Operations leaders are on the front lines of the AI revolution. They see the transformative potential of AI and are actively driving its adoption to streamline processes, boost efficiency, and unlock new levels of performance. The value is clear: AI is no longer a futuristic concept, but a present-day necessity.
Over the past two years, Ecosystm’s research – including surveys and deep dives with business and tech leaders has confirmed this: AI is the dominant theme.
Here are some insights for Operations Leaders from our research.
Click here to download “AI Stakeholders: The Operations Perspective” as a PDF
From Streamlined Workflows to Smarter Decisions
AI is already making a tangible difference in operations. A significant 60% of operations leaders are currently leveraging AI for intelligent document processing, freeing up valuable time and resources. But this is just the beginning. The vision extends far beyond, with plans to expand AI’s reach into crucial areas like workflow analysis, fraud detection, and streamlining risk and compliance processes. Imagine AI optimising transportation routes in real-time, predicting equipment maintenance needs before they arise, or automating complex scheduling tasks. This is the operational reality AI is creating.
Real-World Impact, Real-World Examples
The impact of AI is not just theoretical. Operations leaders are witnessing firsthand how AI is driving tangible improvements. “With AI-powered vision and sensors, we’ve boosted efficiency, accuracy, and safety in our manufacturing processes,” shares one leader. Others highlight the security benefits: “From fraud detection to claims processing, AI is safeguarding our transactions and improving trust in our services.” Even complex logistical challenges are being conquered: “Our AI-driven logistics solution has cut costs, saved time, and turned complex operations into seamless processes.” These real-world examples showcase the power of AI to deliver concrete results across diverse operational functions.
Operations Takes a Seat at the AI Strategy Table (But Faces Challenges)
With 54% of organisations prioritising cost savings from AI, operations leaders are rightfully taking a seat at the AI strategy table, shaping use cases and driving adoption. A remarkable 56% of operations leaders are actively involved in defining high-value AI applications. However, a disconnect exists. Despite their influence on AI strategy, only a small fraction (7%) of operations leaders have direct data governance responsibilities. This lack of control over the very fuel that powers AI – data – creates a significant hurdle.
Further challenges include data access across siloed systems, limiting the ability to gain a holistic view, difficulty in identifying and prioritising the most impactful AI use cases, and persistent skills shortages. These barriers, while significant, are not deterring operations leaders.
The Future is AI-Driven
Despite these challenges, operations leaders are doubling down on AI. A striking 7 out of 10 plan to prioritise AI investments in 2025, driven by the pursuit of greater cost savings. And the biggest data effort on the horizon? Identifying and prioritising better use cases for AI. This focus on practical applications demonstrates a clear understanding: the future of operations is inextricably linked to the power of AI. By addressing the challenges they face and focusing on strategic implementation, operations leaders are poised to unlock the full potential of AI and transform their organisations.
India is undergoing a remarkable transformation across various industries, driven by rapid technological advancements, evolving consumer preferences, and a dynamic economic landscape. From the integration of new-age technologies like GenAI to the adoption of sustainable practices, industries in India are redefining their operations and strategies to stay competitive and relevant.
Here are some organisations that are leading the way.
Download ‘From Tradition to Innovation: Industry Transformation in India’ as a PDF
Redefining Customer Experience in the Financial Sector
Financial inclusion. India’s largest bank, the State Bank of India, is leading financial inclusion with its YONO app, to enhance accessibility. Initial offerings include five core banking services: cash withdrawals, cash deposits, fund transfers, balance inquiries, and mini statements, with plans to include account opening and social security scheme enrollments.
Customer Experience. ICICI Bank leverages RPA to streamline repetitive tasks, enhancing customer service with its virtual assistant, iPal, for handling queries and transactions. HDFC Bank customer preference insights to offer tailored financial solutions, while Axis Bank embraces a cloud-first strategy to digitise its platform and improve customer interfaces.
Indian banks are also collaborating with fintechs to harness new technologies for better customer experiences. YES Bank has partnered with Paisabazaar to simplify loan applications, and Canara HSBC Life Insurance has teamed up with Artivatic.AI to enhance its insurance processes via an AI-driven platform.
Improving Healthcare Access
Indian healthcare organisations are harnessing technology to enhance efficiency, improve patient experiences, and enable remote care.
Apollo Hospitals has launched an automated patient monitoring system that alerts experts to health deteriorations, enabling timely interventions through remote monitoring. Manipal Hospitals’ video consultation app reduces emergency department pressure by providing medical advice, lab report access, bill payments, appointment bookings, and home healthcare requests, as well as home medication delivery and Fitbit monitoring. Omni Hospitals has also implemented AI-based telemedicine for enhanced patient engagement and remote monitoring.
The government is also driving the improvement of healthcare access. eSanjeevani is the world’s largest government-owned telemedicine system, with the capacity to handle up to a million patients a day.
Driving Retail Agility & Consumer Engagement
India’s Retail sector, the fourth largest globally, contributes over 10% of the nation’s GDP. To stay competitive and meet evolving consumer demands, Indian retailers are rapidly adopting digital technologies, from eCommerce platforms to AI.
Omnichannel Strategies. Reliance Retail integrates physical stores with digital platforms like JioMart to boost sales and customer engagement. Tata CLiQ’s “phygital” approach merges online and offline shopping for greater convenience while Shoppers Stop uses RFID and data analytics for improved in-store experiences, online shopping, and targeted marketing.
Retail AI. Flipkart’s AI-powered shopping assistant, Flippi uses ML for conversational product discovery and intuitive guidance. BigBasket employs IoT-led AI to optimise supply chain and improve product quality.
