How Image Annotation Is Changing The Way Modern Businesses Function

Artificial Intelligence and Machine Learning are two technologies that have seen exponential adoption by businesses due to their many advantages. They are now crucial to keep a business afloat and spearhead it into the future while maintaining a competitive market edge. One of the biggest components of AI that businesses have found useful is Image recognition. It finds multiple applications across industries and increases accuracy, efficiency, and cost savings wherever used. 

Image Annotation

However, useful AI models for image recognition can only be developed through appropriate Image annotation. It is the technique for labeling different parts of an image so an AI/Ml model can learn to distinguish one object from another and later recognize it accurately in a random data sample. Its advantages are drawing in a lot of investment, with 2021 seeing USD 629.5 Million being poured into annotation tools. That number is expected to grow at a CAGR of 26.6% till 2030. That makes AI annotation inevitable for your business to stay footed in the market going ahead. 

Here’s how this technology is altering the face of modern businesses through its multi-dimensional applications across various industry domains. 

1. Security

Whether it is on-premises security or cybersecurity, AI is a game-changer. It has helped traditional on-site security evolve into identification through RFID cards, fingerprints, and other authentication methods. The advent of security cameras and laser iris scanners has added a new dimension to authentication: facial recognition. It is being taken further with AI by considering a person’s gait and thermal signature for authentication purposes. 

But, we need a high level of predictive accuracy to authenticate using these individual features. Image annotation can map the important points of a person’s face to store in the database. A short video of a person’s walk can provide many frames in which they can be annotated and fed into the system for recognition. Virtually, annotation helps recognize people and objects present in images fed to the system. Thus, with the help of annotation, the building and system’s security level goes up.

2. Supply Chain Management

A company’s supply chain is by far its most complex component that needs constant monitoring and upgradation to remain functioning. In a globalized world with businesses having different branches and suppliers present in different regions, this challenge becomes more difficult. Image recognition plays a big role in making each component function flawlessly. 

For instance, shipping codes can be annotated so that the company’s database will have the updated status of a piece of cargo the moment it is scanned anywhere in the world. The AI can be trained to recognize ships from live satellite image data so that your ship can be recognized in it. The same goes for recognizing particular vehicles from satellite or security camera footage/photos. Facial recognition can be used to identify the driver of the vehicle making the last mile delivery for added security. The possibilities are many. 

3. Contract Management

No matter the size, a company deals with many vital documents for its functioning. These include office space rent/lease agreements, employee-related documents, supplier/vendor contracts, maintenance services providers’ contracts, etc. These documents need to be digitized and kept for record. Image annotation can be used for the conversion process. 

It can accurately help the model recognize the text and other elements present in the physical document and accurately convert it to virtual ones upon scanning. It can even be used to verify if a signature is authentic or not. Its predictive abilities can be used when creating draft contracts based on already used ones. This helps save on time and cost while helping build trust between the parties involved. 

4. Advertisement and CRM

Digital marketing is offering unprecedented opportunities and challenges to companies. AI models play a key role here as they can be used to gauge customer response to the online presence of a brand/business. 

Through apps or other visual mechanisms, their facial expression and body language to that offering can be analyzed to understand how interested they are in that product or service. It can also be used to test an ad campaign's effectiveness in a test group. Such data will help improve marketing and CRM application usage for the better. 

5. Project/Product Management

Management of the end-to-end pipeline of a project/ product creation is riddled with challenges. Leaving any of them unchecked can lead to major issues down the line. 

Here, the application of AI models can be beneficial. The model can automatically check for adequate raw material by reading the labels of the supply crates in the inventory. 

It can be used to check for manufacturing defects during the testing phase so that problematic products are separated from the line with improved accuracy. The AI can recognize lines to be used by line tracing robots on an automated factory floor. Recognizing the movement of people there can help improve safety as well since the AI can direct the robots away from busy areas. Annotation is required to help AI recognize these and other aspects of a project/product management pipeline and enhance its lifecycle. 

6. Building/Premises Maintenance

Office buildings and factories are becoming smart today thanks to the implementation of the Industrial Internet of Things (IIoT). Multiple sensors and smart gadgets are integrated across the premises for multiple purposes, one of which is related to regular maintenance. Image annotation finds great importance here too. 

For example, an Artificially Intelligent system can check for cracks in giant containers used to store gasses if a sensor detects a leak. Such quick identification can help management personnel seal the crack easily before there is a greater loss of it. 

7. Medical Diagnosis and Treatment

The healthcare industry is making great strides in adopting AI. A primary reason for doing so lies in the automation capabilities of artificially intelligent systems. 

For instance, image recognition can be used to identify health issues for diagnostic purposes for a more accurate and easier diagnosis. It can also assist in the development of robotic surgery tools by recognizing the location and depth of the cut to be made. It can check and dispense correct medication in an automatic dispenser based on the face of a patient’s details. 

Image annotation is finding its use in the healthcare field more frequently with time because it saves resource time and decreases their workload while also maintaining healthcare standards. 

In Conclusion

The use of AI in multiple business scenarios will only increase with time. You must be prepared to tackle this transformation and make the necessary headway in market share and operational efficiency. Investment in Image annotation processes, either in-house or through an outsourcing agency, is the best path for you to become such a business and get the best ROI for high profitability.


The business world is undergoing a silent revolution with the help of AI and ML. These technologies have permeated every aspect of the business as they can help cut costs and improve the efficiency of multiple processes. But those advantages are only obtained if the AI/ML models are accurately trained to recognize the target object/subjects in visual data. Image annotation is the technique you should use to gain such models. This blog elaborates on how annotation applies to many facets of modern businesses and what benefits it offers. It can help you better implement your annotation adoption plan that can in turn give you greater profits. 


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