How and Where Generative AI Drives Real Business Value
Generative AI (or GenAI), a subset of AI that focuses on creating new content, continues to grow at an accelerating pace. The technology produces new or novel text, images, music, and even software code, mimicking the creative process that humans have historically been responsible for. This presents great opportunities for companies across industries, as demonstrated by the more than $1.5 billion in venture capital that GenAI attracted last year alone, which is more than what was invested in the previous five years combined.
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Hear ELASTECH’s CEO, Armen Tatevosian, and EVP of Global Operations, Jim Zordani, discuss the business value drivers of Generative AI, highlighting how and where companies are taking advantage.
This robust growth continues as big tech companies like Microsoft, Alphabet, and Amazon, as well as newer companies like OpenAI, Synthesia, and Jasper AI, proceed to fund innovations to push the envelope.
A recent Gartner study predicts that by 2026, more than 80% of enterprises will have used GenAI application programming interfaces (APIs) or models and/or deployed GenAI-enabled applications in production environments, up from less than 5% in 2023. Another study by KPMG found that 97% of respondents expect their organization to be “highly” or “extremely–highly” impacted by generative AI in the next 12 to 18 months.
Use Cases of Generative AI
Certain areas of the business can benefit more from GenAI than others, with proven use cases in customer operations being the most popular place to start. GenAI transforms the way businesses interact with customers, manage customer service inquiries, and enhance agent productivity.
GenAI-powered chatbots provide immediate and personalized responses to customer inquiries, regardless of the language or location of the customer. This has proven to significantly improve customer satisfaction while reducing the workload on agents.
Additionally, GenAI can instantly retrieve the data a company has on each specific customer, which helps a customer service representative best answer questions and resolve more issues during an initial call vs. multiple calls. GenAI can literally create personalized experiences, which have been the holy grail. The results are faster resolution times, increased customer satisfaction, and reduced churn.
Lastly, GenAI enhances quality assurance and coaching, as companies gather insights from customer conversations to help identify opportunities to improve and train their agents accordingly.
Studies show that applying GenAI to customer-facing operations can increase productivity by 30 to 45 percent vs. current costs, enabling organizations to increase customer inquiry volume without having to add staff.
Marketing and Sales
Marketing and Sales are other areas where Generative AI has proven to deliver tangible results. In the realm of Marketing, Generative AI can automate content creation. By training the AI model, the content even adheres to the on-brand voice and tone.
Another use case of GenAI in Marketing is SEO. Components such as page titles, image tags, and URLs can be optimized to improve search engine rankings and drive more relevant traffic to websites. ELASTECH’s blog post on The Use of Generative AI in Marketing and eCommerce highlights more benefits and provides step-by-step guidance on how to implement GenAI into an existing marketing tech stack.
The same is true for Sales, where Generative AI has proven to deliver critical outcomes. GenAI is used to identify and prioritize sales leads and provide valuable insights about customer preferences that improve close rates.
More and more companies also leverage GenAI to automate sales follow-ups and nurture leads until they are ready for direct interaction with a sales agent. This frees up representatives to focus on high-value tasks.
Another application with great success is using GenAI to identify product suggestions in eCommerce. Merchants and manufacturers can take advantage of advanced on-site search functionality, driving up-sell and cross-sell opportunities, which results in higher online sales and profit.
Using GenAI to boost the productivity of sales and marketing departments to generate more revenue is a critical advantage amidst current economic headwinds.
Companies are increasingly taking advantage of Generative AI in their IT departments. By treating computer languages as just another language, GenAI enables software engineers to work much smarter.
Key benefits and use cases of Generative AI in Software Engineering include:
- Accelerated Code Generation: Generative AI automatically creates initial code drafts, saving engineers valuable time and effort.
- Identification of coding errors: Generative AI is used to identify, flag, and correct errors in code. This leads to higher-quality software and reduced debugging time.
- Generative AI can also be used to refactor existing and legacy code, making it easier to maintain and update.
This has a demonstrable impact on engineering and development teams as they become more effective and productive (companies were able to achieve productivity gains of up to 45 percent). Through the use of GenAI, expert involvement is reserved for complex coding tasks and/or addressing errors.
The use of Generative AI in application development enables companies to reduce time-to-market for new products or changes to existing software. They can address market opportunities or react to competitive pressure more quickly and effectively.
Generative AI is a powerful technology that has proven to deliver huge business value across a wide range of business areas and industries, with early adopters increasing their use of AI in Banking, Insurance, Retail, Manufacturing, and Healthcare. Generative AI is predicted to increase productivity with an impact of an additional $200 billion to $340 billion in Banking alone.
Some of the most impacted areas in a business are Customer Operations, Marketing, Sales, and Software engineering. Companies that adopt Generative AI have proven to achieve better customer experiences, increased productivity, and reduced costs.
ELASTECH is a company recognized for delivering modern AI solutions and for its commitment to fostering a deeper understanding of AI. We welcome your questions about how GenAI and its use cases can best serve you, and invite you to take a deeper dive into the practical applications. Our experts will help you evaluate and confirm specific opportunities with GenAI to deliver value to your organization. Click below to schedule your free AI consultation.
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