Old companies investing in AI and transforming digitally to stay relevant

Artificial Intelligence

Artificial Intelligence is something which is a must for billion-dollar businesses. There need to be machines which take care of small tasks which are tedious and require time when done by a human. There are things which can be insanely hard for a human to do in two hours but a machine and the AI can do it within two minutes. This is the reason why old companies and huge conglomerates are using the newest digital transformation to not fall behind.

There are companies which are using digital methods to keep an eye on what is happening around the company. Then there are companies which have digitized almost every function related to managing resources. There are some of the biggest companies transforming to the digital world. Reliance Industries, Tata Group, Siemens, L&T and many such companies have taken it to themselves and have invested in transforming the company digitally.

The investment is not huge but the commitment towards long term use is pure. That being said, Siemens has already given contracts to the IT companies for problem-solving while Tata Group is investing largely in the startups with Reliance looking to enter the e-commerce are in dire need of AI-based support. All of these companies are looking to digitize and the transformation is only going to help them.

However, there is one company, L&T which has already an in-house built system which helps the company to take quick and rational decisions. Larsen and Toubro have to be on the edge as the industry is quickly growing with the help of digital and AI tech.

That being said, CEO SN Subrahmanyam keeps an eye on each of its 400 ongoing sites. He does this by walking into a control room which has screens showing the data and images from almost every site the company is working on. This cuts down the decision time and keeps the CEO in touch with almost every single project that the company has undertaken.

JD Patil, an exec from L&T says that the company has to be on its toes when it comes to digital transformation. He told ET, “This is a hardware-plus-service business; the value-added services have high margins that will reflect on the bottom line. Companies like us have an edge because analytics can be done only when you understand the domain very well.

“New age technology has to be built into new assets, but it is also necessary that old assets adopt it if they have to be competitive and relevant. Three-four years ago, when we were looking at this, we could not find an implementation partner. We innovated and did it on our own. Having done that, we know what has to be done and we can now offer it to others commercially,” Patil added.

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