Artificial Intelligence

AI as a disruptive technology

Carsten Rasner, Managing Director of the German Association for the Digital Economy (BVDW), sums it up well: artificial intelligence will find its way into all areas of society and the digital economy and turn entire business models on their head. That raises the question of how companies and brands will use AI to make themselves more competitive. Eva Werle, Vice President of the BVDW, has a similar viewpoint. According to her, the hype is only just taking off, and companies and brands are delving deeper into the implementation phase. The expert predicts that the impact of AI will be felt along the entire value chain.

One thing’s for sure: artificial intelligence is a disruptive technology that is kickstarting a range of change processes. Businesses open to implementing technological changes should understand the principles and technological framework behind AI in order to optimally harness its potential and translate it into targeted, positive effects.

Machine learning and deep learning – the basis of AI

Artificial intelligence empowers technologies to solve specific tasks better than human beings can. Examples of this are facial recognition or automatic classification procedures. To gain the intelligence that this requires, machine learning (ML) comes into play. With ML, AI systems can train themselves to perform tasks better and better by processing large data volumes and algorithms.

If machine learning was to be implemented in a meaningful way, though, another technological revolution had to occur: deep learning. Thanks to its capacity for processing immense amounts of data, the neural network has now developed to the point that machines are more effective in performing image recognition tasks than humans. One area of application in that respect is MRI-based automatic tumor detection.

Deep learning is revolutionizing AI, making it a key technology for countless areas and applications. That’s because it helps machine learning make the leap to practical use cases, thus broadening the field of AI. Deep learning seems to be beneficial to almost any machine application:

• Autonomous driving
• Preventive medicine
• Speech and sentiment analysis in sales and aftersales to improve the customer experience
• Optimization of cybersecurity architectures and real-time monitoring of the public space
• Risk minimization in financial transactions
• Analysis and mastery of big data as part of Industry 4.0

AI was thus the first and main concept that gave rise to machine learning. Deep learning ultimately meant that the development of AI and machine learning progressed at an ever-faster pace and fanned out in a wide variety of directions as it spread to more and more practical areas of application – and the evolution continues to this day.

The three technologies and their concepts are therefore closely intertwined, interdependent, and mutually supportive. The strengths and functions of AI in this context are:

• Analysis of huge amounts of data
• Linking of data to create meaningful relationships
• Identification of patterns
• Derivation of results and predictions

Big data forms the database via which the AI system acquires knowledge. With the aid of machine learning, it then continuously trains that knowledge to arrive at structured decisions and automate processes based on them.

AI in marketing

There are many ways in which the marketing cosmos can benefit from the advancement of AI-based applications, such as ChatGPT and Midjourney. For example, artificial intelligence can be used for:

• Idea development and content creation
• Target group analysis
• Automatic and programmatic campaign management
• Cultivating relationships

Marketing automation, programmatic advertising, real-time analysis of target groups and performance, automated campaign optimization – if not for AI, none of this would be even remotely thinkable.

AI in a legal context

Ever since the GDPR and the ePrivacy Regulation, target group analyses and targeting have been tied to a range of legal issues concerning the use of personal data for marketing and promotional purposes. These regulations are motivating the industry to make the most of its enormous innovative power in the effort to develop alternative, AI-based targeting and personalization processes. Companies implementing artificial intelligence also need to be aware of the European Union’s new AI Act. This legal framework is in fact the first in the world to regulate the use of AI.

AI in customer communication

In the e-commerce and B2B segments, a positive customer experience makes for happy customers and a better conversion rate. AI has a valuable role to play here as well. In this context, AI-supported advancements in chatbots are of paramount importance.

Natural language processing is the type of AI that “understands” people’s natural language and helps chatbots respond to queries in order to give all customers optimal, personalized service.

The possible fields of application of AI chatbots are diverse:

• Assistance in searching for information
• Help in choosing products
• Customer service
• Technical support

AI in leadership

Artificial intelligence doesn’t just stop at the digital marketing sector – it’s transforming processes and opening up new opportunities in all business areas and across almost all industries. It’s making its mark as far as the boardroom, which is crucial because the modern world of work needs forward-thinking leaders who can skillfully and tactfully introduce AI within their organization and highlight the technology’s huge potential to employees. Strong leadership in the AI era is even a key factor for a company’s success.

AI is shaking up company processes by automating workflows or taking care of entire tasks that humans used to carry out. In light of the disruptive changes being brought about by artificial intelligence, many companies will have to reposition themselves to some extent. However, that is no mean feat when faced with new ways of working, decentralized work structures, and globalized processes. New tools are constantly entering the market for companies to check out and assess. What’s more, there is a huge demand for skilled professionals in the form of prompt engineers and other AI experts. AI is thus all about initiating changes at a management level, while appreciating that such a disruptive technology requires a continuous transformation process.

AI in the digital health sector

Healthcare has been increasingly digitalized in recent years, triggering significant changes. We’re talking about digital health. AI is now taking it to the next level and completely revolutionizing the health sector. In a short space of time, the technology has delivered a vast array of solutions to tackle complex tasks that wouldn’t have been possible before, at least not at the same speed. For example, AI tools have recently been used to develop and successfully apply new methods for detecting tumors. New vaccines have also been developed with the help of artificial intelligence.

AI in education

In the education sector, artificial intelligence has enormous potential to transform teaching and learning and help teachers in their day-to-day work. AI for education is becoming an increasingly relevant topic, particularly in schools. For example, teachers can use it to generate lesson content and personalize it for individual students. AI even makes it possible to create student-centered learning environments in large, diverse, and multilingual classes and offer educational content that specifically encourages young people to learn. One of the most crucial tasks right now is to educate teachers about the benefits and possibilities of AI technology so that they can give the younger generation the future skills they need to be successful in today’s world of work.

AI in the food industry

Artificial intelligence has found its way into the most unexpected areas of our day-to-day lives – and food is one of them. AI-powered recipe generators have been around for some time, but the very first AI kitchens are now entering the scene, where staff use food tech to prepare meals based on recipes developed by artificial intelligence. AI is also turbocharging the food marketing of many popular brands. One example is Maggi, which is using the technology to improve its home cooking portfolio.

AI is everywhere

The above examples are just a selection of where artificial intelligence is being leveraged. The truth of the matter is that AI is now pretty much omnipresent. Experts are developing interesting AI solutions for nearly all areas of day-to-day life and work. Our DMEXCO stories provide regular updates on the current AI developments and trends in the digital economy and the ones expected to shape the industry in the future. We’ll keep you in the loop about the latest AI tools and other solutions from various sectors. All you need to do is stay intrigued and open-minded about the digital economy’s future.