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Role of Artificial Intelligence in Decision Making

Artificial intelligence is the trending buzzword in the corporate sector that is helping businesses grow tremendously. Thanks to its incredible potential to draw accurate, reliable, and valuable data. Such a potential furnishes a company with meaningful insights based on which it can make essentially strategic business decisions. 

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It would not be a stretch to say that AI is now driving your business decisions. According to Grand View Research, the global market for this advanced technology is estimated to reach USD 390.9 billion by 2025. 

Data contains essential information, making it the backbone of any organization. Companies must thus incorporate artificial intelligence into their business operations to interpret data and make better decisions. Let’s gain more clarity on how AI helps in decision-making. 

What Do You Mean By Artificial Intelligence Decisions? 

The corporate sector is highly competitive and constantly developing, producing massive amounts of data. People or even a large team cannot analyze this data quickly and accurately. 

If your company draws conclusions based on traditional data collection and interpretation techniques, the decisions will likely be risky, inconsistent, non-scalable, and generic. Thus, you must consider resorting to AI decisions. 

According to Gartner, the business decisions taken are 65% more complex. So, using artificial intelligence to prevent making terrible decisions and speed up decision-making is crucial. 

AI uses modern technologies such as machine learning, natural language processing, computer vision, and more to evaluate enormous data sets in seconds and make risk-free decisions that drive company growth and profitability. 

When to Use AI for Decision-Making? 

Although it is not advisable to wait for the right time to apply AI in decision-making, 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? 

Your organization must ensure that your AI technology and human resource team collaborate to make the best judgments on essential business matters. AI’s job is only to evaluate large amounts of information and discover real-time trends. What data goes in and where you use AI can significantly impact its importance. Hence, before jumping on the bandwagon, it is best to connect with an AI consulting company specializing in AI technology solutions. The AI consulting service provider will be able to help you with everything to help you get started with leveraging the benefits of AI in decision making. 

Also read: Why Every Company Needs Artificial Intelligence Strategy Consulting

Ultimately, it is your responsibility to examine the AI-furnished data and external circumstances to make creatively guided opinions. Here are a few ways illustrating how combining AI and the human brain leads to the best non-regrettable business decisions. 

Plan Marketing Initiatives 

It is hard 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 Customer Relationship Management tech 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. This enables your company to create customer-specific initiatives such as re-marketing 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, entrusting everything with automation is not a wise business decision. This is because AI just makes recommendations, which 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. 

Let’s say AI proposes that your company keep less stock to cut warehouse costs. You should only consider doing so if you are sure there is no risk to the supply chain and that 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 not smarter than humans. 

Conclusion 

To summarize, AI does not make decisions; your business leaders do. However, AI contributes to the process by establishing a reliable and valuable premise. It helps your company in making sound judgments that will propel it forward. Now is the time to start if your firm isn’t utilizing this cutting-edge technology. However, not all AI strategies work well. Hence, it is advised to seek help from an AI consulting firm to help you implement the technology for the best possible solution. 

You can request for consulting to determine which AI technology suits your company. It has experience working with hundreds of clients and successfully handling varied business challenges by consulting the best technology solutions to businesses across all industries. 

Given the competitive environment and ever-changing business trends, arm your company with the necessary technology tools before it’s too late! 

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