How CXOs Can Use AI To Redefine Decision Making
In a data-driven world, we are overloaded with massive amounts of information. More tables, more charts, more bullet-point and so on. But the intrinsic value of information is zero, believe experts. That’s because Information doesn’t have any value on its own; its value comes solely from how it affects our decision-making.
Decisions about our health, our business, our finances, and our communities. Information is definitely one input to our decision-making process, and it’s an important one. But being able to understand the why behind the information is just as important. Ultimately, we need an explanation.
As far as decision-making mechanisms go, there is no better example than the human brain, so Artificial intelligence must evolve to emulate it. Scientists are now using AI tools that understand and respect human decision-making, and are able to provide readers with input and support regarding the information, explanations, options, and outcomes that are important to them.
Nate Nichols, in his article: “Natural Language Generation in the AI Ecosystem: The Value of Explanation” published on narrativescience.com explains how AI can help managers make good decisions based on information. He believes that data can provide the information. For example, the information that your company’s profits are down quarter over quarter. However AI may lead to a better explanation or the cause of the information. For instance, the ultimate cause of profits being down might be that overall sales are down, and the ultimate cause of overall sales being down might be that hot dog sales are down.
Managers can take possible actions based on the explanation. For instance, if hot dog sales are down, then possible options include running a promotion or marketing campaign. Finally, this will result to likely outcomes of enacting the different options. For instance, the associated costs and probable effects of running a promotion on hot dogs. In other words, anyone can read and understand that profits fell, but modeling and understanding the likely outcome of a hot dog marketing campaign requires significant expertise and experience. And that’s exactly why CXOs can use AI tools to refine decision making.
Vegard Kolbjørnsrud, a senior research fellow at Accenture writes in an article in HBR Blog that AI will soon be able to do the administrative tasks that consume much of managers’ time faster, better, and at a lower cost. To find out how managers, from the front lines to the C-suite, can thrive in the age of AI, the company surveyed 1,770 managers from 14 countries and interviewed 37 executives in charge of digital transformation at their organizations. Using this data, successful managers will need to master the following.
1. Leave Administration to AI: According to the survey, managers across all levels spend more than half of their time on administrative coordination and control tasks.
