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5 Reasons Why AR is the Future of Online Shopping

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5 Reasons Why AR is the Future of Online Shopping


As the world is extensively changing, the fashion industry, the fourth biggest sector of the global economy, has to adapt. Currently, it’s facing a lot of challenges. Thousands of brands and retailers exist in a highly competitive environment, needing to enhance business processes, boost sales, attract new customers online and offline and become eco-friendly.

In search of solutions to these issues, the industry has started to lean towards emerging technologies, like AR and IoT. Over the last decade, many shoppers have migrated online. The popularity of online shopping has been boosted by the COVID-19 pandemic. As for 2021, 49% of global consumers shop online more now than they did before the pandemic.

E-commerce is a relatively new direction for the fashion business. Online retail has its own issues, but it also can be a platform for tools, solving some of the most pressing issues of the fashion industry as a whole.

Digital tools used in e-commerce can provide new ways to communicate with consumers and persuade them to make purchases online. At the same time, there are e-commerce solutions that can cut production costs and bring more sustainability to the fashion industry in the future in response to the economic recession and the environmental crisis.

AR is one of the most high-demanded emerging technologies because it has the power to help the industry players tackle a number of the mentioned issues. This technology is surely determinative for the future of fashion.  It can make online shopping a more efficient sales channel. There are five strong points that prove it.

#1: AR increases profitability

One of the most important opportunities that e-commerce gets from AR is the digital try-on technology. It enables consumers to try on virtual clothing (e.g., Snap, ZERO10, Clo-Z), shoes (e.g., Wanna Kiks, Kivisense, Vyking), accessories (e.g., Perfect, Hapticmedia, QReal) and beauty products (e.g., ModiFace, Virtool, Visage Technologies) almost the same way as in the physical world.

This is important because it’s crucial for people to understand if the product fits them before purchasing it. In 2019, right before the pandemic, 55% of consumers said that the ability to try apparel on was the key factor behind their choice to shop in brick-and-mortar stores.

It’s unlikely that consumers’ preferences have changed, but COVID-19 forced people to shop online. So, now more consumers are used to buying online but still want to try on the clothes. As a result, they purchase apparel on e-commerce platforms and then, after trying the clothes on at home, often return at least some of the items.

The global economic recession is also motivating people to buy more thoughtfully, and for many, it’s easier to retreat from buying an item they are not so sure about than to go through the procedure of returning it.

AR try-on lets consumers use their smartphone cameras to see how the digital version of the item they like is going to look on them. The experience can be highly realistic since there are already technologies that can do body tracking and segmentation and simulate different types of cloth.

It helps make firm and more conscious decisions. When consumers feel confidence in their choices, it motivates them to purchase more. So, the sales get a boost while the returns decrease, and returns are resource-heavy for retailers because returns increase the costs of logistics and reduce profitability of each declined product.

#2: AR makes shopping more sustainable

Sustainability is one of the biggest challenges for today’s fashion industry. At the moment fashion is one of the main polluters on Earth. A terrifying 11.3 million tons of textile are thrown in the garbage each year in the US alone.

The production of clothing contributes heavily to the environmental crisis because brands often produce more items than they can sell, especially when it comes to mass-market fashion. At the same time, humanity is clearly buying too much clothing.

A lot of shoppers find it easier to throw excessive items into a dumpster than to return them.

By promoting more thoughtful purchasing, AR try-on technology helps reduce the number of disappointing shopping decisions, thus decreasing textile waste. Moreover, as it stimulates a decrease in returns, it also cuts CO2 emissions from logistics.

In the future, AR try-on may even cut down on the production of physical clothing.  AR can be used not only to try on already-manufactured clothes, it can also help to try on concept pieces that don’t yet exist. Seeing and trying on concept clothing in physical form may bring some fashions to life upon the request of a consumer. Who knows what this practice could do to the fashion industry?

This means there will be no overproduction of non-demanded items, which may end up in waste.

Committing to sustainability is a contribution to a better future for the world. It’s also a path to improved brand loyalty. According to McKinsey, 63% of European consumers consider a brand’s promotion of sustainability as an important purchasing factor.

