If you’ve been reading business news, looked up business-related courses, browsed the business videos, subscribed to business and econ journalists, etc. you have undeniably been bombarded by tech and, more specifically, AI-related pieces and articles. So, why has AI and machine learning become such buzzwords? Are they that impressive? Should you think about implementing it in your business? This article will answer all these questions.
Business decision making is one of the hardest and most complex jobs out there. Analyzing aspects of the business, deciding which products/services are duds and which are successful, drawing up far-sighted plans that ensure the success of the business – each one of these tasks is immeasurably complex. This is one of the reasons why good CEOs receive such attractive compensation packages.
AI and ML algorithms are exceptional in helping you collect, clean, and analyze data at a scale never possible in human history. What possible piece of data can help you make more informed decisions as a business manager? Chances are these algorithms will help you collect it. This leads to better decisions on average in companies that use AI.
Smartly-coded artificial intelligence algorithms can do amazing things: we are almost near getting self-driving cars due to advancements in AI. Although technology is still not ready to hit the road, AIs are capable of many amazing things already: voice recognition and transcription, classification of various objects, basic manufacturing, and much more. By using AI you can automatize key processes in your business and increase productivity.
An amalgamation of the first two points, if used judicially, AI can help you optimize your business processes to unprecedented degrees and increase your profit margins.
- You can use ML algorithms to analyze when is the best time to show potential clients ads and do so to maximize ROI.
- You can use AI algorithms to learn how to optimize the layout of your business to drive the most sales.
These are just two basic examples of hundreds of innovative ways you can use AI to increase revenues.
Although AI algorithms can do amazing things, this might lead to an overreliance on the data they provide, which has a lot of negative consequences. Especially when it comes to machine learning and big data, it is very hard to design competent and reliable algorithms. Using unreliable algorithms and feeding it garbage data will result in these algorithms being virtually useless. If you keep relying on their data and taking it as fact, your business will ultimately suffer. That’s why it is so important to make use of machine learning consulting if you’re not experienced in tech and AI.
Many people misunderstand how stats and probability works, and as AI algorithms and data analyses mainly work in these areas, it can cause people to misunderstand and misuse the algorithms leading to miscalculations. If an AI algorithm reports that an event has a 20% chance of happening, most inexperienced business managers will think the event is highly unlikely due to a misunderstanding of how probability works. If you’re one of these people, having the data could prove more damaging than not having it.