Leveraging the Transformative potential of Artificial Intelligence

Impact of Artificial intelligence

Every week we hear news reports telling that artificial intelligence is able to perform a job that humans do, but faster and better.The latest studies tell that AI is able to detect cancers, predict floods, analyze the facial expressions and tone of the candidates during recruitment process.From these studies, we can surmise that AI has reached a stage where it is increasingly making more complex and accurate decisions.
As AI technology evolves and when collaboration between humans and AI improves, there will be significant enhancements in creativity and innovation of humans and bots.AI has produced paintings, music and poetry of high quality.This leads us to believe that creative AI may be the next milestone towards Artificial General Intelligence that fuels engineering of multimodality and association learning resulting in the development of effective human AI collaboration process.
Neuroscientists and engineers are using AI to develop a system that translates thoughts into intelligible, recognizable speech.This could result in new ways for computers to directly communicate with brains to better understand both human and Artificial intelligence.
How can firms leverage AI to improve their business value?

• By leveraging data, AI can make accurate forecasts at fraction of human speed.AI can take over the repetitive and mindless tasks of humans to provide insights for better decision making in all areas of business from budgeting and allocation of resources to streamling supply chains and engaging customers using sentiment analysis and predictive intelligence. Organizations need to adapt their processes and business models to take advantage of AI capabilities.
• Companies have started to recognize the potential of AI and are in early stages to implement AI models in their businesses.Some companies are still figuring out how to use AI in their business.
• Investments in AI require time, money and efforts. Hence in order to reap the benefits of AI, companies need to devise solutions that suits their specific needs.
• Companies should understand that AI is not about replacing humans.It is about adding value and efficiency to operations by creating smoother, faster and more accurate processes.
• To assess the business value of AI, organizations must identify the technology benefits and cost even if it is difficult to quantify. The benefits can be ascertained by comparing the decisions that technology can automate with the way the decisions are currently being made.Some of the decisions that can be automated would be Procurement, Advertising and Investments.By putting a dollar amount in each decision, one can estimate the potential value the technology could create.
• The cost of implementing AI solutions can be identified by including the cost of technology, hidden costs like skills that needs to be developed, organizational changes required and any changes to the existing business models.

An holistic approach to implement Artificial intelligence

• The famous quote “IT plus an old organization is an expensive old organization” remains relevant even when investing in AI.AI requires an holistic approach where leaders need to foster technology skills, IT infrastructure and governance, data literacy, an innovative culture, adhering to best practices and align the technology to the needs of the business.
• Companies must consider new risks and liabilities that AI can create for the business – like discrimination, unfair decisions and unethical behavior, as AI is integrated into business processes, products and services.
• While AI has the potential to improve the performance of the organizations, it also presents ethical and legal issues that needs to addressed at the board level.

Identifying the quality of Artificial intelligence solutions

• How should we measure the quality of the existing AI solutions? Many vendors promise the sky when selling AI solutions which will sound too good to be true.At the same time, there are some benefits that AI provides which are radical.Hence it is critical to evaluate the quality of AI solutions.
• It is nearly impossible to judge the technicality of an AI solution but it is possible to evaluate the skills of the people who developed it.Companies can evaluate the sound data quality processes, applications of machine learning methods, adequate monitoring processes to ensure AI improves continuously and its behavior remains within acceptable limits.

Data Quality and Integrity in Artificial intelligence

• The accuracy of an AI solution depends on the integrity of the data it leverages.Companies hire data scientists and statistics experts to verify data quality and relevance when adopting AI technology. At the same time, the dataset which is right and relevant today need not be right tomorrow.
• Hence companies need to focus on both the data quality and quality of processes followed at the time of implementation.This will ensure that the data quality and its relevance are of high standard today and in future.

Conclusion

Firms looking to leverage the transformational potential of Artificial intelligence should remember that it is still people who determine the context in which the new technology develops and thrives
The advancement of AI will trigger irreversible changes that will reshape businesses as well as society.Early adopters of AI who have gained an understanding of how AI will add business value and then reorient their businesses to adapt to AI will have a first mover advantage.
Hence companies need to understand the capabilities, opportunities and challenges that AI brings, then reorient their business to develop the core skills and capabilities to leverage the transformative potential of AI.