5 Ways Startups Are Leveraging a Groundbreaking Technology – Artificial Intelligence

The mobile phone you are holding and some of the mobile apps that mobile is hosting has one of the most extraordinary abilities – prediction. For instance, the Uber app, the best example of a futuristic app, predicts the number of users and drivers going online in the next 5 minutes and calculates the supply/demand ratio to decide whether it should raise the fare or keep it unchanged. Though this seems impossible, the Uber app does this precisely, thanks to Artificial Intelligence.

In recent times, AI has become a household thing. Every startup opts for AI to increase the efficiency of all business processes. Many startups also achieve the highest number of milestones using AI technology. AI is so popular that all startups ask their hired technology partner to actualize the AI-enabled mobile app and web application.

If you are a startup planning to build mobile and web applications, you should know how AI technology can make your business journey painless. In this blog, I will share how startups use AI technology to increase sales, user experience, and customer retention rates.

But before discussing that, let’s first understand the difference between AI, Machine learning, and Deep learning, as almost all of us need to differentiate these nearly the same technologies which depend on each other.

Difference between Artificial Intelligence, Machine Learning (ML), and Deep Learning  

In the simplest terms, an AI is a technology that allows machines to work and react like humans. It can be achieved with a set of rules and algorithms.

Machine learning is the subset of AI. It finds the patterns out of large data sets. These patterns are later used to define rules, which are then automatically used to solve a particular problem.

Deep learning is part of the broader family of machine learning methods. The significant difference between Machine Learning and Deep Learning is the requirements of different attributes to solve the problem. For instance, if you want a machine or program to identify whether the uploaded image is of a cat or dog, you have to define the attributes (skin color, tail length, eye shape, etc.) which machine learning algorithm takes into account to solve the problem. But in deep learning, the algorithm defines the attributes to solve the problem.

Five ways startups are Leveraging the AI Technology

With the increasing demand of users and overly intensified markets, startups are opting more and more for futuristic features that purely work on technologies like AI. Luckily, AI technology has become affordable over time, so even small startups can leverage it. Following are the five ways startups are leveraging AI technology.  

To improve customer service

Every startup has to invest a lot to offer the ultimate customer service to users. And if they fail to do so, customers quickly alter their choice!

The primary reason customer service is a tedious and costly process for startups is the direct interaction of humans. Therefore, a startup accommodates many teams of customer service executives who solve queries of customers at a lower ever efficiency.

But an AI-enabled chatbot which is nothing but the program, ensures a top-notch customer experience when a customer raises a query. This program understands the customer’s question and gives the most suitable answer to him without any human interaction. This way, it helps startups save a lot of money and provide ultimate customer service simultaneously.  

For efficient business forecasting

A startup has to make many game-changing decisions every day, and when they make a decision, they want to know the effect of that decision on many factors of the business. For instance, when a startup changes the price of its service/product, they need to know the effect of that change in price on the usage rate.

 An AI algorithm named Linear regression is very serviceable when it comes to predicting the effect of a change in price on the usage rate. It calculates the dependency on two variables, and based on that calculation; it indicates the result.

AI algorithms are also helpful in making other business predictions, such as future economic conditions, app installment rates, revenue, etc.  

Automate marketing efforts

Running a marketing campaign aggressively is the primary strategy of all startups running their business in the overly intensified market. These startups spend a large percentage of their earnings on marketing. Yet, even though they spend enormously on marketing efforts, they generally convert only a few people into users.

Here, AI can change advertising from its roots. You can utilize numerous AI-controlled apparatuses that can improve the various parts of advertising without much of a stretch. These tools scale up content generation, manage digital ad campaigns, and optimize email marketing campaigns.

If you want to know the top AI-enabled marketing tools, read this blog.   

Enhance data security

The number of cyberattacks has been increasing over the last couple of years, and in 2019, it reached an alarming level. Big companies that become victims of cyber attacks can easily survive because of their high user base and fund. But when a startup becomes the victim of a cyberattack, it suffers a significant financial loss, sometimes leading to a dead end.

But if you employ an AI-enabled data security system, you can prevent attackers from accessing your system. An AI genetic algorithm is used to create a rule-based Intrusion detection system that makes the rules based on historical data, captures every incoming package over the network, scans each package, compares it with the rules and alerts the admin if it finds any infected box. This way, an AI-enabled intrusion detection system can effectively prevent data breaches.   

Manage resources very precisely

This is an excellent use of AI technology. As we have discussed, the Uber app calculates the demand for a particular location. If it finds the market higher than supply, it raises the fare and asks drivers to reach that location to satisfy the demand. Similarly, many e-scooter startups that have been trending for the last two years study the heat map and redistribute their e-scooters according to the need of a particular location. By doing so, startups are increasing the usage rate and earning well. They are also satisfying the higher demand and winning the trust of users.

In the nutshell

Looking at its advantages, AI can be considered one of the most pioneering technologies of the decade. It has already changed the fate of many startups and moving forward to hit many remaining industries and startups. One of the abilities to learn automatically is making it the most affordable and suitable technology for startups. It is one of the reasons why Uber, Airbnb, and GoJek, like startups, are processing millions of requests in the day. You can also employ AI technology and take your startup to the next level.