There is a huge amount of authoritative opinion on the impact of artificial intelligence (AI) on business in the near future. But much less has been said about exactly how companies can start using it. Check what AI decision-maker tools exist in the article below.
AI in Decision Making: Can a Computer Replace a Human?
Now think about your experience with making difficult business decisions. Have you ever supported a variant that made you anxious? Nervous that you cannot study all aspects of the issue? Realized that you can get more opinions to understand the problem? We are sure yes. Many entrepreneurs admit that their decisions are based on incomplete data analysis and subjective feelings.
Artificial intelligence (AI) systems, by definition, are focused on performing some “intelligent” actions. Ultimately, the variety of their possible practical implementations has two goals: to help a person in making decisions or to replace him in certain situations. In what tasks can machine intelligence be entrusted with decision-making in 2022, and how far will this authority extend in the next decade?
All of this means that good decision-making skills are more important than ever. However, making smart decisions and doing them effectively is not easy. If your team has a hard time deciding where to order lunch every time, you understand perfectly well what it is about. The experts offer the following list of IT tools that are popular today to help people make decisions:
- Regression analysis – forecasting based on external factors: demand forecasting, equipment life forecasting, etc.
- Cluster analysis is the division of a group of observations into classes that are similar in their characteristics. Often used to segment customers in order to differentiate sales and service strategies.
- Classification is the assignment of observation to a certain class on the basis of not only numerical but also categorical features.
A Simple Tool to Start Using AI for Decision Making
Let’s start with a simple idea: the latest developments in AI are aimed at reducing the cost of prediction. AI improves forecasts and makes them faster and cheaper. It has become much easier to predict not only the future (What will the weather be like next week?) but also the present (How does this Spanish site translate into English?). Prediction is the use of existing information to obtain information that you do not have. If you have information (data) that needs to be filtered, compressed, and sorted to provide insights that make decisions easier, forecasting can help you do just that. And now machines can help.
AI decision-making tools can be a very complex process: in particular, these decisions are used to solve different kinds of problems that are not always solved in the same way. That’s why some problems are hard to solve, that’s why you have to use the right tools: you have to adapt to the problem, understand it, analyze it, find out its causes and possible solutions, and once you have identified them, you have to choose the best one.
AI decision-making tools organize:
- data collected from different sources;
- structure them, form tables or charts, and visualize the result;
- simplify data analysis and allow you to clearly understand what processes are taking place in the business;
- make it possible to get the data in the right form on time, as the value of the data decreases over time.