AI has influenced decision making in more than one way. It has simplified the process of assimilating and analyzing huge amounts of data and providing insights to the owners to keep up with the trends that continue to pick speed. It helps them look at the bigger picture so that they can make informed decisions. AI, if used the right way, can radicalize the decision-making process and change the business game. There are various artificial intelligence training courses available online.
According to Tech Pro Research’s survey, up to 24% of business owners already use or plan on implementing AI in their companies. In fact, statistics show that 54% of business executives say that using AI has led to a boost in productivity. AI’s ability to enhance automation and, in turn, reduce human labour has led to more and more businesses adopting AI in their workflows. Naturally, when the industry is growing at such an unprecedented rate, there is an increase in demand for well-qualified AI professionals. AI is a very vast topic and quite deep as well. You need to be thorough with its concepts before learning about its applications. Before entering the AI world, one needs to consider getting an AI and a Machine Learning certification.
Three recognized levels in the AI spectrum:
- Assistive intelligence: This is considered to be the most basic level of AI. It is used as a means of automating the simplest processes and tasks. Its main purpose is to improve things an organization is already doing. An example includes GPS navigation programs.
- Augmented Intelligence: This level of AI focuses on technology’s assistive role. This cognitive technology is designed to emphasize the fact that it just enhances human intelligence rather than replace it. Example: Online stores predicting customer’s preferences using data analytics.
- Autonomous Intelligence: This is the most advanced form of AI. In autonomous intelligence of AI, machines, bots and systems work independently with no human intervention. For example, self-driving cars.
Out of the three levels of AI mentioned, it is Augmented intelligence that helps in decision making. It gives us a chance to make more informed and data-driven decisions. It can transform the decision-making process and has, therefore, captured the attention of business leaders across many industries. Augmented intelligence helps by examining data to uncover patterns and correlations at scale.
In order to develop a future-proof analytics capability and approach to data-driven decision making, consider the following steps:
- Develop a bilingual talent to control a variety of expertise that supports an industry-led approach.Be open to change in order to ensure quick adoption of better ways of working.
- Develop white box algorithms that can identify issues if things aren’t working accordingly.
- Make sure your business strategy and technology is connected to ensure you have proper governance over your workforce.
Before the rise of AI and its many applications, business executives had to rely on incomplete and inconsistent data. But now, they have data-based models to turn to. “There is an immense opportunity to use AI in all kinds of decision making”, says PwC’s Rao. According to him, limitless outcome modelling is one of the breakthroughs in today’s AI systems. The next few points are going to highlight ways in which AI can make a difference in business.
1. Marketing Decision Making
Complexities in customer’s driven market are only increasing every day. This means you need to know what your customer really needs and desires and then align products sticking to those needs. AI techniques will help predict customer’s behaviour. Through real-time data gathering, trend analysis and forecasting, an AI system will help businesses make wise marketing decisions.
2. Customer Relationship Management (CRM):
AI within CRM systems sanctions its automated functions like data recording and analysis and data recording. You can predict a customer’s lifetime value with the help of AI’s buyer persona modelling. These features will allow sales and marketing teams to work more efficiently. During a complex decision-making process, AI can adeptly manage and control more than one factor at the same time. It can process huge amounts of data within minutes while providing important business based insights. AI-based decisions are much faster and better.
3. Recommend System
Recommend system, as its name suggests, is a technology that recommends products to users. These systems were first implemented in music content sites but now have been extended to different industries. The AI system learns a user’s preferences based on ‘explicit’ and ‘implicit’ feedback and then shows the content that fits those preferences. This can also help you to craft better-targeted content.
4. Opinion Mining
AI has provided businesses with valuable insight into their customers, which helps them enhance their communication with them. It helps retailers predict product demand and respond to it quickly. In this way, opinion mining helps businesses help why people feel the way they do. When enough opinions are assembled and analyzed correctly, the resulting information will help companies predict the concerns of the majority. This mining process has been improved by AI through automation, helping business executives make critical decisions.
5. Augmented Analytics
According to a press release by Gartner, Augmented Analytics is going to be the next big trend that will change the way analytics content is shared. Rita Sallam, the VP analyst at Gartner, said, “The story of data and analytics keeps evolving, from supporting internal decision making to continuous intelligence, information products and appointing chief data officers.” When decision-makers and business executives have definitive data and recommendations, good decisions are made. AI improves the competitive edge of the team.
FAQs on AI’s role in decision making:
Q1: How can AI help in marketing decision making?
Ans: Marketing decision has many complexities. You need to know and understand your customer’s needs and desires, and align the products accordingly. AI techniques provide reliable insight into your buyer personas. These techniques can further be used to predict consumer behaviour.
Q2: What is AI informed decision making?
Ans: AI informed decision making refers to decisions made independently by artificial intelligence. Most of these AI applications involve the application of machine learning algorithms to big datasets.
Q3: What is algorithm decision making?
Ans: Algorithmic decision making has the potential to introduce, amplify or discard discrimination. However, its ability to do so depends on the quality and representativeness of the data used by the algorithm. They are used in areas such as e-commerce, employment, banking and insurance.
Q4: Which factors may affect the fairness of AI decision making?
Ans: There are 3 main sets of factors influencing perceived fairness in algorithmic decision making and they are as follows: Algorithm Outcomes, Development Procedures and Individual Differences.