Potential Impact of Generative AI on Various Industries
Generative AI is the greatest buzz that the tech world has seen in recent years. It is a powerful technology, an extension of the immense potential that artificial intelligence holds. No wonder, it is impacting every industry on the planet. Moreover, the adoption is fast. As industries were already using AI for various automation and analytics workflows, implementation of generative AI didn’t meet any resistance as was seen with the first introduction of AI in any industry.
From marketing to manufacturing, from IT to finance, and from retail to customer service, all industries are witnessing the impact of generative AI on their current processes and interactions.
This article discusses the potential impact of generative AI on various industries and how positive or negative the new developments are for various business verticals.
What is Generative AI?
Generative artificial intelligence, often referred to as generative AI or gen AI is a form of AI capable of producing original content and concepts such as dialogues, narratives, visuals, films, and music. It can comprehend human languages, coding languages, art, science, or any intricate discipline. It applies its knowledge to address new challenges.
Distinct from traditional machine learning models that focus on identifying patterns, generative AI advances further by not only learning from existing data but also generating new data instances that reflect the attributes of the input data. (Source)
ChatGPT made its debut in November 2022, and just four months after that, OpenAI unveiled a new large language model known as GPT-4 with improved capabilities.
Impact of Gen AI on Diverse Industries
Let us start with the marketing industry first:
#1 Marketing
In the marketing industry, particularly the digital (online) marketing streams, generative AI-based models are used to create unique personalized content for different customers. For instance, generative AI can create different taglines, salutations, or email subject lines as per customer segmentation metrics. Also, generative AI can study language patterns on social media, do NLP analysis, and understand what customers are likely to do with a new product launch.
Generative AI can also chat with the customer to understand their primary requirements and suggest products/services or even product categories, variants, and sub-categories based on the requirements. An example of generative AI in marketing is a chatbot featured on a fashion website that assists shoppers in selecting the appropriate size or recommends outfits tailored to their tastes.
Generative AI can also aid in identifying suitable social media influencers for a brand by examining data such as follower demographics, engagement metrics, and content trends instantly. For example, it might pinpoint micro-influencers within the fitness sector whose audience is highly interactive, making them ideal for promoting a new protein shake brand.
#2 Manufacturing
In the manufacturing industry, generative AI is used for analyzing machine data like previous maintenance history, working hours of equipment, power usage, etc. to determine when the machine is due for the next service. This helps in preventing sudden machine breakdowns. Generative AI is also gaining popularity in the product design field where its image models can create innovative product designs.
Smart factories are using Gen AI for forecasting supply chain disruptions based on various internal and external factors. Manufacturing units can even exactly decide on the raw material requirements by analyzing data related to sales, supplier negotiations, supply routes, market trends, and many more.
Other areas where Gen AI influences the manufacturing industry include energy consumption optimization, virtual prototyping, inventory forecasting, and advanced quality control.
#3 IT
Generative AI’s impact on the IT industry is extreme. It is both reading and also threatening. Many are considering generative AI to be disruptive to coding, data analysis, and testing jobs. The reason is that generative AI-based LLM models can generate programming codes with high precision.
Trained-gen AI models can also conduct software testing. Such capabilities make it a valuable resource for IT companies engaged in software development businesses.
Gen AI can also monitor network data to find anomalies, loads, or any cyber attack incident. It can analyze devices for predictive maintenance needs. From API generation to AI-assisted integrations, the intelligent gen AI tech is a game changer in the IT industry.
Generative AI can assist in planning, resource allocation, and risk assessment for IT projects, potentially improving success rates and efficiency. An AI project manager could analyze historical project data to predict potential bottlenecks and suggest optimal team compositions for new projects.
#4 Finance
Gen AI can help algo trading companies create profitable and low-risk trading strategies by analyzing vast data sets more efficiently than humans. Gen AI identifies patterns in stock prices, social media sentiments about a stock, or comments on stock discussion forums like Moneycontrol.
Gen AI can be used for automated credit scoring by analyzing the credit history of applicants. The algorithms can analyze a person’s expenses, income, life goals, savings, spending habits, and risk tolerance to suggest investment plans and personalized portfolios to investors.
Generative AI can help the insurance industry in the insurance claims process. It can analyze a vast amount of data to find anomalies or fraudulent claims. Gen AI analyzes photos of the damage, cross-references with policy details, and approves routine claims within minutes without human intervention.
AI-powered chatbots can handle diverse customer inquiries and provide quick and accurate responses. A bank customer could ask a chatbot, “What’s my current account balance?” or “How do I dispute a charge?” and receive immediate, accurate answers.
#5 Advertisement
When it comes to the advertisement industry, context-aware ads with personalized touch are the most impactful ones. Branding agencies use Generative AI to produce variations of online ad copy, images, and even video content tailored to individual users or specific audience segments (based on different demographics, interests, or browsing behaviors).
Generative AI can help create cohesive advertising experiences across multiple channels and platforms.
By analyzing performance data and user interactions across various touchpoints, Gen AI can generate optimized content for each channel while maintaining a consistent brand message.
AI tools can analyze vast amounts of social media posts, customer reviews, and other online content to gauge public sentiment toward a brand or campaign in real-time. This allows advertisers to quickly adapt their messaging or strategy in response to changing public opinion, helping to maintain a positive brand image and address potential issues proactively.
#6 Customer Service
Generative AI-powered chatbots and virtual assistants are a giant leap over traditional chatbots.
These chatbots can understand natural language, context, emotional tone, urgency, and intent, providing more accurate, prompt, and helpful responses. Generative AI models can analyze historical data and patterns to predict potential customer issues before they occur and proactively reach out to customers with solutions or preventive measures.
They have a critical use case in automated ticket routing and prioritization. These chatbots can automatically categorize and route customer support tickets to the most appropriate department or agent based on the content and urgency of the issue.
Generative AI can analyze customer data, purchase history, and browsing behavior to provide highly personalized product or service recommendations. In customer service contexts, this can be used to suggest relevant solutions and upsell or cross-sell products. Gen AI-powered translation services are breaking down language barriers in customer service. These systems can provide real-time translation of written and spoken communication.
#7 Retail
Gen AI-powered virtual try-on experiences are causing a revolution in how people shop for clothes, accessories, and makeup in retail stores. These AI-driven tools let customers see how products look on them before buying, which cuts down on returns and makes customers happier.
To arrange products, Gen AI can make and try out different store setups and product spots in virtual spaces. This helps stores make their real spaces work better to get customers interested and boost sales, without having to do expensive real-world tests.
Generative AI can revolutionize the creation of innovative and eye-catching packaging solutions. As a trusted, packaging design company, Litmus Branding can help you capitalize on the power of generative AI to create exceptional designs for your products.
In the world of personalized shopping, Gen AI has an impact on customer data, purchase history, and browsing behavior to come up with custom product suggestions and personal marketing messages. This kind of tailoring boosts customer engagement and leads to more sales.
Conclusion
We are all standing at the intersection of emerging technologies with immense abilities like generative AI. We are experiencing a transformative era in artificial intelligence that marks a shift across generations. Previously, machines were unable to mirror human-like behavior.
However, the latest generative AI models now engage in complex interactions with people and produce content that appears to be original.
This article is our humble effort to evaluate the influence of this emerging gen AI era. The tech is unleashing trillions of dollars in value across industries from banking to retail.
For more details on how you can leverage Gen AI for branding and marketing purposes in your industry, contact Litmus Branding.
