The AI Breakthrough in Service Industries

Artificial Intelligence claims to transform lives, how we work and how we interact. We are already seeing some of the effects of its in most industries.

AI is widely used in many award-winning apps and software on the market, particularly in service industries. Among the service industries to benefit most from the AI breakthrough are the banking, insurance, telecom, and utilities.

AI in the Banking Industry

Banking has benefited massively from AI systems, and is expected to continue to do so. Key areas impacted include:

-         Customer Experience

AI chatbots have streamlined customer interactions and in some cases hav improved customer experience and satisfaction. App developers have made it possible for clients to ask for and get banking assistance without visiting the bank. This adds a level of convenience that customers appreciate.

-         Management of Customer Data

AI is an incredible tool in managing customer data. For example, when JPMorgan Chase's Contract Intelligence AI was asked to review their 12000 commercial credit agreements, it completed the task in seconds, compared to the roughly 360,000 hours manual evaluation normally took. The AI has now officially replaced humans in performing this task, freeing more human resources for other sectors. Today, similar AI can be used to manage emails, articles, phone calls and other legal documents.

-         Banking Security

AI is changing the way banks secure their procedures. The enormous amount of money laundering that has plagued the industry will likely decrease. Banks have started seeking tailored AI solutions to help them combat the vice.

AI in Insurance Industry

AI is shaking up the insurance industry. Traditional insurance and underwriting are becoming more efficient and more consumer-friendly with AI technologies. Some of the changes we are bound to see include:

-         Micro changes

AI is slowly making it possible for insurance companies to access user data and tweak their offers to suit user behavior. Car sensors, for example, may show that you have a history of reckless driving, which may bump up your car insurance rate by 1%. If you are a very good driver, your car insurance rate may drop by 1%. This tweaking not only rewards good drivers but also results in more revenue for insurance companies.

-         Customer interactions

The insurance industry will benefit greatly from the advances being made in AI for customer interactions. Soon, we may see insurance mobile apps with assistants that warn you if you engage in activities that could lower your insurance rate, or alert you when you are doing something that could boost your rates.

-         AI May Make Some Insurance Sectors Obsolete

The shift to driverless cars will bring many changes to the insurance industry.  Safer cars will lead to lower accident rates, for example. Auto insurance may stop being as lucrative, and insurance companies may have to adapt and switch to ensuring car manufacturers as opposed to individual drivers who will see no need for auto insurance.

AI in the Telecom Industry

The Telecom Industry benefits from the advantages of using AI on three fronts:

-         Customer Service and Retention

AI has enhanced customer service in this industry. Customer service solutions such as chatbots has eased communication between customers and Telecom companies. This leads to better user experience and satisfaction. AI can also be used as customer service agents, where they interact directly with clients, making the customer service process more cost-efficient.

-         Sales and Personalised User Experience

AI has improved customer retention and boosted revenue earned per user. The immense power of AI can be harnessed to offer personalised product recommendations to clients, assessing the type of call or data packages that suit a potential client pre-sale to increase sale success rates, and analysing social media, brand image, customer feedback and offering recommendations to help make the company better.

-         Network Analysis

AI has a huge role in telecoms network maintenance. Increased data consumption means optimized networks are now a necessity, helping telecoms  to adapt and cater to their users' needs. AI is also being used as a network maintenance solution creating self-healing, self-learning, and self-optimizing networks.

AI in the Utilities Industry

The Utilities Industry is already gaining a lot from the application of AI technologies. For example, AI is being used in:

-         Yield Optimisation

In these industries total yield equals total revenue. The application of AI technologies has led to optimised yields. For example, in the power production sector, power generation efficiency can be optimised by using real-time adjustments across their assets to maximize output while minimising resource use.

-          Predictive Maintenance

Maintenance is a huge deal when it comes to utilities. With AI’s help, drones with deep learning algorithms can be deployed to automatically identify defects and potential failure points, predicting when maintenance will be needed. This does away with costly and inaccurate manual inspections.

-         Customer Insights

AI can be used to help utilities maximise margins and minimise consumption. They can also help craft individual customers offers or deals on their services that will allow utility companies to gain new customers, create a larger user base and boost customer loyalty.