Enterprise applications have long been solving the challenges of the business world, helping them streamline operations and driving down costs. The popularity and success of enterprise applications have turned it into a market valued at $238.36 billion in 2020.
The global enterprise application market share is expected to grow at a compound annual growth rate of 8.2%. It is projected to be valued at $527.40 billion by 2030. Despite the success of enterprise applications, unique business challenges have arisen due to various factors.
Now, using Artificial Intelligence (AI) and blockchain, a disruptive integration, enables the design of superior enterprise applications. In this blog, let's understand businesses' unique challenges and the impact of next-generation AI and blockchain-powered enterprise applications on business performance and efficiency.
Here's an overview of artificial intelligence and blockchain and the platforms of the future.
Unique Enterprise Application Challenges
Here is a snapshot of some of the current limitations faced by enterprise applications and, in turn, by businesses.
Ineffective Data Processing
Businesses are grappling with huge amounts of data, which need to be organized and processed intuitively. There's also a growing demand to process data in new ways.
For instance, businesses may need to process data through the environmental, social, and governance (ESG) lens to attract investors and meet new ESG standards.
Ineffective Data Authentication
Real-time data authentication is a limitation of current enterprise applications. For instance, food management businesses need to track food movement to ensure the freshness of products.
There is scope for time stamp manipulation in current applications, which can cost businesses' reputations and revenues. The security of data is a growing concern, with the rising threat of hacking and cyber-attacks.
Inability To Predict Future Customer Behavior
Businesses aspire to predict customer behavior and build products and services according to real-time needs.
They also want to build campaigns based on consumers' interests. However, traditional data analytics systems are unable to predict future behaviors.
Lack Of Agile Customer Engagement
As customers access the internet 24/7, they expect customer support 24/7 at their chosen channel. Without instant service, they will be tempted to move to a competitor.
Yet, enterprise applications have limited capabilities when it comes to effective, intuitive real-time customer support. This function needs to be ramped up to respond to customer needs at the right time with the right solution.
Poor Integration Of Third-Party Integration
Seamless integration with other third-party applications can be a challenge. However, if two or more systems do not talk to each other seamlessly, there is great scope for duplication, errors, and mismanagement of workflow.
Today, many enterprise applications leverage blockchain and AI to deliver more value. Here is a look at some key trends.
Key Blockchain And AI Tech Trends
Blockchain and AI have unique capabilities, thus bringing unique strengths. Here's a look at blockchain and artificial intelligence-driven trends.
The global blockchain AI market size is estimated to grow from $220.5 million in 2020, a compound annual growth rate of 23.6%, to $973.6 million by 2027.
Blockchain technology brings more security, transparency, and immutability to various functions. The integration of AI with blockchain can make applications more efficient and helps in processing diverse data sets, enhancing smart computing power, boosting decision-making, and data monetization.
Hence, there is a growing trend of both technologies being leveraged to deliver products of higher value. The use of AI is helping to automate products and services in an intuitive, scalable manner and bring more precision to results.
Blockchain applications are increasingly being used in the Healthcare and Life Sciences, Banking, Financial Services & Insurance (BFSI), telecom and IT, Art, Media, and Entertainment sectors, to name a few, as well as functions such as supply chain management, digital marketing, and customer relationship management.
How Blockchain And AI Tech Is Bridging A Gap In Enterprise Applications
Here are some key benefits offered by the next generation of artificial intelligence and blockchain-powered enterprise applications:
End-To-End Smart Data Management Solutions
The use of blockchain addresses several data processing limitations.
For instance, enterprise data management (EDM) software powered by blockchain and AI capabilities helps validate, analyze, visualize, govern, and maintain massive amounts of data as a single source of truth. AI analyzes patterns emerging from the data, enabling businesses to make data-driven decisions.
Real-Time Authentication Of Data
Data verification and authentication are also solved by technologies such as blockchain. Businesses in the area of eCommerce, food production and delivery, and the hospitality industry can benefit, as it helps them track information, the movement of products, and other details in real time.
