The presentation talks about how in the wake of technology, and how the companies, in order to increase their profits through producing on economies of scale, are replacing the workforce with the AI based robots and chatbots. It also talks about the various applications of AI in various sectors. But this technology is resulting in widespread job losses. The companies need to understand that technology cannot take the place of mental cognition of human brain. Chatbots cannot provide as effective customer relationship management as human factor can do. Machine learning cannot replace critical thinking, In the hunger for scale and with the growing dominance of data, the human element is disappearing. This cannot be allowed, for the sake of our collective sanity.

1. AI –
THE TYRANNY
OF SCALE
Submitted To : Submitted By :
Dr. Vinod Kumar Ishvinder Kaur
(Ass. Prof.) MBA - P
T.I.M.T. 202118

2. THEORETICAL FRAMEWORK
Construct: - To study the impact of artificial intelligence in economies of
scale and improving customer service.
Dependent variables: - Economies of scale ;
Customer Relationship Management
Independent variable: - Artificial Intelligence

3. CONTENTS
 Introduction
 What are economies of scale?
 Understanding economies of scale
 Types of economies of scale
 Sources of internal economies of scale
 Sources of external economies of scale
 Advantages of economies of scale
 Disadvantages of economies of scale
 Why is CRM so important in business?
 What is artificial intelligence
 Understanding the types of ai
 AI – A powerful tool for business organizations
 Modern applications of AI in various sectors
 The benefits of AI in CRM
 How chatbots are used to improve customer service?
 Corporates using chatbots and ai to gain an edge
 The impact of ai-widespread job losses
 The human element
 Conclusion


5. WHAT ARE
ECONOMIES OF
SCALE?
 Economies of scale are cost advantages
reaped by companies when production
becomes efficient.
 Companies can achieve economies of
scale by increasing production and
lowering costs. This happens because
costs are spread over a larger number of
goods.

6. UNDERSTANDING
ECONOMIES OF
SCALE
The graph below plots the long-run average
costs (LRAC) faced by a firm against its level
of output. When the firm expands its output
from Q to Q2, its average cost falls from C to
C1. Thus, the firm can be said to experience
economies of scale up to output level Q2. the
following effects occur here:
1. It reduces the per-unit fixed cost. As a result
of increased production, the fixed cost gets
spread over more output than before.
2. It reduces per-unit variable costs. This
occurs as the expanded scale of production
increases the efficiency of the production
process.

8. SOURCES OF INTERNAL
ECONOMIES OF SCALE
1. Financial economies of scale
2. Network economies of scale
3. Bulk purchasing
4. Division of labor
5. Technical economies of scale

9. SOURCES OF EXTERNAL
ECONOMIES OF SCALE
 1.Infrastructural economies
 2.Government influence
 3.Suppliers

10. ADVANTAGES OF
ECONOMIES OF SCALE
Reduced per
unit cost
Increased
profits
Larger
business
scale
Lower prices
Competitive
advantage

11. DISADVANTAGES
OF ECONOMIES
OF SCALE
Poor communication
Loss of control
Duplication effect
Distance from
customer

12. WHY IS CRM SO
IMPORTANT IN BUSINESS
 Customer Relationship Management (CRM) is all the activities,
strategies and technologies that companies use to manage their
interactions with their current and potential customers.
 CRM helps businesses build a relationship with their customers
that, in turn, creates loyalty and customer retention.
 CRM is an excellent tool that allows companies to increase not
only their customer satisfaction but also their efficiency and
profits.
 Use of Artificial intelligence is now a new approach adopted by
companies in CRM.

15. AI – A POWERFUL TOOL FOR BUSINESS ORGANIZATIONS
 By deploying the right AI technology, your business may gain an ability to:
 save time and money by automating and optimizing routine processes and tasks
 increase productivity and operational efficiencies
 make faster business decisions based on outputs from cognitive technologies
 avoid mistakes and 'human error', provided the AI systems are set up properly
 use insight to predict customer preferences and offer them better experience
 mine vast amount of data to generate quality leads and grow your customer base
 increase revenue by identifying and maximizing sales opportunities
 grow expertise by enabling analysis and offering intelligent advice and support

16. MODERN APPLICATIONS OF
AI IN VARIOUS SECTORS
Healthcare
Automobile
Banking and finance
Social media
Entertainment
Education
Agriculture
E - Commerce

17. THE BENEFITS OF ARTIFICIAL INTELLIGENCE IN CRM
1. Understanding How Your Customer Feels
2. Providing your customers with instant
response.
3. Improving Application Development
4. Closing in More Leads
5. Reaching Out to Global Audience

18. HOW CHATBOTS ARE USED TO
IMPROVE CUSTOMER SERVICE
Chatbots greatly
improve
interactions with
clients.
Chatbots save
considerable time
for your customer
support team.
Chatbots can help
your business
scale more easily.
Chatbots offer
clients immediate
responses.
Chatbots are
available 24/7.
Chatbots allow you
to reduce costs by
hiring fewer people
to staff call centers.
https://www.youtube.com/watch?v=zsnXbwMoHBg
Click here

20. THE IMPACT OFARTIFICIAL INTELLIGENCE -
WIDESPREAD JOB LOSSES

21. THE HUMAN ELEMENT:
MACHINE LEARNING
CANNOT REPLACE
CRITICAL THINKING