A recent study has shown that AI can help businesses to stay afloat in a constantly evolving market.
The report, led by Charles Darwin University in collaboration with the Adelaide Institute of Higher Education, Torrens University and the University of Technology Sydney, analysed the ability of AI to predict which factors will impact an organisation’s capacity to prepare for and respond to economic disruptions.
Data was collected from 44 Australian respondents from a variety of different organisations, including universities, not-for-profits, private businesses and more. Most surveyed individuals worked in education, IT, hospitality, and construction and engineering. They were asked to evaluate the resilience of their companies and the possible challenges they may face. This data was then analysed by AI.
The need for smarter systems
Using the results, eXplainable Artificial Intelligence compiled the data to pinpoint the top five impacts on an organisation’s ability to remain agile. These were; legislation or government changes, globalisation, low-level process maturity, technology, and digital disruption.
Associate Professor from Charles Darwin University and lead author of the study, Niusha Shafiabady, said that companies could use AI to make more informed decisions and gain competitive advantages in complex industry environments.
“Failure to prioritise agility and responsiveness can result in increased costs, missed opportunities, competition and reputational damage, and ultimately, loss of customers, revenue, profitability, and market share,” she explained.
“The COVID-19 pandemic has highlighted the importance of organisational agility and resilience.
“Organisations that are able to adapt quickly to change, anticipate and prepare for disruptions, and respond and recover effectively are more likely to succeed in the current volatile business environment.”
Shafiabay and her team believe that adopting AI systems will ensure that businesses are adaptable, streamlining corporate decision-making and resilience in the face of increasingly volatile markets.
Looking forward
According to the report, which was published in the journal Plos One, businesses have been turning to AI since the pandemic as a means of enabling faster decision-making and analysing large sets of data quickly and efficiently.
The lead authors of the study are hoping that by examining the positive impacts of AI on organisations, they can reduce stigma and promote a meaningful integration of software that serves to enhance Aussie businesses. They seek to demystify the decision-making processes of AI to allow for ethical deployment, creating trust between customers, companies and their software.
Associate Professor Shafiabady said that welcoming these systems could allow organisations to reap the benefits of this technology, even using AI systems that provide more specific advice.
“Using methodology, AI can provide personalised recommendations to each business depending on their own dynamics on the areas they should focus on to enhance their regality,” she said.
The paper is a continuation of Shafiabay’s previous research on how AI can predict a company’s future success in responding to challenges created by factors including market competition, economic pressures, and emerging technology.
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