The Role of AI in Digital Transformation
Digital Transformation (DX) is one of—if not the most—important initiatives that many companies have already started or are planning to begin. The perfect storm of technologies like SaaS, mobile, robotics, IoT (Internet of Things), virtual reality (VR), and others is critical to pushing forward a company’s digital transformation. But more than anything, it’s Artificial Intelligence (AI) and Machine Learning (ML) that are expected to play the most fundamental roles in helping businesses steer through the DX journey.
When people think of AI, it might remind them of futuristic worlds in sci-fi movies, but the gap between science fiction and reality is closing fast. AI is already reshaping the world around us, changing how we live, and becoming a driving force behind economic and organizational growth. You might already be using AI or ML-powered tools in your daily routine—whether it's a simple Google search, asking Alexa a question, chatting with a bot on a website, or using Siri. Whether we realize it or not, AI is impacting how we live, work, do business, and make everyday decisions.
AI’s Growing Role in Enterprise DX
To speed up digital transformation across enterprises, at least 40% of companies are expected to move from having just a single DX leader to building a fully staffed Digital Leadership Team, according to IDC. AI is projected to be involved in 40% of all DX projects. Also, web interfaces are rapidly evolving—augmented reality (AR) is expected to account for 30% of web browsing sessions, while voice will power 50% of all new mobile apps.
Accenture defines AI as “a collection of multiple technologies that allow machines to detect, understand, act, and learn either independently or in ways that support human efforts.” These systems are becoming more and more human-like—they can learn, recognize patterns, and make decisions. But one big edge they have over us? They don’t need to sleep. That’s why, according to Accenture, AI could boost economic growth rates by four times by 2035 and increase labor productivity by up to 40%.
Everyday AI: You’re Already Using It
Even if it’s not obvious, AI is already baked into many services we use. Think of Amazon’s product recommendations—it’s an AI system working behind the scenes, analyzing your past purchases and comparing them to others’ buying behavior. AI is even learning without human input now. Businesses across the public and private sectors are embedding AI into operations. Government agencies are using it to improve services and performance. In many cases, AI is being deployed to create citizen-focused solutions that increase accountability and improve well-being.
The Resurgence of AI
Artificial Intelligence might sound like a recent innovation, but it dates back to 1956. That summer, a group of scientists met at Dartmouth College in New Hampshire and coined the term “Artificial Intelligence.” They spent two months working toward one goal—figuring out how to get machines to mimic human reasoning.
Over the past 60+ years, this idea has evolved through many trials, successes, and failures. But now, thanks to advances in computing power, software, and access to massive amounts of data (largely due to the Internet and SaaS/cloud platforms), AI is experiencing a true comeback.
Technology is now powerful, affordable, and widely accessible. AI systems today can process massive datasets quickly and at a lower cost. According to InsideBigData, the amount of data we generate will double every two years for the next decade. This growing pile of data is what powers AI—the more it consumes, the better it gets at making accurate predictions and smarter decisions.
Real-World Applications of AI
AI isn’t just theoretical—it’s out there solving problems and driving change across various industries. Here are some key areas where AI is making a real difference:
1. IT and Security
This is one of the top areas where AI is already making a big impact. According to a Tata Consultancy Services survey of 835 organizations, 44% are using AI to detect and prevent cyberattacks. In production support, 41% use AI to manage user tech issues, and 34% use it to reduce workload and automate tasks. Gartner estimates that 75% of security tools will soon include AI-powered analytics and machine learning algorithms.
2. Customer Service
Customer service can make or break a company’s reputation. According to Microsoft’s 2016 Global Service Report, 60% of people have stopped doing business with a company after a bad service experience. AI Chatbots help solve this issue by analyzing user data right from the first interaction. This gets customers to the right solution or support rep faster. It also gives companies useful insights on how to improve service.
3. Business Operations and Decision Support
AI is starting to support all sorts of daily business activities, like planning meetings, conferences, or trips. And beyond logistics, AI is poised to help with actual decision-making. IBM estimates the data-driven decision tools market will hit $2 trillion by 2025.
4. Finance and Accounting
Accenture projects that around 80% of finance and accounting tasks will be automated in the next few years. That means faster processes, fewer errors, and more time for strategic planning.
5. Human Resources
AI is increasingly useful in HR functions. From scheduling interviews and filtering candidates to identifying top talent, AI can make hiring more efficient. As Jeanne Meister noted in Forbes, HR leaders need to experiment with AI in all aspects to really drive value.
What Does This Mean for the Workplace?
Picture this: You walk into the office, and a machine welcomes you with your tasks and meetings for the day. Sounds futuristic? Not really—it’s where the Fourth Industrial Revolution, driven by DX, is already taking us.
AI, automation, and machine learning are changing every industry, and companies need to keep up. When integrated properly, these tools offer huge advantages. For one, they free up human talent to focus on meaningful, creative, and strategic work. Instead of wasting hours on boring, repetitive tasks, employees can contribute to higher-level thinking and innovation.
Tools like AI chatbots and Natural Language Processing (NLP) systems are improving how we interact, respond to queries, and even learn. They help cut down on errors, streamline processes, and make work a lot more efficient.
AI isn’t just creeping into our personal lives—it’s becoming central to how businesses make decisions.
AI Adoption in Small and Medium Enterprises (SMEs)
AI isn’t just for big corporations. Even small and medium businesses are jumping on the AI bandwagon. By 2022, for instance, 25% of technical teams were using augmented reality, and voice interfaces became the default in nearly half of all new mobile apps.
McKinsey’s research on 400 real-world AI use cases across 19 industries showed that businesses use AI for a wide variety of reasons—from improving customer service to boosting operational efficiency.
What’s Next?
IDC’s forecasts point in one clear direction—AI is at the heart of successful Digital Transformation. But adopting it successfully means businesses must rethink their structures, processes, and strategies. AI will support 40% of all DX projects and power 100% of successful IoT implementations. Why? Because without AI, the raw data coming from IoT devices is just noise. AI is what gives that data meaning.
Companies will need to grow their AI and ML teams rapidly to stay ahead in this digital economy. These teams must have strong communication skills, expertise in automation, analytics, and a blend of telecom, computer science, math, statistics, and engineering.
If your company is thinking about using AI, don’t wait. Start reviewing your internal processes now to ensure AI models will actually deliver value when the time comes.
Read the related article -
