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The adoption of Artificial intelligence (AI) continues to accelerate across industries, dominating boardrooms worldwide. When a mundane task that previously took hours is completed within minutes, organisations are experiencing greater efficiencies, reducing costs all the while unlocking greater human potential. But despite the transformative aspects of Generative AI (GenAI), organisations face significant risks, such as data privacy, leaking proprietary information, and “AI hallucinations” or outputs not grounded in reality that could be inadvertently used to make business decisions.
According to Gartner research, GenAI is a top concern and named second as the most-frequently named risk of leaders, appearing in the top 10 of their second quarter survey for the first time. Based on the study, Gartner experts suggest that intellectual property, data privacy and cybersecurity are areas that must be addressed urgently.
Despite these considerable risks, a recent Deloitte study found that the use of GenAI has increased to 38% for Australian employees (up roughly 20%), but the country is also taking a “she’ll be right” approach, which could be a major misstep, inviting litigation, risk and reputational hazards.
Although AI continues to be daunting for many businesses, leaders are advised to prioritise AI to remain competitive, optimise performance and deliver financial gains. To explore the benefits and risks of AI integration, we examine five top industries and how they are approaching AI.
1. Healthcare – advanced personalisation and accuracy
According to Reuters, the use of AI in the healthcare sector is on the rise, enabling providers to apply it in various areas and some as ground-breaking as end-to-end drug discovery and development, patient/doctor communication, remotely treating patients, and even diagnosing them with AI. With AI solutions like Microsoft’s 365 Copilot, the administrative burden can also be lessened by the automation of tasks such as medical coding, billing, routine inquiries, and notetaking. Other primary benefits include:
- Better diagnostic accuracy and early disease detection.
- Personalised treatment plans that improve patient outcomes.
- Decreased administrative responsibilities, allowing for more time for patients and other critical tasks.
There are also as many challenges that the industry must be prepared for including:
- Ethical worries surrounding decision-making in patient care.
- Privacy and security of sensitive health data.
- Potential risk for errors and questions around accuracy and reliability within critical healthcare scenarios.
2. Manufacturing – streamlined operations and predictive maintenance
The manufacturing sector is experiencing a period of transformation with the onset of Industry 4.0 and the adoption of emerging technologies and new solutions. Gartner research has shown that GenAI is the most frequently deployed AI solution and that the most popular approach is to leverage GenAI is by employing existing applications like Microsoft’s Copilot for 365 said 34% of respondents. In manufacturing, businesses can unlock benefits such as:
- Improved proficiency and productivity in manufacturing processes.
- Enhanced predictive maintenance that cuts downtime and repair costs.
- Superior quality control, leading to advanced product standards.
There are risks, however, and they include:
- Data security vulnerabilities in AI systems affecting production.
- High implementation costs and complexity.
- Reliability and accuracy challenges due to outdated systems or inaccurate data.
3. Financial services – bespoke advice and augmented fraud protection
According to McKinsey research, almost a quarter (22 percent) of business leaders indicated they were optimistic about the use of GenAI and that they were vigorously probing how to best apply it. To harness the gains of GenAI while limiting risk, businesses must roll out solid frameworks that reflect benefits, such as human–machine interaction, and ethics. If they do so successfully, they can uncover new improvements like:
- Better than standard fraud detection and prevention.
- Optimised and enhanced investment strategies and portfolio management.
- Bespoke financial advice tailored to customers, improving satisfaction.
The risks, however, can be significant and encompass:
- High stake errors in automated trading, leading to significant financial losses.
- Privacy and security concerns in handling sensitive financial data.
- Ethical considerations around the use of AI in financial decision-making.
4. Customer service – optimised user experience and cost savings
In terms of AI utilisation and its impact, AI-powered customer service applications like chatbots and virtual assistants offer significant upsides and according to Deloitte, 33% of leaders see the massive potential in leveraging AI to enhance customer relationships. Based on Microsoft CoPilot research, users said that the product positively impacted their standard time spent on a case reduced by 12% and additionally, less customers needed to be put on hold (roughly 10%) because cases could be resolved independently.
AI can also reveal other gains, including:
- Enhanced customer experience (CX) through immediate responses and 24/7 issue resolution.
- Reducing repetitive tasks boosts job satisfaction, allowing staff to concentrate on higher-value business tasks.
- Capability to resolve and manage large volumes of inquiries simultaneously.
While acknowledging the substantial benefits, it is essential to assess the associated risks before proceeding. Among the prominent risks to consider are:
- Potential for miscommunication or inadequate responses leading to customer frustration.
- Privacy concerns over the handling of sensitive customer data.
- Dependence on AI might reduce the quality of human interactions in complex scenarios.
5. Marketing and Sales – personalised and targeted messaging
Marketing and sales represent a significant industry segment that AI can positively impact. By 2025, Gartner has predicted that 30% of marketing messages from large-scale businesses will be AI-generated, up from less than 2% in 2022. With Microsoft Copilot for Service and Copilot for Sales, leaders can augment productivity and streamline their teams’ daily workflows by employing AI to analyse consumer data to personalise marketing campaigns and more. In light of these opportunities, the primary AI benefits include:
- Boosting sales through targeted and personalised marketing.
- Uncovered customer insights and improved segmentation.
- Optimised pricing leads to elevated profitability.
Like any other industry, the AI benefits can be transformative but there are also challenges that must be addressed, including:
- Privacy protection unease due to extensive data collection.
- Overreliance on AI, leading to plagiarism and copyright issues.
- AI algorithm bias can negatively influence targeting and recommendations.
When done right, GenAI can unlock growth
GenAI opens up a whole new world for businesses. It can act as a catalyst for changes in processes, CX, and administrative workflows, but forward-thinking businesses will assess not only the benefits and costs but also how to best deploy solutions, such as Microsoft 365 Copilot, responsibly and with consideration. A future-proof GenAI blueprint should include careful planning, vigorous security measures, ethical considerations, and continuous monitoring. Once risks like bias, security, and others are addressed, businesses can benefit from not only new gains but growth and retaining or finding their competitive edge.
Experteq can help guide you through your AI journey, starting with our Copilot Readiness Assessment. To learn more, contact us today.
