You may not be noticing it yet, but artificial intelligence is already changing the world around us. New technology creates some professions and sends others back to the past. It generates new products, simplifies workflows, and makes innovation truly accessible to everyone. It would be logical to assume that AI is also changing the approach to business management. Let's look at how artificial intelligence affects the role of a manager.
An innovator, not a performer
Have you ever wondered why owners and creators of ideas rarely take on the role of CEO, at least one that requires real responsibility? It's very simple. In the past, an executive was primarily a bureaucrat and only then a visionary who changed the world.
The advent of artificial intelligence is changing this approach. Neural networks can automate many routine workflows, including those from the CEO's area of responsibility:
- analysis of contracts and other documents;
- forecasting trends and sudden changes in markets;
- assessment of the productivity of each division of the company;
- business communications and negotiations;
- building organizational structures.
Thanks to AI, a high-ranking executive can focus on creative work. He can devote most of his time to developing company development strategies, creating innovative products, and nurturing new talent. What does this mean for businesses on a global scale? More Steve Jobs and fewer Tim Cooks.
Anticipation, not reaction
The global economy is often compared to a jungle where the primitive “adapt or die” law of evolution applies. Successful companies react dynamically to changes in their environment and choose business practices that are best suited to reality. The best ones anticipate these changes and adapt in advance, making this process as comfortable and efficient as possible.
AI is already doing much better than analysts in all areas:
- to cosmological research artificial intelligence reduces the error by 30%;
- to medical research papersOh, it detects 24% more errors;
- to web content analysis AI is 9— 12% more accurate.
Machine learning technologies are gradually reducing the analyst profession to the role of an artificial intelligence operator. A neural network does not just determine the strength of a connection based on the task given to it. It independently identifies patterns in huge databases, tests all possible and impossible hypotheses, discards statistically inaccurate indicators and brings the final formula to perfection.
This applies to almost all aspects of business activity — product demand, commodity prices, average salaries, inventory, logistics costs, etc. A huge team of analysts will be replaced by artificial intelligence with its advantages. It is more accurate, faster and never contradicts itself. His predictions serve as a more reliable basis for making management decisions.
On a global scale, the emergence of AI will lead to an increase in the number of successful startups — fewer companies will fall apart due to administrative problems. This means that the world will see more innovative products at affordable prices.
An assistant, not a salesman
Do you know what the phenomenon of small stores with vendors behind the shelves is? They continue to exist even in the age of globalization and e-commerce. Many of them are becoming very successful and are scaling up to the size of small networks. The whole point is live communication and a humane personalized approach to service, which is not enough in supermarkets and, especially, in online stores.
Artificial intelligence makes it possible to transfer this phenomenon to the online space. Moreover, you will get a stable positive effect with it regardless of personnel policy — unlike people, the neural network always remains polite and pleasant to talk to, regardless of the circumstances. The personalization of retail in online stores is provided by the following means:
- intelligent chatbots for sales and customer support;
- individual promotions;
- product recommendations;
- differentiated prices;
- adapting web pages to user behavior.
From the point of view of the manager, personalizing service will mean simplifying the company's personnel policy. The impact of employees' specific personal characteristics on the company's success will be minimized. This will also reduce the number of conflicts, reduce the cost of compensating dissatisfied customers, and help optimize sales funnels.
Globally, personalizing online service with AI will mean attaching to specific brands. Companies will be able to work with each person individually, rather than with the consumer audience or its segments. They will have a variety of customer retention tools at their disposal — prices, bonuses, gifts, responsive website interfaces, and even personalized products. Brands will form their own ecosystem “bubbles” with minimal outflow of customers.
A team, not a team
Even the most successful companies are often victims of internal strife. Conflicts between employees significantly reduce productivity, reduce the average hiring time per employee and increase recruitment costs. However, they can last for years simply because of the personal qualities of one person.
Artificial intelligence is already being actively used in the field of HR. It is used to find and hire talent that exactly meets the company's needs. Unlike an ordinary recruiter, artificial intelligence can evaluate hundreds of a person's professional and personal qualities based on their resume, social media profile, and correspondence with company representatives.
AI works on the principle of targeted advertising. After receiving the assignment, he narrows down the range of candidates to dozens or even a few profiles. After that, the system shows them thematic ads — about hiring for those who are actively looking, or about the company's benefits for those who still have a permanent job.
For a manager, this is an opportunity to create a homogeneous, cohesive team with the necessary list of competencies. Careful selection using AI when hiring can significantly reduce the number of interpersonal conflicts. On a global scale, the use of artificial intelligence will mean the advent of the very meritocracy that philosophers and great entrepreneurs have dreamed of. A person's position in the company and society will be determined by their talents and creativity, not by their ability to sell themselves on a resume.
Automation, not expansion
In the period between technical revolutions, business productivity is mainly increased by expanding the company. More people, more offices, more sales outlets, more customers — more revenue and net profit in absolute terms. This is an extensive development path that has one serious drawback: in a highly competitive environment, it quickly comes down to market restrictions.
The introduction of artificial intelligence is considered to be the fifth technical revolution. It allows the company to develop intensively, entrusting machines to perform routine processes. This applies not only to repetitive work like filling out spreadsheets, but also to relatively complex tasks, such as receiving customer calls.
AI works 5—18 times faster than humans and increases overall productivity by 40%. On average, it increases a company's profitability by 25%, mainly by reducing costs. This allows managers to focus on internal success factors rather than external ones. They can spend more time improving their business to make it sustainable during times of crisis.
On a global scale, the widespread automation of routine processes will mean market stability. Fewer bankruptcies and financial problems will make economic development more stable and straightforward. This will have a positive impact on consumer expectations and help avoid deep crises.
What can AI give a manager?
At first glance, artificial intelligence makes managers omnipotent and allows them to run the business independently without a team. But this impression is misleading — many companies are already launching their own AI projects that take them one step ahead of other competitors. By adopting artificial intelligence, you will join the cohort of leading companies and reach a fundamentally new level of competition. The creative potential of employees and innovative ideas will be of great importance in it. Therefore, the introduction of AI makes managers not omnipotent, but modern, allowing them to manage their business in accordance with current standards.
Keep up with the dynamic high-tech world! Contact Start:Duck experts to find out how artificial intelligence can help you simplify business management and get the most out of your original idea!
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