Artificial Intelligence: Revolutionising Business Amid Cautious Optimism
Artificial intelligence (AI) continues to transform businesses across various sectors, as evidenced by recent developments in Chicago, Illinois. Companies such as Kidsy, Farm Bar, Ludex, and 29th Street have been tapping into AI technologies, albeit with a mindful approach towards potential risks and ethical concerns.
Kidsy, co-founded by Shraysi Tandon, emerged in September 2023 as a competitive online reseller of discounted children’s attire and toys. The company utilises AI systems that constantly scan the Internet to ensure Kidsy's prices are competitive. These systems also manage inventory, facilitate the sourcing of open-box returns, and detect potential fraudulent activities. According to Tandon, this technological investment has enhanced operational efficiencies, reduced labour costs, and supported environmental sustainability by diverting returned products from landfills.
Despite the broader excitement for AI, the adoption rate has been cautious, as noted in a U.S. Census Bureau report. Between September 2023 and February 2024, AI use among U.S. businesses increased modestly from 3.7% to 5.4%. Many firms employ AI primarily for tasks like chatbot services, data analytics, and automating marketing tasks, apparently without significant impacts on employment levels.
TJ Callahan, a restaurateur with establishments in Ravenswood and Lake View, integrated an AI phone answering service at Farm Bar to capture potential business opportunities previously missed due to unanswered calls. Although he acknowledges the limitations of this technology, such as its inability to handle weather-dependent queries about their rooftop, Callahan sees potential for AI to play a larger role amid rising labour costs.
In the realm of sports trading cards, Ludex, co-founded by Heather Denniston, has made significant investments to refine its AI capabilities. The company developed an app that recognises and evaluates sports cards, investing millions to overcome challenges related to AI development costs and the requirement for massive data inputs. The app has garnered over 1.5 million downloads since November 2022, illustrating success albeit with hefty upfront costs.
For property management services like 29th Street, AI is utilised to enhance communication with potential tenants, managing inquiries and facilitating tours. CEO Karen Plesh acknowledges that this technology allows her team to focus on essential customer service tasks and property upkeep, although she hopes for further predictive insights from AI in the future.
However, the uptake of AI isn’t without its hurdles. Deming Chen, an engineering professor at the University of Illinois Urbana-Champaign, highlights challenges such as the cost of software development and ethical considerations. Businesses are advised to maintain transparency, especially regarding the use of customer data, and to have robust self-regulated standards to mitigate risks and gain consumer trust.
Ethical concerns persist, especially around data privacy and the potential for AI to make discriminatory decisions based on biased training data. Legal experts like Rita Garry warn companies about the importance of understanding the legal landscape and ensuring compliance with data consent regulations. Illinois, for instance, has taken proactive steps by enacting the AI Video Interview Act and planning future restrictions on AI use in employment decisions.
The conversation surrounding AI is one of balancing innovation with caution. Experts like Steve Banke, vice president of transformation at Ntiva, caution businesses to thoroughly evaluate AI tools and maintain human oversight to ensure quality and reliability in AI outputs. As with any emerging technology, understanding its full implications is key to successful integration into business operations.
Source: Noah Wire Services