Unveiling the Power of AI for Startups: Benefits and Applications
What is Artificial Intelligence (“AI”)?
AI is slowly becoming a household name and a commonly-used buzzword, not just in the technology industry, but throughout the business world.
In its simplest form, AI is a branch of computer science which handles the simulation of human intelligence in machines. Essentially, it is the science of making machines smart, by arming them with human intelligence capabilities.
Artificial Narrow Intelligence (“ANI”) is the most basic and limited type of AI. Examples of ANI include virtual personal assistants such as Siri and Alexa, as well as mechanisms such as Amazon’s product recommendations.
AI is divided into two branches:
Machine Learning (“ML”) is an application of AI that includes algorithms that learn from data to apply what they have learned to make informed decisions. ML performs a function given to it and gets progressively better over time.
One example of ML is using an algorithm for an on-demand streaming service, by using an ML algorithm to make recommendations on which new songs or artists the user may like.
Deep Learning (“DL”) is designed to continually analyse data with a logical structure similar to how a human would draw conclusions using its own neural network.
Within DL, you can find natural language processing (“NLP”), which makes it possible for computers to understand the human language. NLP analyses the grammatical structure of sentences, hence its use in Grammarly, for instance.
Relationship between AI and software
These two terms can occasionally be used interchangeably, which can cause some confusion. AI software is used to build and develop an intelligent application from scratch, with the help of machine learning and deep learning capabilities.
The end result of software engineering is to create software that can perform specific tasks without any exceptions, like Microsoft Excel for example. The critical difference is that once designed, software cannot do more than what it was initially programmed to do. It can’t learn and will always produce the same information without any alteration, whereas AI is quite different.
AI is a branch of computer science that attempts to make computers think like humans, and sets up systems and tools that allow the computer to make decisions under specific AI. In short, the relationship between software and AI is such that software tends to act as a basis and foundation for AI; software can only do what it is programmed to do, whereas AI has the capability to keep learning, and to churn out newer and varied answers which were not previously programmed.
What are the effects of AI and why should startups use it?
The overarching benefit of AI is the ability to free employees from monotonous tasks such as administrative work by using a programmed machine to complete the tasks for you. There are a variety of AI applications that could aid startups. These include:
Chatbots: AI software applications which simulate conversations with users using the help of NLP, which could be useful for customer support;
Another application that could be useful includes voice assistants, such as Siri and Alexa.
Automated suggestions: A key application of AI that led to Netflix’s dominance in the streaming market included their use of a recommendation system which uses the watch history of other users with similar interests to recommend new shows and movies that the user is most likely to watch. This system is powered by an AI algorithm and is capable of offering the right movie and TV shows to ensure users stay engaged and will continue to renew their subscriptions.
This could be applied to startups who want to remain innovative and to automated systems through algorithms, to create or promote new content to be able to keep users interested and engaged.
Process Automation - AI enables you to solve manual or repetitive tasks automatically. For example, monotonous tasks such as collecting large amounts of data can be quickly and easily automated through the use of AI. An example of such software is Legly, used to read existing contracts or check for any missing clauses.
Lastly and importantly, AI can be applied to deal with cybersecurity issues. AI is helping companies to stay ahead of cyber threats by proactively detecting system vulnerabilities while suggesting measures to counter them
How can AI help start-ups to grow?
Statista reports that global AI software market value will reach $126 billion by 2025. With an increased number of AI applications being released, the demand for AI solutions has skyrocketed. AI can help start-ups to achieve incredible levels of growth, by:
Competing with large organisations without incurring high costs: It is a misconception that AI is only accessible to large companies. Many AI software products and services are easily available to SMEs and entrepreneurs who can’t afford to invest millions into AI, helping SMEs to have a level playing field with large companies. A key example includes IBM Watson, a free open-source AI software which is a question-answering system.
Streamlining and boosting marketing and sales efforts: AI tools such as Semrush and Surfer make the marketing process much quicker and simpler, by using AI to assist writers in optimising their content for readability and plagiarism.
The use of customer relationship management (“CRM”) offers special prices for startups, making for great options for affordable yet efficient apps. This includes Salesforce Einstein, relieving companies of managing models and data preparation.
Improving productivity levels in the workplace: Leveraging AI to automate and streamline certain business operations such as data collection, research and marketing can help automate monotonous processes. An accessible AI to help with banking, insurance, marketing and telecom includes H2O.AI. Employees can instead focus on their core skills to increase productivity at work.
- Author: Eesha Singh
- Author: Eesha Singh
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DISCLAIMER
This article has been written by law students for the sole purpose of providing informative insight. The information in this article is intended for educational purposes only and does not constitute legal advice, nor should the information be used for the purpose of advising clients. You should seek independent legal advice before relying on any of the information provided in this article.
Sources
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Grieve P and Writer C, “Deep Learning vs. Machine Learning: What's the Difference?” (Zendesk March 9, 2022) <https://www.zendesk.co.uk/blog/machine-learning-and-deep-learning> accessed October 14, 2022
“10 Best Artificial Intelligence Software (Ai Software Reviews in 2022)” (Software Testing Help October 25, 2022) <https://www.softwaretestinghelp.com/artificial-intelligence-software/> accessed October 25th,, 2022
Thormundsson B, “Global AI Software Market Growth 2019-2025” (Statista June 27, 2022) <https://www.statista.com/statistics/607960/worldwide-artificial-intelligence-market-growth/> accessed October 25, 2022
