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Business Intelligence Frequent mistakes made by managers regarding Artificial Intelligence

Frequent mistakes made by managers regarding Artificial Intelligence

by Valoria Business Solutions July 26, 2023


Author: Constantin Măgdălina, Emerging Trends & Technologies Expert

Artificial Intelligence (AI) has already become an integral part of the current operations of competitive companies in 2023. Why? Because it promises increased efficiency, better decision-making and increased productivity.

However, many managers fall into all sorts of pitfalls when implementing AI-based tools. That is why, in this article, I have put forward solutions for three of the frequent mistakes that managers make in such situations. I will describe them and then tell you how to avoid them, ensuring successful integration and maximizing the potential of this transformative technology.

1. Neglecting clear business objectives

One of the main mistakes managers make is to adopt AI in haste without clearly defining business goals. Artificial Intelligence is a powerful tool, but without a well-defined goal, it can lead to a waste of time and resources.

Managers must dedicate time to identify areas in the business where AI can bring value, such as: automating repetitive tasks, optimizing processes or improving customer experience.

It is essential that the management team clearly define what they want to achieve using AI. Is it reducing operational costs, increasing efficiency, or perhaps improving customer satisfaction? By aligning AI initiatives with clear business objectives, managers can ensure investment in solutions that deliver tangible results.

2. Lack of adequate data infrastructure

AI algorithms need quality data to generate accurate analytics and valuable predictions. However, managers often overlook the importance of establishing a solid data infrastructure. Insufficient or poor-quality data can lead to biased models, erroneous predictions and sub-optimal outcomes.

That is why managers must prioritize building robust data systems by investing in data collection, storage and management systems. This approach must also consider ensuring data accuracy, accessibility and compliance with privacy regulations.

Establishing a solid framework for data management creates a solid foundation on which AI algorithms ensure accurate results and trust in solutions, so that managers can fully leverage the potential of this technology.

3. Underestimating the human element

While AI can automate tasks and optimize business operations, it's important for managers to recognize that it complements, not replaces, human expertise. Decisions based solely on Artificial Intelligence decouple managers from the specific details, subtleties and context of analysis with which human intelligence operates.

Managers must encourage collaboration between AI systems and specialists, fostering a symbiotic relationship where AI assists and empowers employees.

By combining human intuition and creativity with the analytical capabilities of AI-based systems, managers can achieve more comprehensive and wiser results.

In conclusion

As managers adapt to the new business context in which an important role is played by Artificial Intelligence, avoiding mistakes is vital to capitalize on the benefits of this transformative technology.

By clearly defining business goals, establishing a solid data infrastructure, and recognizing the importance of human expertise, managers can set the stage for success.

By adopting AI as a strategic tool and engaging employees in the journey to this new way of working, managers can facilitate access to the full potential of this technology to drive innovation, efficiency and sustainable company growth.

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About Constantin Magdălina

Constantin Măgdălina has 15 years of professional experience, during which he worked for multinational companies, both in the country and abroad. Constantin has a Master's degree in Marketing and Communication at the Bucharest Academy of Economic Studies. He is LeanSix Sigma and ITIL (IT Information Library®) certified, which facilitates a good understanding of processes and transformations within organizations. The certification obtained from the Chartered Institute of Marketing completes his business expertise. He initiated and coordinated studies about the business environment in Romania. He participates in numerous business conferences and writes on topics related to innovation, streamlining business processes, social media, digital transformation, emerging trends and technologies.

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