AI has certainly become more prevalent in our lives over the past couple of years. Widely used already in areas such as engineering, manufacturing, and healthcare, AI is fast becoming the preferred solution for cutting costs and long processes in busy and budget-restricted industries. Now accessible to the public, AI tools have started to appear everywhere you look.
For tech companies, AI tools are proving invaluable when it comes to reducing costs. By leveraging AI-driven automation and machine learning technologies, businesses can identify and resolve cost issues in areas like IT infrastructure, cloud computing, storage capacity, product development cycles, and inventory management more quickly than ever before. This helps reduce operational costs by eliminating manual labour, while also improving productivity and efficiency.
In addition to cost optimisation, companies are using AI-powered tools to generate valuable insights that can inform product development decisions. Through predictive analytics and customer behaviour tracking, these tools can help businesses make well-informed decisions about future products and services. This is proving to be especially beneficial for tech companies looking to stay ahead of the competition, as AI-driven insights can help them identify new opportunities and trends in a cost-effective manner.
The general benefits of AI tools
As a result of the incredible advances in AI technology, more companies are implementing AI into their operations. Some of the benefits of doing so include:
- making huge savings on labour and operational costs
- reducing the time it takes to complete tasks
- eliminating human error
For example, in a field like finance, data analysis and problem-solving skills are imperative. AI tools have been brought in to reduce time-consuming and often repetitive tasks that burdened highly-skilled workers. These tasks are now being completed by AI, freeing skilled workers to focus on other work.
Proof of AI saving companies money
The success of AI tools when it comes to cost optimisation is evident. For example, Amazon was an early adopter of the technology and has long been one of its biggest supporters. Their use of AI has allowed them to save millions due to the automation of time-consuming tasks, such as price comparison.
Similarly, tech giant Microsoft has been able to save millions in operating costs since introducing AI into their operations. Their use of AI-driven automation and robotic processes has allowed them to drastically reduce manual labour and production costs, while also boosting efficiency and performance by providing high-quality customer service around the clock.
Cost optimisation tools
Cost optimisation platforms provide a business-focused approach to implementing changes that reduce costs and spending. These tools work for a variety of industries and have the capabilities to produce in-depth reports and provide relevant data to the necessary teams to highlight key areas of improvement. One industry where cost optimisation platforms are heavily is used IT. AI tools are used to continuously evaluate the technological processes of an organisation including the use of cloud services.
How AI reduces costs
One of the ways AI has been implemented is by organisations that want to reduce their spending in a particular area. Cost optimisation tools will use AI to automate problem-solving processes in areas such as network and IT operations, helping to enhance capabilities and reduce the number of idle resources. Ultimately, this reduces costs and increases savings over time.
Areas where tech companies could be saving money
In the world of tech, costs can be incredibly high. In fact, start up tech companies can expect to spend an average of $35,000 just to get started. Most of these expenses come in the form of equipment, tools and software. Software, in particular, is an incredibly valuable but costly element of running a tech business. Whether a business is offering support, its own tech platform or tech solutions, a company's software is an essential vital part of its offering and make it possible to scale the business.
Cloud services can be especially costly for tech businesses, particularly FinTechs and AdTechs. Both of which require the complex data management and compliance monitoring that cloud services offer. However, this is certainly an area where tech companies can cut their spending.
Typically, these cloud services will provide a service on a contract, charging various rates per user, per month. Most tech companies can expect to pay hundreds of pounds per month for their cloud services. However, this will depend on their requirements. On top of this, there are usually additional costs such as support costs, exit fees and set up costs.
Cloud cost optimisation for tech companies
A proven method to cut the costs of using cloud services is to implement an AI-based cloud cost optimisation tool. Cost optimisation tools are gaining momentum in the tech space and are being used by a wide range of companies to provide the necessary information and reports to identify areas where costs can be cut.
Offering real-time cost monitoring and reporting so tech companies like FinTechs and AdTechs can analyse and forecast their budgets per project, cluster, and deployment. While other features include autoscaling, supporting tech firms in scaling their applications, adjusting to their actual usage and capacity requirements.
Copyright 2023. Article was made possible by site supporter Suzanne Elly.