Businesses must act now to adapt to the challenges of today and unlock greater growth potential, without sacrificing the health of the planet. Applied AI technologies could be paramount in achieving this.
Two years on from the pandemic and businesses are still struggling. Bottlenecks in manufacturing and limitations in logistics capacity mean supply chains are struggling to keep up with spikes in consumer demand. Further still, inflation is driving up costs and workers hold the upper hand in today’s labour market.
Yet these challenges pale in comparison to the more existential issue the world faces: sustainability.
The statistics and science present a clear trajectory: runaway climate change will be disastrous. Climate-related disasters caused $210bn in damages in 2020 alone.
In the private sector, senior leaders have a responsibility to lead the transition to a greener future and more sustainable business practices. In its recent whitepaper, Tractable, a company developing AI for visual assessment of cars and homes, outlined how applied AI technologies differ from existing AI solutions, and how they can be leveraged to benefit people and the planet, whilst profiting businesses at the same time.
What is applied AI
The term AI, or artificial intelligence, is at risk of becoming an overused buzzword.
Applied AI however, is a branch of computer science that takes AI software out of the lab and places it into business environments, allowing computers and robots to perform real-world tasks.
Applied AI uses many of the same machine learning methods as traditional AI research. The key difference with applied AI is an emphasis on output and solutions, rather than internal processes and how close they mirror human capabilities. This commercial focus of applied AI has created the largest share of advancements within all AI research.
Tractable said applied AI technology holds the key to helping companies transition to a more sustainable business model. Solutions-focused and available today at scale, applied AI offers senior business leaders unparalleled strategic insight into potential efficiencies and greener workflows.
Acting now, according to Tractable, will allow business to adapt to today’s challenges and unlock greater growth potential without sacrificing the health of our planet.
Industrial AI tools can help businesses become more efficient and productive, allowing your employees to eliminate repetitive and routine tasks in their workflows. Freeing up time for employees to add meaningful value elsewhere and play a more active role in business growth.
However, using applied AI without considering sustainability issues at the same time could harm an organisation’s impact over time. This is particularly important when considering that consumers are making spending choices based on environmental issues. Studies show that 84% of consumers claim a poor environmental track record may cause them to stop buying from a brand. Equally, CMOs cite customer experience as one of their top marketing challenges in 2022, meaning that consumer opinions are more essential than ever to long-term viability.
Opportunities
Applied AI has a myriad of applications. Among those highlighted by Tractable are agriculture, inclusion and accessibility, healthcare, and manufacturing.
Agriculture for example, is inextricably linked to the planet’s health. Unpredictable and more extreme weather patterns brought about by climate change place pressure on farmers, risking the security of global food systems.
AI technologies such as NatureFresh are helping farmers reduce their water and nutrient usage. NatureFresh uses AI to fine-tune crop environments by collecting data on plant growth, optimizing water, light and heat levels for each type of produce. As a result, crop yields are more predictable, higher quality and less resource intensive, allowing farming communities to thrive whilst protecting local ecosystems.
AI tools are also helping to drive social inclusion. Software developed by Microsoft is opening up access to learning environments for people with disabilities. Natural language processing (NLP) tools can generate live captions, allowing deaf individuals to participate in lectures without the need for a sign- language interpreter. With ever-increasing adoption, Tractable said the benefits are vast.
The value of applied AI
While there are immense opportunities to accelerate sustainability through applied AI solutions, Tractable stressed that there is no one-size-fits-all solution.
As a result, companies must consider how to take advantage of AI tools effectively and responsibly on a case-by-case basis. That being said, there are some universal truths that apply to AI technologies in business. Tractable explored the practicalities and boundaries of AI technologies within organisations and ecological contexts.
One key consideration Tractable highlighted, was that although AI can provide a useful way to support impartial decision-making, artificial intelligence is only as good as the data with which it’s provided. For this reason, AI software is vulnerable to analytical or performance biases.
For instance, research into facial recognition software has demonstrated systemic performance issues for women and other minorities. Unfortunately, such performance discrepancies risk compounding present-day social inequalities, therefore ethical oversight is crucial.
Tractable went on to analyse how AI has transformed property and automotive assessment in the insurance industry, and how this has indirectly benefitted sustainability aims.
Traditionally, claims processing was a manual, standardized, time-consuming, repetitive and (crucially) attention-demanding task. Applied AI can expedite the entire process by scanning incoming data, interpreting it agnostically and quickly systemizing settlements. Insurers can process highly stressful claims at higher volumes, saving their employees time while also minimizing the costs per claim.
The pandemic has placed further emphasis on digital technology, with many American state insurance supervisors encouraging and even demanding digital service delivery. For example, an emergency order issued by the Insurance Commissioner of West Virginia mandated insurers to use digital technologies for claim adjustments. By collecting evidence remotely without dispatching insurance personnel, Tractable said insurers can reduce mileage and indirectly reduce pollution and greenhouse gasses.
Tractable illustrated another example of AI and indirect sustainability in action in the auto repair sector. More consumers are keeping the same vehicle for longer and increasing preventative maintenance. In turn, demand for aftermarket parts and services is rising, encouraging new growth and revenue opportunities.
According to Tractable, AI systems are now advanced enough that they can suggest a coherent strategic repair plan. Companies can more easily manage their inventory for a fast- moving flow of damaged cars – essentially allowing them to accurately track and supply parts according to demand, thereby reducing waste at the same time.
How to harness the power of applied AI
Successfully transforming an organisation relies on embedding AI throughout business, Tractable said. This means mindsets and processes must evolve at the same time as workplace technologies.
While there are immense opportunities to create value and improve sustainability outcomes through applied AI, there is no one-size-fits-all solution. As a result, Tractable advised that senior leaders consider how to take advantage of AI tools effectively and responsibly on a case-by-case basis. To this end, there are core steps in any AI adoption they should keep in mind throughout the development process.
You can download the full whitepaper here.
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