Artificial Intelligence and Algorithms Simplify Decision Making3 min read
We can say that now we are at a turning point, when algorithms and artificial intelligence are beginning to be actively introduced into business and society as a whole. It is highly likely that this will significantly transform the decision-making process.
Data and Algorithms to Generate Competitive Advantage
The increase in the amount of data makes it much more difficult to process them and, as a result, make decisions, whether they are strategic decisions (for example, the decision to invest funds) or smaller everyday ones (where to convert the generated lead ). Unfortunately, not all companies use systems to process the collected data, let alone use them to make decisions and develop a strategy for competitive positioning. The use of data processing systems has a number of undeniable advantages:
- Decision-making speed: Artificial intelligence can find optimal solutions in an enterprise much faster than a human.
- Minimization of errors and the influence of the human factor: algorithms are not affected by emotions and impulses when making decisions.
- Increasing the coverage of analyzed data: for example, cross-analysis of data from geopolitical, economic and currency markets, social networks.
- Expanding perspectives: entering new markets and finding new opportunities has become possible thanks to AI.
However, the world is changing: it is likely that in the future AI will become ubiquitous and companies will be able to use it to analyze not only data, but also calculate possible scenarios and consequences and develop the best options for action.
Artificial intelligence vs business thinking for business: will the fittest survive?
Given the active development of AI, an important question arises: how strongly are business thinking and artificial intelligence interconnected? Won’t business thinking be devalued if companies place too much faith in the power of decision-making algorithms? Of course, business thinking will still have high business value, but it would be interesting to speculate about its value in the future.Comparing AI and business thinking is better in the context of business efficiency. For example, algorithms can outperform humans in managing warehouses, but only humans have the interpersonal skills needed to negotiate and communicate with suppliers and customers. Algorithms can make decisions at the level of the production process, but only a person can correctly select personnel.It takes years of study, training, personal development, and experience to acquire business acumen. In addition, only a person has motivation, leadership skills, ambitions. On the other hand, artificial intelligence learns and adapts much faster than humans. In fact, there is no reason to believe that one will replace the other. Rather, human and AI will be able to interact to improve the efficiency of the decision-making process.Here are some simple examples where AI and algorithms can be used in everyday life:
- business forecasting: analysis of sales, currency fluctuations, market volatility data, forecasting financial performance and further steps to achieve the desired result;
- sales management : using sales data, contact information, historical sales data, and social media data to plan next steps and expand sales opportunities;
- service optimization: using chatbots and natural language analysis to manage customer service and optimize workforce management;
- marketing and image processing: image recognition for social media ad placement decisions.
We are at a turning point in the implementation of algorithms and artificial intelligence. If you want a company to reach its maximum potential, you will need to implement the latest technologies and have a well-thought-out strategy for how to use these technologies in the right way.To learn more about how artificial intelligence can help your company with marketing and improve customer experience, contact our experts. We know how to integrate CRM solutions with your systems and improve business efficiency!