33 Artificial Intelligent Technology in Business

Dr. Sudhanshu Joshi

Introduction

 

In the Industrial Age that humanity has entered long time ago with steam series has caused to primitive mechanization in production. With the development of internet and mobile technologies, electronics, nano-technology, advances in medicine, health and digital applications and so on speed up mechatronics studies nowadays.

 

Robotics and Artificial Intelligence and the economists has entered in the discussion of robotics and artificial in intelligence impacts on economics and business (World Economic Forum, 2015). Changing form of the business terms and work forces, the way of doing business by using new technologies will have serious impacts on the daily business life and deriving from these on countries and on world economics.

 

Various Business Management areas including Performance Management, CRM Analytics, Customer Relationship Management, Strategic Planning, Mass Production, Purchasing Power Parity, GDP, Inflation, Banking System are involved in using business opportunities while using Artificial Intelligence and Robotics. Table 1-1 depicts the Scope and Applications of Artificial Intelligence in Service and Manufacturing based Setups. Table 1-2 illustrate various applications of AI

 

This module aims to understand and discuss the present and future of robotics and Artificial Intelligence (AI) in Business Perspective.

 

Table 1-1: Scope and Applications of Artificial Intelligence in Service and Manufacturing based Setups

 

 

Table 1-2: AI based business Applications

 

List of Applications
Typical Problems to which AI  methods are Applied
Pattern Recognition Speech Recognition Computer Vision, Virtual
reality and Image
Processing
Optical Character
Recognition		 Face Recognition Diagnosis(Artifical
Intelligence)
Handwriting Recognition Artificial Creativity Game Theory and Strategic
Planning
Game Artificial Intelligence
and Computer Game Hot		 Natural Language processing,
Translation and Chatterbots		 Nonlinear Control and
Robotics
Other fields in which AI methods are implemented
Artifical Life
 Data Mining Intelligent agent
Automated Reasoning Knowledge representation Intelligent Control
Automation Semantic Web Hybrid Intelligent System
Biologically Inspired
Computing		 E-mail Spam Filtering Concept Mining
  1. Emerging Technology trends in Business

 

The emergence of new technology enabled trends supported by high socio- economic developments in front of financial and economic developments. The pressure raised from the constant demand from customer leads to high pressure on world economics, Countries, Industries and Business firms and it always challenge the equilibrium of Profitability vs. revenue of such firms.

 

In last few decades, the world has witnessed drastic transformation in the business oriented technology(ies).

 

(Adopted from : Dirican, 2015)

  1. Age of Transformation – Business Processes at the crossroad

 

The “Digital Age” that began with internet and mobile technologies, plunges corporations into opening their stores in cloud and web, to mobilize together with its customer base, drag governments into launching their e-government initiatives, financial institutions into presenting themselves in tablets, mobile phones and social media. Huge transformation in doing a new type of business which is called e-business containing e-signature, e-invoice, e-commerce, internet, mobile banking and e-payments, creates efficiency in corporate and individual life. Minimizing or optimizing the work processes, business processes reengineering shifted industrial age towards the digital age by the help of e-business environments. On the other hand, the amount of the information getting bigger and bigger every single day led business environment to analyze big data and to react simultaneously with CRM systems. Although, digital age together with other sciences like mechatronics, nano technology, genetic and so on is a step for “Space Economics”, some other progresses are going to change business and economics directly or indirectly more than other developments. These progresses are named Robotics and Artificial Intelligence.

 

The “Industrial Age” has been started by the industrial revolution and mechanization primarily in UK and by car makers (McKenzie, 2015). Production and deriving from that the supply side of the economics have made huge impacts on business and economics at the beginning of the 20th Century.

  1. Functional and operational challenges in implementing AI

 

The Production Factors, i.e. capital, entrepreneurship, work force, land were affected by the industrial age developments and mechanization and life style, education, finance, management have been all changed due to these effects (Mokyr, 1985). In order to solve new issues and problems, white collars and management have come to the agenda which created higher education needs due to the level of information, decisions and quality of the work force needed (Keller, 1983). Workers in order to be at the same working time at factories or production lines have begun to live in housing estates, large buildings or complex which directed life style to live in cities rather than villages. Wages and wealth have changed the buying attitudes and social behaviors (Davies, 1962). Lowering the human work force costs on one side by bulk population management e.g. transportation, municipal services and employee rights on the business environment, while on the other hand depreciation of allowance of the machines in production lines, calculation of the return on investment of these production lines led to new definitions in accounting and finance and the cost of capital. Robotics and Artificial Intelligence will be also opening new pages in the economics and business which are also bringing new life style and sociological side effects. Roubini and Stiglitz mentioned about the possible results and impacts of these effects in their articles (Roubini 2014; Stiglitz 2014), together with many discussions held in the last World Economic Forum 2015 (WEF, 2015) and papers, news are newly started to be issued on the same topics. One of the clear impacts will be the increase of jobless ratio in the economy. Regarding this first effect on the business side will also be on the hiring or buying new robots which most probably have an artificial intelligence comparing with its first movers.

  1. Future of AI

 

As a summary, The impact of recent technologies (Artificial Intelligence and Robotics) leads of disruptive changes in business processes. We can visualize the effect of such changes in various business processes including production, communication, marketing and staffing. Various Business Information System (viz. CRM, SRM) are using Data Analytics based on customer behavior and neuromarketing with convergence of mechatronics, robotics, cloud computing, artificial intelligence, neural networks, customer experience and relationship management would shift to the second phase by these high tech solutions and products as suggested “Artificial Intelligence Marketing” (Tarhan, 2010).

 

On the other hand, The convergence of Hologram technology is giving competitive edge to firms in retail business and to interact with and to reach to customers (Murray & Keevil, 2014). Companies and governments should be ready for and be open to implement such innovation and processes as quickly as possible. The shift from alternative delivery channels to technology based business environment will also have a direct effect on the organization charts. New CEOs and general managers, presidents would be from IT, engineering, mechatronics or scientific graduates or would have roots or experiences from positive sciences to tackle with the new issues arising from new terms and understandings and to respond the sustainability expectations of shareholders and the regulators. On the other hand, apart from organization charts, innovation and technological developments will lead to unemployment of low skilled (human) work forces (Hirst, 2014). The unemployment rate, the Philips Curve, Purchasing Power Parity, GDP, inflation, money, management and accounting will face significant changes with these developments in the coming years. Most of the organizational development activities that have been already changed forms by e-learning, webinars, gamification or coaching, mentoring, leadership terms that human resources department is investing would be veteran trends in business life due to other work forces coming. Performance management of workers would be a new issue for human resources managers. Evaluation of the staff and robotics in companies should be handled by new approaches.

 

Suggested Readings:

 

(a) Laudon (2016): Management Information System. Pearson Education India

(b) O’Brien and  Marakas  (2013):  Management  Information    McGraw  Hill Education.

(c) Davis and Olson (2001): Management Information System: Conceptual Foundations-Structure and Development. McGraw Hill Education.

(d) Weber (1998): Information Systems Control and Audit. Prentice Hall.

(e) Magal (2009): Essentials of Business Processes and Information systems. Wiley