Would we leave a crucial decision for our lives in the hands of AI? This same existential doubt applies to the business world. Can organizational leaders consider AI as a decision-making ally? The answer is “yes, absolutely. However, before stepping down this path, there are a few cautions to be taken. Because just as AI brings enormous benefits, it also carries some risks.
From a purely technological point of view, AI has already amply demonstrated its ability to analyze large volumes of data and information. Using machine learning models, it can detect patterns and anomalies in large volumes of information that are completely invisible to the human eye. This allows them to generate highly personalized recommendations, predict events and anticipate behaviors.
At the same time, as mentioned, its use carries some implicit risks. Perhaps that is why, according to figures from the World Economic Forum, only 7% of companies use AI to make strategic decisions. This tends to change rapidly. The same report indicates that for 75% of leaders, AI is the factor that will differentiate companies from their competitors.
Benefits of AI-based decisions
AI-based decisions generate significant benefits in organizations. Among them:
- Higher levels of speed, accuracy and objectivity in their data analysis capabilities.
- Identification of complex patterns, such as relationships and trends that might go unnoticed by other analysis mechanisms.
- Reduced operating costs and better risk management. The latter is achieved through its ability to design hypothetical scenarios and assess associated risks based on the analysis of multiple factors.
AI as an enabler of human beings
The use of AI is increasingly common in various industries. Its massification should not make us lose sight of the most important thing: it is, above all, a tool that helps to capitalize and maximize efforts.
This is because one of its main characteristics is to use algorithms to perform classifications and analysis for problem solving. With the maturity of generative AI, it can now receive instructions and return answers in natural language.
However, its goal is not to replace the value or knowledge of human beings. On the contrary: with the support of AI, people enhance their capabilities and improve their performance and expertise. AI-based decision-making strategies should be based on this principle.
The cost of a bad decision
The prestigious business and strategy information source HBR (Harvard Business Review) estimates that poor decision making costs companies on average 3% of their profits.
However, the difficulties are not limited to the financial. A bad decision can also have implications that impact relationships with customers and suppliers, affect the reputation of the organization. or generate environmental problems.
This is why it is so important to have an expert technology partner to drive AI projects. In particular, Nubiral has a center of excellence (CoE) specialized in generative AI, which allows to obtain the maximum benefit from this technology while minimizing risks.
Guidelines for making safe AI-based decisions
In general terms, and without losing sight of the fact that AI is a technological development that is constantly evolving, these are some of the risks that companies should consider:
- Avoid leaking personal or other data that could compromise people’s privacy.
- Consider that there has been an increase in cyber-attacks or situations that may compromise IT security.
- Take into account the information bias, which occurs when exposed to the same ideas, news and facts.
- Invest in training and specialization of personnel. Lack of knowledge and experience in teams, can expose the organization during the use of technology.
- Assess the availability of data. If they are limited, it will not be possible to find the patterns and relationships that allow the systems to make accurate decisions.
Conclusions
Based on the above, we can state that the benefits of AI to support business decision making outweigh the risks.
And better yet, with proper attention and with the support of a technology partner, those risks can be reduced to a minimum.
Fears and uncertainties surrounding AI-based decisions should not stand in the way of companies extracting value from this technology. This is also making a smart decision.
Interested in getting our support for your organization’s AI project? Our experts are waiting for your call: Schedule a meeting!