Harnessing AI’s True Power: Lessons from the Mobile Revolution

Starbucks and the Mobile Revolution: A Glimpse into AI’s Promising Journey Ahead

Back when we started Urban Airship, mobile apps were a bit of a novelty. The first mobile apps, especially for big brands, weren’t especially thought out and most importantly they didn’t lean into what made mobile special.

The first version of the Starbucks app really just had a listing of their menu and the ability to download the “Pick of the Week” (a totally different post altogether but that was a WILDLY lucrative music deal for Starbucks). Arguably they were way ahead of their contemporaries. Retailers maybe had novelty or promotional apps that were one-offs. Maybe a game or something related to a holiday. They didn’t take advantage of the fact that they were getting real estate on one of the most important places a brand can land; a consumers pocket.

It’s easy now to look at ubiquitous touchless payments or geo-located notifications but when the iPhone came along, those were only potential twinkles in the eyes of developers.

The first time I really “got it” is when I met the mobile team at Starbucks. First of all, it was a team. Usually it was some pour soul that had been tapped with “mobile” in a do-or-die kind of scenario. “Go figure out mobile” is a tough edict to take on alone.

Starbucks was thinking about mobile from the core strengths of the device. It knows your location, it can do payments, you can have user information and preferences on it and it’s with you everywhere you go. The ultimate loyalty card was now riding along in everyone’s pockets. Starbucks focused heavily on changing not just how their app worked but how their entire business process worked. From in-store POS decisions with scanners that would work on touch screens to stored-value directly in the app. These took time and were fundamental shifts in the way that companies thought of mobile.

AI is going through something really similar, although I would argue it’s happening at a much faster pace.

The first wave of novelty apps and companies are almost parlour-trick like. You can’t build a company on a parlour trick.

Companies that are leveraging AI need to use as their north star the key elements of AI that differentiate it and what will ultimately change how business is done. These are changes that are fundamental in nature and honestly, I’m still not even sure what they are yet. This stuff is always clear in hindsight. However, here is my take on the specific strengths of AI that companies need to lean into:

1. Predictive Analytics: AI’s ability to sift through vast amounts of data and identify patterns is unparalleled. By leaning into predictive analytics, businesses can anticipate market changes, customer behavior, and even potential risks.
2. Natural Language Processing (NLP): AI’s capacity to understand, interpret, and respond to human language enables chatbots, automated customer service, and other intuitive interfaces. Embracing NLP means businesses can scale their interactions without sacrificing personal touch.
3. Automation: Beyond simple repetitive tasks, AI can automate complex processes, from financial analysis to creative content generation. Companies that invest in automation not only increase efficiency but also free up human resources for more strategic tasks.
4. Personalization: In the age of information, consumers expect tailored experiences. AI can analyze individual behavior, preferences, and histories to offer hyper-personalized experiences, products, or services.
5. Decision Optimization: AI systems can be trained to make decisions in scenarios with multiple variables, often achieving results humans might overlook. This strength can be vital in areas like supply chain management or financial trading.

The horizon of AI is vast and dynamic. Just as the post-iPhone mobile revolution reshaped our world, AI is poised to redefine myriad facets of business and everyday life. Businesses that can identify and harness the core strengths of AI today will be the trailblazers of tomorrow. The question isn’t whether to lean into AI, but how and how quickly. Embrace the change; it promises a future full of potential.