Artificial intelligence used to be the work of science fiction, but nowadays it is seen as very real and a possibility for businesses of all types. There are benefits to artificial intelligence, but it could also create problems in the future. Let’s take a look at some of these advantages and disadvantages.
A Brief Definition of Artificial Intelligence
Artificial intelligence is when you have a computer perform a task rather than a human being. Artificial intelligence programs are good at analyzing patterns and potential outcomes in data; they then use this feedback to act. This is often how image recognition processes take place. It’s AI in action!
AI can be used in several different types of technologies, and it has a broad range of applications.
Advantages of Business AI
Here are some of the primary benefits of AI for business:
- Business pattern optimization: Consider how much data your business generates every day and think about analyzing all of it for patterns, opportunities, and inefficiencies. Obviously it is impossible without the help of AI. Using this technology, AI can look at data and deliver predictions, as well as look for opportunities to address concerns, maximize revenue growth, condense sales cycles, and improve return-on-investment.
- Cost reduction: AI also makes a case for automation, meaning that the costs of labor-intensive tasks can be completed automatically, yielding lower costs and increasing revenue in the process.
- Revenue Increases: You can also improve processes in regards to your human resources by identifying new opportunities to bring in more revenue using the data and analysis performed by AI. This technology can also be used to optimize external processes, like your marketing strategies.
It’s not all sunshine and roses for AI, however.
Disadvantages of Business AI
Let’s break down some of these drawbacks:
- Fear and misunderstanding: AI is seen as a threat in pop culture, and when it’s not, it is often seen as the end-all-be-all for problems that must be solved. The reality is that neither of these are accurate representations of AI. The truth is that AI has definitive limitations placed on it that keep it from solving all our problems, as well as dominating the world.
- The data required: An automated system is great and all, but without the data it’s referencing or analyzing, it can’t get anything done. Plus, the amount of data required is staggering, and managing this amount of data can be difficult.
- How to explain AI: Some AI systems don’t provide a full explanation of how it reached its conclusions, something that can become a major problem if things start to go awry.
Is AI a Good Tool for Businesses?
In some ways, AI is perfect for businesses, but only for those who want to put in the effort to understand its limitations and risks. Out of the Box Solutions can help your organization improve its processes, including automation. To learn more, reach out to us at 800-750-4OBS (4627).