Why Businesses Must Prioritize AI & Tech Investment Despite Economic Uncertainty
In a challenging economic climate, many companies are understandably focused on cutting costs. However, they should steer clear of the myopic outlook of reducing investment in technology and AI. The pursuit of immediate cost savings today could result in a major financial handicap tomorrow. Admittedly, companies are facing several hurdles. The insurance industry is witnessing slower growth as adverse economic trends reduce demand from corporate clients and consumers. Meanwhile, inflation is driving up claims costs, especially in non-life sectors, which can negatively impact customer experience and loyalty. The manufacturing sector has been hit hard by rising raw material costs and fragile supply chains caused by conflicts and political uncertainty.
Bolstering investment in innovative technologies at a juncture like this can drive cost reduction in a way that is both more agile and strategic.
AI-led insights can deliver intelligent cost containment – improving efficiency, providing a better understanding of changing consumer expectations and enabling teams at all levels to make more informed business decisions. Therefore, organizations are better placed to take out costs, improving productivity and profitability in the longer run.
Capitalizing on the Agility of AI and Cloud
In an unpredictable economic landscape, businesses must leverage intelligence in real-time. This continuous flow of insightful information enables them to make decisions more quickly and accurately. Effectively deployed, AI can help enterprises get ahead of events rather than having to react to them. It can also support the implementation of intelligent operations as companies strive to exploit larger volumes of more accurate, detailed and timely information to develop and test new products and services.
Investment in the cloud helps businesses scale up or down more rapidly while reducing expenditure on their on-premise infrastructure. Our data, analytics and AI practice – streamlined a banking client’s master data management practices to create a cloud-enabled wealth data platform, which offered a 360-degree view of customers. This allowed the bank to vitalize its cross-selling and up-selling efforts while improving customer satisfaction KPIs.
Technology can ensure that migration to the cloud is not costly and time-consuming. Our data migration accelerator automated over 60 percent of the migration tasks for a health tech client. The company was transferring its entire foundational data workload to a Cloud platform to reduce costs, errors and the time required to execute a project.
Leaning on AI to Drive Personalization and Cost Containment
AI can also help companies remain relevant and appealing to customers who are hard to please, price sensitive and demanding. It can enable, among other things, greater personalization. Products, services and marketing messages tailored to customers’ needs and interests can reduce churn, encourage loyalty and improve brand image. AI-led predictive and prescriptive analytics can power faster, informed and data-driven decisions.
For instance, we played a crucial role in modernizing and streamlining the legacy data and analytics processes of a leading multi-national insurance company. The firm adopted a data-driven approach that emphasized breaking down organizational silos and integrating data across departments.
One of the most promising avenues for AI in cost reduction is its ability to automate repetitive manual work. More companies are harnessing this technology to process and analyze vast amounts of unstructured data. Other applications include writing and interpreting documents, with logistics, transportation and warehousing benefiting from greater efficiencies that deliver cost savings and elevate customer experiences.
To mitigate expenses, companies are becoming increasingly aware of the significant impact that fraud can have on their financial performance. With its advanced pattern recognition capabilities, AI can detect suspicious transactions and activities faster and more accurately than traditional methods. By leveraging AI, organizations can safeguard their financial interests and bottom line.
Intensifying Efforts, Not Cutting Back, is the Way to Go
In a recent survey of Chief Data Analytics Officers by Forrester Research, commissioned by our organization, the banking and financial services and insurance sectors recorded the highest data and analytics maturity levels, with 96 percent of surveyed organizations exhibiting intermediate or advanced maturity. 55 percent of digital-only businesses demonstrated advanced maturity. Respondents from these industries rated investment in better data and analytics capabilities as a top-three strategic initiative.
Our recent report showcased a growing interest among clients in AI and tech investments such as data and analytics capabilities. In response, we have reshaped our offerings with the launch of our data, analytics and AI practice. Organizations are leveraging a rich heritage of industry expertise and cutting-edge data, AI and digital capabilities to adapt to the ever-changing business and technology landscape. By investing in these technologies, instead of cutting back, companies can become more efficient, agile and better equipped to handle any challenges that come their way.
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