We are seeing more and more companies that use artificial intelligence (AI) to make their products smarter, from speakers to coffee machines, and from cars to yoga mats. Every company must consider how they could create more intelligent products using artificial intelligence (AI).

1. 4 Hard-To-Ignore
Reasons Why You Should
Use AI To Make More
Intelligent Products

2. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
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IntroductionIntroduction
We are seeing more and more companies that use artificial intelligence (AI) to make
their products smarter, from speakers to coffee machines, and from cars to yoga mats.
Every company must consider how they could create more intelligent products using
artificial intelligence (AI).
Thanks to the Internet of Things (IoT), artificial intelligence (AI), and advances in sensor
technology, a whole host of everyday products are getting smarter. We have smart TVs
and smartwatches. We have smart running shoes – or rather, smart insoles – that gather
data on your running performance. You can even get smart nappies that send an alert
to your phone when your baby’s nappy needs changing.
4 Hard-To-Ignore Reasons Why You Should Use
AI To Make More Intelligent Products

3. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Title
Text
IntroductionIntroduction
And that’s just the tip of the iceberg. For product manufacturers, there’s no doubt we’ve
reached a tipping point in the smart product trend, meaning it’s no longer possible (or
wise) to ignore consumer demand for smart, AI-loaded products.
So, if you aren't already asking yourself, “Could our products be improved with AI?”, now
is the time to start. To whet your appetite, here are four huge benefits of smart
products:
4 Hard-To-Ignore Reasons Why You Should Use
AI To Make More Intelligent Products

4. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
1. Making your customers’ lives easier (and boosting
customer satisfaction in the process)
The smart product trend has particularly taken hold in our homes. Because of the IoT,
basic home electronic goods and appliances can gather information on what’s going on
around them and respond accordingly. For example, a smart thermostat can heat your
home to the perfect temperature in time for your return from work, without you having to
program it. Technology like this makes our homes more efficient, more automated, and
more responsive to our needs – helping to remove some of the annoying wrinkles and
bugbears from everyday life.
This is key to the success of smart products. Rather than inserting AI for AI’s sake, it’s all
about solving customers’ problems and making their lives easier. And I don’t just mean in
the home. Today’s consumers expect smart solutions to a whole host of everyday tasks
and activities, including changing their baby’s nappy and training for a marathon.

5. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
2. Building better products (products your customers
really want)
Making your products smarter is a fantastic way to build a more in-depth understanding
of your customers. This knowledge can and should feed into your product design. In my
experience, building a better understanding of customers and developing more desirable
products is one of the most attractive benefits for most businesses.
How does this process work? In a nutshell, by building AI capabilities into your products,
you have the ability to collect masses of data on your customers’ habits and preferences:
how they use your product, how often they use it, when they typically use it, and more. All
this data can be used to improve product design and develop new products that better
meet your customers’ needs.

6. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
3. Responding to customers’ needs more quickly
The customer journey has been forever altered (and sped up) thanks to our permanent
attachment to our mobile devices. Because life is so fast-paced these days, we’re
constantly making quick decisions, looking up solutions on-the-fly, and seeking split-
second answers to the things we want to know. Google calls these brief “I want to
know/do/buy/go/learn” flashes micro-moments, and, according to Google at least, these
micro-moments are becoming a vital part of marketing. In other words, as consumers, we
increasingly expect brands to respond instantly and offer us exactly what we want in the
here and now.
The more information you have on your customers, the better able you are to spot and
respond to these all-important micro-moments. This is where smart products come into
play. Because they’re capable of gathering a wealth of data, smart products help you
understand your customers’ actions, preferences, and decision making.

7. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
4. Adding new revenue streams
A less obvious benefit of smart products is that they often enable add-on, AI-driven
services. And these services can add a lucrative new revenue stream for your business,
particularly if you can tailor them into a subscription model. For example, let's say you
manufacture security systems and have been transitioning to smart security alarms that
gather and transmit data on what's happening in the home. Providers of similar smart
security systems are now offering subscriptions to monitor the home in real-time.
Likewise, Apple has transitioned from a straight product manufacturer into a provider of
music and TV streaming services (services that are supported by Apple’s iconic products).
In this way, there’s a surprising amount of crossover between smart products and smart
services. If you can make your own products smarter, it could pave the way for a lucrative
move into services.

8. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Everything is becoming smarter – don’t get left
behind
I believe every product-based business must carefully consider this intelligent product
trend. Those that don’t risk being left behind. That’s not to say you should quickly load
your products with unnecessary AI, just so you can label them as “smart”. As with any new
technology, it’s really important to find those ways in which AI adds the most value. This
will be different for each business, and must be driven by your overarching business
strategy.
AI is going to impact businesses of all shapes and sizes, across all industries. Discover how
to prepare your organization for an AI-driven world in my new book, The Intelligence
Revolution: Transforming Your Business With AI.

9. Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2020 Bernard Marr , Bernard Marr & Co. All rights reserved© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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