If You're Not Using AI, Your Competition Is — And They're Using It For Business Success: SixthFactor CEO

Artificial intelligence (AI) is revolutionising market research, empowering businesses to harness vast datasets for strategic decision-making with unprecedented efficiency. Himanshu Vashishtha, CEO at SixthFactor Consulting, a new-age research consultancy firm in consumer insights and behavioural economics, shares how AI enhances traditional research methods, addresses adoption challenges, and shapes future possibilities.

In an exclusive interview with OneArabia.me, Vashishtha underscores AI's transformative role in processing data, uncovering behavioral patterns, and ensuring competitiveness, while highlighting societal considerations for its responsible integration.

Transforming Market Research with AI

Market research thrives on information to guide business decisions, and AI excels in navigating the modern data surge. "AI helps decision-makers make sense of the data explosion," Vashishtha says. By processing large volumes of multi-modal data — structured and unstructured — AI delivers precise insights rapidly. For example, a CEO analysing Gen Z reading trends can leverage AI to examine social media, e-commerce platforms, and niche journals, identifying preferences like a shift toward specialised publications.

AI's practical applications include sentiment analysis, which evaluates brand perceptions across digital platforms, and predictive modeling, which forecasts market trends using historical data. "AI identifies patterns that were once cost-prohibitive to uncover, like understanding niche consumer behaviors," Vashishtha explains. This enables brands to make informed decisions, such as assessing the impact of taking a public stance on social issues through real-time sentiment data.

Adopting AI is a competitive necessity. "If you're not using AI, your competitors are," Vashishtha warns, comparing it to the internet's critical role in business. "You will have to use AI to remain competitive, whichever business you do."

Overcoming AI Adoption Challenges

AI's potential comes with significant hurdles. "AI is shiny, but it must be embedded thoughtfully," Vashishtha cautions. Cultural resistance is a primary challenge; employees may fear job displacement without a compelling narrative. "You need a story that aligns AI with the organization's goals," he emphasizes, to encourage acceptance and engagement.

Establishing guardrails is equally vital to prevent errors. "Early cases of failure in AI happened because AI did something, which was not checked," Vashishtha notes, referencing incidents like erroneous mass notifications. He stresses accountability: "AI cannot be taken to court," so organisations must clearly define responsibility for mistakes, such as incorrect customer responses leading to financial losses.

Leadership alignment is crucial for success. "A divide between AI enthusiasts and skeptics is a recipe for failure," Vashishtha says. A unified leadership team, confident in AI's capabilities, is essential. He adds, "If I were to see a CEO say that he doesn't think AI will have an impact, which is significant, I would never invest in that company as a personal investor."

Unlocking Consumer Behavior Insights

Vashishtha's expertise in behavioral economics highlights AI's power to decode consumer decisions. "Humans aren't always rational," he says. AI analyzes vast datasets to reveal patterns in seemingly irrational behaviors. For instance, analyzing 50,000 speeding fines in Dubai might show a morning rush-hour spike near Media City, indicating hurried commutes.

"AI has helped me analyse large amount of data, then I can do behavioural science and create some nudges," Vashishtha explains, proposing campaigns like, "Is reaching on office time or being for your son's 18th birthday more important?" to promote safer driving.

This integration of AI and behavioral science enhances market research by scaling data analysis and enabling targeted interventions, from nudge-based communications to safety-focused technologies.

Modes to Effective AI Implementation

Successful AI adoption requires balancing the needs of employees, customers, and shareholders. "You need to take all three perspectives," Vashishtha advises. AI should enhance customer experiences through solutions like personalised chatbots, empower employees by automating repetitive tasks, and drive shareholder value through efficiency. However, he cautions against imbalance: "You cannot just serve the stakeholder and ignore the customers and the employees."

Overemphasising cost savings, such as deploying bots that frustrate customers, can lead to escalations and employee strain. "You have to balance the three," Vashishtha stresses, advocating for employee education, customer-centric solutions, and equitable benefits across stakeholders.

Envisioning AI's Future with LLMs

Vashishtha views large language models (LLMs) as universally accessible, transforming interactions globally. "The access to AI is universal now," he says, noting how Indian street vendors use AI for translations via intuitive interfaces. However, he critiques OpenAI's shift to a for-profit model: "I'm very disappointed that it went from not-for-profit to a profit. I think it's a bad thing to have happened."

He predicts LLMs will merge with robotics, enabling human-like interactions. "The next facet of LLM evolvement will happen when LLM is combined with physical world," he says. "You really have a humanoid who's talking next to you. They can speak to you like a human, with a sense of humor." This could redefine customer service and companionship.

However, Vashishtha also warns of societal risks: "Overall, the amount of jobs that are going to be created would be less than the population growth, especially in developing markets." He urges Global South governments to prioritise societal benefits, potentially adopting Switzerland's universal basic income to mitigate job displacement.

AI in Five Words

When asked to describe AI in five words, Vashishtha quips: "Scary, Essential, Possibilities, Here and Now, and Need for Social Security." This encapsulates AI's transformative potential, its relevance, and the urgent need for societal safeguards to address its impact on employment.