AI saviour in times of crisis for businesses: RMIT

Several studies and experiments have hinted at AI’s power in crisis management. AI can predict market fluctuations with a 70% accuracy and “foresee” the risk of a crisis 2.4 days in advance, writes Dr Bui Quoc Liem, a lecturer in professional communication at RMIT University Vietnam.

Several studies and experiments have hinted at AI’s power in crisis management. With its superior features, AI tools can help businesses detect a crisis early, provide quick response actions based on data, and restore confidence post-crisis.

The ability to detect early crisis signals is one of AI’s outstanding strengths. By using social listening tools, AI can analyze keywords, comments, and posts on platforms such as Facebook, X, TikTok, and Instagram to recognize negative changes in public sentiment.

According to a survey by Social Media Today and Meltwater in 2022, 61% of global businesses deployed social listening systems. Another study stated that 80% of tweets about customer service are of negative nature, highlighting the significance of continuous monitoring.

In emerging countries, AI can be especially helpful for retail businesses to track customers’ responses on social media. When the system detects an influx of complaints about product quality, AI immediately sends a warning, allowing the business to handle the issue before the negative information spreads. This timely intervention can help minimize damage to reputation and maintain customers’ trust.

AI not only helps detect a crisis but also assists in deep analysis and quick response. With the ability to process real-time data from many sources, AI can evaluate the impact of a crisis and propose a relevant communication strategy.

Case in point: the development of a smart bot with Azure AI Studio and GPT-4 helped cut the waiting time in emergency situations by half, thus reducing the overall reaction time.

AI’s ability to respond quickly is also significantly helpful when businesses need to make timely decisions, such as drafting official announcements or adjusting messages on communication channels.

For instance, when facing a communication incident related to food safety, a food business can use AI to analyse data from negative reactions quickly, identify major causes, and provide an apology with a recovery plan. Thus, the business can both control the crisis and decrease the impact on its brand image.

Restoring customers’ trust post-crisis is a top priority. Here, AI supports businesses in personalizing messages, adjusting content relevant to each group of customers based on psychological analysis.

AI application is becoming a priority in the business plans of many businesses. AI can also create personalized experiences for customers, helping to increase customer retention rates to 44% (according to Statista). This shows the big potential of AI in promoting growth and improving business efficiency, thus rebuilding relationships with customers post-crisis.

In practice, retail businesses can use AI to send recovery messages after a product quality scandal. AI can analyze data and send personalized emails and messages to the affected customers, together with apologies and special offers. By doing so, businesses can regain confidence and increase engagement with customers. Practical AI tools for crisis management

Today, many AI tools have found wide application in crisis management, such as Brandwatch, Meltwater, and Sprinklr. These platforms allow businesses to monitor social media, analyze sentiments, and automate feedback. According to Social Media Today and Meltwater, 82% of marketers consider social listening a key planning element in their strategies thanks to its abilities to detect crises early and provide detailed information on public sentiment.

Small and medium-sized businesses can start with simple tools such as basic analysis software, while big corporations can invest in comprehensive solutions to manage crises more effectively. Choosing a suitable tool relevant to the business’s scale and budget will optimize the benefits that AI brings.

In the future, AI will continue to develop with the ability to predict public behaviour more accurately thanks to its integration with blockchain technology and IoT. According to Statista, the market value of AI in marketing can reach $107 billion in 2028, reflecting the big potential of this technology. However, ethical issues such as privacy and transparency in data usage need to be addressed.

AI has been asserting its important role in crisis management, from early detection, data analysis, to personalised communication. With the potential to minimise risk, save costs, and increase resilience, AI is key to helping businesses compete in the digital age. In order not to fall behind, businesses need to invest in this technology, get ready to cope with all challenges, and turn every crisis into a growth opportunity. AI is not only a supporting tool but also a “saviour” in modern crisis management.