Sean Manning is CEO and Founder of Payroll Vault Franchising LLC, as well as a CPA, and Thought Leader in the Financial Field.
The business world is always affected by technological developments. Some affect some industries more than others, but I see one of the latest developments, artificial intelligence (AI), impacting every industry.
It’s vital for business leaders to stay updated on industry standards. As the owner and founder of a payroll and HR service franchise, I work with new computer technology a great deal. In my line of work, the way we store, send and work with data is a key component of our business operations. Because of this, AI will play an important role in how my company operates, as it will for many companies in many industries.
From the ways I’ve seen AI used, I expect every business will be affected by AI development by 2026 to 2028. According to market research, the market for generative AI is expected to grow 36.1% by 2032. AI suppliers are multiplying, and more businesses are using cloud computing and automation. Meanwhile, PYMNTS reports that major technology companies are developing more AI tools for use with things like ad development, chat apps and customer product recommendations.
Carefully consider how you’ll use AI.
It’s up to business leaders to decide how they’ll use AI in their operations. An important thing to remember is that technology isn’t intended to replace employees. It’s a tool for them to use. AI can be used to streamline operations, refine them and reduce expenses. Integrating AI into standard processes can significantly slow the need for additional resources.
Since AI is becoming prevalent in many industries, business leaders must decide which AI tool is best for their companies. It’s important to talk with technology teams and providers. These people have the most direct knowledge of the latest AI developments and can advise company leaders on what needs it can address. It’s also important for business leaders to do their own research on AI. News articles, tech blogs and similar information sources are available by search engines.
Weigh the pros and cons.
Some business leaders may think their businesses are a long way from needing AI. But the ways AI can help their businesses are closer than many think. As reported in Business News Daily and Bloomberg, companies are using AI for a variety of tasks, including the following:
• Machine learning: AI can put raw data into an understandable context, helping company leaders make the best-informed decision possible.
• Cybersecurity: AIs can track data input patterns to watch for irregularities and suspicious activity, then trace it back to the source to identify security threats.
• Customer relations: AI can enhance customer service, such as sending offers and recommendations to customers based on their activity both online and offline.
• Internet and data research: AI can track people’s online behavior, helping to determine the best ways to reach target audiences.
• Digital personal assistants: AI can help businesspeople manage a variety of systems, such as email, personal calendars and call/text message screening.
While AI can be a useful tool, it’s not without drawbacks. A few noteworthy ones include the following:
• Inaccurate information: AI can misinterpret a command prompt and deliver incorrect results. Some AI may use unreliable websites as information sources.
• Lack of human touch: An AI can’t provide a human connection for people. It may struggle with understanding people with accents or who are emotional or stressed. Content it produces may lack a personal connection to the audience.
• Unoriginal results: AI learns patterns and repeats desired results. However, the technology can only draw on what’s already been produced and won’t deviate on its own from those patterns. Anything an AI produces may develop a generic, mass-produced feel to it.
I think the best solution to AI’s shortcomings is using it to supplement or augment employees’ work, not to replace it. For example, AI could handle average customer relations, but customers with special needs may be best served by talking with a person. A research AI tool could provide sources cited so someone can fact check questionable data. AI can generate “boilerplate” sections of written content while a writer determines the overall message and structure, also writing parts that need a human voice to them.
Evaluate your needs to determine the best use for AI.
With so much potential for AI, business leaders need to decide where and how to add AI to their business operations by evaluating their business models and determining their needs. Look at areas where staff are overworked, especially jobs with a lot of routine tasks. It’s important to ask: Where in our business model does speed and efficiency need improvement? How much are we willing/able to spend on AI?
Some AI drawbacks come from using low-cost versions. These versions may lack complex programming, only providing basic, limited service. Doing large jobs with inadequate AI is like trying to dig a basement using hand shovels. It’s possible, but harder than necessary.
Lastly, make sure to choose an AI tool with a good reputation. AI tools are still experimental, and there are a lot of different models being developed. Make sure to check reviews and user feedback before buying.
Since many current AI solutions are developed for information management and use, I’ve noticed business leaders questioning what restrictions there are, what restrictions are being developed and what information AI can use to provide solutions. From what I’ve seen, the answers to those questions are up in the air right now, but it’s worth watching technology news sources for announcements of upcoming regulations and restrictions.
AI is a tool that could affect every industry in some way, to some degree. How business leaders choose to add AI to their companies will take careful consideration and operational analysis. Experimentation can help companies ease AI into their operations, and keeping up with the latest developments and regulations will help business leaders make informed decisions. While staying up to date on AI development may require effort, I think business leaders will be well served by researching it, testing it and bringing out its full potential.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
