The Impact of AI on Business: Uncovering the Pros and Cons

Are we really at risk of being replaced by the machines?

AI is changing the way we work but is it also changing the need for human work? Here are some pros and the related cons of AI in business.

Photo by Marissa Grootes on Unsplash

Pro: Productivity increase

AI can help handle the repeat tasks that workers face in their day from email responses to organizing date. There are still areas where people will be uncomfortable trusting a machine so demand to have a human workforce to explain the algorithm and maintain client relationships will increase. These workers will have more time to build up clients and cater to the human interactions with the algorithm doing the more routine work behind the scenes.

Con: Technology dependence

Technology dependence impacts the younger workforce as they use AI to replace the repetitive tasks of their work. While to helps productivity, it also eliminates their ability to problem solve when the machine doesn’t work. It also could lead to incorrect decisions when they don’t have a foundational knowledge to use AI’s information to pick the best option presented. Instead of approaching AI with a good foundation, newer workers are using AI to learn their jobs which again decreases their usefulness when the machines stop working.

Photo by True Agency on Unsplash

Pro: Re-defining entry level

Entry level workers will have to adapt to AI taking over stereotypical entry-level work. This means that now, entry-level workers can focus on more challenging aspects of a role and build even more desired and competitive skills while AI does the routine tasks. Entry-level workers can learn how to solve the problems that arise when the machines don’t work.

Con: Changing Organizational Structure

Taking over the more complex and difficult parts of repetitive jobs can make workers easier to train and therefore make it easier to replace workers when their perceived value even slightly decreases. Incorporating AI can also decrease the need for entry-level work which in turn decreases the need for mid-level supervision. When you eliminate the entry-level workforce you eliminate any ability to hire within the company but also reduce the ability for people to gain the skills to move up in or even enter the workforce.

AI Generated Image on Wix

Pro: Improving Decision Making

One of the efficiencies AI is helping with is decision making. According to Forbes, 44% of businesses perceive AI as an asset to improve decision making. AI can take in information, organize it, and create options much quicker and with less complex interaction requirements than without it. AI can also help identify and make decisions on how to narrow skill-gaps in a company. For example, knowledge about a new marketing technology essential to better marketing strategies could be identified by AI as something a marketing department needs to know about or the company risks falling behind.

Con: Misinformation

If data is incorrect, outdated or incomplete; AI will provide inaccurate and misleading results and suggestions. AI is also proven to have hallucinations and provide misinformation so if people aren’t trained to check the accuracy of the output, AI can lead to distrust in a company, bad business decisions, and poor customer experience. The human workforce needs to be able to have enough knowledge to confirm and explain the AI outputs.

AI is still new and with any new technology, there is a fear that the need for human workforce will cease to exist but as we have seen throughout history, humans adapt. We are at a crucial time to define how AI will help us work rather than replace us.