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Rewards and loyalty program: The key to customer retention

Explore reward programs as the secret sauce for turning casual customers into loyal customers…

Team Builder

Editorial Team at Builder.ai
· 11 minute read
Benefits of loyalty rewards program software to foster long-term customer relationships.

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Working at a small to medium-sized business (SMB), you're likely familiar with the challenges of keeping up with the ever-evolving tech landscape. The constant pressure to innovate can make it feel like you're always in a catch-up race.

But what if there was a way to not just keep pace, but to leap ahead? Enter Artificial Intelligence (AI)-enriched software development. Because if you're not already leveraging AI in your software development process, you might be missing out on a game-changer.

Imagine cutting your coding timelines in half, boosting your team's productivity‌ and delivering better products faster. That's the power of AI – and it's transforming the way software is developed. According to a recent survey by Builder.ai, nearly 71% of SMBs in both the U.K. and U.S. are already investing in AI, with around 56% expecting it to enhance their efficiency.

So, learn and discover more about AI-enhanced software development, its role in personalisation and user engagement; visions for AI’s roles in the future of software development and more.

Buckle up and don't let the fear of missing out hold you back.

Integrating AI into software development can be a game-changer, but it's not without its hurdles. Let's delve into some integration issues, potential drawbacks‌ and risk-mitigation strategies.

Common AI integration issues

Let’s look at some of the common challenges that SMBs need to carefully consider in how they approach AI integration to fully harness the benefits of AI.

1- Cost

Cost is a barrier for some SMBs looking to adopt AI due to the high initial investment and ongoing expenses. For instance, in the U.K., 35% of SMBs cite cost as a top issue. Similarly, in the U.S., 27% of SMBs are worried about high costs of AI software development.

2 - Lack of skilled staff

32% of SMBs in the U.K. are worried about the lack of skilled staff, which makes it challenging for SMBs to effectively implement and manage AI solutions.

3 - Software integration issues

29% of SMBs in the U.K. struggle with integrating AI into existing systems and workflows can be complex and time-consuming, posing a significant challenge.

4 - Apprehension About AI's unknown future

30% of SMBs in the U.K. and U.S. cite the "unknown future" of AI as a major concern. This uncertainty surrounding AI's long-term impact and potential risks creates apprehension among SMBs, making them cautious about adopting the technology.

Potential drawbacks of relying heavily on AI systems

Let’s highlight some common risks of depending on AI.

Over-reliance on automation

AI can automate many tasks and therefore, over-reliance can lead to a lack of human oversight, potentially missing errors or nuances.

Bias and fairness

AI models can inadvertently perpetuate biases present in the training data. Ensuring fairness and unbiased outcomes is a significant problem.

Transparency and explainability

AI systems, especially those based on Deep Learning, can be "black boxes." Understanding how decisions are made can be challenging, which is problematic in regulated industries.

Security risks

AI systems can introduce new security vulnerabilities. Ensuring that your AI models are secure and resilient against attacks should be a paramount objective.

Strategies for mitigating risks related to AI use

Here are some strategies which you can incorporate to overcome the risks of AI use in software development.

Strong alignment with ethics and organisational value

It's important for you to implement AI in a way that it upholds integrity. This helps maintain trust, both within your team and with your users. Further, by doing so, you bring up a development environment that prioritises integrity, transparency‌ and responsible innovation.

Hybrid approaches

Combining AI with human expertise and oversight can help in catching errors and nuances that AI might have overseen. Therefore, a hybrid, collaborative work between AI and humans is necessary.

Continuous monitoring and testing

A continuous monitoring, testing before a full-fledged integration of the software is necessary. This won't only help in overcoming any shortfalls but also in the right deployment of the software.

Ethical AI frameworks

You should also adopt ethical AI frameworks to guide the development and deployment of your AI systems. This includes ensuring fairness, transparency‌ and accountability so that your software doesn't perpetuate any type of discrimination.

Skill development

Choose to invest in training and development programs to upskill your team in the latest AI technologies so that they remain up-front with the latest market trends. This won't only help in bridging the skill gap but also fosters a culture of continuous learning.

Innovative use cases of AI in app development

AI is revolutionising app development, enabling smarter, more personalised and engaging user experiences.

