Artificial intelligence a catalyst to Digital transformation

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It is no doubt there has been plenty of hype about emergent technologies and many have since expressed concerns of its impact on our daily lives especially in the domain of work. Many fear recent technological advancements like artificial intelligence and its applications will replace humans in many areas of work life. As this assertion is in no way true, a further eye-opener has was brought about by Indian IT giant Infosys which published a survey titled Human Amplification in the Enterprise  on the use of AI in business. The report proved that 98 percent of respondents who used AI-supported activities to power digital transformation reported that it had generated additional revenue for their organizations and have raised their bottom line by at least 15 percent. Impressive right? In this article we will explore in detail how modern Tech especially artificial intelligence is catalyzing Digital transformation thereby boosting the digital economy.

Role of AI in digital transformation

Since Artificial intelligence concepts like Machine learning can help analyze complex data and make accurate decisions based on that data, it is a valuable ally these technologies in the process of achieving complete digital transformation. Today digital transformation can be attained through the following modern tech practices:

Ecommerce Automation

Ecommerce is one of the major business models which have drastically changed the way the art of buying and selling is done over the last decade. Businesses traditionally will depend on some factors like marketing, customer service, shipping etc. to flourish. But with the nature of schedules most buyers do not permit them to remain traditional in their way of shopping and most recently the COVID-19 restrictions some of those factors have been far from being practiced making most economies to be on their knees. However, some Small businesses are leveraging automation to give their products a fighting chance. Most ecommerce businesses have turned to automation; a process using technologies to produce and deliver goods and services with minimal human intervention. Automating marketing activities, digital sales, and shipping, fulfillment, and customer service has helped lower costs for small businesses thereby growing the digital economy.

Faster Processes within the business chain

Artificial intelligence through one its core subtypes: machine learning has the capability to analyze much more data than a human could in a superior manner, it can potentially help streamline and accelerate a number of digital processes. In addition, machine learning can also help discover various relations in your datasets(since machine learning functions based on patterns in datasets) that may even help enterprises to come up with new revenue opportunities that consequently will grow your business and probably attaining economies of scale through digital transformation.

Dynamic and targeted Analytics

Humans will generally make decisions and choices based on the available information before them. For instance, a customer who plans to buy a pair of sneakers can be made to consider a sports wear as well with the use of Machine learning predictive analytics. This application can bring a great deal of effectiveness in the digital optimization process  This means having access to the right data and analytics tools can greatly enhance decision-making. Machine learning can process tens of thousands of data points in real time without any human intervention required. This brings about a personalized user experience and consequently higher sales.

A system strategist, security and anomaly detector

One of the major core functionalities of artificial intelligence is its ability to recognize patterns. This tool can be applied in different domains to increase efficiency be it in diagnosis, predicting new trends, fraud and fault detection. This can be the case in domains like In industrial systems, where AI can use sensor data like temperature, pressure, flow rate, and even sound signals to identify signs of failing equipment, such as pumps, motors, turbines, and piping, long before those problems would become apparent to human observers. In finance, artificial intelligence can analyze huge quantities of data to predict market trends and other metrics that businesses can use to make strategic and tactical decisions. This makes investors to plan ahead of time.

Digital tracking of goods in supply chains

Digital transformation makes use of the the digital system, whereby stakeholders follow-up or track goods without actual displacement of other resources. Supply chain actors have been connecting their enterprise systems for decades, but those systems aren’t capable of identifying where in the supply chain an item was damaged. However, radio frequency identification (RFID) tag scans can track the item from the manufacturer to a distribution center, a warehouse, or any distribution outlet, but this technology fails to identify the point at which the item was damaged in transit. However with Artificial intelligence, sensors can be integrated which can sense where and when damage occurred using an AI that distinguishes between an impact that causes actual damage and false positives such as non-damaging impacts that result from a truck hitting a pothole.


Digital transformation has ability to leverage data and analytics to create new sources of customer, product, and wealth. This transformation is very necessary for the growth of a digital economy, but with better transformation demands the implication of modern technologies like artificial intelligence and its subtypes (machine and deep learning) which has the ability to propel this transformation with greater efficacy with limited human intervention thereby leading to limited resources used for higher gains with AI.

Cloudi Africa
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