Without a doubt, technology is playing a pivotal role in transforming the way we make business decisions. From the early days of automation to data-driven insights to this current era of AI, each technological advancement has brought significant benefits. Initially, data was just a byproduct of automation, but data quickly became a vital resource. Today, most companies rely on data-driven business intelligence reporting to streamline decision-making. Moreover, the advent of smart robotics and AI has further accelerated this transformation in how we make business decisions. As a result, business decision-making is improving, and in more cases, organizations are even adopting fully autonomous operations.

In this article, I’ll first examine the challenges humans and various forms of information technology face in the business decision-making process. Also, I’ll share with you the unique advantages of process automation, data-driven decisions, and AI. By understanding the synergisms of business decision-making and evolving technologies, we can better leverage advanced technologies to make better business decisions.

“Automation does not need to be our enemy. I think machines can make life easier for men, if men do not let the machines dominate them.”

John F. Kennedy

1. The Problem-Solving Process: Humans Make Mistakes And Need Tech To Make Better Business Decisions

Decision-making is as old as mankind. To understand Artificial Intelligence’s (AI) impact on decision-making, let’s first start with the basic steps of human problem solving and its challenges. See below.

4-Step Problem-Solving Process for Humans

• Define The Problem
• Formulate Alternative Solutions
• Evaluate and Select An Alternative
• Implement And Follow Up On The Solution.

At least for most business professionals, problem-solving is a critical skill that they put to use every day. For a more detailed discussion on the basic problem solving process, click here.

Now, the fundamental problem with human decision-making is that we make mistakes. To list, key human decision-making challenges include

Human Decision-Making Challenges

The Problem-Solving Process: Humans Make Mistakes And Need Tech To Make Better Decisions

• Biases that Distort Information.
• Emotions that Lead to Faulty Decisions.
• Human Errors Make for Sub Par Decisions.
• Fatigue and Distractions Impair Decision-Making.
• Information Processing Limits Result in Cognitive Overload.

For a more detailed discussion on the human decision-making process, see my article, The Problem-Solving Process: Humans Make Mistakes and Need Tech to Make Better Decisions.

So, to varying degrees, all of us have these human weaknesses when it comes to decision-making. This is where automation and technology helps to shore up our weaknesses. Subsequently, the remainder of this article will look at the opportunities and the challenges we have with using information technology in decision-making. Specifically, this includes process automation, data-driven decision-making, and lastly, AI’s impact on business decisions. See below.

2. Process Automation Technology: Its Value To Best Empower Decision Making In The Age Of AI.

Process Automation Technology: Its Value To Best Empower Decision Making In The Age Of AI

Before AI, businesses used and continue to use rules-based automation technology. Without a doubt, this type of traditional process-based automation has provided much value to business decision-making. However, it does have major limitations. See below. 

Major Limitations of Process Automation

• Constraints Of Rule-Based Systems.
• Not Adaptable to Changing Environments.
• Cannot Support Complex Decision-Making Situations.
• Not Able To Deal With Ambiguity and Uncertainty.
• Limited Capability To Collaborate With Humans.
• Not Suited For Large Data Sets.

For decades, businesses have used rules-based process automation to automate manual tasks and assist with decision-making. Indeed, traditional process automation still has its place to support business decision-making. For a more detailed discussion on process automation use cases and its limitations, click here

3. Data-Driven Decision-Making: Its Enormous Impact And The Truth On Limitations

The explosion of big data has provided businesses with unprecedented access to vast amounts of information that they can use for decision-making purposes. Moreover, a scientific discipline emerged called Data Science. This discipline is singularly focused on making data useful by placing advanced analytics tools and methods in the hands of organizations. Now, with the help of data science, we can analyze large data sets from various sources to identify patterns and trends. Without a doubt, these correlations and resulting insights were in many cases previously undiscoverable. 

Further, data-driven decision-making capabilities enable businesses to respond more accurately and quickly to market changes, customer preferences, competitor activities, and other external factors. On the other hand, there are limitations with a data-driven approach. These include:

Data-Driven Decision-Making: Its Enormous Impact And The Truth On Limitations

Challenges With Data-Driven Decision-Making

• Over Reliance on Summary Data that Can Obscure Insights
• Bias Is Still Present Or Even Elevated
• Using an Application-Centric Approach that Treats Data as a By-Product

For a more thorough discussion of data-driven decision-making, its benefits, and its challenges, click here,

4. 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

Without a doubt, Artificial Intelligence (AI) stands out for its ability to facilitate decision-making in complex environments. Moreover, recent advancements in Large Language Models (LLM) and other advanced forms of AI have expanded its potential beyond traditional automation. Indeed, AI can even operate autonomously in both decision-making and physical tasks when combined with robotics. Also, it can replace or enhance both human and automation in much more use cases to include simple, complex, and chaotic business environments. Additionally by leveraging AI, businesses can better support organizational decision-making and improve business execution. To learn more about how to harness AI for better decision-making, explore the possibilities of integrating AI into your decision-making processes.

For more discussion on AI’s impact on business decisions, click here.

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

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

However, AI still has many weaknesses when it comes to supporting business decision-making. Specifically, AI challenges include its lack of transparency, it can be biased, uses a lot of computing power, privacy concerns, and it is not morally responsible to name a few. However, despite these weaknesses, AI is still worth pursuing to empower business decision-making. To explore the 11 weaknesses of AI to support business decision-making, Click here.

“The real danger is not that computers will begin to think like men, but that men will begin to think like computers.”

Sydney J. Harris

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

1. The Human Problem-Solving Process
2. Process Automation
3. Data-Driven Decision-Making
4. AI Impact on Business Decisions – Opportunities
5. AI Impact on Business Decisions – Limitations

Lastly, if you are in the supply chain industry and have a need to supercharge your decision-making cycles, please contact me to discuss next steps. I’m Randy McClure, and I’ve spent many years solving data analytics and decision support problems. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers. I specialize in proof-of-concept and pilot projects for emerging technologies. To reach me, click here to access my contact form or you can find me on LinkedIn.

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