All Articles
Application modernization

Artificial intelligence & digital transformation

Evelin Georgieva
20 Jun 2023
12 min read
Evelin Georgieva
20 Jun 2023
12 min read
Artificial Intelligence & Digital Transformation

Digital transformation has become an inevitable part of the current agenda of all modern companies. Many companies focus on artificial intelligence (AI) to answer all new trends, which is already powering the next phase of digital transformation initiatives by creating opportunities and previously impossible improvements.

Currently, automation processes are built by developers based on generated data and manual analyses. Bringing artificial intelligence to the table is a significant change.

The role of artificial intelligence in digital transformation

In general, artificial intelligence is believed to allow computers and machines to mimic the functions of the human brain. AI empowers digital innovations such as machine learning (ML), deep learning, natural language processing (NLP), and predictive analytics.

Typically, AI refers to developing systems with human intelligence capabilities, letting them learn from past experiences, reason, discover meaning, and generalize. Fed with big amounts of information from data science - AI technologies can see patterns and tendencies impossible to be caught before.

For example, in order to gain a competitive advantage, your business collects data. Once gathered - this data should be analyzed, which can be human- and time-consuming. Thus, artificial intelligence shows essential for many complex digital transformation applications. Without it, the digitization of products and processes would produce amounts of data that no human could be expected to analyze.

Getting on the next level of machine learning - artificial intelligence can analyze data and improve business operations by giving them an easy track for informed decision-making.

Thus, successful digital transformation can benefit from these artificial intelligence tools and digital technologies if they fit right into the business process’s logic.

Why AI is important to digital transformation?

Unlike standard automation, designed for single repetitive tasks, AI-powered processes can react to new information or unexpected changes. AI is designed to analyze data and respond to changing environments, creating endless opportunities to improve the digital transformation process.

More importantly, AI algorithms learn from success and failure. It builds its solutions on previous and current data or evolves existing processes. AI can identify patterns and analyze them without human interaction – something impossible for simple automation.

“Smart algorithms won’t just lead to better products—they could redefine how product development is done.”- claims McKinsey’s 2020 research and backs it up with significant data collected.

According to the industry, an AI solution can reduce cost by up to 20% and development time - by up to 50%. Thus, factoring artificial intelligence when talking about digital transformation is important. It helps in many of the production processes, such as:

  • Initial concept - tools can test complex new shapes and geometries, translating innovative ideas from the designer’s mind into a tangible product.
  • Detailed design and engineering - AI technologies could achieve new levels of product performance while minimizing cost.
  • Manufacturing - through deep learning and big data analyses - artificial intelligence helps with assessing candidate geometries for manufacturability and, where applicable, enabling and accelerating the use of additive-manufacturing processes.
  • Product improvement - with lower design-to-cost, value, and weight price, AI models could unlock additional value and margin improvement.
  • Procurement - often forgotten - the legal aspect could also be influenced. AI software could structure complex tender processes to improve tradeoffs among pricing, technical capabilities, traceability, risk, sustainability, and other factors.

Logically, including AI platforms and generally adopting AI becomes a key point of contemporary digital transformation strategy.

Business models have to get used to automate processes, delegate data analytics to AI and re-evaluate the use of traditional software or people for complex processes or predictive analytics.

According to a 2021 study from PwC, AI can significantly improve customer and employee experience, increase agility & productivity through automation, and even - develop new data-driven models. It is considered a major transformative force in management decision-making, providing informed insights and a broader perspective.

"AI-supported decision-making is so powerful for a simple reason: it can enable you to incorporate and analyze far more information than you could do on your own."

AI brings significant change skyrocketing to up to 74% in technology, 62% - in operations and maintenance, followed by 61% in customer experience. What do those figures mean? AI analysis has much to offer.

It can suggest cost-effectively evaluated products or services with minimal manual tasks but optimal design and processing power. More importantly, it enhances customer satisfaction and raises labor productivity by bringing the company a competitive edge.

Digital transformation & artificial intelligence: Is your organization ready?

Digital transformation has already started changing the business operations and work landscape. Adding artificial intelligence aspects to that picture could make the strategy behind extremely complex and confusing.

What should be considered when integrating artificial intelligence into the strategy, and what could be the possible pitfalls?

Design of tailored-made AI-based solutions

Solution design and vendor selection could be crucial for implementing a transformation strategy that extracts the maximum AI capability. Often, the best approach is a combination of different solutions from different providers. But their integration could seriously jeopardize the project. Therefore, selecting an integrator that could offer a suite of solutions could be the best solution for such a complex project.

Management adoption

Management will adopt artificial intelligence tools as a cornerstone for implementing AI-powered digital transformation. Similarly to the digital technology adoption, management has to be convinced and allocate needed resources and even point a digital transformation lead that runs the project to success.

Enough data vs. too much data

As in every technical project, choosing the right battles is important. In the case of AI-driven digital transformation - business leaders should evaluate what areas could and is smart to be replaced by AI systems and which activities should still be left to the human brain for processing.

Аreas where AI tools help with digital transformation challenges

Although various implementations are still unknown, AI can help in many areas. Those are the many organizations that are already actively using the machine learning algorithms and predictive capabilities of AI for the following areas:

  1. IT and Security

    AI and its predictive models could successfully do fraud detection and prevent intrusions.