#3:  AR is the key to the Metaverse

The Metaverse is one of the most discussed topics when it comes to the future of society. In 2021 the number of internet searches for the word “metaverse” rose 7,200%. Mass adoption of the Metaverse is not happening right now, but it’s still going to be big in the future. AR gives brands and retailers a chance to start exploring the possibilities within the Metaverse and paves the way for the future of fashion.

There are two big sales opportunities that the Metaverse brings to brands: selling digital clothes for users’ avatars and arranging stores within the virtual space where people will buy physical clothing. The first option may sound delusional to some, but the prospects are actually impressive.

In 2021, internet users spent $60-70 billion on virtual goods within video games, so there are already a lot of people who are used to buying digital clothing, accessories, and cosmetics. The second option is going to turn the typical e-commerce shopping process into an immersive experience. It’ll add fun to usually a purely mechanical procedure.

The Metaverse also provides a chance to enhance marketing. It’s a place where brands and retailers can communicate with their audience and showcase their products. The Metaverse is going to enable sellers to make more personalized offers to their customers and develop better loyalty programs.

Of course, one can wait until the Metaverse is highly popular and has a broad audience. But then a brand or a retailer will have to chase those who decided to build their presence there earlier. It’s common knowledge that being an early adopter is much easier than catching up.

#4: AR helps to connect with Gen Z

Gen Z consumers are coming into power, and brands and retailers puzzle over the best ways to communicate with them. These young people have grown up with technology, and e-commerce needs to speak to them in the same innovative language. They also strive to make financially and environmentally wise decisions and see shopping as an experience rather than just a transaction.

As Gen Z consumers tend to thoroughly assess fashion goods before purchasing, it’s critical for e-commerce to provide them with the most convincing data. AR try-on is a tool that persuades them because it helps form a more informed opinion. Besides, it provides new possibilities to engage with Gen Z online, including through social media and the Metaverse.

Speaking of social media, young people consider apparel to be a means of self-expression and creativity. A post on a social platform often requires a statement look that’s going to be worn once and then either returned or forgotten. It’s not at all environmentally friendly.

Gen Z cares for the environment and makes an effort to reduce pollution. They can appreciate the advantages of digital apparel. Also, guided by the urge to protect the planet, they’ll love the production of physical clothes by request.

#5: AR facilitates the discovery of new talent

Starting out as a fashion designer isn’t easy financially. New fashion designers often have to invest their own money to create their first items and collections. They need to buy textiles, garment accessories, and other materials. To have an impressive presentation, they also need models and a show that requires a lot of resources.

AR is a more sustainable and financially savvy way for emerging creatives to showcase their collections to buyers, consumers, journalists, and influencers. In addition, augmented reality can make competitions for young fashion designers more inclusive and accessible, eliminating geography and money limits. Such contests may even move to the Metaverse.

As a result, the fashion industry will become more democratic, and more ingenious fashion designers will have the opportunity to be a part of the industry.

Selling clothes online is relatively inexpensive compared to running a brick-and-mortar store, but aspiring designers have to conquer their audience. They need digital tools for this too. Consumers are usually cautious with designers who are as yet unknown to them.  A lot of effort must be invested in changing the consumers’ minds.

Forecasting the future may look like a meaningless task because predictions can’t be 100% accurate. Besides, there are always some black swans waiting for their time to appear and change the game. But as for the ability of AR to improve e-commerce, it’s not even a prediction as it’s already happening.

The most forward-thinking brands and retailers are leaning toward experimenting with this technology. They see how it can solve their problems and give them new opportunities.

Featured Image Credit: Photomix Company; Pexels; Thank you!

George Yashin

George Yashin is the CEO & Co-founder of ZERO10, a leading AR fashion platform providing innovative tech solutions for brands entering the digital world.
He is an entrepreneur and founder of several successful ventures with 15+ years of experience in fashion, tech, visual arts, and product design fields.

