The Importance of Transactions in the Era of AI

As the Chief Strategy Officer at Sunrise, I work with our customers to grow their businesses through digital transformation enabled by Microsoft Dynamics 365 and the cloud.

Sajid Majeed

Chief Strategy Officer at Sunrise Technologies

AI and machine learning are fundamentally transforming industries across the globe. According to a report by Goldman Sachs, AI could replace the equivalent of 300 million full-time jobs by 2030, affecting about a quarter of work tasks in the US and Europe. The report also predicts an increase in the total annual value of goods and services produced globally by 7%. These goods and services are, essentially, economic transactions. Whether its completing a purchase online, submitting a health insurance claim, or buying a new car, economic transactions are the critical data sources that AI systems rely on to function effectively. As companies and individuals brace themselves for AI’s momentous shift, the importance of maintaining robust and accurate transactional data becomes a cornerstone for success.

AI's transformative power and industry investment

Tech giants are leading the charge in AI innovation. Microsoft has committed billions of dollars towards AI development, integrating advanced AI capabilities into its suite of products and services. This massive investment underscores AI’s critical role in shaping the future of technology and business operations. Similarly, NVIDIA, a key player in AI hardware and software, recently surpassed Apple in market capitalization. This milestone reflects the growing recognition of AI's potential to revolutionize industries and drive market value.

The enduring necessity of economic transactions

Despite the rapid advancements in AI, one fundamental aspect of business operations remains unchanged: the necessity of economic transactions. These transactions—whether purchases, sales, or financial exchanges—are the bedrock of economic activity. They facilitate trade, enable the flow of goods and services, and support the overall functioning of the economy. AI systems rely heavily on data derived from these transactions to learn, adapt, and optimize processes. Every purchase at a grocery store, every sale at a car dealership, and every financial exchange contributes to the vast pool of data that AI uses to generate insights and make predictions.

The core of AI: quality transactional data

Without accurate and comprehensive transactional data, AI algorithms cannot perform effectively. Maintaining the integrity and quality of these transactions is essential for businesses to leverage AI's capabilities fully. This necessity spans all sectors, including retail, healthcare, finance, and logistics.

AI in corporate strategy

The impact of AI is evident across corporate America. Approximately 40% of S&P 500 companies mentioned AI in their latest earnings calls. This widespread acknowledgment signifies that AI is becoming a central component of business strategies, influencing decisions and operational improvements across various sectors.

Ensuring transactional integrity

For businesses to thrive in the AI era, ensuring the integrity of economic transactions is crucial. This involves maintaining accurate records and investing in systems capable of efficiently capturing and processing transactional data. By doing so, businesses can unlock the full potential of AI, driving growth, efficiency, and innovation. Economic transactions not only enable the basic functions of trade and commerce but also provide the critical data foundation that AI systems require to function optimally.

The future of economic transactions

While AI will transform many facets of operations across all industries, ensuring transactional integrity is necessary to maximize the advantages of AI. Economic transactions are the lifeblood of commerce, and their importance is only magnified in the AI era. They enable the seamless operation of markets, support financial stability, and provide the data necessary for AI to generate valuable insights. As AI continues to evolve, the role of economic transactions will remain indispensable, ensuring that businesses can leverage the full power of AI.

Conclusion

In the era of AI, the importance of economic transactions cannot be overstated. They are the foundation upon which AI systems are built, providing the critical data for AI to function effectively. Businesses must prioritize the integrity and quality of these transactions to fully harness the potential of AI, driving growth, efficiency, and innovation.