For a modern business, data can serve as a springboard toward success. With a practical approach to data collection and analysis, you can learn more than ever about your customers, business operations, strengths and weaknesses, and so much more – and even better, use these insights to power more effective decision-making.
However, this access to a vast wealth of data has presented a new challenge: how can we possibly process such a massive amount of information?
The answer lies in artificial intelligence decision-making, which leverages AI technology to boost the speed and accuracy with which data can be used effectively. AI decision-making essentially eliminates the obstacles of human error and limitations on time, empowering businesses to redirect their efforts elsewhere – while still reaping the benefits of data-driven action plans.
So, it should be no surprise to hear that savvy businesses have wasted no time recognizing AI’s potential in decision-making. In fact, 66% of leaders report that AI technology is currently allowing their businesses to elevate profits and successfully achieve their goals. And as a pioneer in the field of AI, Susan Sly is among the industry’s top proponents of the benefits of AI for business growth and success.
In this guide, we’re answering some essential questions on the topic, including:
What is artificial intelligence decision-making?
How does AI decision-making work?
How will AI impact business operations now and in the future?
Artificial intelligence (AI) decision-making is a practice in which data processing is completed by an AI platform (either partially or in full) rather than a human. Using AI technology, this approach quantifies data in order to implement a more accurate means of predicting trends and outcomes, as well as making more effective decisions.
In AI decision-making, time-consuming and complex tasks such as trend spotting, data crunching, anomaly detection, and analysis can be completed by the platform. From there, a final decision can be made by either a person or the automated solution.
It is expected that about 70% of businesses will be utilizing at least one form of AI technology by the year 2030, with roughly 50% of all large companies implementing a full range of AI solutions in their operations (McKinsey). Not only will this shift lead to increased revenues and profits, but perhaps more importantly, it will also prevent businesses from being buried by the sheer volume of data they now have access to. Thanks to AI, that data can now be a catalyst for actionable strategies and tangible outcomes, spanning business operations from demand planning to marketing and beyond.
Let’s take a closer look at some practical applications of artificial intelligence in business decision-making.
Various aspects of business operations are based on a steady stream of heterogeneous data, including payrolls, financial reports, employee productivity analyses, and more. AI can manage these routine administrative tasks, improving efficiency and equipping employees with the space to make quick, more relevant decisions.
Additionally, AI can be useful in situations involving clearly figured data that require a single set of indicators and parameters that have yet to be established. Businesses still need to find ways to process this unstructured data, and AI fulfills that need impressively well.
In the big picture of business operations, AI makes it possible to take a data-driven approach that uses business intelligence to its fullest potential.
AI isn’t limited to decision-making; it can also be an outstanding resource for solving complex, multi-layered problems as well. Your AI solutions can be as powerful as the data you have and the process orchestration you implement, offering up possibilities many businesses have not yet realized.
For example, let’s say a company is considering creating a new product that will be used to target a new market. In order to progress from an initial concept to the launch campaign, the company will be faced with dozens of decisions. At various stages throughout the process, the company will also need to optimize, prioritize, experiment, forecast, and analyze, completing a myriad of tasks along the way.
With AI technology, a business can amass enough data to conduct an interdisciplinary study that grants access to insights about product development, marketing, and more. In addition, AI offers a method for optimizing a multitude of predictions and improving risk management. All of these factors contribute to a smarter approach to tackling even the most complicated of problems and tasks.
AI can also prove useful in managing customer service, personalizing communication, and understanding customer behaviors, trends, and patterns.
One example of AI in customer service is the use of speech recognition technology, which can be used to deliver an automated – but high-quality – experience for customers in need of support. For businesses, artificial intelligence is a tool for automatically recognizing and profiling prospective, new, and existing customers alike. As a result, it becomes far easier to predict new customer behavior, thus improving strategies for attracting them.
The concept of performance is most often discussed in the context of employee performance, but it can also apply to the efficacy of various strategies (such as marketing campaigns). In both arenas, artificial intelligence can dramatically reduce human biases and potential error, preserving the integrity of performance evaluation as a whole.
AI solutions can propose new tactics, make performance data more transparent, and provide the detailed information needed for human decision-makers to make the most of their efforts.
AI platforms are not necessarily smarter than their human counterparts, but they are generally more efficient. And because they can comb through and process an incredible amount of data in a short period of time, AI solutions are often far better informed.
What’s more, AI operates freely from any sort of cognitive bias. Humans are susceptible to dozens upon dozens of varying cognitive biases, which can significantly impact our decisions without us even realizing it. Even the most intelligent and skilled individual is naturally affected by these biases – because, after all, we are all only human. Unfortunately, cognitive biases can be detrimental to businesses in a myriad of ways. Therefore, AI decision-making can be an excellent option for avoiding these common pitfalls.
Another critical advantage of AI is its ability to constantly learn, independently “teaching” itself through the process of making data-driven decisions. On an ongoing basis, AI is capable of training itself and utilizing data collections to construct models that are exceptionally good at making solid predictions and categorizations. These models can also be used on live data, equipping businesses with an invaluable capability to make predictions, recommendations, and categorizations in real time.
Generally, experts agree that there are better ideas than completely cutting out the human element. Instead, processes that combine AI and human intelligence are gaining momentum as the ideal solutions for a broad range of business needs.
Many businesses are discovering that AI is a tool that allows their human employees to maximize their creativity and innovation in new ways. So, rather than eliminating humans’ role in decision-making, AI actually appears to be the key to making the human role stronger and more valuable than ever before.
When implemented effectively, AI for decision-makers can be an absolute game-changer. From streamlining vital processes to elevating accuracy and consistency, there is no question that AI may become one of the greatest modern business assets of our time.
If you’re interested in learning more about AI in retail and other industries, contact Susan Sly today.
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