6 Vital Things CEOs Need to Understand About AI
Reading Time: 5 minutes AI is still a buzzword for some while there are a great number of people who already used to their advantage. Artificial intelligence (AI) which is capable to mimic the human reasoning and interactions for applications has the potential to transform digital reality way beyond the common perception. No wonder that around 85% of the workforce in companies working with AI believe that this will lead to a huge competitive advantage for the company and CEOs needs to be more aware of it all.
As of now most companies with stupendous employee strength and big sized projects are the principal users of AI-based apps. In spite of that 50% of companies with more than 100,000 employees have an active AI strategy in place and rest do not have the same. So, in spite of such loud buzz and clamor about AI in businesses, only a small portion of the businesses across niches and categories actually have an AI strategy implemented in practice.
This is why it is important to ask what the CEOs of most companies think about AI. How they perceive and implement AI to their business advantage? We need to make CEOs more aware of the AI and its positive business implications.
Here through the length of this post, we are going to explain the key things CEOs need to understand about AI.
Table of Contents
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1. AI Is An Algorithm At The Core
When there are a lot of confusions about artificial intelligence and how it works, one should understand that AI is basically algorithms at the core. If you have used or at least confronted algorithms through various services and applications, you already have known the fundamentals of AI.
The most common and simple way we encounter algorithms in our everyday digital interactions is when we search on Google. Google search engine algorithm without needing any manual role of the developer can list web pages and contents based on the search terms and relevance of the contents. Now, know-how this algorithm continued to become more capable and intelligent.
From listing straightly by matching the search terms with contents Google search algorithm over time became able to distinguish contents from high credibility and high-performance sites. Later on, the algorithm started to understand related search terms semantically which resulted in a more relevant listing. Soon, the Google algorithm started prioritizing websites with mobile-friendly or responsive design. Now, the same algorithm working with connected speaker systems can also recognize the voice of the speaker and suggest content specifically for every user.
But AI is more than just algorithms. They are more powerful than algorithms to understand human interactions over time and adjusting to personalized preferences. Modern AI-powered applications can understand the users better and adjust to specific user needs and use cases.
2. Understanding The Implementation And Technology
Artificial Intelligence (AI) is also about implementing the prowess of machines in understanding human contexts and interactions more aptly with the help of most appropriate technologies. As the head of the organization when having an AI strategy the CEO must understand what are the key technologies the company needs to implement AI. He should also have a clear idea about the typical use cases of AI and how it can actually boost efficiency or create nuances.
3. The Business Advantages Of AI
AI is not like a ready-to-use software solution that can instantly be used for specific business advantages. AI is more about implementing the AI capability in perfect measure to make the user experience better and to boost efficiency. Companies need to make machines learn about the users and help machines adjust to human interactions and use cases for a more audience-specific output.
Some of the key strengths that any CEO needs to be aware of include the following.
- AI is capable to learn from the data and also the user interactions and user feedback through various in-app activities.
- The automatic adjusting capacity of AI is really superhuman both in respect of speed and scalability.
- Modern AI technology is no longer limited to binary choices and understanding numbers. AI now is also capable to decipher text, speech and audiovisual media by semantic understanding.
- AI in most cases of implementations has been focused on data-driven insights and the latest useful technologies such as natural language processing. This is why AI has been so successful a technology in such a quick time.
4. AI Can Only Work In Appropriate Business Situations
The AI is best implemented and put to deliver effective business results when there are specific business objectives to achieve through this. Implementing AI just for the sake of advancing with the latest technology looks vague. This is why CEOs must decide the precise objectives and ways to implement AI.
Let us have a quick look at some of the reasons why a business can use AI.
- AI can be used to personalize customer services by deciphering insights through data and customer interactions.
- AI can also be implemented to boost the efficiency, speed, and performance of apps.
- An AI can also be used to push for systematic learning based on customer insights.
5. AI Can Only Be Fruitful With Data
AI learns from and mimics human intelligence only by deciphering data. Without data on customer interactions and needs, the AI-powered app will not have any raw material to decipher relevant insights to initiate an appropriate path of interaction. The data comes as the raw material which the working of the AI is based upon. The business needs to remember the following things.
- Identifying data sources across all types, categories, and activities.
- Guideline for collecting, organizing and preparing data and making AI learn following the guideline.
- Making AI equipped with insights to predict audience interactions and output including failure.
6. Sensitizing Workforce And Customers About AI
The workforce in most companies remains resistant to new technologies until it transparently makes the benefits clear. This is why CEOs looking for incorporating AI strategy into their scheme of things must ensure training and the sensitizing workforce about AI.
Keep the following practices in mind.
- Let employees know the value proposition of AI for their tasks and the business.
- Give them examples of where and how AI has been used to the advantage of businesses.
- How AI is going to make their job easier.
- The company also needs to sensitize the customers about how AI works to their advantage.
- The company needs to train customers about utilizing AI-powered apps for specific benefits.
Conclusion
Finally, for effective AI implementation business also needs to nurture talented AI developers and over time build a solid workforce versed with AI development and implementation.
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Co-Authored With
Atman Rathod is working as the Business Director at CMARIX TechnoLabs, a leading web and mobile app development company with 13+ years of experience. He loves to write about technology, startups, entrepreneurship, and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.
That's a great read, thank you for posting it! I think one of the main thing CEO's need to understand about AI is its security capabilities. Check out my article on Credit Card Fraud Detection with Machine Learning https://spd.group/machine-learning/credit-card-fraud-detection/. I think this is a great example of what could be achieved, and the great area to invest in your business!