Artificial intelligence allows businesses to see new patterns of data and stay competitive. Integrating these AI technologies into business strategy and operations is the subject of a newly published book.
Introducing artificial intelligence (AI) into a company’s business can be a costly task. The payback period may be slightly longer. But in the long run, the benefits of implementing these technologies will far outweigh the initial investment, says Professor Tankiso Moloi.He is a professor of accounting at University of Johannesburg In South Africa.
Profit center owners ask themselves how sustainable they are and how competitive they are in 3-5 years. But they also need to look carefully at how AI can help them get faster, look better, and be more agile, he adds.
“Artificial intelligence technology makes machines intelligent. In some applications, AI is more intelligent than humans,” says Professor Tshilidzi Marwala.
Marwara is a world-renowned researcher in artificial intelligence at the University of Johannesburg. He is the author of a series of books.
“Many AIs are used in the industry today. For example, the technology that produces goods and services and works in call centers. Some call this” industrialization of decision-making, “” he says. ..
“This is changing the very nature of the enterprise. The nature of the market is also changing. AI technology makes the market much more efficient, and suppliers and customers have more similar information. For these reasons, the impact of AI on the industry will continue to grow, “he adds.
According to companies, without AI, you can lose your competitive edge. AI provides the ability to identify hidden patterns and trends in your data, as well as previously unseen patterns.
Moroi and Malwara wrote the book Artificial intelligence and the changing nature of the enterprise: how technology shapes strategy and operations..
In the book, Marwala and Moloi show how companies can incorporate AI into strategy development and strategy implementation. To be competitive, companies need to be prepared to implement AI.
As an example, before considering AI, the interaction between business units needs to be good enough. When your enterprise is ready, you can benefit greatly from the adoption of AI.
This book describes how to use the three AI technologies that are already reshaping large companies. These are Machine Learning (ML), Natural Language Processing (NLP), and Robotic Process Automation (RPA).
Why AI can enhance fraud detection
Fraud detection is a classic example of faster being better, and AI can make a big difference, Moloi says.
Let’s say you work for a company and some transactions don’t pass the odor test. Traditional internal control systems / internal audits may have to wait quite a long time before discovering the fraud.
When the auditor arrives, we sample the financial records. Usually, we don’t have enough space to see all the records, so we take a scientific sample and audit based on it. The problem is that the sample may or may not contain evidence of fraud and is successfully recognized as fraud.
However, asking AI to process all financial records for a long period of time is probably still expensive for most businesses. It may be better to combine AI with traditional tools.
“What you want to do is focus on areas where auditors say financial management is weaker than it should be,” says Moroi.
“Statistical modeling without AI can help point out these areas. Next, we’ll direct machine learning AI to look for evidence of fraud in all financial records in those areas.”
This is not something that a human auditor can do, but a well-trained AI can go through it all.
Some people in the industry have reported the deployment of AI that detects up to 90% of fraud rates in specific areas.
“It’s still difficult to hire in-house professionals to’promote’AI between auditor visits. However, it is a great advantage to know the potential for fraudulent transactions within hours instead of months.
“There is also significant progress. AI is being deployed and expanded by accounting and auditing firms around the world.”
As people say, “new oil is data.” Today, to stay competitive, you need to use AI in combination with existing tools.
AI improves “vision” and decision making
Humans defeat AI in recognizing moving objects in real life. However, when faced with some rapidly changing variables in a high stakes scenario, the human brain is debilitated.
But corporate strategy and decision making depend on this.
“According to companies, without AI, you can lose your competitive edge. AI provides hidden patterns and trends in your data, identifying patterns that you couldn’t see before. It’s a feature, “says Moloi.
“Without these trends, you can’t plan at the same level or move your organization where you need it.”
In the future, AI is likely to shift much of a company’s decision-making from people to systems, Marwala said.
The main goal of AI is to eliminate errors that human behavior tends to bring into important decisions. We humans tend to be irrational, inconsistent, and prejudiced. He says we tend to take shortcuts based on emotions.
“Currently, many AIs support humans in decision-making. But in large companies, systems make more decisions, and in large companies, people make fewer decisions. There is no doubt.
“There is a classic example of what is happening now. Autopilots fly large planes during most flights. Autopilots make many decisions much faster than human pilots. , Uses far more information than humans can process at the same time, “says Marwala.
Get the approval of AI
“Sometimes the environment and circumstances in which we are are pushing us to do what we have to do next,” says Moroi.
NS COVID-19 (New Coronavirus Infection) The pandemic has forced some people accustomed to printing documents to slowly start digital editing instead. Then start using online collaboration tools such as Skype, Zoom and MS Teams.
He suspects that allowing the CFO to choose whether to continue as usual or start using AI will give meaningful movement within the organization.
“Rather, tell your colleagues. We’ll be deploying these algorithms within three years, so you can join a short program on AI if you want. You need a strategy to get approval,” he says. ..
Where to find books
Artificial intelligence and the changing nature of the enterprise are available in previewable electronic and hardcover formats.
This book is Springer Available on Amazon.
How Three Artificial Intelligence Technologies Can Sharpen a Company’s Strategic Edge Source link How Three Artificial Intelligence Technologies Can Sharpen a Company’s Strategic Edge