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The Power of Human Touch in Software Development and AI Environments

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Igor Bergman


Necessity is the mother of invention — a principle that has defined technological advancement and design for generations. We innovate and create new products, services, and processes based on human needs that arise. Just as these needs evolve with each generation, so too must the way we approach the innovation required to address them, and that requires a human touch in software development.

Digitalization Driving Productivity and Collaboration

In today’s era of digitalization, companies are turning to new technologies, specifically software applications, to drive efficiency, productivity, lowered costs, and smarter collaboration. As the adoption of digital transformation has increased, so has the number of software solutions enabling and supporting it.

Companies are looking to software developers for new ways to integrate technology. Operations demand process automation, improved communications, and the delivery of more value to their customers.

Artificial Intelligence (AI) has been an influential part of this progression and an enabler for many capabilities today; however, we must exercise restraint in relying too much on technology alone to reach business goals.

Restraint With AI Makes Better Sense Today

There’s power in the human touch that can set the stage for meaningful transformation when embraced during the software development process. As we continue to integrate digital technology into nearly every facet of work and life, we need intelligent software design to incorporate more of the human experience to thrive.

The key is finding a measured balance between purpose-driven software design and human touch and understanding how to execute this collaboration successfully and ethically.

AI’s Role in the Consumerization of Software

Historically, enterprise software was initially designed with a particular persona and a very specific set of requirements in mind. As a result, it was built to serve simply as a tool with no focus on the user’s experience, behavior, or even the potential ability of the user to change behaviors.

For example, if a person were using a software program to search for fruit, that software would need to be coded to show each specific fruit. Then, if a user searched for a peach, the software would display a peach. If they wanted to search for an orange instead, the software would need to be hard-coded to show an orange. This is a very cut-and-dry process leaves little room for interpretation.

Software Designed to Consider User’s Behavior

Today, AI-powered software is designed with realistic human values in mind, defining a set of user stories and use cases that proactively adjust to potential user behavior, with a strict focus on providing and maximizing end-user value and experience. Explained differently, rather than designing software around who a user is or what they do, the software is designed to consider the user’s behavior and the value the product can provide for an optimum user experience.

Revisiting the example above, if a user in Florida is seeking “fruit,” the initial result the software is likely to show them would be an orange. Alternatively, if the user lives in Georgia, it would likely show them a peach — since these fruits are indigenous to their respective regions.

Software Built With Human Touch Provides an Experience

In this example, the software was built to look for an outcome and design an experience that considers several factors to present the most likely desired result. This is how AI algorithms are used to design an environment meant to improve the customer experience by anticipating needs based on trends. This is also how software developers automate an experience.

Several different inputs are analyzed to the point where an assumption can be made based on a person’s behavior over time. Content is then populated, or an action taken that the program deems would be most useful for that person, all in the name of improving the user experience. But what if the person in Florida doesn’t like oranges and the person in Georgia doesn’t like peaches? This is where the human touch comes into play

Finding the Ethical Balance Between Smart Personalization and Human Privacy

AI algorithms require and collect personal user data to customize the experience in a unique and valuable way for a specific user. However, they can sometimes be too rigid when analyzing only the data without considering personal preference, free will, or choice.

AI alone, without any oversight, can also go too far, as there’s a fine line between personalization and privacy, and AI can’t make the distinction on its own. A human developer addresses this issue by providing the guardrails necessary to ensure ethical design and desired behavior while also incorporating the flexibility needed to give users a greater sense of choice.

How Do You Protect Your Customers?

Software must be built so the user can determine what data they want to provide to improve their life or minimize evasiveness. On the front end, as software is being designed, developers can build flexible architecture with certain constraints in mind to provide an ethical and secure framework around how the AI algorithm works. This allows users to define where the line is or how much personal data they allow into the architecture or the cloud.

Ultimately, users want AI to optimize the tasks they need to perform but don’t want the AI to make decisions for them without approval. This idea of choice is another critical element of why the human touch is so imperative in the development process, even as the industry has sought faster and more efficient ways of writing software programs.

The Artistry of Software Engineering From the Human Touch

As a means of automating code writing, code generators were introduced several decades ago to quickly write new code and get applications to market faster. Requiring minimal human intervention, the developer would simply set what it needed the app to do, and then code was generated for that specific purpose. It was easy to write code that would solve a particular problem and take the user from point A to point B in the most efficient way possible.