Let's begin by exploring some successful AI application deployments, the technologies that make them possible‌ and AI's role in enhancing personalisation and user engagement. 👇

Examples of successful AI application deployments with Builder.ai

Here are some examples of how Builder.ai has successfully transformed businesses across landscapes through AI-enhanced software development.

BBC Click Live

BBC Click wanted to make it easy for people to sign up for events and interact with each live show. We worked with the with the team behind BBC Click to build an app which users could register for the event.

It offered attendees a world-class event experience that drove engagement and enjoyment across-the board through active interactive features like live polling and Q&As. The BBC Click team and presenters used the app throughout the evening to make the event more engaging and memorable for participants.

Moodit

Moodit was an initiative by Dr Hassan Yasin, who wanted to create a social media community for those facing mental health challenges. His idea was for users to share their mood and find ways to improve it. We used Natasha, our AI, to match his requirements to 18 features and created an intelligent algorithm to give users data and suggestions based on their mood.

SafariArts

Anup Lalli was using marketplaces to sell her safari prints for a couple of years when suddenly it all went horribly wrong. She decided to take back control of her business. Our Studio Store ecommerce app gave her 43 features to make selling online simple. The AI-powered app development with Studio Store for iOS and Android plus a website put her firmly back on top with SafariArts.

🌟You can embrace AI software development with Builder.ai and watch as it changes your app development journey.

Technologies that enable smarter app features

AI comes in various forms. Let’s dig into a few and look at the role they can play in app development 👇

Machine Learning

Machine Learning (ML) involves training algorithms to learn from and make decisions based on data provided over time. For example, AI, in collaboration with ML on video streaming platforms like Netflix, learns from user behaviour about the watch patterns of a user. That’s how it suggests and recommends movies and TV shows based on a user's viewing history.

Natural Language Processing (NLP)

NLP allows apps to understand and respond to human language. This technology is crucial for voice assistants, which can interpret and execute user commands accurately. For example, virtual assistants like Siri learn from NLP and respond and help users in setting alarms or reminders accordingly.

Internet of things (IoT)

IoT connects physical devices to the internet, which helps them to collect and exchange data, that can be used to create smarter app features. It helps in remotely connecting and automating various tasks. For example, apps like Google Home or Amazon Alexa use IoT to control various devices such as lights, thermostats‌ and security systems.

Blockchain technology

Blockchain technology helps in making secure transactions with cryptographic hashes to link a block of data. That’s why it’s required in places that require a high level of trust and security like Coinbase. Coinbase uses blockchain technology to store and manage digital assets.

Computer Vision

Computer Vision enables apps to analyse and interpret visual data. For instance, Snapchat's filters use computer vision to detect faces and apply augmented reality effects, creating a fun and engaging user experience.

Role of AI in personalisation and user engagement

  • Personalised recommendations - AI can analyse your user behaviour and preferences to provide tailored recommendations. Whether it's suggesting products on ecommerce platforms or articles on a news app, personalised recommendations keep users engaged and increase the likelihood of repeat visits.
  • Dynamic content - AI can dynamically adjust app content based on user interactions. For example, a fitness app might suggest different workouts based on a user's progress and goals, ensuring that the app remains relevant and useful.
  • Predictive analytics - AI can predict user behaviour and preferences, allowing apps to proactively meet user needs. For instance, a travel app might suggest destinations and activities based on a user's past trips and preferences, enhancing the overall user experience.
  • Real-time interactions - AI-powered chatbots and virtual assistants can engage users in real-time conversations, providing instant support and answers to queries. This not only improves user satisfaction but also reduces the workload on customer service teams.

Visions for AI’s role in the future of software development

Sachin Dev Duggal, founder of Builder.ai, takes the view that AI development will need plenty of patience, but we should remain optimistic that the benefits we’ll see will far outweigh any potential drawbacks.

So, as AI is set to play a pivotal role in the future of software development, transforming coding approaches, reshaping project management‌ and introducing revolutionary technologies.

AI developments in coding

  • Automated code generation - AI models can code snippets based on natural language descriptions. In the future, AI could write entire functions or even complete applications, significantly speeding up the development process.
  • Bug detection and fixing - AI can be trained to detect and fix bugs in real-time. Also, by analysing patterns and learning from past issues, AI can proactively identify potential problems and suggest solutions, reducing the time spent on debugging.
  • Continuous Integration and Deployment (CI/CD) - AI can automate and optimise CI/CD pipelines, ensuring that code changes are integrated, tested‌ and deployed smoothly. This could lead to faster release cycles and more reliable software.

