Artificial intelligence (AI) has progressed rapidly and is no longer just a concept from a sci-fi movie. It’s already transforming many industries, from driverless cars to voice automation in homes.
The future is arriving faster than we could have predicted. AI makes us rethink how we integrate information, analyse data, and use those insights to improve decision making.
In this post, we will look into how AI and automated decision making (ADM) have impacted the EU-UK market.
What is Automated Decision Making?
Automated decision making is the process of making decisions by automated means without any human involvement. These decisions can be based on factual data, or on digitally created profiles or inferred data.
ADM can be very useful for organisations and individuals in many sectors, including healthcare, education, financial services and marketing. The decisions are quicker and more consistent, especially when there is a very large volume of data to be analysed.
Some examples of ADM are:
- Loan approvals via smartphone apps: An algorithm makes an automatic credit assessment based on the customers’ desired amount of money, financial history, and information from credit agencies. Depending on their score, they receive an offer or their application is denied.
- Recruitment: job applicants can be judged by software that evaluates their personality and competencies based on cognitive and logical tests. The test results are included in the employer’s overall decision to hire a candidate or not.
- Personalised Pricing: Online vendors can use ADM to gather information about the customer. They intercept the customers’ location, computer type, site account, or track how many times the customer has visited their site via cookies. Then they create a customer profile, and adjust prices accordingly.
In all the examples above, ADM includes profiling. Profiling is a form of automated processing of personal data. It uses personal data to evaluate certain personal aspects relating to a person, in particular to analyse or predict that person’s performance at work, economic situation, health, personal preferences, interests, reliability, behaviour, location or movements.
Benefits of AI and Automated Decision Making for Businesses
- AI and ADM help businesses to make better decisions. Rapid analysis of large datasets allow businesses to make instant decisions, for example, what content to create for their target audience or how to change up a failing advertising campaign. This is incredibly time consuming for humans, but instant for a machine.
- This technology can boost sales and marketing campaigns. AI applications like Natural Language Processing, help companies understand how their customers interact with their brand, what words they use and what tone they should strike to make their products and services more appealing.
- AI and ADM help businesses understand their customers better. Tools like chatbots, algorithms and machine learning provide companies with a deeper understanding of their customers’ pain points, expectations and satisfaction levels.
- They allow companies to make decisions that take into account huge amounts of complex data. AI can process all of this data instantly – people can’t.
Automated Decision Making in the UK and the EU
After Brexit, the UK government released its own framework on the use of automated decision making systems in the public sector, setting out how the technology can be implemented safely, sustainably and ethically.
According to a report, 68% of large companies, 34% of medium sized companies and 15% of small companies in the UK have adopted at least one form of AI technology.
The rapid development of artificial intelligence is also garnering more attention from the EU institutions.
The European Commission recently published a white paper on artificial intelligence. The aim of the paper is to encourage trustworthy and secure development of AI, whilst still respecting European values and rights.
The European Parliament adopted a resolution on AI technology and ADM. The resolution recognises that ADM has huge potential to deliver innovative and improved services. Yet, it emphasises that humans must always be responsible and able to check, correct, and overrule decisions.
A survey found that 42% enterprises in the EU have adopted at least one form of AI technology, with a quarter of them having adopted two or more.
Innovation is the key to a sustainable future
The global AI market size is expected to grow tenfold, from $93.53 billion in 2021 to $997.77 billion in 2028.
In the coming years, businesses will use AI to simplify their operations and make them more efficient. Improving IT infrastructure and data management will bring commercial benefits and some of the trends are expected to become mainstream.
Real Time Analytics
Processing and interpreting a huge amount of data in real time is one of the best advantages of AI for businesses. For example, in the transportation industry, drivers could get data on traffic jams based on their location and promptly adjust their routes.
Better Customer Experience
Machines never sleep, so there will be 24-hour support for customers. AI-based chatbots can provide shorter response times and better interaction quality that will allow companies to increase existing customers’ loyalty and attract new ones.
Business Process Automation
AI can manage the automation of both service delivery and production operations, such as managing robotic lines in factories, processing payments, monitoring warehouse balances, registering service customer requests, and more.
AI Market Research
AI market research is superior to manual research because it has a higher operational ability and accuracy when performing tedious and monotonous jobs. Using a technology like Artificial Intelligence can help the further development of any company. The precision of AI also reduces the number of errors in the process.
ITnnov‘s unique AI market research shows your business’s market potential and gives an accurate picture of the opportunities, competitors, and entry costs of the products you want to sell. For more information, feel free to contact us at firstname.lastname@example.org.
The rapid evolution of AI may be a daunting prospect for many. Yet, this technology is already altering the world and raising important questions for society, the economy and governance.
If you carefully implement the many benefits of AI and automated decision making, your business could benefit from a strong competitive advantage.
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