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AI Impact On Business Decisions – Know AI’s Unique Challenge To Overcome Its High Number Of Weaknesses

Did you know that, despite artificial intelligence’s incredible abilities, it has 11 major pitfalls to watch out for? As AI automation steps up to enhance human decision-making or take the reins itself, it’s essential for us to get a good grasp of these weaknesses. In this article, I’ll explore the challenges we face with AI supporting our decision-making processes. Sure, navigating the seemingly endless capabilities of Large Language Models like ChatGPT can be a bit daunting. But trust me – the payoff is monumental! AI impact on business decisions is growing exponentially, skyrocketing beyond our imagination with unlimited potential.

Also, this article is the last article in my 5-part series on AI impact On Business Decisions. For further reading, see links at the end of this article.

“It’s more important to know your weaknesses than your strengths.”

Ray Lee Hunt

How AI Can Be Used In Decision-Making And Its Benefits.

Before getting into AI’s weaknesses, let’s recap the huge AI opportunities before us in enhancing decision-making for all businesses. So as a result of recent advances in AI, particularly Large Language Models (LLM) and more generalized AI, AI can augment more business decision-making than traditional automation. In fact in more and more cases, AI coupled with robotics is completely autonomous in both decision-making and physical tasks. 

So AI increasingly can replace or augment both human and older forms of automation to automate, augment, or support decision-making. Additionally, it can do this in use cases that are simple, complex, and even chaotic. For a detail rundown of the opportunities and benefits in AI supporting decision-making, see SC Tech Insights’ AI Impact On Business Decisions – Know How To Best Apply To Get The Most Benefits.

AI Impact On Business Decisions – Know How To Best Apply To Get The Most Benefits. Click here to explore the impact AI in supporting decision-making. Specifically, this article describes the peculiar way that AI supports decision-making compared to other types of automation. Also, get tips on when to use AI for different types of decision-making use cases, and find out the overall benefits AI brings to decision-making.

“Once we know our weaknesses they cease to do us any harm.”

Georg C. Lichtenberg

AI Impact on Business Decisions – What Are Its Limitations? 

AI is truly revolutionary when it comes to supporting decision-making. However, AI is not without its limitations. In fact, it has a high number of weaknesses that decision-makers need to mitigate in order to really realize the power of AI. For example, one major concern that users have is AI’s lack of transparency. This is because users find AI systems complex and difficult to understand. Thus, AI users have difficulty interpreting AI decisions and recommendations. 

AI impact on business decisions - the limitations

Another huge concern is that users have fears around the potential for AI to perpetuate existing biases and inequalities. Particularly, this is the case where developers use training data that is biased or incomplete. Finally, there is the risk that AI systems may make decisions that are ethically or morally questionable. Consequently, AI decisions could have serious consequences for businesses and society as a whole. To recap, below are 11 AI limitations that businesses need to be aware of and mitigate when implementing AI to support business decision-making

1. Not Transparent.

One significant limitation of AI is that it lacks transparency. It can be challenging to understand why AI makes the decisions it does, which can make it difficult to trust its outputs.

2. Can Be Bias.

Another limitation of AI is that it can still be biased. AI algorithms are only as unbiased as the data used to train them, and if that data is biased, then the algorithm will be too. Additionally, developers have challenges when training Machine Learning (ML) applications where huge amounts of data are summarized. As a result of this summarization, there are cases where there is a hidden bias embedded in the trained ML code.

3. Consumes Enormous Computing and Power Resources.

AI requires massive amounts of computing power to function, which can make it expensive and environmentally unsustainable. With Large Language Model (LLM) or Machine Learning (ML) powered applications, there is the huge cost of training the AI as well as supporting users in production.

4. Limited in Juggling Priorities.

AI can be limited in its ability to juggle priorities in a dynamic situation. As a result, it may struggle to prioritize tasks and make decisions quickly in rapidly changing circumstances.

5. Lacking Intuition and Common Sense.

AI lacks intuition and common sense, which can make it difficult for it to adapt to new inputs or ambiguous criteria. In particular, it does not think abstractly and may struggle to make judgments that humans would consider to be common sense.

6. Susceptible to Hallucinations.

AI can be susceptible to hallucinations, which can lead to inaccurate outputs. For instance, it can act like a stochastic parrot, repeating patterns in the data without understanding their significance.

7. Singularly Task Focused.

AI can be singularly task-focused, which can make it challenging to think within context, culture, or what has gone before. In some cases, it may not be able to draw on prior experience to make informed decisions and recommendations.

8. Increases Privacy and Security Concerns.

The use of AI can increase privacy and security concerns. This is because as more data is collected and analyzed, there is a risk that sensitive information could be compromised.

9. Limited On Creativity and Originality.

AI is limited in its creativity and originality. While it can generate creative outputs based on existing patterns in the data, it may struggle to generate truly orginal, innovative solutions.

10. Lacks Empathy, Emotional Intelligence, and Conscience.

AI lacks empathy, emotional intelligence, and conscience, which can make it difficult for it to participate fully in collaborative situations. As a result, it may not be able to pick up on nonverbal cues or understand the emotional context of a conversation.

11. Not Morally Responsible and in the Wrong Hands Dangerous.

Finally, AI is not morally responsible, and in the wrong hands, it can be dangerous. The decisions made by AI can have real-world consequences, and there is a risk that these decisions could be used for harmful purposes.

For more discussions on AI software when it comes to supporting decision-making, see PlatAI’s Can AI Overcome Its Limitations?, Adcock Solutions’ 6 Limitations of AI & Why it Won’t Quite Take Over In 2023!, and Nicole Hilbig’s How Far Can Artificial Intelligence Go? The 8 Limits of Machine Learning

For more on my Series on AI Impact On Business Decisions, see links below:

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