Five Sectors Already Changed by AI (and How it Will Transform Them Further)

Artificial Intelligence is no longer something that will simply change the future; it is changing the here and now. We explore five sectors that have already been transformed by AI and analyze what lies ahead.

1. Marketplaces

Where we’re at: Digital marketplaces were some of the earliest adopters of AI. In fact, Amazon incorporated machine learning (ML) algorithms into its search engine as long ago as the early 2000s. Now most online marketplaces use AI to make personalized recommendations, manage inventories, oversee dynamic pricing, and target advertising. For example, Walmart leverages AI for inventory management, using predictive analytics to forecast product demand and optimize stock levels across its vast network of stores and distribution centers.

Where we’re headed: AI-powered platforms will become increasingly self-sufficient, capable of managing inventory, pricing, customer service, and even marketing with minimal human intervention. They’re also likely to use augmented reality to seamlessly combine physical and digital retail experiences, adapting to a shoppers’ circumstances and surroundings in real time.

What the experts say: “Marketplaces tend to have an abundance of [good data], generated from user interactions, reviews, transactions, listings, and so on,” explains Adam Haney, Invisible’s Head of Technology. “AI can use this to extract meaningful insights, forecast trends, and even anticipate user needs.”

2. Healthcare

Where we’re at: Data is the fuel that powers AI, and no sector produces more of it than healthcare. The sector now accounts for as much as 30% of all information generated globally. Already, we’re seeing AI being used in diagnosis, to detect and identify diseases the human eye is likely to miss, including rare cancers. It’s also being used in drug discovery, helping reduce the enormous time and expense often involved in the preclinical stage of drug development. 

Where we’re headed: AI’s impact won’t just be on the diagnostic and treatment aspects of healthcare, it will also transform the “process” side. That’s especially true for the United States where administration accounts for as much as half of the cost of administering healthcare. By reducing friction and increasing visibility between healthcare system stakeholders - including patients, clinicians, insurers, and providers - it has the power to transform the way we interact with the medical profession. 

What the experts say: “If we properly harness the data that healthcare generates, the sector could become unrecognizable within the next decade—not only when it comes to diagnosis, but also when it comes to administration and patient experience,” says Invisible Technologies’ GM of Healthcare, Rishi Madhok MD.

3. Financial services

Where we're at:  The financial services sector is already a major player in the AI game, with algorithms crunching numbers for everything from fraud detection to algorithmic trading. Meanwhile, robo-advisors offer personalized investment strategies, and chatbots are handling customer inquiries with increasing intelligence and efficiency.  Major institutions, including JP Morgan, are also investing billions in AI infrastructure, signaling a strong commitment to integrating it throughout their business, for more accurate and efficient decision-making. 

Where we're headed:  AI-first retail banks have already captured significant market share in countries such as China and Korea, and we expect the same to happen in the United States and Europe. That means the technology will play a fundamental role in everything from credit approval and risk assessment to hyper-personalized financial products and services that cater to individual needs, preferences, and financial goals. But while the front end of banking may be most visibly affected by AI already, it’s likely that the back office will be the real engine room for driving change, as banks, insurers and other financial services enterprises begin to tap into the significant data they generate. 

What the experts say:  “If harnessed properly, the data generated by the back office could be used to transform everything from customer service and marketing through to risk management, product development, and strategic decision-making,” says Nate Castro, GM of Financial Services at Invisible Technologies. 

4. Knowledge Services 

Where we’re at Professional services and other highly skilled knowledge-based firms are scrambling to figure out how they can incorporate AI into their processes to improve efficiencies and make better decisions. For instance, corporate law firms are utilizing AI to automate document review and due diligence, while accounting firms are adopting AI to streamline audits and generate dynamic reports and recommendations. Invisible Technologies also recently helped a team of investment bankers build a model that absorbs and analyzes knowledge acquired over previous transactions to answer questions and inform decision-making. 

Where we’re headed: AI’s shortcomings when it comes to generating accurate information are well documented. However, firms will increasingly turn to Retrieval Augmented Generation (RAG) as a way to overcome this. In doing so, they will automate much of the current work involved in the due diligence and research processes and free professionals up to focus on higher-value activities. They will also usher in a new level of precision and efficiency, and the potential to deliver cutting-edge, highly tailored services at a much reduced cost. 

What the experts say: “RAG can help overcome many of the challenges associated with AI, especially when it comes to relevance and accuracy. By leveraging existing large language models, it’s accessible, cost-effective, and easily adapted to business uses,” says Rui Bai, Product Manager of AI and Machine Learning at Invisible Technologies.  

5. Logistics:

Where we’re at: Logistics companies are beginning to harness AI to streamline operations, improve efficiency, and enhance customer service. Industry giants like DoorDash and Amazon have led the way, utilizing AI for personalized recommendations, route optimization, demand forecasting, and dynamic pricing. DoorDash uses AI to allocate orders to the most suitable drivers and forecast delivery times, while Amazon integrates AI across its entire logistics chain, from inventory management to last-mile delivery.

Where we’re headed: AI is set to revolutionize the logistics sector further by enabling more sophisticated and autonomous operations.  Expect to see predictive analytics play a crucial role in anticipating disruptions, optimizing supply chains, and enhancing last-mile delivery. AI is also likely to usher in a new age of competition in the space as smaller players emulate the practices of industry leaders by leveraging their vast amounts of data. This includes optimizing delivery routes, predicting demand, and managing inventory with greater precision. Finally, self-driving trucks and drones will revolutionize transportation, while AI-driven warehouses will become even more efficient and autonomous. 

What the experts say: “For logistics companies, AI projects can also be small, manageable, and discrete - revolving around the ‘low-hanging fruit’ of inventory management, demand forecasting, or route optimization,” explains Jean-Paul Biondi, Invisible’s VP of Operations. “Partnering with a firm that specializes in AI can provide smaller logistics companies with easy access to advanced technologies at relatively low cost.”

Taking the first step…

Already, these five industries are being reshaped and revolutionized by AI - so much so that their future is likely to look very different from their present. This means enterprises are likely to face the stark choice of working out how they too can best deploy AI, or being left behind. 

The good news, according to Joseph Chittenden-Veal, Chief Financial Officer at Invisible Technologies, is that the cost of implementing AI is a lot lower than many business leaders believe. 

“Because the barriers to entry are now low, every enterprise is going to be using some form of AI within the next few years,” he says. “There will be an incredible amount of competition.”

“This should sharpen enterprise leaders’ minds to focus on what truly makes them differentiated. For the rest of their operations, they should already be looking at how AI can help them deliver more efficiently.”