Topic: AI applications in business

Academic English Class AEn-DH50ASE-01

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Should all businesses adopt AI applications quickly into their operations and
management?

Introduction:
This essay will argue that all businesses should adopt AI applications quickly into their operations and
management. This will be supported by several reasons. First off, rapid integration of AI applications
can lead to the reduction in operational costs for businesses in order to increase efficiency. Secondly,
companies can increase customer experience based on the application of AI in business. Thirdly, AI is
able to provide better invention and decision-making, with its big data and sources for better
profitability. Nevertheless, the AI applications in businesses’ operations and management can be a
risk to their data and employee’s workforce. However, the response is that adaptation and
understanding the balance between human experience and AI will capture the success in the digital
era.

Definition & Background

Artificial Intelligence (AI) can be defined as the development of computer systems that ordinarily
need human intelligence, like learning, problem-solving, and decision-making. According to a
research conducted by Grand View Research, the world of AI is increasing significantly at a
compound annual growth rate (CAGR) up to 38.1 percent between 2022 and 2030. From that we can
see the rise of the application of AI in business and how important the AI is. It has significantly
changed the finance, e-commerce, and business management in the company. According to the study
by MIT Sloan Management Review, more than 80 percent of organizations consider AI as a strategic
opportunity (Ransbotham et al., 2017). Some benefits of AI in economics can be listed out are
improving operational efficiency, enhancing decision making, profit maximization, fast and
convenience due to the automation. In other words, AI supports the sustainable development of
companies; therefore, adopting AI quickly into manufacturing is a challenge and even a must in order
to be able to catch up with the development speed of companies nowadays.

Body
Firstly, the swift integration of AI applications can lower operational costs for businesses and also
increase efficiency.
Explain + Evidence: With the development of the digital technology age, many logistics companies
have carried out some projects using AI to plan ideal and cost-effective routing. This technology made
it easier for applying in organizing operations and making decisions with a great efficiency path to
result in simply holding or expanding a position in the market.
- Businesses that have implemented AI have reported considerable cost and efficiency savings,
according to McKinsey research. The usage of AI in normal business processes has increased
by 25 percent year over year (Arif 2020). Notable cost savings and revenue improvements
have also been observed in the areas where AI is deployed.
- Tesla’s self-driving cars, powered by AI, have set the company apart from traditional
automakers by improving safety and performance (Musk, 2021). Autonomous vehicles have
the potential to maximize risks when using transportations due to problems such as alcohol
impairment, speeding and distraction.

Secondly: the most special feature of AI is how it can improve customer experience.
Explain + Evidence: By automation capability and personalizing recommendations, AI can enhance
the customer experience by making interactions more efficient and responsive.
- Studies show that AI-powered tools can increase customer satisfaction by offering tailored
services (Brynjolfsson & McAfee, 2017). It gives insight into what the customer values, what
issues we can fix and control to improve our brand, which lead to designing the journey that
customers are to take before making any products and purchases of the company in order to
enhance customer satisfaction.
- From there, the company can reach customers in countries with different time lines and
different languages. Chat services have become the preferred option to obtain customer
support (Charlton 2013).

Thirdly, AI gives scope for decision-making and innovating in a lot of diversified areas.
Explain + Evidence: It is going to analyze equally big data sets for insights that business
decision-makers can use in projecting future trends.
- Predictive analytics for data-driven decision-making and AI-powered innovation in product
creation are two important domains where AI shines. A report from Nature Medicine (2019)
notes that AI has reduced the average time for new drug discovery by nearly 30 percent,
helping to bring innovative treatments to market faster than traditional methods.
- The expense and complexity of decision-making can be greatly decreased by using AI's
capacity to analyze massive databases and generate precise forecasts. According to Gartner’s
2018 technology trend survey (Panetta, 2018) AI is listed as the No. 1 strategic technology.

On the other hand, an argument for this topic is that this technology also poses some risks for
humans in security.
Explain + Evidence: One of the main concerns is the vulnerability of AI systems to cyberattacks. In
addition to causing the community to become enraged and perhaps lose customers, this also prompted
an investigation into the brand's reputation.
- A particular insurance company lost their customer's data through a cyberattack while using
AI systems to gain customer information and feedback. The attackers were able to seize
loopholes in the system and stole personal information through data among millions of
clients. This will affect the customer's trust of the whole business and will lead to a number of
legal and ethical issues that can make the companies charge a large amount of money (Tóth,
Z., & Blut, M. ,2024)
 - As AI technologies grow more pervasive in daily life, concerns about discrimination, privacy,
and the effect on jobs are becoming more pressing. Due to the algorithm's predominance of
male resumes during training, Amazon was forced to discontinue their AI hiring tool after it
was discovered to be discriminatory against women (Gebru & Timnit, 2020)

However, a response to this is that companies and government should strengthen AI regulations and
ethical guidelines, encourage human monitoring of AI implementation and invest in AI education
Explain + Evidence:
- Google tried to organize regular classes or workshops training their employees, teaching them
to realize phishing tactics so they can understand the importance in handling customer's data
and having awareness of protecting sensitive information (Ansari, M. F., Sharma, P. K., &
Dash, B. , 2022). Therefore, every employee in those organizations needs to increase their
level of security awareness by receiving training on spotting possible threats, following data
protection guidelines, and developing a program that may help the company manage data
risks.
- According to a study that was published in Nature Medicine, human monitoring is essential to
ensure accurate interpretations, even though AI can help with disease diagnosis. Rajpurkar et
al. (2019) highlighted the significance of human review in clinical decision-making as a
means of reducing the potential for AI errors.

Conclusion
This outline illustrated the reason why AI should be embraced as soon as possible. The scheme has
demonstrated very well that companies need to integrate AI technologies into managerial and
operational aspects as soon as possible. These will include enhancing customer experience,
innovation, better decision-making, and giving leading edges to business entities in competition.
Although a counterargument is that AI can causes some difficulties and challenges for the business to
manage and protect security as well as important information, the response shows that ultimately we
can learn and educate ourselves from the failure before in some projects of the company that has
organized for their employees to understand the value of boosting security and controlling data in
creating their own technologies.

References
Arif C., McKinsey (2019). Global AI Survey: AI proves its worth, but few scale impact

Brynjolfsson, E., & McAfee, A. (2017). The Business of Artificial Intelligence: What it Can and
Cannot Do for Your Organization. Harvard Business Review.

Charlton, G. (2013). Consumers prefer live chat for customer service: stats. Retrieved from

Gebru, T. (2020). Race and gender. The Oxford handbook of ethics of AI,

Musk, E. (2021). Tesla's AI Innovations. Automotive Technology Journal, 18(2), 112-130.

Panetta, K. (2018). "Top 10 Strategic Technology Trends for 2019." Gartner.

Tóth, Z., & Blut, M. (2024). Ethical compass: The need for Corporate Digital Responsibility in the
use of Artificial Intelligence in financial services. Organizational Dynamics, 101041.
Ransbotham, S., Gerbert, P., Reeves, M., Kiron, D., & Spira, M. (2018). Artificial intelligence in
business gets real. MIT Sloan Management Review

Rajpurkar, P., Irvin, J., Zhu, K., (2019). "Deep Learning for Chest Radiograph Diagnosis: A
Retrospective Comparison of the CheXNeXt Algorithm to Radiologists." Nature Medicine