Research Briefing: Harnessing AI for Smarter Business Decisions

Keywords: Artificial Intelligence (AI), Decision-Making, Contemporary Management, Strategy, Innovation
Source: SBS Swiss Business School Research Conference
Link: Read the full article at doi.org
Author: Hisham I. Al-Shuwaikhat
Published: 2024
Est. Read Time (Original): ~30 minutes

Research Objective

This study examines the role of Artificial Intelligence in modern organizational management. Its primary goal is to assess the principal factors, both internal and external, that influence how contemporary businesses utilize AI for decision-making.

The research critically analyzes both the tremendous advantages and the significant disadvantages of AI, aiming to conceptualize a model for a "smarter-driven decision-making process" that effectively harnesses AI's power.

Key Findings

The paper reveals that while AI offers a powerful competitive advantage, its limitations are a critical management concern. The core findings are:

• AI's Core Deficit: The study asserts that AI fundamentally lacks human-like creativity and empathy, the "human-feeling process", which are vital components of intelligent decision-making.

• The Risk of Unchecked AI: Deployed without sufficient human oversight, AI can introduce serious ethical issues, including bias and privacy violations, and lead to poor business outcomes due to inadequate data or a lack of empathy.

• The Optimal Model is Complementary: The research concludes that AI's best role is to complement human managers, not replace them. The goal is to create an AI-driven system that "will optimize human interference while minimizing the probable impacts of the related risks, biases, and hallucination."

Business Implications

This research provides a crucial, balanced perspective for leaders navigating the hype and hazards of AI implementation. The implications are clear:

• AI is a Tool, Not a Panacea: Leaders must approach AI as a powerful but limited tool. Its strength lies in processing data and providing analytical support, but it is not a substitute for human intuition, creativity, and ethical judgment.

• Human Oversight is Non-Negotiable: The most significant takeaway is the need to design AI systems with human oversight at their core. This means building in processes that allow for human empathy, context, and creativity to moderate and guide AI-driven recommendations.

• A Call for a 360-Degree Approach: The paper advocates for tackling AI "from 360 degrees." For leaders, this means a holistic strategy that accounts for data quality, potential biases, ethical implications, and the irreplaceable value of their team's human insights.

The Strategic Question for Leaders

This research argues that AI's greatest weakness is its lack of empathy and that it must be designed to "optimize human interference."

In your own organization, what specific processes have you implemented to ensure that your AI-driven decisions are always reviewed and enriched by human empathy and qualitative judgment, rather than being blindly executed based on the data alone?

Share your perspective in the comments below.

Remember, by sharing your insights, you contribute to a unique "Enriched Briefing." {Jim Krider} will follow up to provide you with a powerful "Business Cold Start" document, combining our analysis with expert perspectives to equip your internal AI models with a more nuanced understanding of this topic.

Citation

Hisham I. Al-Shuwaikhat, 2024. "Harnessing Artificial Intelligence (AI) for Smarter Decisions: Shaping the Future of Contemporary Management for Modern Business," SBS Swiss Business School Research Conference (SBS-RC) 002, SBS Swiss Business School.