However, the lack of human touch is the issue with this model. There’s no consideration for the user experience or innovation that excites and delights; the software is simply working to solve the problem without room for interpretation. Alternatively, the human coder can push boundaries and determine how to interpret the user requirements to decide the best path between the two points.

Flexible Code Environments Make Efficient Programming

For example, if a program were coded to simply draw a tree, a code generator would produce the same tree over and over with no differentiation in color, leaf type, size, etc. There would be no artistry behind it, and users wouldn’t have the ability to choose from various tree designs. Instead, they’d have to accept the tree the generator produced. But when an engineer has the ability to integrate their personal touch, the artistry of software design is unveiled, and the experience becomes something very different.

Today, our industry has evolved even further, and low-code/no-code environments have emerged as the next generation of modern and efficient programming. Developers can now quickly build the foundation of a program from existing services and functions that have already been written by other coders, easily defining the path the user takes to get from point A to B.

This type of coding is a much more flexible way of designing software that allows engineers to adopt the preferences of the end-user and change functions as the end user changes. However, the various functions are still being coded by an individual and, thus, are constrained to the preferences of that person.

Reusable Templates Boost Productivity

So, to revisit the previous “tree” example, software developer A designs a single tree which developer B can now take and, in about the same amount of time as it took to create just one original tree, reuses as a copy over and over but in different ways.

Several copies can be placed side by side to depict a forest, or a single copy can be placed in front of an abandoned building or on a deserted island to create different applications entirely. However, because they’re all using the same original tree design, all of the trees in each environment still look the same — the artistry is limited to that of the person who originally designed the tree.

Decide and Improve the End Product to Customize

Where the human element comes into play is when the software engineer can have the ability to decide how they want their tree to look and can add features along the entire design process to augment it.

Then, the next engineer can come in and change or improve it to meet the needs of their users, and so on. Now, instead of one tree that everyone has to use repeatedly in different ways, there are hundreds of different trees that all came from the same initial version but have been customized and improved upon.

How Does AI Build a Tree?

If we relied on AI to build the perfect tree, it would calculate only one way to do so, but what if you don’t like it? It’s no longer perfect for you. So, rather than relying on AI completely, developers can choose how to embed AI capabilities into their programs to drive the best customer experience.

These AI integrations have to be customized to fit the environment, however, and this requires an actual engineer to be part of the process, which ensures the human element is preserved.

Ultimately, software engineers have to find the right balance of enabling smarter technology that can proactively anticipate and solve our problems while also ensuring end users have the ability to exercise their right to choose and decide what’s right for them based on the facts presented.

Human Touch at the Heart of Modern Software Design

No longer are software solutions built for a single defined purpose. Instead, they are built to learn and evolve based on the creativity, artistry, and ethics of the human touch. As emerging technologies have helped enable modern innovation with unprecedented speed, and invention can now be born out of demand and pursuit of progress rather than out of necessity.

As AI continues to be integrated into the software development process, the human touch will play an integral role in teaching the software how to adapt to each user’s needs, values, behavior, and privacy priorities.

Featured Image Credit: Photo by Andrea Piacquadio; Pexels; Thank you!

Igor Bergman

A Software and Cloud transformation engineering and product leader, Igor Bergman has extensive experience in software businesses, product management, startups, and business development. He is currently heading Lenovo’s $750M Global Software and Cloud business unit.

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5 Ways to Find Balance at a Startup

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Startup founders and employees find that achieving work-life balance can be challenging. 43% of entrepreneurs agree that work-life balance is one of their biggest challenges. As the start-up grows, demands will also grow. Founders and employees need constant motivation and fresh ideas to keep up.

As challenging as a good work-life balance is to achieve, it is very important for your personal and professional lives. It can be as important as a business plan for your startup. This article gives a better understanding of work-life balance, what it means, and why it is important. It also highlights a few ways to find work-life balance at a startup.

work life balance office setting

Work-life balance meaning

So what is work-life balance all about? In simple words, the term work-life balance is about how you manage your time between work and outside of work. It gives you the flexibility to get things done in your professional life while still having time and energy to enjoy your personal life.

