Importance and Challenges to Adopt Artificial Intelligence for Enhancing Business Competitiveness

Nowadays, artificial intelligence has become a very significant tool for business organizations to increase their efficiency and competitiveness. Organizations can survive for the long term on the basis of continuous research and development and by adopting innovations. Because innovation helps to organizations to enhance their performance, maintain better customer relationships and experience, and face the competition easily. Artificial intelligence is one of the innovative technologies that helps to organizations to be more competitive. Many tasks are done automatically with the help of AI, which increases efficiency and accuracy, decreases costs, and ensures work is completed on time without any delay. AI system collaborates with past and current information, which leads to more accurate predictions. Many organisations feel that artificial intelligence is a necessary part to make them more competitive and profitable. Because artificial intelligence assists organizations in automation, making better marketing strategies, business forecasting, and predictive analysis, optimum utilization of resources and cost reduction, digital transformation and global competitiveness, improving customer experiences, proper management of human resources, product development and innovation, fraud detection and risk management, proper supply chain management, and better decision making. Along with the benefits of adoption artificial intelligence in business operations, there are many challenges also like high cost of deployment and maintenance, shortage of skilled workforce, and technical expert, threats of data privacy and security, ethical and legal issues, oppose by employees and managers to technical changes, fear of layoff among employees, issues of cyber security, rapid technological changes, lack of awareness among the small businesses and regulatory issues. Small firms have less experience and funds to adopt artificial intelligence properly. So, they cannot get the full benefit of artificial intelligence and are less competitive than large business organisations. So, customers’ response is different towards the firms that use AI. This study concludes that artificial intelligence is a technology that provides a platform for firms to change the way they work, change the administrative structure, and stay sustainable. Organisations that change with time, become more innovative, adopt the technologies quickly, and use artificial intelligence properly over its challenges become more profitable, successful, and competitive.

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