Artificial Intelligence (AI) appears to be a hot topic at every industry conference and with every trade publication. While many can be excused for borrowing from Macbeth by claiming so far AI is, “full of sound and fury signifying nothing,” there is a significant potential for AI to positively impact contracting businesses.
What is Different About AI?
Fundamentally, AI is just computer software. Yes, it has an ability to adapt to new data that traditional code lacks, but it remains subject to the biases and limitations of its programmers as several embarrassing examples of historical revision by well known programs have reveal. In short, it is not HAL (Heuristically programmed ALgorithmic computer) from the movie, 2001: A Space Odyssey. At present, it cannot do what many hope and some fear, though AI capabilities are evolving over time and computing power.
1. Inventory Management – In the future contractors will be able to reduce truck stock and warehouse inventory with AI tracking past usage, anticipating demand from weather forecasts, and sourcing from multiple suppliers.
2. Truck Maintenance – There are already truck maintenance programs. As AI takes more of a role, maintenance will be optimized based on engine temperatures, pressures, tire wear, brakes, and so on to schedule maintenance or real time data, as well as working with GPS systems to optimize routes based on time, traffic, and road conditions, and to provide feedback for improve driver performance.
3. Process Creation – An area AI can help today is process creation and documentation, though it will require human review.
4. Troubleshooting – The big hope is for AI to improve system troubleshooting so that a relatively new technician can perform at the level of a senior technician. AI could also evaluate the condition of equipment, energy prices, usage, and so on to suggest when it is optimal for the homeowner to replace rather than repair.
5. Chatbots – AI is already impacting chatbots and improving back office efficiency, including after hours responsiveness. This will only improve over time.
6. Training – It will be possible for AI to become personal training mentors on a position by position basis, adjusting individualized training based on testing and performance evaluation.
7. Research – A legitimate role for AI today is for owners and managers to turn to it as a jumping off point for researching a new product, accessory, business opportunity, marketing concept, etc. Yet, it is only a jumping off point.
8. Sales Proposals – Expect AI to assist in the creation of dynamic sales proposals with options presented based on an online or in-person interview. These can be emailed or linked by text on the spot, after a human review. AI can further maintain follow ups with texts and emails until the job is closed.
9. HR Management – In addition to training, AI will be able to serve as a virtual human resources department, helping with reviews, benefits administration, safety compliance, employee handbooks, and regulatory compliance.
10. Precision Marketing – In the old days, half of all marketing didn’t work and we didn’t know which half. With digital, it’s less than half and we still don’t know. AI has the potential to change that, by better targeting, better tracking, and anticipatory marketing, such as concentrating efforts where replacements are due to people with good credit scores. All AI driven marketing should be reviewed and edited by humans.
11. Review Management – AI driven review systems will help encourage reviews and monitor review sites from instant responses from thank you’s to shock and apologies at bad reviews with requests to take it offline to resolve.
12. Dispatching – There’s lot of discussion about using AI to improve dispatching. The real return comes from optimizing the right revenue opportunities with the right techs and sales professionals.
13. Condition Driven Maintenance – AI equipment monitoring can shift maintenance from interval driven to condition driven, adjusted by weather forecasts, demand service volume, tech availability, and so on.
14. Financial Management – In the future, AI will be able to prepare financial statements, analyze KPIs, alert managers to problems, including fraud monitoring of suspicious activities.
Expect Screw Ups
As you adopt AI systems, remember that they are not perfect. They will even lie on occasion, so they should be fact checked on public facing work. AI will improve over time and make contractors’ lives better as a result.
Matt Michel will be a keynote speaker at the October Service World Expo (ServiceWorldExpo.com). His new book, Contractor Stories, can be found on Amazon.