3 Ways Digital Twins Can Transform Your Business
Artificial intelligence (AI) is quickly becoming a critical business imperative. Artificial intelligence and machine learning (ML) are no longer fun, but they are a necessary business tool for forward-thinking organizations, helping them make better decisions, create operational efficiencies and improve productivity. client experience.
In particular, companies have widely adopted digital twins, virtual models that simulate reality, in recent years, allowing them to create digital copies of real-world systems, environments, products and infrastructure for better operational understanding.
Cognitive digital twins, which model individual consumers, businesses or even national governments, have enabled organizations to explore strategic choices and new business models. And now, as AI/ML technologies have advanced and scale and cloud economics have made large computing environments more efficient, the use of digital twins has begun to accelerate and expand. Currently, 96% of US-based companies plan to use AI simulations this year, according to PricewaterhouseCoopers (PwC) AI Business Survey 2022. (Also read: 5 Essential Skills Needed for Successful AI Deployments.)
While digital twins are used to model and provide detailed, real-time insights into current performance, many organizations want to take things a step further by simulating and predicting human behavior in order to assess future scenarios. They do this by fusing scientific computing, industrial simulation, and AI to create simulation intelligence built right into operating systems. The evolution of digital twins to simulation intelligence embedded directly into business analytics and computing systems enables high-speed, large-scale, multi-scale modeling and enables simulation of economic, biological, industrial and very complex planets.
Imagine if we could apply human capabilities to assess situations on the fly and predictively analyze what might happen next at cloud scale. With a digital twin and a simulation, you can explore all possible variations of decisions to find optimal outcomes. You are not limited by the time and cost of real-world experimentation.
That’s what AI simulation can do for your business.
Operationalizing AI simulations today
Once reserved for science fiction writers and filmmakers, AI simulations are reshaping the way we do business today in transformative real-world applications. (Also read: Why should AI engineers care about intuitive engines?)
According to the PwC survey, AI simulations are used to forecast market conditions (57% of AI leaders and 34% of all others), improve supply chains (54%, 33%) , exploring new markets (54%, 38%) and optimizing hiring (39%, 35%).
But AI simulations can go beyond the ability of digital twins to reflect real-world conditions in the digital realm. Modeling a huge volume of potential scenarios in parallel and applying high-level human critical thinking enables AI simulation solutions to project probable events and “play” real-world actions without taking of real risk – a huge advantage in today’s world. hyper-competitive and dynamic business environment.
The key to success, however, is the ability to operationalize AI simulations at the scale needed to deliver value. This forces companies to embed simulations into their overall analytics architecture and cloud/computing stack, build high-performance development and production environments that can run in parallel, and utilize dynamic and scalable hybrid compute capacity.
Here are three business reasons to implement AI simulations this year:
1. To predict real-world scenarios
AI simulations allow organizations to understand the behaviors of people and systems, project their future behaviors, assess potential changes in their behaviors, and evaluate the results of those behavioral changes, all in real time. .
This can be applied to disease progression, customer behaviors, economic trends, and other complex systems. In fact, some companies are using AI simulations to predict how climate change and the varying levels of success the world is achieving in meeting certain sustainability goals will impact their revenues, costs, and customer attitudes. (Also read: How AI can help fight climate change.)
2. To explore business strategies with less risk
Launching a product or entering a new market always involves risk; but AI simulations can eliminate some of that risk. Indeed, AI can help organizations determine the best business strategy by analyzing how different business decisions are likely to turn out.
Currently, 60% of companies plan to use AI to help formulate their business strategy and 57% plan to use AI simulations to forecast market conditions. For example, organizations have used AI simulations to determine the impact of different levels of 5G adoption in certain markets on customer behavior and expectations. The organizations also used AI simulations to predict whether self-driving taxis could take off in certain cities. (Also read: Self-driving vehicle hack: Is this why we don’t have self-driving cars yet?)
The ability to “play out” various scenarios helps companies formulate business strategy and make actionable decisions without real risk. We call this “strategy gamification”.
3. To improve the customer experience
One of the most exciting use cases for AI simulation is to deliver high-quality, immersive experiences that feel real.
In fact, 61% of businesses plan to use AI to improve the customer experience in 2022. Brands are using computer vision, speech, and deep learning in the metaverse to engage with customers in new ways imaginative ideas that help guide people through the buying process. from first contact to after-sales services and support.
The ability to map scenarios based on real-world interactions and predict expected reactions enables brands to engage with customers with powerful experiences that are useful, trusted, and convenient. (Also read: Games, fashion, music: the metaverse across industries.)
Transform your business with AI simulations
AI simulations are transforming the way businesses make decisions and operate, giving them insight into the most likely outcomes without having to take those risks in the real world.
This enables forward-thinking organizations to determine the impact of changing circumstances on their operations, explore business strategies and their likely outcomes, and improve customer experiences with human intelligence at scale. (Also read: How Digital Transformation Can Bring Resilience During Disruption.)
The future of AI is here. And it’s exciting.