several classes of AI applications that are making significant impacts across industries:

• Content generation goes far beyond simple text creation. In industrial settings, AI can automatically generate comprehensive reports, summarize datasets and make recommendations
• AI driven recommendations are based on complex analysis of customer data, historical interactions and market trends and can prompt human operators with suggestions for strategic decision-making
• Anomaly detection is particularly crucial in manufacturing and maintenance scenarios. Over time, the AI system can track when a machine is likely to fail catastrophically, allowing for preemptive maintenance and significant cost saving.
• AI can augment traditional forecasting methods and also run complex stimulations by incorporating a wide variety of data points

Real-world applications and results

As AI technologies mature and become more accessible, organizations across various sectors use innovative ways to leverage these tools to solve complex problems, streamline operations and create new value. What’s particularly striking about the use-cases is not just the immediate operational improvement they demonstrate, but also the ripple effect they create throughout the organization, fundamentally changing problem-solving and decision-making approaches.

Examples of AI use cases in different industries:

• Precision manufacturing: AI is enabling manufacturers to analyze data from high-speed processes, identifying micro-events that human operators might miss. This can help resolve production bottlenecks, maintain quality standards and improve overall efficiency.
• Streamlining document processing: Across industries, AI is revolutionizing how companies handle large volumes of unstructured data such as contracts or medical records . AI-driven documents processing system can extract key information faster and more accurately than traditional methods, freeing up human resources.
• Predictive maintenance: In sectors like aerospace, AI is used to predict maintenance needs by analyzing flight data and operational patterns. This allows aerospace engineers to extend maintenance intervals and optimize operations, improving profitability in highly competitive industry.

Developing an effective AI strategy

While the potential of AI is clear, a successful implementation requires a thought-out strategy. Outlined are the several key components of an effective AI strategy :

1. Data governance : This is the foundation of any AI initiative. Organizations need to have a clear understanding of their data – where it resides, its quality and how it can be leveraged. Without good data, even the most sophisticated systems will fail to deliver value.
2. Infrastructure: Having the right tools and technologies in place is crucial. This includes not just the AI platforms themselves, but also the supporting infrastructure for data storage, processing and integration with existing systems.
3. Risk management: AI brings new risks, particularly around data privacy and security. Organizations need to have robust processes in place to identify, assess and mitigate these risks. This includes staying compliant with relevant regulations and industry standards.
4. Adoption and change management: For AI to deliver value it needs to be embraced across the organization. This often requires a cultural shift. Starting with simple use cases like using AI for email drafting to help employees become comfortable with technology can be helpful.
5. Innovation engine: AI use cases are constantly evolving. Businesses need a systematic approach to identifying and developing new AI applications. This could involve creating cross-functional teams or establishing channels for collecting AI ideas from across the company.
6. Business alignment: Perhaps most importantly, AI initiatives need to be closely aligned with business goals. AI should not be pursued for its own sake, but to drive tangible business outcomes.

An effective AI strategy ensures businesses have considered not only technological aspects, but also strategic alignment, workforce readiness and any regulatory obligations specific to their industry or market to ensure a holistic approach to AI adoption. Businesses should conduct an AI readiness assessment to ensure any gaps or risks are addressed prior to launching or accelerating any initiatives.

The future of AI in industry

AI is poised to become an integral part of business strategy, enabling new business models and revenue streams. Its evolving capabilities will continue to transform industries by offering more intelligent, data driven insights, automating tasks and creating new opportunities for innovation.

For organizations looking to stay competitive, AI is no longer a matter of if, but how. IFS helps businesses work smarter by seamlessly integrating AI capabilities into everyday operations. Built into IFS Cloud, it enhances productivity through automation, tailored user experiences and real-time data insights. Baker Tilly helps top organizations create a strong competitive advantage, no matter where they are in their digital transformation journey. Our team of Value Architects™ believe an ‘industry-first’ approach allows us to deliver maximum value to our customers with efficient and uncomplicated IFS solutions.