Artificial Intelligence in Business Management; Is this threat or opportunity?
Artificial Intelligence (AI) is no longer a advanced concept talked about only in Technology conferences. Now a days, AI is actively changing how businesses operate, take a decision, manage the employees and provide service to customers.
An important question arises from business management students and future managers, that is; Is AI a threat or opportunity to management careers?
This article explains AI in Business management in simple and career focused perspective.
★What is Artificial Intelligence in Business Management?
Artificial Intelligence refers computer system that can think and perform like humans.AI can prepare decisions, problem solving, analyse data, learn and even conversation.
The use of AI in Business management:
•Analyse large quantities of data
•Computerize routine tasks
•Enhance the decision making
•Estimate customer behaviour and market trends
•Assist human resource management
Common AI tools used in modern organizations such as machine learning, chatbots, robotic process automation (RPA) and predictive analytics.
★Why AI is important in Modern Business?
Earlier, business management depended mainly on experience and human judgment. But now, Businesses make big amount of data that humans alone cannot process efficiently.
AI helps managers to:
•Create faster and better decisions
•Reduction in operational cost
•Increase the productivity
•Improvement of customer satisfaction
•Get competitive advantage
Because of this, AI has become a strategic tool rather than just a technological add on.
AI as a threat to Business Management:
Some Business students fear that AI will replace and eliminate management jobs. This fear is not entirely true.
1.Automation of Routine Task-
AI can do the task like automated, such as:
•Scheduling
•Report preparation
•Inventory Control
•Payroll
•Performance monitoring
These tasks were often handled by junior managers or office staff.
2.Reduced Demands for Low level Management jobs-
Entry level management jobs that focus on supervision and data handling are at higher risk. AI system can monitor performance and results more accurate than humans.
3.Over Dependence on Technology-
When Businesses Depend too much in AI, human judgment may be ignored. If AI not used carefully, it can also lead to loss of creativity and bias problems.
4.Fear among Employees about Displacement-
Use of AI in hiring and performance evaluation may make employees anxious and lead to trust issue.
AI as an opportunity to Business Management:
Even with challenges, AI offers more opportunities than threats, especially for managers who are willing to adapt.
1.Better Decision Making-
AI assist managers to:
•Predict sales
•Manage risk
•Set pricing strategies
•Improve supply chains
The decisions become data based instead of guesses.
2.Improved Strategic Role of Managers-
Since AI handle operational task, managers can focus on:
•Strategic planning
•Innovation
•Leadership
•Problem solving
•Building relationship
This transitions management roles from operational control to strategic leadership.
3.Enhanced Human Resource Management-
AI assist in:
•Screening resumes
•Hiring the right and talent people
•Employee engagement analysis
•Training and development planning
Managers can identify skills gaps and reduction in employee turnover.
4.Better Customer Experience-
AI tools assist Businesses understand customers need better, This leads to:
•Personalized marketing
•Faster customer support
•High level of customer satisfaction
•Strong brand loyalty
5.Competitive Advantage in the recruitment market-
Students who have AI knowledge is an advantage. Companies prefer managers who can:
•Use AI tools
•Interpret AI reports
•Combine technology with human thinking
Key areas where AI is changing Business Management:-
AI helps with:
(1)Marketing Management-
•Analysing customer behaviour
•Targeted advertising
•Demand forecasting
•Social media examination
(2)Financial Management-
•Fraud detection
•Planning the budget
•Risk analysis
•Make investment decisions
(3)Operations Management-
•Control of inventory level
•Supply chain management
•Production planning
•Quality control
(4)Strategic Management-
•Competitive review
•Market trend forecast
•Future planning
•Business intelligence dashboard
Skills Business Management Students Need to learn for AI Era to get benefit from AI, students must learn:
1. Data Skills-
Understanding the basic data, charts and dashboards is essential.
2. Basic AI Knowledge-
Students should learn about how AI works, Where AI is used and limitation of AI.
3. Critical Thinking-
AI provides information, but managers have to decide how to use it.
4. Ethical and legal awareness-
•Data privacy
•Fairness
•Right decision making
5.Soft skills-
Skills like leadership, communication, creativity, and emotional intelligence are still very important. It is cannot be replaced by AI.
*Important Truth-
AI will not replace skilled managers instead AI will replace outdated managers.
Managers who:
•Avoid technology
•Ignore the data
•Refuse to adapt
They will face risk.
Managers who:
•Accept AI
•Learn new skills continuously
•Lead the people well
They will succeed.
Future of the Business Management with AI:
Future managers will use AI as a helper instead a replacement. Humans will still responsible for:
•Vision
•Ethics
•Leadership
•Creativity
•Final decisions
Business education is already adding AI and analytics as a core subject.
Conclusion: Threat or Opportunity?
AI in business management is both a threat and an opportunity, but the opportunity is much greater.
Students should not afraid about AI. Instead it is a tool to master. Managers who incorporate AI knowledge with leadership and strategic thinking will be very effective.
AI does not replace the managers. It makes intelligent managers even better.