What Do You Mean By Artificial Intelligence Decisions?
When to Use AI for Decision-Making?
Although waiting for the right time to apply AI in decision-making is not advisable, two factors impact this: time and complexity. Time is the interval between when your company finds a problem and when it takes corrective measures.
And it might be milliseconds in the case of stock trading decisions, months for employee pay decisions, and even years in the event of a strategic merger. In terms of complexity, it can range as follows:
- Simple: When the situation is stable and predictable. E.g., payroll processing.
- Complicated: When the situation needs experts to solve a problem. E.g., problem-solving.
- Complex: When the situation necessitates intensive analysis to solve problems involving several parties and dependencies. E.g., meltdowns in the supply chain.
- Chaotic: When the situation requires learning by doing, decision-making is quite challenging. E.g., natural disasters.
To evolve through time and move along the complex path AI is an intriguing choice for businesses worldwide.
How AI Helps Make Important Business Decisions?
Plan Marketing Initiatives
It takes work to define consumer requirements and align your business offerings accordingly. Luckily, AI helps predict consumer habits, which aids in critical business decisions.
AI-enabled algorithms, for example, collect data from your target audience’s browsing history, read the data, and generate meaningful insights. You can design promotional strategies such as remarketing campaigns based on the insights.
Manage Company Relations
Using a CRM solution, you can strengthen your company’s interactions with customers, vendors, and other stakeholders. You only need to feed the tool with relevant data, and AI will handle the rest.
You could, for example, use AI technology to record and analyze customer encounters. Later, you can enter this info into the CRM to obtain reliable insights. It may, for example, advise the sales staff to deliver customized messages to clients at a predetermined time.
Send Recommendations
A recommendation system powered by AI assists you in suggesting a product or service to your consumers based on their interests and preferences. This is made feasible by the direct and indirect feedback that an AI-enabled program reads and interprets. It enables your company to create customer-specific initiatives, such as remarketing campaigns, while lowering the churn rate.
Is AI Becoming Smarter Than Us in Decision-Making Process?
AI offers impeccable observations into every aspect of the company, including finance, accounting, marketing, and customer service, among many others. It analyses millions of data points, discovers patterns, and links them. All of this is humanly impossible. Apart from that, AI does not have sentiments; hence there is no bias.
However, there are better business decisions than entrusting everything with automation. This is because AI makes recommendations that may or may not be feasible for a firm to implement since numerous factors must be considered. The human touch is always vital in business.
For instance, AI proposes that your company keep less stock to cut warehouse costs. You should only consider doing so if there is no risk to the supply chain and your customer gets prompt delivery. Otherwise, the extra storage costs would be worth it rather than losing customers or being unable to fulfill orders.
The point here is that AI helps analyze data and provide insights. However, the ultimate decision should be yours, as AI is still less intelligent than humans.
