Original article was published on Artificial Intelligence on Medium
How Artificial Intelligence helps to improve Decision Making?
With its incredible ability to analyze data for drawing valuable insights, AI is driving decision-making today. AI is now providing reliable and accurate insights to strategists and decision-makers. Here is complete information about how artificial intelligence helps to improve decision making. Read this now!
Artificial Intelligence has become the latest tech buzzword in the business space now. Artificial Intelligence has the incredible potential to analyze data for extracting meaningful insights that are useful for making important strategic business decisions. Businesses worldwide are looking for ways to leverage the benefits of this advanced technology to enhance their business growth.
The global Artificial Intelligence market size is expected to reach USD 390.9 billion by 2025, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 46.2% from 2019 to 2025.
With its amazing ability to render assistance to businesses for making important decisions, Artificial Intelligence has emerged as a revolutionary technological development that has transformed the entire business space. Artificial Intelligence and its integration with a host of other applications is helping companies drive huge business profits.
To fully leverage the value contained in data, companies need to bring Artificial intelligence (AI) into their workflows. Data holds the insights that can enable better decisions. AI processes this data to extract those insights which can help in taking necessary actions.
5 Ways AI is driving Decision Making!
With fast-pace development of Artificial Intelligence applications, immense breakthroughs in the field of AI have allowed machines to process and analyze information in ways that we could never have imagined. As the technology continues to evolve, more AI innovations can be expected in the coming days.
Artificial Intelligence is extensively used by several media and online services such as Google Assistant, dialogue and voice recognition of Siri, Microsoft Cortana, image classification in Facebook & Google Photo, and Amazon’s Alexa, says a report.
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Undoubtedly, the entire world is about to witness a great impact of this advanced technology on the economy. AI has completely transformed the entire business space and has revolutionized business decision making.
AI has the ability to augment human intelligence and enable smarter decision-making. Artificial intelligence helps in detecting wrong decisions and thus speeds up the entire process of decision making. Here, in this blog, I have discussed 5 important ways AI is driving decision making. Let’s read in detail how artificial intelligence helps to improve decision making.
Here is how AI helps in business decision making. With disruptive market forces prevailing in the market space, the process of decision making has become even more complex now. Understanding customer needs and aligning the products according to those is a challenging task. This is why businesses now are looking for ways to predict customer behavior which is very important for making marketing decisions.
AI-enabled algorithms analyze customer data related to their browsing history to gain meaningful insights. Based on these insights, businesses make effective marketing decisions. These may include running marketing campaigns to target prospects, sending product recommendations and personalized mails to offer customers with what they want exactly when they want it.
Spotify and Netflix use Artificial Intelligence and Machine Learning algorithms for providing users with shows and music tailored to their choices. As customers become used to the level of personalised recommendations provided by services like Netflix and Spotify, they look for other brands to provide the same experience. This is how AI simplifies business decision making.
Customer Relationship Management!
Customer Relationship Management (CRM) is a technology that helps businesses to manage all the company’s relationships and interactions with clients and potential customers. The ultimate goal of maintaining a CRM is to improve business relationships.
Based on the relevant data fed in the CRM system, Artificial Intelligence drives targeted recommendations for salespeople. These include personalized sales, messages and mails to be delivered at specified times.
Sales professionals spend 17% of their time entering data — the equivalent of nearly one work day per week. Indeed, manual data entry is the primary obstacle that inhibits CRM adoption.
AI-driven algorithms process large amounts of data within minutes to provide meaningful business-based insights. While humans face decision fatigue, AI-algorithms do not have such limitations and this makes the entire decision making process easier and faster. This is how AI simplifies business decision making.
According to a report by Pactera Technologies and Nimdzi Insights, in 2017, 51% of enterprises leveraged some form of artificial intelligence.
CallMiner Eureka, for example, uses artificial intelligence and machine language to capture and transcribe customer interactions. These transcriptions are tagged according to key topics and a rich categorization schema. When this data is ingested into a CRM, it readily provides key insights and related specific data with respect. This is how AI helps in business decision making.
[Good Read: What’s The Impact Of Artificial Intelligence And Technology On Society!]
Let’s continue our discussion on how AI simplifies business decision making. Recommended system (engine) is a technology that recommends products or other items to users based on their likings and preferences. Initially, the use of these recommendation systems was mainly restricted for music sites only but now, it’s been used across various industries.
Recommendation system is used by businesses in knowing about customer preferences and choices. The system uses Artificial Intelligence algorithms to provide detailed information about consumer’s preference based on ‘explicit’ or ‘implicit’ feedback. These insights help marketing teams of business organizations in devising the right strategy to reduce bounce rate and craft better customer-specific targeted content. This is one way how AI helps in business decision making.
According to McKinsey Global Institute’s research, AI could deliver an additional output of $13 trillion to the world economy by 2030, which would boost global GDP by nearly 1.2 percent a year. Acting as a capital-hybrid, AI can aid the growth of both the economy and humans. It will definitely have a revolutionary impact on the decision-making process.
Opinion mining is one of the ways AI is driving decision making today. AI has the incredible potential of providing reliable insight to decision-makers. Artificial Intelligence provides businesses with invaluable insights about consumers. This helps them to understand customer requirements well. It also helps retailers in predicting a product demand.
Opinion mining helps businesses understand the feedback of people and the reasons for their likes and dislikes. All these opinions are gathered and analyzed correctly to drive meaningful insights. This information will help organizations to predict the concerns of customers so that businesses can take appropriate measures making critical business decisions. This is how AI simplifies business decision making.
With the use of Augmented Analytics, businesses can make better decisions by analyzing data. Meticulous data analysis helps organizations to gain better insights which helps in the creation of promising marketing strategies.
According to a recent press release by Gartner, Augmented Analytics is going to be the next big trend which will transform the way analytics content is advanced, expanded and shared.
VP analyst at Gartner, Rita Sallam said, “The story of data and analytics keeps evolving, from supporting internal decision making to continuous intelligence, information products and appointing chief data officers.”
Wise and accurate business decisions can be made only when business executives and decision-makers have reliable data and recommendations. The use of advanced AI techniques not only improves the performance of both the individual members of the team but also helps businesses to outperform their competitors in the market space.
With competition among businesses in the market space becoming tougher now, common sense and experience are no longer enough to analyze risks and consequences of critical business choices. The use of advanced AI techniques are required in order to make accurate decisions for increased business growth. By now, I am sure you have got a clear idea of how AI simplifies business decision making.
A 2015 Tech Pro Research survey indicated that 24 percent of businesses across industries are currently using AI or had plans to do so within the year.