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AI as a Game Changer

 In the early phases of the industrial revolutions, technological innovations

replaced or relieved human muscle power. In the era of AI, our intellectual

powers are now being simulated, multiplied and partially even substituted

by digitalisation and AI. This results in fully new scaling and multiplication

effects for companies and economies.

Companies are developing increasingly strongly towards algorithmic

enterprises in the digital ecosystems. And it is not about a technocratic or

mechanistic understanding of algorithms, but about the design and optimi-

sation of the digital and analytical value added chain to achieve sustainable

competitive advantages. Smart computer systems, on the one hand, can

support decision-making processes in real time, but furthermore, big data

and AI are capable of making decisions that today already exceed the quality

of human decisions.

The evolution towards the algorithmic enterprise in the spirit of the

data- and analytics-driven design of business processes and models directly

correlates with the development of the Internet. However, we will have to

progressively bid farewell to the narrow paradigm of usage of the user sit-

ting in front of the computer accessing a website. “Mobile” has already

changed digital business significantly. Thanks to the development of the IoT,

all devices and equipment are progressively becoming smart and proactively

communicate with each other. Conversational interfaces will equally change 

human-to-machine communication dramatically—from the use of a text-

based Internet browser down to natural language dialogue with everybody

and everything (Internet of Everything).                                                             


Machines are increasingly creating new scopes for development and

possibilities. The collection, preparation and analysis of large amounts of

data eats up time and resources. The work that many human workers used

to perform in companies and agencies is now automated by algorithms.

Thanks to new algorithmics, these processes can be automated so that

employees have more time for the interpretation and implementation of the

analytical results.

In addition, it is impossible for humans to tap the 70 trillion data points

available on the Internet or unstructured interconnectedness of companies

and economic actors without suitable tools. AI can, for example, automate

the process of customer acquisition and the observation of competition so

that the employees can concentrate on contacting identified new customers

and on deriving competitive strategies.

Recommendations and standard operation procedures based on AI and

automated evaluation are often eyed critically by companies. It surely feels

strange at the beginning to follow these automated recommendations that

are created from algorithms and not from internal corporate consideration.

However, the results show that it is worthwhile because we are already sur-

rounded by these algorithms today. The “big players” (GAFA = Google,Apple, Facebook, Amazon) are mainly to solely relying on algorithms that

are classified in the category “artificial intelligence” for good reason. The

advantage: These recommendations are free of subjective influences They are

topical, fast and take all available factors into consideration.

Even at this stage, the various successful use and business cases for the

AI-driven optimisation and design of business processes and models can

be illustrated

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