The rise of AI in the global market has brought about a profound transformation in the business world. AI is now capable of handling not only routine tasks but also some complex processes. Many industry leaders have explored AI implementation, discussing its potential pitfalls and opportunities to drive business growth. Serhiі Tokarev, an IT entrepreneur, co-founder and partner at Roosh Ventures, has shared three practical strategies for using AI to enhance businesses.
Serhiі Tokarev likens the adoption of AI to building a website. He emphasizes that failure and setbacks are an inherent part of business and life. The true problem, he argues, is when repeated mistakes lead to recurring failures. However, Tokarev believes that these errors can be turned into valuable learning experiences, with AI providing powerful tools to facilitate this transformation.
The entrepreneur outlines three key approaches to effectively leverage AI for business success.
Identifying Cause-and-Effect Relationships
Serhiі Tokarev highlights that one of AI’s most powerful strengths is its ability to identify complex, non-linear relationships. For instance, while a decline in sales might typically be attributed to factors like reduced demand or pricing issues, AI can uncover surprising correlations—such as the impact of weather, emerging trends, local preferences, or geographical factors.
Building an “Institutional Memory”
While the first approach addresses immediate challenges, this method emphasizes learning from historical data. Serhiі Tokarev explains that AI can meticulously analyze a company’s past successes and failures using specific parameters. By identifying patterns, it provides tailored strategic recommendations suited to the business’s unique context.
As an example, Tokarev highlights UPS’s ORION system, which integrates AI into logistics operations. ORION analyzes customer data, route maps, pickup schedules, and historical performance to optimize delivery routes. This system has allowed UPS to reduce travel distances by millions of kilometers each year, significantly improving efficiency.
Tuning Into Customers
Serhiі Tokarev points out that this approach is especially effective for B2C businesses. Customer interactions—whether through sales teams, chatbots, or reviews—hold valuable insights for identifying and resolving issues. AI can analyze data from all communication channels, providing actionable insights to help refine and improve your business strategies.
Balanced Approach
The businessman emphasizes that AI is not a replacement for human oversight. He references Zillow’s real estate division, Zillow Offers, as an example. The division relied entirely on algorithms to predict housing prices, but without human intervention, it failed to adapt to unexpected challenges like COVID-19 and labor shortages. This resulted in significant losses, layoffs, and the eventual closure of the division.
While AI provides remarkable opportunities to learn from mistakes, it is equally critical to learn from the missteps of others. Achieving the best outcomes requires striking a balance between AI-driven insights and human judgment.
