How Artificial Intelligence Is Simplifying Business Decision Making?
Technology in 2019 is moving with the speed of light. Immense breakthroughs in the field of deep learning and machine learning have allowed machines to process and analyze information in ways that we could never have imagined.
The role of Artificial Intelligence (AI) is noteworthy in this regard. One definition of AI is that it is “a collective term for computer systems that can sense their environment, think, learn, and take action in response to what they are sensing and their objectives.” This makes it a powerful tool, which when used the right way can radicalize decision making and completely changes the way we do business. This article discusses how AI achieves that.
AI – A Boon to Business
AI includes the automation of cognitive and physical tasks. It helps people perform tasks faster and better and make better decisions. It enables the automation of decision making without human intervention. AI can enhance automation thus reducing intensive human labor and tedious tasks. There are many more ways in which AI is making a difference. With smart weather forecasting, for example, AI is bridging the gap between data scientists and climate scientists. This gives companies the opportunity to fight disaster with algorithms.
The world is about to witness a great impact of AI on the economy and humans. According to McKinsey Global Institute’s research, AI could deliver an additional output of $13 trillion to the world economy by 2030, which would boost global GDP by nearly 1.2 percent a year. Acting as a capital-hybrid, AI can aid the growth of both the economy and humans. It will definitely have a revolutionary impact on the decision-making process.
AI the Game Changer
From tarot cards to time machines and more, the quest of man to know the future has been relentless. The ability to make decisions based on a knowledge of the outcome is no more fantasy, however. AI has brought this to the realm of reality and has revolutionized business decision making.
In the recent past, we have embraced analytics-driven decision making. Along with ever-increasing data storage and computing power, AI has the potential to augment human intelligence and enable smarter decision-making. AI could eliminate the huge costs of a wrong decision because it can practically eliminate human biases and errors. This could in turn speed up the decision-making process. The focus of the next few points is to highlight the ways in which AI can make a difference in business.
1. Marketing Decision-Making
In today’s customer-driven market complexities involved in decision making is increasing every day. This includes understanding customer needs and desires and aligning products to those needs and desires. A handle on changing customer behavior is vital to make the best marketing decisions.
AI simulation and modeling techniques provide reliable insight into the consumers’ persona. This will help predict consumers’ behavior. Through real-time data gathering, trend analysis and forecasting, an AI system can help businesses make insightful marketing decisions.
Organizations can identify a consumer’s lifetime value with the help of AI’s buyer persona modeling. It can help organizations manage multiple inputs. During a complex decision-making process, AI can efficiently manage and control different factors at the same point in time. It can source and process large amounts of data within minutes while providing valuable business-based insights. While we humans face decision fatigue, algorithms do not have such limitations, which make AI-based decisions faster and better.
3. Recommender System
Recommender system (engine) is a technology that recommends products or other items to users. Although recommendation systems were initially used for music content sites, now it’s used has expanded to various industries. In this, an AI system learns a consumer’s preference based on ‘explicit’ or ‘implicit’ feedbacks. This information can help the organization reduce bounce rate and craft better customer-specific targeted content.
4. Problem Solving
An expert system is a kind of problem-solving software which tries to replicate the knowledge and reasoning methods of the experts. This system uses expert thinking processes to provide data, which includes assessment and recommendations for your problem. This makes it easier to make the right decision and respond swiftly when faced with issues and problems.
5. Opinion Mining
AI has been able to provide reliable insight to decision-makers. For example, in marketing, AI has provided businesses invaluable insight about consumers, which helps them enhance their communication with the consumers. It also helps retailers predict product demand and respond to it quickly.
To that end, opinion mining helps businesses understand why people feel the way they feel. Most often a single customer’s concerns might be common among others. When sufficient opinions are gathered and analyzed correctly, the information gleaned will help organizations gauge and predict the concerns of the silent majority. AI has improved this mining process through automation, which is quicker and more reliable, helping organizations in making critical business decisions.
6. Augmented Analytics
According to a recent press release by Gartner, Augmented Analytics is going to be the next big trend which will transform the way analytics content is advanced, expended and shared. VP analyst at Gartner, Rita Sallam said, “The story of data and analytics keeps evolving, from supporting internal decision making to continuous intelligence, information products and appointing chief data officers.”
Wise business decisions are made when business executives and decision-makers have reliable data and recommendations. AI not only improves the performance of both the individual members of the team but also the competitive edge of the business.
Make Bigger, Faster, Better decisions with AI
Common sense and experience are no longer enough to anticipate the risks and consequences of critical business choices. AI with its varied applications helps businesses make informed and effective decisions which will have a positive impact on their business.
Implementing AI in your business isn’t as tall an order as you may imagine. It can be incorporated with your existing business applications to enhance them and make them invaluable. To learn how your business can avail the best of AI, get in touch with our experts today!
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