Can you gain a competitive advantage with AI?

A question we get asked quite often is: “If I start using AI in my business now, will I be more successful than my competitor?” The answer to this is both yes and no.

You will mainly benefit in the short term

On the short term you can, in particular, implement generative AI actually take a head start in your business and work processes. Many companies in the Netherlands are currently not using AI; adoption is relatively low. If you already use AI in your core processes, marketing support, contract analysis, or customer approach, you will indeed be more successful than your competitor who doesn't already.

By integrating AI into your daily work, you can work more efficiently, cut costs and make better decisions. Examples include automating repetitive tasks, personalizing marketing campaigns and accelerating data analysis. These advantages can give you a significant competitive advantage in a market where AI is not yet widespread.

But AI will become the standard in 2 years

However, about two to three years is the expectation that any company AI will be used in their business and work processes. It's similar to the early days of the internet: if you had a website back then, you were unique. Now, almost every company has a website. This is how it will be with generative AI; it will become the standard.

This means that using AI alone will no longer be enough to set you apart. The technology is becoming more accessible and its implementation will become commonplace. The real difference will be made by how you use AI and with what resources.

Unique data as a differentiating factor

What will then be your distinguishing value? These are mainly the data that you own and how to use them to fuel your generative AI models. Generative AI models are excellent generalists but not so good specialists because they are trained on data from the internet. This data is often biased and mainly contains general knowledge.

With the unique company data that you have at home, you can make your AI models much more specific and effective. Data about specific processes within your company ensures that AI generates better output and supports your work processes optimally. Companies with better data will also better AI results achieve.

The advantage of unique business data

If your company has unique data that your competitor does not have, this is a huge advantage. Imagine your customer churn forecasting model thanks to your data 2% better outperforms that of your competitor. On a large scale, this has a huge impact on your business results.

An improvement of just a few percent can lead to significant increases in turnover or cost savings. What's more, it's difficult for competitors to copy this advantage if they don't have the same quality or quantity of data. In doing so, you create a sustainable competitive advantage that goes beyond just technology.

This means investing in:

• Data infrastructure: provide systems that can store and process data safely and efficiently.
• Data quality: invest in cleaning and maintaining your data to make sure it's accurate and up to date.
• Data governance: establish policies and procedures for how data is managed and used within your organization.
• Data analysis skills: train your team in data analysis and interpretation to get the most out of your data.

Use AI strategically

The successful use of AI goes beyond just purchasing the right tools. It requires a strategic approach that looks at how AI fits into your business goals and how it can contribute to solving specific challenges.

A few steps to strategically implement AI:

1. Identify core areas: determine which processes within your company benefit the most from AI.
2. Define your data needs: analyze what data you need to make AI work effectively in these areas.
3. Develop a roadmap: make a plan for how you will gradually implement AI, including milestones and KPIs.
4. Involve your team: ensure employee buy-in and invest in training and development.
5. Monitor and optimize: regularly review the performance of your AI solutions and make adjustments where necessary.

Examples of AI in Action

• Marketing: personalization of content and offers based on customer behavior and preferences.
• Customer service: use of chatbots and virtual assistants for fast and efficient customer support.
• Production: using AI for predictive maintenance to minimize downtime.
• Finances: risk assessment using machine learning algorithms.

The future of AI and data

By investing in both AI and your data management now, you are laying the foundation for future success. In a world where technology is evolving rapidly, it's important to think ahead and act proactively. Combining AI with your unique data allows you to create innovative solutions that are difficult to replicate by competitors.

Using AI certainly offers advantages over your competitor in the short term. But in the long run, it's about how you Combines AI with your unique data. By investing now in your data management and strategic AI applications, you lay the foundation for sustainable success and a lasting competitive advantage.

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