AI in reshaping project management

  • Automated task assignment - AI can analyse team members' skills and workloads to assign tasks more effectively. This could lead to better utilisation of resources and improved team productivity.
  • Real-time progress tracking - AI can monitor project progress in real-time, providing up-to-date insights and alerts. This could help project managers identify issues early and take corrective action.
  • Risk management - AI can identify potential risks and suggest mitigation strategies based on historical data and current project conditions. This could help project managers proactively manage risks and ensure project success.

Emerging AI technologies

  • Generative AI - these generative AI models can create new content, including code, designs‌ and even entire applications. This will lead to more creative and innovative software solutions.
  • Quantum AI - a developing field that combines quantum computing with AI to solve complex problems more efficiently. It could one day play a role in optimisation, simulation‌ and other areas relevant to software development.
  • Federated Learning - federated learning allows AI models to be trained on decentralised data. It has the potential to enhance data privacy and security in software development, especially in industries with sensitive data.
  • Edge AI - edge AI brings AI processing closer to the data source, reducing latency and improving performance. This will be particularly useful for IoT applications and real-time systems.

How tech leaders should proceed with AI

As AI continues to evolve and become more integral to various industries, tech leaders must navigate this landscape strategically.

Here are some key steps and considerations for tech leaders to proceed effectively with AI:

Strategic planning

Develop a comprehensive AI strategy that aligns with your organisation's goals and objectives. You should begin by identifying areas where AI can provide the most value and prioritise these initiatives.

Ethical considerations

You should establish AI implementation guidelines for data privacy, bias mitigation‌ and accountability. Also, regularly review and update these guidelines as AI technologies evolve.

Data management

Implement robust data management practices to ensure the quality and security of the data used in AI models.

Infrastructure investment

Invest in the necessary infrastructure to support AI initiatives. This includes computing power, storage‌ and scalable cloud solutions.

Collaboration and partnerships

Form strategic partnerships with AI technology providers, research institutions‌ and other industry leaders. Collaboration can accelerate innovation and provide access to cutting-edge technologies.

Pilot projects and proof of concepts (PoCs)

You can also start with small-scale pilot projects or PoCs to test AI solutions before full-scale implementation. This approach allows for iterative improvements and risk mitigation.

User-centric design

AI solutions are designed with the end-user in mind. You can conduct user research and gather feedback to create AI applications that are intuitive, useful‌ and engaging.

Regulatory compliance

Stay informed about and comply with relevant regulations and standards. AI implementations must adhere to legal requirements, especially in industries with strict regulatory frameworks.

Continuous monitoring and improvement

Implement continuous monitoring and evaluation of AI systems to ensure they are performing as expected. You should use feedback and performance data to make ongoing improvements.

Conclusion

The app development landscape is undergoing a seismic shift, and AI software is at the heart of this transformation.

From automated code generation to predictive analytics, AI isn't just a tool; it's a game changer. Imagine the possibilities: apps that can anticipate user needs, code that writes itself‌ and development cycles that are faster and more efficient than ever before.

So, if you're not already leveraging AI in your app development process, embrace AI software and watch as it transforms your app development journey with Builder.ai.

Builder.ai is a composable software development platform that helps you build your software efficiently. We:

✅ - Assign you a dedicated project manager, who keeps all stakeholders on your software project aligned and on track‌ —‌ and you never need to speak to a software developer or write a single line of code

✅ - Speed up development time by giving you access to a comprehensive library of reusable features, fitted together by AI

✅ - Give you upfront costs and competitive timelines so your project stays under control

If that’s something you’d like to explore, click the banner below to start your AI- powered app development today 👇

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Team Builder

Editorial Team at Builder.ai

Stories published by the editorial team at Builder.ai.

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BBC Click producers needed an app that enabled their live audience to interact with polls and questions, which Builder.ai delivered in double-quick time.

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With our help, Dr Hassan Yasin created a mental health app designed to help children and adolescents express their worries and improve their social connectedness.

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