There is no perfect work-life balance template to follow. We are all different, and so what a healthy work-life balance looks like will differ between us. However, the primary goal of a better balance is that you should have a greater sense of well-being and lead a better quality of life.

Why work-life balance is important

Work-life balance is important for many reasons. Some people are willing to give up money for a better work-life balance. This is a true testament to the stress levels of the modern workplace. In a 2020 Deloitte survey, it was found that 44% of millennials say they are stressed all or most of the time. Companies that help their employees have a good work-life balance in their professional and personal lives have higher retention rates.

A good work-life balance has many perks. Some of these include:

  • Fewer health issues
  • Higher productivity levels
  • Fewer burnouts
  • More mindfulness

Poor work-life balance has some dire consequences. It can wreak havoc on your health, home life, and personal relationships. Some of the drawbacks include:

  • High-stress levels
  • Feelings of dissatisfaction with life
  • Increased rates of family issues and divorces
  • Escalation of substance abuse
  • Low productivity levels
  • Dissatisfaction at work
  • Lower levels of motivation, commitment, and loyalty.

work life balance girl outdoor

5 ways to find balance at a startup

To create a better work-life balance, think about how you can achieve balance in your personal and professional life. What works for someone else may not work for you. However, here are some tips you can try to improve your work-life balance.

Develop some time management skills

Many entrepreneurs struggle to manage their time correctly. This is because they spend most of their time working long hours to complete their to-do list. There are only 24 hours in a day, so prioritizing may be the best way to manage your time better.

Create a daily, weekly, and monthly to-do list. Try focusing on the most important tasks on your priority list. Doing so can increase the chances of things being done with greater care and focus.

Another thing you can try to do is to say no to the less important stuff. You can simplify your work and delegate the less important stuff. Also, turn off your phone and email notifications. Set a scheduled time to respond to emails and make phone calls. Replying to emails and checking messages as they come in can be distracting. It can make you lose focus and mess with your productivity.

Try to leave work at work

How often do you find yourself taking work home and working remotely from home? The answer is probably too often. You may find yourself working on weekends and holidays. This leaves you with little to no time to relax or spend with loved ones. Try to do work during work hours and stop once those hours are up.

It is important to have a strict policy when it comes to work and other areas of your life. You can try having a no-work-on-the-weekend rule. Having the rule is one thing, but sticking to it can be hard. Try your best to follow this rule and make no exceptions. The weekend can help to reduce stress from all the issues you dealt with during the week. It can even give you time for ideas and solutions to emerge. It is vital to give your body and mind a chance to rest and recover.

Set aside family time

Making time for your family with a busy schedule can be hard. However, you need to remember that your family is your main support system. When things aren’t going smoothly at the startup, your need for support is greater. This is where your family comes in.

Work decisions and responsibilities become easier to manage with your family’s support. Spending quality time with family members can relieve stress, nurture positive behaviors and promote a healthy lifestyle. Time spent with family can improve both your professional and personal life. Plan family trips, game nights, and other activities. These can help build quality relationships with your family.

Schedule personal time

In today’s fast-paced world, it can be hard to find time to indulge in personal interests. However, one’s personal life is as important as one’s professional life. When you unplug and take a step back, you will experience a whole new perspective.

If you feel overwhelmed with everyday life, it may be time to take some time off work. Take your vacation time to rest and recover. Choose an activity that you love and one that relaxes and rejuvenates you.

You can try to make time to meditate, travel and do things you love. Personal time is best for self-reflection and setting goals. Self-care is also essential for your mental health.

If you cannot get much time off, simply ensuring you sleep and eat well can help. The American Academy of Sleep Medicine (AASM) and the Sleep Research Society (SRS) say to aim for at least six to seven hours of sleep. You should also be mindful of what you’re putting into your body. Constantly chugging coffee and eating junk food will eventually affect your health. Try to eat at least one or two healthy meals a day.

