When introducing AI, I think there are many people who want to streamline operations and reduce costs such as labor costs and development costs. There are several tips for successful cost savings with AI. In this article, we will introduce the points and examples of cost reduction by AI.
Table of contents
- How to choose AI for cost reduction?
- Benefits of introducing AI
- Precautions for introducing AI
- 6 examples of cost reduction using AI
- Problems and solutions when introducing AI
- “UMWELT” is recommended for cost reduction with AI tools
- summary
How to choose AI for cost reduction?
When introducing AI, many companies set sales increase and cost reduction as improvement goals. I will explain the points to pay attention to when considering AI.
Select by utilization technology
Image recognition / image analysis
Technology for image recognition / image analysis that uses AI to identify what is reflected in an image or video and whether there are any abnormalities on the computer. At the site, there is no need for discriminating by skilled workers and training for new employees, which leads to reduction of labor costs.
Demand Forecast Demand forecast
that forecasts purchase volume and sales volume based on past data. It is now an indispensable part of marketing strategy. The greater the fluctuations in the products handled and the balance between supply and demand, the longer it takes to analyze, so AI intervention can significantly reduce work time.
Data analysis Data analysis using
AI makes it possible to discover new patterns and acquire knowledge (data mining) from a huge amount of data. In addition to reducing the cost of data analysis, the information obtained can be used for marketing.
Optimization
Optimization technology uses data analyzed by AI to derive how to achieve goals under limited conditions. Delivery routes in logistics companies and supply chains in the manufacturing industry can also be streamlined with this optimization technology.
Building
a data infrastructure By building a data infrastructure, you can collect, store, analyze, and visualize the accumulated data by integrating it. By consolidating them into one, you can shorten the time required for data analysis and utilization.
Choose according to your company’s needs
Business efficiency improvement
The first keyword that comes to mind when reducing costs is business efficiency improvement. You can expect to improve work efficiency by having AI take over data entry work such as invoices and customer information management.
Cost reduction
By entrusting simple work and routine work to AI, it is possible to carry out work with a small number of people, and it is possible to reduce costs such as labor costs.
Defective product detection and failure prediction
AI, which has defective product detection and failure prediction functions, is a very useful function for manufacturers, and enables highly reliable work in a short time.
Maximizing Profit
If the introduction of AI streamlines operations and reduces labor costs and wasteful operations, it will ultimately be possible to significantly increase profits.
Service development
By incorporating AI into services, the range of service development can be expanded and service development with a higher degree of freedom can be performed.
Decision-making power
Demand forecasting and data analysis make it easier to determine the direction of new products and services to be developed. Explaining the results of AI will make it easier to obtain internal consent and improve decision-making ability.
In an external environment where promotion of human resources development
DX is indispensable, introducing AI in-house will lead to the development of AI human resources in the future.
Benefits of introducing AI
Now that we’ve explained how to choose AI, let’s talk about the benefits of introducing AI. If you are worried about the balance between the cost of introducing AI and the improvement of business efficiency, please refer to it.
Reduction of labor costs and elimination of labor shortages
With the introduction of AI, machines will automatically process simple tasks and routine tasks that were previously personalized. As a result, even a small number of people will be able to carry out internal operations without delay, and will be the savior of companies with serious labor shortages.
In addition, mechanization leads to shorter working hours and reduces overtime and holiday allowances. There is an initial cost to introduce AI, but in the long run, it will reduce labor costs and reduce the cost of the entire company.
Business efficiency and productivity improvement
AI is by no means all-purpose, and there are some tasks that require human intervention within the company. By leaving the work that can be mechanized to AI, you will have more room and you will be able to concentrate more on the work that is personalized. As a result, work efficiency will be improved and productivity can be expected to improve.
Data analysis / analysis prediction
Accumulating and verifying a huge amount of customer data is a very time-consuming task. If it is AI, it can capture and analyze data in a short time. By deepening the depth of deep learning, more accurate analysis prediction can be realized. In addition, data analysis is effective not only when developing products and services, but also as a measure for human resource education and operational efficiency improvement.
Improved safety
Automation of safety management work at dangerous work sites leads to ensuring the safety of employees. Specifically, it is possible to quickly and automatically detect worker vital monitoring and dangerous behavior with a camera.
Precautions for introducing AI
The introduction of AI can be said to have many advantages, but it is not without its disadvantages. Here are two things to keep in mind when considering the introduction of AI.
