Business, Technology

4 and more things business leaders should understand about AI

Algorithmic fatigue is the feeling of the modern solutions failing us, not delivering what we expect. It’s not finding anything to watch or getting the wrong suggestions. A pioneering new study conducted by Alice Labs in partnership with Reaktor examines how AI can deliver a service that delights users – rather than disappoints. 

In this blog, let’s look at what artificial intelligence means for business and how you can steer clear from causing your company or customer the dreaded fatigue.

Understanding the impact artificial intelligence has for business is more about understanding its business capabilities than technologies. In short, it’s a bit more about remembering the human than focusing on the tech. 

Generally, artificial intelligence can support crucial business needs: With it you can automate and streamline your processes. You can analyze big data and leverage the emerging key insights to make better decisions. You can enable and deliver a better experience both for your customers and employees. 

Understanding this business and human aspect is crucial in ensuring your AI efforts will deliver results and be properly resourced time, money, and skills wise. 

Here are 4 key insights every business leader should know about AI:

 

Purposeful AI development needs both direction and degrees of freedom

Any development attempt is best pursued with a clear understanding of how it ultimately contributes to desired business outcomes. Particularly with AI, this is not a one-way street but a continuous dialogue between business outcomes and AI exploration and development. 

Takeaway: Build a clear two-way link between AI development and desired business outcomes.

Building with AI is to a large extent about enabling the right organisational mindset 

AI solutions aim to augment or replace human cognitive tasks and decision-making. Such intrusions on human intuition typically face varying degrees and forms of resistance in an organisation. One way to overcome this is to enable people to see the realised benefits of AI from their point of view. 

Takeaway: To overcome resistance, involve people and gradually enable them to see the realised benefits of AI in their work.

AI may require giving up some control of outcomes, posing a challenge to leadership

In many areas of application, AI may bring a fundamental shift in mindset as expert judgement is augmented or replaced. Explainability and potential bias in training data can cause expected and unexpected challenges along the way. This may call for legal and ethical expertise in day-to-day development. 

Takeaway: In sensitive or regulated areas, seek to include the right kind of legal and ethical expertise in the cross-functional team.

AI development requires iteration and is best done in cross-functional teams 

The idea of cross-functional teams may seem simple and compatible with existing organisational structures. In practice, this is seldom the case and many attempts fail. Teams must be dedicated and have the required degree of freedom to be able to operate. 

Takeaway: Seek to organise AI development in cross-functional teams to accelerate both business improvement and learning.

Unlock 4 more key insights: Download the expert guide on AI for business leaders 

Watch the webinar: Engaging with everyday AI

Olof Hoverfält is an expert in how data and AI have changed societies and the way we do business – and how they continue to do so. He recently made waves with his viral wardrobe data project, exploring consumption habits and sustainability.

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