Outsource when possible

Technology has come a long way. It has gone to great lengths that we can now replace much of the work necessary to run a business. Try to outsource repetitive tasks that take up too much of your time. This can allow you to focus on your goals and have more time to deal with personal matters. For your personal reading, here are 10 reasons you should be outsourcing your marketing.

Bonus Tips

SET FLEXIBLE HOURS

A flexible work environment can lead to a healthier work-life balance. Flexible hours, telecommuting opportunities, and other systems can relieve stress. They also allow you to attend to personal matters and spend time with your family. At the same time, it can also help to increase your productivity levels and effectiveness.

EXERCISE

Exercise can improve your physical health and mental health. It can also help to improve your productivity. Exercising for just 30 minutes a day can keep your body and mind active and fresh. This can lead to higher energy levels, increased focus, and completion of tasks faster. Exercise can also help with creativity, so when you’re faced with a challenge, exercise. It doesn’t have to be anything too intense; a simple 30-minute walk may help.

MAKE WORK FUN

The only way to make an 80-hour work week bearable is to integrate some fun. Play is crucial when it comes to working. It can improve employees’ work-life balance as well as founders. Some fun can make you both more productive and lead to a more engaged workforce. It can keep everybody motivated and happier. Try to keep the happy spirit alive as much as possible. You can do this by promoting play, encouraging hobbies at work, etc.

TRAVEL

A change in scenery can work wonders. It is great for your mental and emotional well-being. Traveling to new places can free your mind, body, and soul from stress. It can help you reflect on personal goals and interests. Aside from these, it can enrich and transform your perspective on life. Traveling can also improve productivity, sharpen problem-solving skills and increase creativity.

STAY POSITIVE

Staying positive when dealing with entrepreneurial failures and threats can be hard. However, a positive mindset may be able to help you pull through. It allows you to focus on the positives of the situation and help you visualize your goals. Focusing on the positives and having a clear idea of your goals can result in you meeting them. A positive attitude is awesome, even though it can be tough to maintain.

Inner Image and Featured Image Credits: Provided by the Author; Pexels; Thank you!

Joe Martin

Joe Martin

VP of Marketing

Joe Martin is currently the VP of marketing at Scorpion, a leading provider of technology and marketing to help small businesses grow. Formerly he was CloudApp’s GM and CMO and a Head of Marketing at Adobe. With over 15 years of experience in the industry and tech that makes it run, he provides strategic guidance on how to build and use the right stack and marketing for businesses to grow. Joe believes marketers need smart training and leadership to scale company growth. Connect with Joe on LinkedIn and follow him on Twitter @joeDmarti.

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The Impact of AI as Companies Address the Skilled Labor Shortage

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The Impact of AI as Companies Address the Skilled Labor Shortage


Due to a combination of Baby Boomer retirements and a declining birthrate leading to smaller subsequent generations like Gen Z — employment firms predict that the talent shortage we’re experiencing now is likely to last for years to come. While this has the potential to be disastrous news for the economy, it doesn’t have to be, thanks to another growing trend in business: AI acceleration.

We’re currently seeing an increase in the application of AI in the workplace that moves beyond typical machines and into areas of law, medicine, software, and even art. While many have predicted that the acceleration of AI would lead to the demise of human labor, it may very well be this technology that solves the labor problem — at least for those willing to work in tandem with these AI solutions.

Taking Advantage of AI

So what does working with these AI solutions look like? What challenges are businesses facing due to this labor shortage, and how can AI help solve them? I’ll answer these questions and offer some strategies on how organizations can best position themselves to take advantage of AI and combat the continued labor shortage.

Bridging the Gap

The growing skilled labor shortage is already baked into the next 15 to 20 years, thanks to existing and continuing demographic trends. However, the opportunities to innovate within the labor shortage space are massive in the areas of cloud computing, AI, and robotics. Investment in these areas can help U.S. companies compete in a world that’s increasingly fractured and regional.

Robotics and AI systems have already proven reliable in repetitive, precise, and dangerous tasks. Businesses transitioning their supply chain away from globalization and toward more regional approaches can use AI to automate many of the tasks necessary in warehouse and factory environments.

