Source | www.forbesindia.com | SUDIPTA GHOSH
An owner of a mid-sized manufacturing company confessed that while they have been running their business for generations, for the first time they feel out of their depth when it comes to understanding market disruptions. ‘How can we estimate the demand of the customer and estimate the price of the supplier in advance and with reasonable accuracy?’ Given that both the raw materials and the finished products are commoditised, this insight will be critical for managing working capital, their survival in the immediate future, and eventually their growth in the medium- to long-term horizon. Artificial intelligence has proven that it can show the way.
This is not an isolated conversation. Our research shows that 92 percent organisations are optimistic about using AI to improve opportunities, create competitive advantages and innovate new products. Interestingly, India has witnessed the highest number of adoption of AI in organisations as compared to the organisations in leading countries such as US, Japan, and UK, according to PwC’s Global Responsible AI Survey 2020 and AI Adoption survey. Covid-19 and the ensuing economic crisis has ironically created the right environment for organisations to use AI more as a business necessity rather than a nice-to-have experiment. They will have to do three things:
Repair: Many sectors such as travel and hospitality have been adversely impacted because of the disruption in demand during the coronavirus crisis. It is encouraging players to implement AI-enabled use cases of dynamic pricing for targeted marketing in the medium to long term to emerge from the present crisis. Sectors like financial services, particularly in the retail business, have been adversely impacted because of the inability of the sales teams to conduct in-person meetings with prospective and existing customers. AI-enabled use cases around contactless selling and delivery have helped them to adapt to this new normal.
Rethink: The current situation has encouraged organisations to plan for transformation. For example, organisations in sectors like FMCG (fast-moving consumer goods) and pharma are using AI-based digital twins of their supply chain and simulation-based models to derive insights from the synthetic data. This is helping them build resilient ecosystems around supply chain and operations.