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AI Is Not the Value Proposition

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“This house is built with nails.” Said no home builder ever.

 

AI, much like the nails in a house, is a powerful enabling component for any business, but it doesn’t make the house a house.

 

AI isn’t the value proposition it’s been made out to be. Whether something is AI or not doesn’t make it better at solving a problem. In fact, at times, it can make it worse. In turn, AI doesn’t magically make a product better, more competitive in the market, or solve a business’s most discerning concerns. It can, on a certain level, but it’s not a magic bullet for understanding your customers, building things your customers want, or servicing your customers throughout their journey. AI, like nails, can enable bigger structures, more advanced designs, and overcome some time-consumption hurdles, but it’s not the nails alone that provide shelter or make up a business’s infrastructure.

 

Raise your hand if you’ve heard any of these statements or something similar before:

  1. Data is the new gold (sure, if it’s turned into actionable insights).

  2. Blockchain and cryptocurrency will dismantle financial institutions (never mind those pesky regulatory considerations).

  3. Cloud will revolutionize your business (not if your business is bad, but at least you’re on the cloud now and can scale that bad business infinitely as long as there’s customer demand).

  4. This PowerPoint from consultants is going to solve all our problems and provide a path to hockey stick growth, profitability, and competitive advantage (it won’t, but it may cover your ass in a board meeting since execution is still queen after all).

 

Like most shiny objects, AI is that new thing everyone’s chasing. Corporate boards even expect executives to have a position on it, although there’s a massive learning curve and abundant lack of understanding around it.

 

Marketing teams everywhere are branding everything as AI-powered or AI-backed, but in most cases, this is probably just a good IF in Excel. Sales reps are telling prospects that AI will magically solve all their concerns, operate as customer service without any sort of human intervention, and turn their business into a best-in-class enterprise. However, as with all shiny objects, AI follows a hype curve, and we’re experiencing peak hype now. And while hype is often where capital flows first, it’s rarely where value is created.

 

The winners of the AI era won’t be those who simply slap “AI” on their pitch decks, but those who deeply understand how and where to deploy AI to drive measurable business outcomes. The opportunity is real—but only for those who anchor AI in operational and strategic fundamentals.

 

The truth is simple: AI, when applied deliberately, can unlock both new revenue streams and profound cost efficiencies. But it must be tethered to clear business objectives, not mere technical capabilities. Below are the top 5 AI use cases consistently delivering Revenue Generation and Cost Optimization across industries today.

 

Top 5 AI Use Cases for Revenue Generation

1. Personalized Sales & Marketing Automation

  • AI enables 1:1 marketing at scale by dynamically tailoring offers, timing, and messaging to individual users based on behavior, segmentation, and predictive analytics. This boosts conversion rates, average order value, and customer lifetime value.

  • Example: Dynamic pricing and product recommendations in e-commerce platforms.

2. AI-Augmented Product Development

  • By mining customer feedback, usage patterns, and trend data, AI helps companies prioritize and build products that meet real customer needs faster.

  • Example: Consumer tech companies use LLMs to mine reviews and tickets to inform roadmap prioritization.

  • Going further: Use a combination of Gong and NotebookLM to capture customer calls/sales, service and support, product discovery, in-product help bots and input that data into NotebookLM to synthesize and aggregate key product issues or opportunities based off thousands of calls a product manager simply doesn’t have the time to be on. Imagine an entire sales organization’s call logs serving as product discovery for new features and functionality to build upon.

3. Sales Forecasting & Lead Scoring

  • AI improves accuracy of forecasts by ingesting structured and unstructured data across CRM, market signals, and sales behavior. It identifies which leads are most likely to convert and when.

  • Example: SaaS companies utilize AI models to optimize outreach timing and resource allocation.

4. Hyper-Personalized Customer Experiences

  • AI enhances digital customer journeys — from onboarding to loyalty — using real-time behavioral insights to utilize recommendation engines to drive content consumption.

5. AI-Driven Market Expansion

  • Utilize AI to identify white-space opportunities around new markets, customer segments, or partnership targets based on demand modeling, demographic signals, and competitive intelligence.

  • Example: Retail chains implement AI to analyze foot traffic and competitor locations before opening new stores.

 

Top 5 AI Use Cases for Cost Optimization

1. Customer Service Automation (with Guardrails)

  • Conversational AI can resolve high-volume, repetitive inquiries. Reducing human workload while preserving customer experience through intelligent escalation paths.

  • Example: Telecom companies deploying AI chatbots for billing queries, with escalation to agents for complex cases.

2. Predictive Maintenance & Asset Monitoring

  • In manufacturing, logistics, and infrastructure, AI predicts failures before they happen. Minimizing downtime and unnecessary maintenance.

  • Example: Airlines and rail systems use AI to optimize engine servicing schedules.

3. Workforce Planning & Scheduling

  • AI forecasts demand, then compares it with labor supply, helping organizations optimize staffing, reduce overtime, and improve efficiency.

  • Example: Call centers utilize AI to dynamically schedule agents based on traffic volume forecasts.

4. Fraud Detection & Risk Management

  • AI identifies anomalies and flags risks faster than rule-based systems, saving both financial and reputational costs.

  • Example: Financial services companies use AI to detect suspicious transactions in real time.

5. Supply Chain Optimization

  • AI models improve demand forecasting, reduce inventory waste, and optimize logistics, saving millions in working capital and operational costs.

  • Example: Retailers implementing AI to automate reordering and reduce overstock.

 

AI isn’t a strategy. It’s a lever.

 

Used wisely, AI can extend the reach of great businesses, not transform bad ones. Leaders who root their AI initiatives in measurable outcomes such as customer value, operational efficiency, and differentiated capabilities will be the ones who build the strongest and most secure house, not just hype around the nails.

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