Three Tips For Choosing The Right AI Business Model
The current breakthroughs in AI are revolutionizing the business landscape significantly. The omnipresence of AI is creating new business models which differ starkly from the traditional ones. As a result, companies are exploring the potential of AI to re-write their business models to bring in growth and innovation. Enterprises are creating new opportunities for collecting more data, gaining more visibility and insights, and accelerating innovation. Hence, AI is creating faster marketplaces, and is improving the versatility of enterprises.
Companies are likely to spend nearly $98 billion on artificial intelligence systems in 2023. AI is transforming the dynamics of business. Enterprises are now able to set up new forms of networked communication between the brand and customers. It is creating new revenue flow by augmenting the availability and analysis of data. To successfully incorporate AI for developing new business models, the stakeholders need to consider the accuracy, efficiency, and valuation of the AI tools they intend to use. Adopting AI involves optimized collaboration and the model’s operationalization across the business sphere. Many companies face scaling challenges and weaker defensive moats, which can bring obstacles to the sustainability of AI in business models across the long term. To build, scale, and sustain AI, companies need to consider the following:
Choose The Right Model
The four key AI business models are anything as a service (XaaS), autonomous AI/ML, cloud-native AI, and embedded AI. The kind of business model you choose will determine your operational efficiency. An AI business model which resembles the SaaS software can seamlessly seat itself on top of other existing systems such as a CRM (customer relationship management) product or an ERP (enterprise resource planning) system. You can deploy it quickly into your existing infrastructure. Embedded AI refers to the application of ML and deep learning in software at the device level. An autonomous model can change an entire workflow through the introduction of an AI-infused system. The AI entity exerts complete control over some significant business functions in this model. Understanding your business ecosystem will enable you to choose a suitable model.
Choose The Right Vendor
Selecting your AI provider wisely is essential. In the AI workflow, data preparation is crucial. The vendor should be able to customize the AI software to meet your business and data needs. Your employees should be able to easily access the custom-built AI solution for targeted use. Moreover, the AI solution should integrate easily into your workflow. Choose a vendor with the right skills to build a solution pertinent to your business. You can review their work portfolio to analyze if they can carry out your project. You can also approach their customer base for reviews to identify the pros and cons of working with the concerned vendor. Carefully assess the working terms and conditions to determine if they provide compatible and transparent services. Ensure that they are signing a Non-disclosure Agreement to maintain the confidentiality of your project.
Considering the running costs is extremely important while choosing an AI model. Most of the AI solutions are priced by transaction or completed computation. The greater the amount of work it performs, the more costs it will incur. Cloud-based AI solution enables you to access services as and when required.
Choosing the right AI solution for your business model will enable your business to grow effectively. Moreover, it will allow enterprises to maintain a strong foothold in the competitive landscape and provide market-relevant solutions.