    • AI-powered security technologies could regularly scan systems for abnormal behavior and compare them with normal pattern recognition.
    • But more than that - AI tools could predict how and where companies are most vulnerable and alert for possible threats.
    • Biometrics, such as facial recognition, fingerprint scanners, or double-factor authentication, would have been impossible without AI.
    • Computer protection made with AI tools generates, saves, and automates complex passwords and can give prefigured access control to only authorized users.
  2. Customer Service

    Cost savings combined with improved customer experience are no longer myths in AI-powered business functions. Here are some of its implementations:

    • Smart case classification tools could navigate customer inquiries to the relevant support point, shortening the resolution time and significantly lowering costs. It still follows the customer-centric approach by offering the right path for solving the problem.
    • AI-recommendation engines analyze huge amounts of data obtained by the customer to offer them an even better experience with the right cross-sell and up-sell of similar products. AI tools can analyze historical data and do sentiment analysis. Therefore, they help with customer re-engagement, boost website traffic with personalized ads, and help shoppers meet their needs faster and more conveniently.
    • Chatbots, or the more sophisticated conversational AI bots, help customers with routine questions and repetitive inquiries. Such AI-powered chatbots save companies billions of dollars in solving customer issues quickly, reducing operating and hiring costs, and providing an improved user experience through faster and more accurate service.

    AI could collect more accurate data for the company's CRM system, improve its products, and offer a better customer experience.

  3. Business Operations and Decision Support

    AI can digitally transform activities related to the running of a business, such as scheduling conferences, team meetings, and business trips or:

    • Creation of automating workloads, such as replacing humans with monitored robots for labor-intensive or routine tasks.
    • Preventing possible business disruptors by detecting anomalies and un-typical work patterns.
    • Predicting and forecasting business performance and demand for resources at inventory or in the supply chain.
    • Complex data analysis lets AI identifies complex patterns and discovers meaningful business insights.

    Predicting customer behavior could help decision-making and identify successful marketing strategies to increase sales reps.

  4. Human Resources (HR)

    Human resources is another area where AI will be able to support businesses. Artificial intelligence can help smooth many HR processes and simultaneously enhance employee experience.

    • AI could help with the hiring process by matching the needed profile and creating an exact job advert.
    • Using predictive or people analytics, AI could help pre-match job seekers to roles.
    • Helping managers automate important statistics such as the number of candidates screened and hired over a specific period.
    • Building the right onboarding and its smooth ongoing is also something AI could actively support.
    • Automation of the feedback process, performance assessment, and long-term employee engagement and loyalty.

    AI applications are endless, but the human factor should not be underestimated because it is the only one creating innovations and seeing the possibility into the gaps. In order to progress - every company should integrate AI into its digital transformation strategy, but still - a good assessment of the % of involvement will be needed.

Machine learning and digital technologies

In the world of digital technologies, machine learning is a critical component that has become increasingly important for companies to stay competitive. Here are some key points to consider:

Driving innovation

As part of the digital transformation, businesses are turning to AI and machine learning to drive innovation, increase efficiency, and create new opportunities.

Data analysis

Machine learning algorithms enable businesses to analyze large amounts of data quickly and efficiently, making it easier to identify trends and patterns that were previously impossible to discern. This leads to more informed decision-making, which is essential in today’s fast-paced business environment.

Customer understanding

By leveraging the power of machine learning, companies can gain a deeper understanding of their customers’ needs and preferences, leading to more effective marketing strategies. This leads to improved customer engagement and loyalty, which is critical for long-term success.

Streamlining operations

Machine learning also enables companies to streamline their operations by automating processes, reducing errors, and increasing efficiency. This results in cost savings and improved productivity, which are key drivers of profitability in any business.

Future of digital transformation

As AI technology continues to advance, machine learning will play a central role in shaping the future of digital transformation. Companies that embrace this technology will be well-positioned to take advantage of new business opportunities that arise as a result.

Embark on your digital journey with a trusted partner

Which is the right path for the inclusion of artificial intelligence into your digital transformation path? Get a trusted and experienced partner to show you the smoothest and most trouble-free path. Resolute Software’s mission is to help companies achieve digital transformations and modernization of their systems and processes, and it has realized many successful projects throughout the years.

Contact us and embark on your digital transformation journey!


AI could and should be part of digital transformation to automate routine tasks and help shape better internal processes, lower production prices, and analyze data.

AI allows the processing of large datasets quickly and cost-effectively and uses it as a base for developing systems with human intelligence capabilities, letting them learn from past experiences, discover interconnecting logic, and suggest solutions.

The four main areas of digital transformation are the transformation of processes, business model transformation, domain transformation, and organizational digital transformation of internal culture.

AI puts additional layers into digital transformation strategy, bringing predictive analytics & modeling based on historical data, promising proof of concepts (PoCs) ready to scale, and identifying patterns even in changing environments to the agenda.

Four types of Artificial intelligence are Reactive Machines, Limited Memory, Theory of Mind, and Self-Aware.

Digital Transformation
Digital Modernization
Artificial Intelligence
Machine Learning

stay tuned

Subscribe to our insights

Secured with ReCAPTCHA. Privacy Policy and Terms of Service.