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How Businesses Are Using Artificial Intelligence To Make Better Decisions



It is likely that even without knowing it you have
already experienced some of the benefits of Artificial
intelligence (AI). This technology is present in our daily
lives in the shape of voice assistants, face recognition to
unlock a cell phone, navigation systems, and video games,
just to name a few. Taking that into account, it is no
surprise that the power of AI has also reached the
analytical world, where multiple
business intelligence tools offer this technology
through a range of features that enable companies to make
better decisions and automate multiple managerial tasks.
Here we tell you how.

For decades now, human judgment
and intuition have been the main driver of decisions in the
business landscape. However, with the amount of data being
analyzed growing exponentially, the possibility of human
error becomes a latent threat. AI-driven decision-making
assists businesses in making faster and more accurate
strategic, operational, and tactical decisions without the
risk of human error or biases that can affect the human
mind. By putting AI systems as the main processors of large
amounts of data, companies can extract accurate insights
from their information and make more consistent and
objective decisions such as the inventory that should be
sold, which financial investment is best to make, or even
which ad is most effective based on the audience.

Due
to their intelligence level, AI models can work on real-time
data to make accurate predictions and recommendations. For
example, an AI-based algorithm can analyze customers’
purchasing data and automatically suggest related products
to recommend to a customer and increase purchases. On the
other hand, natural language processing technologies powered
by AI, enable businesses to analyze the sentiment behind
social media comments and answer accordingly to boost
engagement.

That said, there are three main areas in
which AI is being used by businesses, let’s look at each
of them briefly:

Assisted intelligence: This area is
placed at the lower end of the AI spectrum as it is used to
automate simple tasks in business operations that need to be
performed faster and more cost-effectively. These are often
well-defined and repeatable tasks such as assembling lines
in a production plant or collecting data to generate
reports.

Augmented intelligence: On the other hand,
augmented AI goes a step further from automating a
repeatable task to proposing new solutions and augmenting
human capabilities. It does this with the help of
machine-learning technologies, natural language processing,
predictive analytics, and neural networks that learn from
human input to propose accurate solutions. Humans then use
this information
to make decisions such as predicting customer
preferences by identifying trends in the data and offering
targeted services and experiences.

Automated
intelligence: The most advanced form of AI, automated
intelligence relies solely on machines, bots, and systems to
act on their own without human intervention, for example,
autonomous cars. However, there is still a lot of ground to
be covered in this area and it is not always considered a
great asset in all industries, especially in the ones where
the best outcome is harder to quantify. In most cases,
businesses use fully autonomous technologies as
“consultants” with the final decision relying on
humans.

All the aforementioned points do not mean that
human judgments should be completely removed from the
analysis process. While having automated data processing
saves businesses a lot of time and money, there is a wide
range of decisions that need to rely on more than just
structured data.
Factors such as market conditions or company values are
things that affect the decision-making process and that AI
systems cannot process. This, paired with the fact that
ensuring security and reliability in AI systems requires a
lot of effort, makes it fundamental to complement both human
and machine processing to make the decisions that will lead
the business to grow. Just analyzing the data is no longer
enough to set yourself apart from competitors, organizations
that rely on advanced technologies like AI are set to
skyrocket their
performance.

© Scoop Media





 



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