Business intelligence and analytics are a powerful force in driving decision-making and giving companies a central engine for data on business KPIs. With adoption of self-service options and integration of data from a growing number of sources over the past few years, we’ve closed the gap on delivering timely and relevant insights to all levels of the enterprise.
An evolution is now underway in analytics that will bring about a new era in enterprise decision-making. A flow of real-time data, when combined with artificial intelligence (AI), is expanding the ability of everyone in the business to both make decisions with more certainty and leverage data to plan for whatever might come next.
A significant shift has taken place over the past few years in the way enterprises are deploying AI. AI and machine learning aren’t just limited to data scientists—although organizations will certainly still rely on those experts for the most complex and hardest problems. Instead, AI is being embedded into a wide range of daily processes throughout the organization.
This change is bringing more clarity and effectiveness through real-time information to staff at every level. Recent research from Boston Consulting Group in collaboration with MIT Sloan Management Review does a great job outlining the change: “New research shows that employees derive individual value from AI when using the technology improves their sense of competency, autonomy and relatedness.”
The democratization of AI is happening across every industry. Through technologies like automated machine learning (AutoML), people who aren’t trained in data science now have the ability to see suggested courses of action and alternate paths based on data directly related to their roles.
That last part is the most important change that’s happening. AI models aren’t being blindly applied to everything in the organization. Rather, they are being tailored by data teams and delivered in a “data as a product” model, which is making it much easier for staff to comfortably use AI and see how it helps—not hinders or replaces—their ability to make decisions.
AI-fueled analytics, when combined with more relevant data now available through the cloud, is the way decisions should be made in a world of constant market shifts. It helps everyone in the organization align on initiatives to drive lower risk, create better processes, increase customer satisfaction and deliver better environmental impacts.
AI Helps Create Certainty In A Changing World
The last few years are full of examples where the tailored use of AI could have helped organizations pivot more quickly to proactively address unfolding world events. For example, a shipping company could have examined the pros and cons of going through the Suez Canal during the blockage, determining whether it made more sense to consider going around Cape Horn. A retail store manager could have evaluated inventory levels, store traffic patterns, existing pricing plans and discounts to maximize their holiday shopping revenue opportunities as we exited the worst of the Covid-19 pandemic.
AI is at the center of predictive analytics that help identify patterns that managers or other employees might miss. That same shipping company could determine the best ports at which to unload its containers as strike threats spread through the industry. Staffing executives can be warned if they’re about to schedule someone into overtime when other employees are available.
In all of these cases, the AI is not making the decision. Instead, it is increasing decision-maker confidence since choices can be made based on current data and by picking the best of multiple possible scenarios.
The Path Forward With AI
The good news is that AI is already making its way into many systems in the workplace. Last year, 56% of the respondents to McKinsey’s State of AI Report said they used it in at least one business function. That’s a 6% jump over 2020. Nearly two-thirds of the companies surveyed said they planned to increase their investments in AI technology through 2025.
What’s important to keep in mind is that AI can only go so far. Yes, it can help automate some processes and alleviate manual data work, but it can’t and shouldn’t be the ultimate decision-maker. Humans still need to layer a real-world perspective on what AI and the data are showing them in order to make the best decisions.
Leadership will play a crucial role in allaying fears and helping employees understand that AI actually enhances their value to the organization and isn’t a replacement strategy. In fact, it’s actually expected to create more positions than it replaces—as many as 12 million more, according to the World Economic Forum. The BCG research shows us a strong path forward. When individuals are a) required to use AI, b) given proper training through data literacy, c) provided a clear understanding of how it can assist in their roles and d) are aware of the value they create for the organization, AI adoption and comfort soar alongside the bottom-line benefits.
The wider use of AI, data and analytics are helping professionals at every level make smarter decisions, create new opportunities and apply modern technology to advance their skills and careers. Leaders who design effective AI strategies will help their staff understand how it drives performance and will set their organizations up for competitive advantages today and moving forward.