Reshaping the Automotive Landscape
Tech innovation, from AI/ML to connected vehicle technologies, is revolutionising the Automotive sector. This shift towards software-defined vehicles and predictive supply chain management underscores the industry’s commitment to efficiency, transparency, safety, and environmental sustainability.
Maruti Suzuki’s multi-pronged approach includes collaborating with over 60 startups through its MAIL program and engaging Accenture to drive tech change. Maruti has digitised 24 out of 26 customer touchpoints, tracking every interaction to enhance customer service. In the Auto OEM space, they are shifting to software-defined vehicles and operating models.
Tata Motors is leveraging cloud, AI/ML, and IoT to enhancing efficiency, improving safety, and driving sustainability across its operations. Key initiatives include connected vehicles, automated driving, dealer management, cybersecurity, electric powertrains, sustainability, and supply chain optimisation.
Streamlining India’s Logistics Sector
India’s logistics industry is on the cusp of a digital revolution as it embraces cutting-edge technologies to streamline processes and reduce environmental impact.
Automation and Predictive Analytics. Automation is transforming warehousing operations in India, with DHL India automating sortation centres to handle 6,000 shipments per hour. Predictive analytics is reshaping logistics decision-making, with Delhivery optimising delivery routes to ensure timely service.
Sustainable Practices. The logistics sector contributes one-third of global carbon emissions. To combat this, Amazon India will convert its delivery fleet to 100% EVs by 2030 to reduce emissions and fuel costs. Blue Energy Motors is also producing 10,000 heavy-duty LNG trucks annually for zero-emission logistics.
Generative AI has stolen the limelight in 2023 from nearly every other technology – and for good reason. The advances made by Generative AI providers have been incredible, with many human “thinking” processes now in line to be automated.
But before we had Generative AI, there was the run-of-the-mill “traditional AI”. However, despite the traditional tag, these capabilities have a long way to run within your organisation. In fact, they are often easier to implement, have less risk (and more predictability) and are easier to generate business cases for. Traditional AI systems are often already embedded in many applications, systems, and processes, and can easily be purchased as-a-service from many providers.
Unlocking the Potential of AI Across Industries
Many organisations around the world are exploring AI solutions today, and the opportunities for improvement are significant:
- Manufacturers are designing, developing and testing in digital environments, relying on AI to predict product responses to stress and environments. In the future, Generative AI will be called upon to suggest improvements.
- Retailers are using AI to monitor customer behaviours and predict next steps. Algorithms are being used to drive the best outcome for the customer and the retailer, based on previous behaviours and trained outcomes.
- Transport and logistics businesses are using AI to minimise fuel usage and driver expenses while maximising delivery loads. Smart route planning and scheduling is ensuring timely deliveries while reducing costs and saving on vehicle maintenance.
- Warehouses are enhancing the safety of their environments and efficiently moving goods with AI. Through a combination of video analytics, connected IoT devices, and logistical software, they are maximising the potential of their limited space.
- Public infrastructure providers (such as shopping centres, public transport providers etc) are using AI to monitor public safety. Video analytics and sensors is helping safety and security teams take public safety beyond traditional human monitoring.
AI Impacts Multiple Roles
Even within the organisation, different lines of business expect different outcomes for AI implementations.
- IT teams are monitoring infrastructure, applications, and transactions – to better understand root-cause analysis and predict upcoming failures – using AI. In fact, AIOps, one of the fastest-growing areas of AI, yields substantial productivity gains for tech teams and boosts reliability for both customers and employees.
- Finance teams are leveraging AI to understand customer payment patterns and automate the issuance of invoices and reminders, a capability increasingly being integrated into modern finance systems.
- Sales teams are using AI to discover the best prospects to target and what offers they are most likely to respond to.
- Contact centres are monitoring calls, automating suggestions, summarising records, and scheduling follow-up actions through conversational AI. This is allowing to get agents up to speed in a shorter period, ensuring greater customer satisfaction and increased brand loyalty.
Transitioning from Low-Risk to AI-Infused Growth
These are just a tiny selection of the opportunities for AI. And few of these need testing or business cases – many of these capabilities are available out-of-the-box or out of the cloud. They don’t need deep analysis by risk, legal, or cybersecurity teams. They just need a champion to make the call and switch them on.
One potential downside of Generative AI is that it is drawing unwarranted attention to well-established, low-risk AI applications. Many of these do not require much time from data scientists – and if they do, the challenge is often finding the data and creating the algorithm. Humans can typically understand the logic and rules that the models create – unlike Generative AI, where the outcome cannot be reverse-engineered.
The opportunity today is to take advantage of the attention that LLMs and other Generative AI engines are getting to incorporate AI into every conceivable aspect of a business. When organisations understand the opportunities for productivity improvements, speed enhancement, better customer outcomes and improved business performance, the spend on AI capabilities will skyrocket. Ecosystm estimates that for most organisations, AI spend will be less than 5% of their total tech spend in 2024 – but it is likely to grow to over 20% within the next 4-5 years.
Innovation is at the core of FinTechs. The Financial Services industry has been disrupted over the last few years because of the innovation and customer experience that FinTechs offer. But the FinTech world has become highly competitive, and there are many companies that do not make it, despite the innovations.
There are many factors that contribute to the success of a FinTech – and creating the right market differentiation is one of the key factors. This Ecosystm Snapshot looks at how FinTechs – such Earnest, Flock, Billd, Littlepay, Willa and AffiniPay – are disrupting industries as they build solutions targeted at those specific industries, to create the market differentiation required to succeed.
