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What are the advantages and disadvantages of introducing AI?

More and more companies are introducing AI (artificial intelligence) into their businesses, but what are the specific effects?

In this article, we will explain the advantages and success stories of introducing AI (artificial intelligence), the points to note and disadvantages when introducing it, and the process up to the introduction.

[What are the 5 benefits and effects of introducing AI (artificial intelligence)? Explanation of problems that can be solved]

The following five benefits can be expected from the introduction of AI (artificial intelligence).

Merit 1.
Advantages of resolving shortage of human resources and labor force 2.
Benefits of improving work efficiency and productivity3 .
Benefits of improved accuracy of data analysis 4. Advantages of speeding up understanding of market and customer needs5
. Improve customer satisfaction

In the next section, we will discuss the advantages of each and the problems that can be solved.

● Merit 1. Resolving shortage of human resources and labor force

By substituting AI for work that has been done by humans, we will contribute to resolving labor shortages and labor shortages.

It can also be said that it is possible to reduce the burden of high-risk work and that it can be expected to be effective in reducing labor costs.

● Merit 2. Improving operational efficiency and productivity

You can reduce the workload of your employees by letting AI do the work that AI can do. Another advantage is that human error is less likely to occur, and work efficiency is less likely to change due to variations in motivation and physical condition. These factors lead to operational efficiency.

We can also expect an improvement in productivity by allowing employees to use the reduced man-hours to spend time on high-value-added work.

● Merit 3. Improve accuracy of data analysis

AI makes it possible to analyze huge amounts of data that are difficult for humans to process all at once, improving analysis accuracy.

The advantage of using AI is that it can be done objectively, which has tended to be influenced by individual experience and intuition.

● Merit 4. Speed ​​up understanding of market and customer needs

It’s easy to miss small changes in your analysis.

By utilizing AI and being able to perform highly accurate analysis, the speed of understanding market and customer needs will also improve.

●Benefit 5. Improve customer satisfaction

It can also contribute to improving customer satisfaction by improving operational efficiency with AI, highly accurate analysis, and being able to work on higher value-added operations.

[Disadvantages of introducing AI (artificial intelligence) and five points to note]

The introduction of AI (artificial intelligence) has the advantage of being able to solve various problems for companies, but at the same time there are also points to note that can be a disadvantage.

・Note 1. Need to develop AI human resources
/Note 2. It is necessary to accumulate data for a certain period of time
. Temporary cost increase
/Note 4. Increased difficulty of information leakage and risk management
/Precautions 5. decrease in employment

Next, we will explain the details of the above five points.

●Note 1. Developing AI human resources is necessary

To effectively utilize AI, it is essential to build, implement, and operate it. These require specialized knowledge.

Based on the strategic goals of AI Strategy 2019, the Ministry of Economy, Trade and Industry is implementing a policy called AI Quest (problem-solving AI human resource development).

In this way, let’s remember that it is necessary to secure and develop human resources who can apply AI to business.

●Note 2. Requires data accumulation for a certain period of time

When analyzing data, the larger the number of samples, the more accurate the analysis becomes. Also note that when using AI, it is necessary to accumulate data for a certain period of time.

●Note 3. Temporary cost increase

By introducing AI, it is possible to reduce the work that has been done by humans, leading to a reduction in personnel expenses, and in the long term, cost reduction can be expected. However, it is necessary to pay attention to the temporary increase in costs due to the development and introduction of AI.

●Note 4. Increased difficulty of information leakage and risk management

When using AI, important information such as customer information and trade secrets will be uploaded to the network. It is necessary to pay attention to the risk of information leakage due to operation or setting errors, and the risk of hacking from the outside.

Expert knowledge is essential for risk management. If you don’t have the right people in-house, consider hiring.

●Note 5. decrease in employment

As AI improves operational efficiency, it may lead to a decrease in employment in some occupations. On the other hand, there are cases where employment will increase due to hiring of human resources who use AI, so it cannot be said that it will decrease unconditionally.

[AI (artificial intelligence) introduction method / process 4 STEP]

In order to effectively introduce AI (artificial intelligence), it is important to understand the precautions and take the following steps to start system operation.

・STEP1. Clarify the problem you want to solve with AI
・STEP2. Consider the AI ​​to be introduced and estimate the return on investment
・STEP3. Develop systems that utilize AI and introduce tools
・STEP4. operate the system

Here are the details for each.

● STEP1. Clarify the issues you want to solve with AI

First, let’s pick up the issues within the company. There is no need to judge at this point whether the problem can be solved by AI.

Write down what the problem is and what the consequences are.

● STEP2. Consider the AI ​​to be introduced and estimate the return on investment

Next, consider whether the problem you want to solve can be solved by AI. Since there are various systems for AI, we will determine the reality of which AI can be introduced to solve the problem.

If it is difficult to make decisions on your own, it is recommended to ask a company that provides AI consulting or model development.

Depending on the task, we may combine the implementation and development of two or more systems instead of one.

We will compare the cost of introducing an AI system with the benefits that will be eliminated, and determine whether the investment effect can be expected.

● STEP3. Develop systems using AI and introduce tools

If the investment effect of introducing AI can be expected, we will introduce systems and tools that utilize AI.

If it is difficult to introduce it in-house, it is recommended to outsource it to a company that provides installation support.

● STEP4. operate the system

After introducing AI systems and tools, we will operate them. AI can be used with high accuracy as data is accumulated, so the key to success is regular operation, rather than just the introduction.

[Successful examples of the introduction of AI (artificial intelligence)]

AI-based systems are used in customer support and marketing sites as recommendation systems, FAQs, etc., and in HR sites.

Finally, we will introduce some successful cases of AI implementation.

●Case 1. Lower churn rate and higher LTV/customer satisfaction

It is difficult to clarify the cause of user abandonment on EC sites and cancellation of subscription services.

By analyzing data with AI, we score withdrawal risks, analyze reasons, and implement measures. By analyzing the results of measures, we can reduce withdrawal and churn rates, improve service quality, and improve LTV.

●Case 2. FAQ query automation

It takes a lot of man-hours to respond to inquiries that gather at customer support, and there are many companies that are putting pressure on highly important operations.

By utilizing the FAQ database, it is possible to automate the response to inquiries. In addition to reducing man-hours for responding to inquiries, you can also expect to improve customer satisfaction by improving the speed of responding to customers.

●Case 3. Reduce turnover rate

For companies, employee turnover leads to loss of management resources. Many companies are considering measures to prevent employee turnover.

By using AI to detect employees at high risk of quitting at an early stage and analyzing the reasons for quitting, it is possible to reduce the turnover rate.

[Let’s solve our problems using AI (artificial intelligence)]

Developing an AI (artificial intelligence) system that meets your company’s challenges will lead to improvements in operational efficiency, productivity, and customer satisfaction.

How about starting by considering whether AI can solve your company’s problems and estimating the return on investment?


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