AI helps enhance communication and automation within enterprise products serving these industries. These capabilities offer an edge in a competitive market.
Frictionless Client Interactions
Blockchain and AI can potentially revolutionize the workflow of customer-focused software. They are paving the way for frictionless interactions between various stakeholders, secure storage of sensitive client information, and more intuitive analysis of patterns and data passing through the systems.
The use of AI also enables more effective customer engagement 24/7, with the potential to include sales points at various junctures of the engagement process.
Frictionless Third-Party Integration
Seamless third-party blockchain integration is another key advantage of using blockchain-based enterprise products. They can enable multiple software to seamlessly talk to each other without compromising data security.
Explore Top Use Cases
Here's an overview of artificial intelligence and blockchain and the platforms of the future in two sectors.
This is one of the top sectors where blockchain has a massive impact. So, what is the future of blockchain-based finance?
Blockchain is being leveraged by enterprise applications to enable secure transactions, expedite the creation of contracts, facilitate international payments, and enable trade finance. Financial services is a highly regulated industry, and legacy enterprise applications find it harder to detect data patterns for potential fraud.
AI brings in such capabilities and can be quickly trained based on the evolution of regulations. For instance, algorithms can be customized based on new guidelines. This helps technology pick up irregularities in transactions.
Secondly, AI is also revolutionizing corporate finance. For instance, it can detect patterns in financial statements that help lenders better assess loan risks. In 2022, the gross non-performing assets of large borrowers' stood at 9.4% for public sector banks and 7.7% for scheduled commercial banks. With AI-driven financial analytics tools, there is scope to reduce risk.
This is another sector that has been highly disrupted due to digitization. Consumer expectations have increased, thus putting more pressure on retail organizations to become more efficient in fulfilling consumer demand. Managing the entire supply chain - right from manufacturing a product to selling it to consumers or clients, requires more efficiency and smart approaches to reduce costs.
In 2021, the global blockchain in the retail market was pegged at $172.2 million. By 2028, it is expected to grow to $2,082.8 million. By leveraging blockchain, it becomes easier for companies to ensure the real-time tracking of both raw materials and finished goods. Blockchain systems are impossible to manipulate.
Hence, companies can expect authentic, time-stamped updates on every movement. Food businesses require this even more. This intervention results in fewer returns, fewer delays, and reduced spoilage of goods.
On the other hand, AI provides strength by enabling the personalization of content, campaigns, and marketing materials. It enables the predictability of customer behavior based on smart data analytics. AI is enabling superior demand forecasting and superior personalization.
Another advantage is the deployment of intuitive chat interfaces, which enable businesses to engage with customers 24/7. Such interfaces can also be converted to points of sale, thus driving revenues.
Impact On Businesses
As we can see, AI and blockchain are disruptive integration when paired together. Here are some ways the next generation of AI and blockchain-powered tools are transforming the business world:
Meeting Market Demands
With AI and blockchain tech on their side, businesses will be able to take new products to market faster and build disruptive business models with speed to keep up with market demands.
Reduction Of Resource Costs
Costs that go towards employing human labor will reduce further as AI plays a greater role in automating processes intelligently. Human capital will be engaged in higher-level functions, where strategic thinking is more important than execution.
Expediting Key Processes
Businesses can expedite the delivery of services due to quicker turnaround times in various processes. For instance, lenders can expedite yet stay efficient in processes such as underwriting to become more competitive in their domain.
Businesses can bring more transparency to operations, thus reducing the potential for fraudulent practices. It can instill more confidence in stakeholders, attract investments, and keep the business cash-positive.
Over the next few decades, the next generation of artificial intelligence and blockchain enterprise applications will be leveraged by a wide range of sectors.
These applications will be more intuitive, secure, and agile in design and delivery. Businesses shifting to AI and blockchain-powered enterprise applications can expect to develop a competitive edge and stay relevant.