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Artificial Intelligence in Business Management

In: Business and Management

Submitted By magdalenda
Words 1115
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Artificial intelligence (AI) technology through applications are steadily gaining a reputation of unlimited potential in the business sector as it brags real-time data analysis and virtually flawless reporting capabilities. Artificial intelligence respectfully enhances industry to better forecast product demand, inventory and distribution and financial markets. When strategically employed this technology offers business managers the ability to make educated decisions in less time that yield the most impact and greater returns. It removes most of the requirement for human rational and replaces it with cold hard facts leaving minimal room for error.
The term Artificial Intelligence was crafted by John McCarthy in the 1950’s at Darmouth College (WebDevFaq). The premise of the technology is to imitate the intelligent processes of the human brain by performing reasoning and logic based computing based on sets of rules. As an AI application is utilized it learns from the input and output of data and has the ability to identify patterns that are also used as a subset of rules to produce tailored responses. Its primary charter is to increase the efficiency of tasks that would usually be performed by a human being and removes the personal judgment and intuition work from the decision making process and replaces it with real-time, exact and informative expertise.

PRODUCT DEMAND, INVENTORY AND DISTRIBUTION The days of crunching statistics, evaluating sales history and studying human behavior to guesstimate consumer demand of a certain product are coming to an end thanks to Artificial Intelligence. Gene Tanski, author of an online article titled Finding a Demand Forecast You Can Trust summarizes how a company can use artificial intelligence for strategic product placement in the market as “Point-of-sale data, promotional histories, distributor data, and causal factors are analyzed to give companies more insight into actual demand and inventory levels…and dynamically model demand for products on their own”. The only human interaction required in this process is in the extraction of data and deciding how to properly use the information.

Artificial Intelligence has also benefited inventory management processes in the business sector to ensure companies are prepared to meet current and future demand with just the right amount of overage and as little wastage as possible. Artificial intelligence technology is brings the capability to analyze buying trends in an ever changing environment with a programmed focus on ensuring that supply meets demand and sufficient stock of the is stored to ensure constant availability. This has always been a struggle for companies to manage- especially in the retail market where there are supportive expenses that go along with the storing of commodities and trends change rapidly. Scan able bar tags on inventory that are linked to a larger system that collects data has reduced the need to take physical stock of inventory by human counting. Other examples of artificial intelligence technology and applications utilized in non-retail inventory markets are the management of the number of airfares sold on one flight, students enrolled to college class or the availability of appointments at a doctor’s office in one day’s work. Utilizing artificial intelligence in the distribution process has essentially removed the need for physical human activity. In many distribution centers, robots are now being used to receive orders, pull stock and pack for shipping. With artificial intelligence technologies analyzing product demand through data received at point – of- sale then using this information to control inventory management and distributing products according to pre-determined baselines and rules there is less room for error through human assumption and mathematical errors ending in a more lean cost to operate.

FINANCIAL MARKETS
The financial market has found great value in the progression of artificial intelligence efforts to date- investing big money in complex Information Technology systems and personnel to manage this valuable resource. An online article at Pinggers.com titled Watson and the way Artificial Intelligence has Changed our Lives asserts “the whole financial system is, in fact, very related to AI… computers today handle the thousands of trades and operations done worldwide” (Pinggers). Cris Sheridan describes “machines scouring the web for tradable information” that WallStreet traders are using to base their transactions on. artificial intelligence systems used in this regard have the ability to scan the internet, analyze and then define data based on a “certain configuration of words” (Sheridan). In the fast paced financial industry speed is a priceless edge that is easily handled by AI technology. Artificial intelligence quickly mitigates risk by bringing the often times missed patterns to light through recognition of patterns. It is able to rule every law, regulation and best business practice in its process to ensure compliance.
CONCLUSION
Although artificial intelligence has enhanced our lives by making humans more efficient it has also impacted humanity negatively. As humans become overly dependent upon artificial intelligence for decision making processes we become less astute in our own critical thinking skills and over time will cripple our ability to make decisions independently as our minds, overtime, become lazy. I’ve heard many say, they’ve lost their ability to navigate geographically because they’ve become so dependent upon GPS systems. This is an example of the mental atrophy that comes along with artificial intelligence. IT systems with artificial intelligence applications are not consumers or producers. Artificial intelligence replaces human production elements in economy which much like outsourcing labor to overseas countries creates a problem in domestic economies because it enables production but does not enlist consumption. It is my opinion that, at this point in progression of artificial intelligence there is not yet a need to be intimidated by the possibility of being overcome by artificial intelligence because it lacks in survival instinct, sensory perception through smell, touch and vision. It is incapable of feeling and therefore unable to sufficiently replace those elements in life which require personal interaction on a soulful level. Relative to business, I could see how the negotiation process in business transactions has to be conducted by humans due to AI’s inability to appeal on this level.

Bibliography
WebDevFaq. (n.d)How will artificial intelligence affect our lives in the next ten years? Retrieved from http://webdevfaq.pixeko.com/node/24.
Tanski, Gene. June 2004. Inbound Logistics. Finding a demand forecast you can trust. Retrieved from http://www.inboundlogistics.com/cms/article/finding-a-demand-forecast-you-can-trust/.
Tomas. Pinggers. February 2011.Watson and the way artificial intelligence has changed our lives. Retrieved from http://blog.pinggers.com/2011/02/watson-and-the-way-artificial-intelligence-has-changed-our-lives/
Sheridan, Cris. March 02, 2012. Financial Sense. Is artificial intelligence taking over the stock market. Retrieved from http://www.financialsense.com/contributors/cris-sheridan/is-artificial-intelligence-taking-over-the-stock-market

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