There are industries where costs cannot be reduced by AI alone
While the introduction of AI by companies is progressing, there are some industries where mechanization is difficult. For example, it is difficult to fully automate creative jobs where sensitivity is important, the medical industry where reliability is important, and sales positions. When considering the introduction of AI, it is necessary to carefully consider what kind of department or business the company is likely to use.
Requires knowledge of risk management
By introducing and operating AI, various problems such as errors and biases in input data, consideration for privacy, and lack of operational know-how can occur. One of the concerns is the blackboxing of AI, which makes it impossible to visualize what kind of information is accumulated. Companies are required to educate AI personnel who can handle these risks.
6 examples of cost reduction using AI
The shortcut is to learn from the cases of other companies about specific ways to utilize AI. Here are six examples of successful cost reductions using AI.
1. Inquiry department
Many companies, including EC sites and manufacturers, have introduced AI chatbots that can respond to inquiries from users. This not only reduces human costs, but also enables uniform, highly accurate and speedy response. As a result, user satisfaction will improve. In addition, it is effective to improve employee satisfaction by utilizing it internally.
2. Sales department
By introducing AI into sales activities, it is possible to extract customers who are likely to make a contract with high probability from data such as customer attributes and purchase history. Personnel who have been doing sales activities randomly can switch to efficient sales activities by referring to the recommended recommendations. By leaving the selection of the approach destination to AI, the person in charge can concentrate on the closing work that is important when the contract is concluded.
3. Human resources department
AI can evenly arrange staffing and evaluation, which have tended to be subjective. Employees will be able to quantitatively evaluate their satisfaction with their work, and can expect to maintain their motivation. Furthermore, by having AI set objective recruitment standards, it will be possible to improve the efficiency of recruitment activities, which will lead to a decrease in turnover rate and prevention of mismatches.
4. Logistics department
In the logistics industry, the efficiency of operations by AI has been remarkably improved, and the automation of processes such as warehousing / delivery work, order processing, inspection work, and baggage sorting is progressing. In addition, it is possible to optimize the delivery route of the driver, automate the vehicle allocation plan, and detect dangerous driving, which is useful for improving safety as well as improving work efficiency.
5. Maintenance / maintenance department
AI plays a major role in the maintenance department from the perspective of accident prevention. It is possible to automate inspection work, which used to require visual confirmation, improve inspection efficiency and improve safety of buildings and equipment that are difficult to inspect. It can contribute not only to accident prevention but also to ensuring the safety of workers, and it is expected that the introduction of AI will accelerate in the future.
6. Factory department
It is said that quality tends to differ depending on the career of the worker at the production site of the factory. However, even so, a certain level of quality is guaranteed by AI learning veteran techniques and building a system to support inexperienced workers. It is also effective in ensuring safety in the factory and preventing accidents.
Problems and solutions when introducing AI
Here, we will introduce the problems and solutions that often occur when thinking about cost reduction by introducing AI.
What should I start with when introducing AI?
As explained at the beginning, the introduction of AI can be expected to increase sales and reduce costs.
In order to realize the effect, first clarify your company’s needs and compare the corresponding software. There are various plans, but I think the best is to start with the basic one, verify the effect, and gradually expand. By accumulating know-how, you can reduce mistakes.
How to choose with an emphasis on cost reduction?
If you focus on cost reduction by AI, clarify your needs and then estimate the budget for the expected economic effect. Start experimentally on a small scale first so that you can keep costs down even a little.
What are the expected AI fields in the future?
As explained so far, AI has some tasks that can be mechanized and some that cannot. Consider the scope of leaving it to AI and consider introducing it. Future AI trends include the fields of image recognition, natural language processing, and speech recognition. These areas are attracting attention as more useful functions are expected to be developed in the future.
“UMWELT” is recommended for cost reduction with AI tools
If you want to reduce the introduction cost and reduce your own cost, we recommend using “UMWELT” provided by TRYETING. UMWELT has a lower usage fee level than similar AI systems, and it is relatively easy for small businesses to introduce it.
It is possible to reduce the number of hours required for work x unit hourly wage, and you can expect an improvement in business productivity when viewed in total.
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summary
This time, we introduced the key points and examples of cost reduction in our company when introducing AI. If cost reductions are achieved, they should be recognized as useful within the company. If you want to reduce the introduction cost and reduce the total cost, please consider UMWELT.
