The use of artificial intelligence in business continues to evolve as massive increases in computing capacity accommodate more complex programs than ever before. Decision intelligence, the intersection of technology and business needs, helps companies think on a global scale and react faster than ever before.
Growing use of artificial intelligence to help make decisions characterizes both small and large businesses, but there are plenty of companies not yet taking advantage of AI.
The possibilities of data-driven AI are no longer reserved for top-end companies with massive budgets or technology companies with specialized knowledge. Anyone can take advantage of this growing field by teaming up with the right group of data scientists.
Predictive vs. Prescriptive Analytics
One of the biggest areas of growth in the past two decades is prescriptive analytics, which tells companies what they should do in response to given data and parameters. This application of AI requires complex programming and a huge amount of data, but it can give incredibly accurate results.
Predictive analytics, which predicts what will happen to a company or what will occur on a given market, also plays a role in decision making. Making the leap from predictive to prescriptive analytics allows artificial intelligence to help make decisions.
The Role of Computers in Business
Any organization can use cost-benefit analysis with AI decision-making algorithms to decide the best course of action for maximizing profit or managing revenue effectively. Computers can handle a larger number of variables than the human mind can, so AI offers insights left out of purely human decision-making techniques.
Humans still need to sign off on computer-generated decisions, especially in the presence of brand new information that the system hasn’t had time to learn yet. Businesses can use mobile business intelligence to allow employees to access data and make decisions on the go. However, with the huge advances made in AI in the past twenty years, human decision-making is likely to be more flawed and vulnerable to bias than AI decision-making.
Top-tier knowledge intelligence systems also serve as the backbone of the broader realm of AI in business and marketing. Every decision-making system relies on AI that understands concepts instead of simply storing data.
AI can attain human-like understanding with machine learning and the right input from data scientists. Machine learning gives AI feedback in response to false positives or negatives that occur in the decision-making processes.
Applications Across Industries
There is a huge range of potential applications for artificial intelligence that vary depending on the industry. It’s already common for financial institutions to use decision intelligence to process credit applications, including applications for mortgages and car loans. Artificial intelligence can use a customer’s credit score, income, and other information to instantly decide whether the client is eligible for certain goods and services.
A financial institution can also use decision intelligence to decide where and how much to expand physical branch locations. This AI could use information like projected growth, existing locations, and customer intelligence to generate a proposed list of locations that are likely to maximize return on investment.
Retail companies can use decision intelligence to decide how much inventory to purchase and when to order it. Any service or retail business that relies on marketing can use AI to decide how much to invest in marketing channels, including internet, TV, and radio ads.
Retail companies can use decision intelligence to decide how much inventory to purchase to satisfy optimal safe stock level, and when to order it to ensure just-in-time warehouse management based on demand forecast. Any service or retail business that relies on marketing can use AI to decide how much to invest in marketing channels, including internet, TV, and radio ads.
Oil and gas companies and even healthcare organizations can use AI to decide when to restock materials and goods, as well as how many staff members to assign to certain shifts. The potential uses are limitless and can be tailored to fit large and small organizations in any industry.
Computer systems are designed by humans and are sometimes flawed. Our ways of thinking about, processing, and storing data are inherently subject to biases, which can affect the conclusions our programs draw.
Humans may oversimplify programs or omit contextual data on the assumption that it isn’t useful, inadvertently cutting out the information necessary for the programs to make valuable decisions. Fortunately, data scientists and programmers have worked hard to design systems and ways of thinking about data that have largely overcome these issues.
Innovations like data lakes and cloud computing can store more data than ever before, allowing big data analytics and artificial intelligence to provide better results and avoid oversimplifying data. Best practices for data management and analysis are continually improved and refined as more and more businesses take advantage of this technology.
The Role of Artificial Intelligence in Decision Making
Businesses and organizations of all sizes have unmet potential often overlooked by human eyes. Artificial intelligence creates a new frontier across industries, and executives should strive to be on the cutting edge of using AI in their decision-making processes.
Syntelli Solutions is a leader in AI and applied decision making for a variety of industries, including healthcare, financial services, and manufacturing. Our data science solutions can provide you with the tools you need to identify your organization’s best options for succeeding. Contact us today to learn more about our customized solutions.
For more information and if you have any additional questions, please feel free to reach out to our experts at Syntelli.
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