This chapter presents the significance of artificial intelligence (AI) in small and medium businesses, focusing on sales forecasting for digital marketing. It includes a literature survey on AI in sales forecasting and proposes an AI-based model using artificial neural networks (ANN) to analyze customer reviews and predict future sales. The methodology for constructing the ANN predictive model using SPSS is also discussed. Additionally, the text covers the importance of machine learning for item recommendation systems, business information system development, and opinion and sentiment analysis. It further explores the impact of AI and machine learning on small business lending and financial services, emphasizing the advantages of AI-based sales forecasting models and potential social welfare impacts. The references encompass research papers, conference proceedings, and books related to AI, machine learning, sales prediction, and business decision-making, covering topics such as demand forecasting, intelligent sales prediction, and DL-based product recommendation systems.
Top1. Introduction
The way that businesses function has been altered by artificial intelligence (AI). AI includes methods for analyzing patterns in unprocessed data to help with sound business judgment. Decisions about production, marketing, supply chains, human resources, and finance are made at SME's. In general, AI examines data that is stored in an organization's system, including employee, customer, production, and financial interactions. Managers can take immediate action based on the analysis report.AI uses algorithms to analyze data sets that are both structured and unstructured.
AI technologies enhance organizational performance and efficiency.AI technology offers clients high-quality business value. Previous studies assert that “big businesses use integrated AI systems for sophisticated applications like forecasting future marketing sales trends, assessing customer preferences, and selecting profitable business ventures for financial investment based on returns.”
Even though they make up the majority of the nation's small and medium-sized businesses, they are far behind in using artificial intelligence. The primary causes of the lack of AI integration among SMEs are a lack of basic knowledge of the benefits of AI and a lack of resources for adapting AI. Research on AI and SMEs is not widely available. Therefore, the study takes into account the effects of both internal and external factors on the adoption of AI in SMEs. A great deal of research has already been done on the effects of AI adaptation. However, because SMEs operate in distinct ecosystems, generalized findings cannot be applied to them.
Significance of AI in Business
Artificial intelligence is machine intelligence—intelligence exhibited by machines as opposed to intelligence exhibited by humans. Artificial Intelligence is a term used to describe machines that mimic cognitive abilities. Signal exchange allows intelligent machines to communicate with each other. Machine learning is used by machines to generate signals. To make a choice, a machine learns to process data.AI is defined as “an umbrella term consisting of automation, machine learning, big data analytics, and cyber-physical systems.” Big data processing, utilization, and collection are critical components of modern AI
Over time, customer demands continue to evolve. As a result, businesses must adapt to shifting consumer needs. By cutting operational costs, businesses must reposition themselves as agile and cost-efficient in order to meet customer demands. The supply chain can be made digital to accomplish this. The departments of marketing, finance, human resources, and production are becoming more and more integrated. Interdepartmental transactions generate vast amounts of data at varying speeds, volumes, and varieties. Both structured and unstructured data sets containing transactional data are saved.
AI entails the integration of virtual and physical systems operating collectively. Intelligent sensors that seamlessly communicate with one another to achieve a predetermined goal link the systems. AI has the ability to alter how businesses operate. The primary strategic choice in a company is therefore how to implement AI.
AI maximizes transparency and operational efficiency. Its strategic application therefore gives businesses a boost. Businesses using AI must transform data into versions that are intelligent and intelligible so that machines can extract meaning from it. Artificial Intelligence (AI) systems facilitate organizational agility by expediting data processing and decision-making. Artificial Intelligence has a notable impact on various industries. AI is used by most major manufacturers to create cutting-edge machinery.
2. Literature Survey
For any business organization, one of the most interesting and promising application areas is the use of business intelligence (B.I.) techniques. For an enterprise, the most significant game-changer is the ability to draw an optimal prediction for each manufactured product at the right time. If a suitable sales forecast is not created in a timely manner, the entire supply chain pipeline may be disrupted, which could cause serious harm to the business. One well-known artificial intelligence technique, artificial neural networks (ANNs), can be used to help determine the best sales prediction for a product for a company (Baba and Suto, 2000).