Plenty of Use Cases

In construction, AI is being adopted to complete tasks such as drywall installation and painting, allowing humans to focus on more complex jobs such as plumbing and electrical installation.

In industrial projects, remote-controlled machines handle the more dangerous duties, like demolition and movement of heavy materials. For office environments, artificial intelligence and automation are handling repetitive occupations — taking over tasks like data gathering, clean up, and prep.

More Than Mundane

However, repetitive tasks aren’t the only places in which AI prioritization is making a difference. It is being employed to help existing workers do their jobs more effectively and efficiently.

A great example of this is OpenAI’s Codex. Codex is an AI solution that scans and analyzes petabytes of code, questions, and answers from websites like Stack Overflow. With this tool, developers no longer need to search for answers or examples of code. Instead, Codex is directly integrated into the code completion of their IDE, saving them hundreds of hours of searching and increasing their productivity.

Creating More Creative AI

Meanwhile, systems such as Stable Diffusion and ChatGPT show how AI can take over, creating more derivative works and freeing employees up to tackle creative tasks that are still well out of reach of AI.

This isn’t to suggest that AI is an eternal solution to the skilled labor shortage. But it is a critical stop-gap that can be leaned on until the workforce grows again — something that’s projected to happen sometime in the early 2040s.

In the meantime, for organizations to maintain competitiveness as the talent shortage continues, it will be necessary to strategically integrate AI into the labor force wherever possible.

1. Don’t build your entire strategy on top of a third-party AI platform.

While there are speed-to-market benefits to third-party solutions, using the same platforms as your competitors means you’re relying on the same data and, consequently, will wind up with the same business model as everyone else.

By developing your own platform — at least in some use cases — and focusing on the data within your niche instead, you can create a cone of differentiation that protects your business and creates long-term opportunities within your niche market. This will also ensure you don’t get trapped within the vision of a third-party company rather than following your own.

2. Invest in skills acquisition over education.

To combat the skilled labor shortage, you don’t need more employees with general education. Instead, you need candidates with specific skills who can help you close the widening skills gap. Technology certifications such as AWS, Azure, and GCP are great examples of the skills required to build the necessary cloud solutions and AI platforms you’ll need to compete.

This focus on skills isn’t just about hiring. It’s also about changing your focus on internal employee training. Apprentice and licensing approaches like those used for electricians and plumbers are great models for training people in new skills as they’re needed.

3. Align your investments with global shifts in geopolitics, economy, supply chain, and demographics.

As the U.S. and the rest of the world move toward more regionalized supply chains and manufacturing, the combination of human creativity and advanced technology, such as AI and robotics, will be critical. But that will only be true if this combination is pointed in the right direction.

Make sure that your investments in AI and skills acquisition are guided by your environment rather than a desire to invest in technology for technology’s sake.

The Necessary Human Touch

In summary, labor shortages, the current supply chain crisis, and inflation that organizations and leaders face will continue to impact their operations over the next few years. The rise of AI-based solutions could be a key technology to help organizations combat those challenges and maintain a competitive edge if they adopt AI solutions and integrate them effectively with their greatest assets: human creativity and problem-solving.

The strategies I outlined will help leaders prioritize as they begin selecting and adopting those AI solutions and navigate the current and growing issues associated with the shift from globalization to regionalized supply chains and labor.

Realizing AI’s Vast Potential

It’s important to remember that today’s artificial intelligence and automation solutions are designed to enhance human capabilities and improve their potential to solve problems and create explainable knowledge. They aren’t meant to replace humans in the workforce.

Leaders who remember this and focus on the symbiosis of human creativity and AI rather than on using AI to replace people will have a strategic advantage in the decades to come.

Featured Image Credit: Provided by the Author; Unsplash; Thank you!

Daniel Williams

Principal with Pariveda Solutions

Daniel Williams is a principal with Pariveda Solutions, specializing in digital strategy, implementation, and analytics. With B.S. and M.S. degrees in Computer Science and Technology Management, he has become an expert in digital transformation and AI/ML.

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