On May 11, 1997, an IBM computer called IBM ® Deep Blue ® beat the world chess champion after a six-game match: two wins for IBM, one for the champion and three draws. The match lasted several days and received massive media coverage around the world. It was the classic plot line of man vs. machine.
The history of AI making decisions started in 1997 with IBM Deep Blue, the victory had not 100% convinced the world because there was a difference of only 01 win in the six-game match. However in 2011, IBM Watson had the final reply by wining the Jeopardy game (question-answer-based television game) with signification victory.
People says that they are just "games" so of-course AI can do better than human. How does AI impact decision-making? The short answer is that AI can impact decision-making profoundly, even when used in small, subtle ways. It has numerous applications, and while the technology presents challenges, many organizations have already achieved great success using it.
Benefits of AI for business decision-making
The incorporation of artificial intelligence into the business decision-making process brings with it a number of significant benefits:
1) Speed and efficiency: Artificial intelligence (AI) systems can process and analyze massive amounts of data in real time, accelerating the decision-making process. As a result, companies can react quickly to changing market conditions and make faster decisions.
2) Identification of complex patterns: AI has the ability to uncover hidden patterns in data that might go unnoticed by humans. By identifying complex relationships and trends, it is possible to extract valuable information for the business.
3) Greater accuracy and objectivity: Its ability to analyze data in an unbiased and unbiased manner contributes to more objective and fact-based decision making. By eliminating the influence of human biases and emotions, AI helps minimize errors and increases accuracy in decision making.
The most suitable workflow for business decisions
The additional information available to humans in the form or strategy, values, and market conditions can merit a departure from the objective rationality of AI. In such cases, AI can be used to generate possibilities from which humans can pick the best alternative given the additional information they have access to. The order of execution for such workflows is case-specific. Sometimes AI is first to reduce the workload on humans. In other cases, human judgment can be used as inputs to AI processing. In other cases still, there may be iteration between AI and human processing.
They key is that humans are not interfacing directly with data but rather with the possibilities produced by AI’s processing of the data. Values, strategy and culture is our way to reconcile our decisions with objective rationality. This is best done explicitly and fully informed. By leveraging both AI and humans we can make better decisions that using either one alone.
Which are "Right decisions" AI can support ?
Banking, fintech, insurtech, e-commerce, edtech, heathcare are the fastest players adopting AI. With a large product/services categories, product/service volume, customer, transactions, ... it was very hard to just make decisions based on statistic reports. Nowadays, AI is the best choice for the summary all data and come with possible Right decisions such as:
- Sale forecasting: which products/services will has the most demand in upcoming months, in which locations, for which customer segments, ...
- Sale strategizing: based on big transaction history and customer behaviors, AI can support some strategies to increasing sale such as combo-packages (grouping products as combo to up-sale), tailoring products/services for each customer segments.
- Risk warning: highlight the abnormal statistic data, warning, zooming in the detail problem and suggest solution
- .... and more.
Which are "Fast decisions" AI can support ?
Besides strong analyst and synthetic capabilities, AI is also good at automating and fastening the decision to support the need to adapt business on a nearly real-time basis which is mostly impossible by humans. With the dynamic of the market, making the right decision is not enough, the quick-adaptation of business strategy is also important to make a sustainable business.
Some of example of Fast decisions empowered by AI we can easy to identify such as:
- Pricing strategizing: make a dynamic price strategy base on multiple criterial is the best approach to adapting business. Price can be refer from other competitors, market trend, customer need,...
- Investment Optimizing: based on financing data on historical business investments, market trends, ... AI can provide fast investment suggestion with confident score. Example suggest buy/sell action on each stock, crypto, real estate, ...
- Content orientating: tailoring the content, advertisement, discount, coupon, product, services based on historical and real-time interaction of customer.
AI Data-led transformation in Investidea
Having deep understanding about how AI can support on business decision-making in vary business domains, we are ready to support each individual business to discover the power of AI in their business's decision-making by following basic steps:
- Step 1: Brainstorm and identify the crucial decision making of your business
- Step 2: Analyst and assess related data, statistic reports (if having)
- Step 3: Suggest and decide on machine learning models proving possible suggestions/actions
- Step 4: Operating business and adjustment, improvement
Business decision-making is still a challenge mission for all business operating, but the sooner we can start building our own business decision-making workflow, the better chance we can make the Right and Fast decisions, and of-course, the more sustainable your business will reach. We are open to be your partner in this challenge but amazing journey.