Using AI to Inform Decisions, Not Just Automate Processes
This article argues that the real advantage of AI is using it to inform decisions before committing time and resources, not just to automate existing processes faster.
Why it matters
This article highlights a less-explored but potentially more impactful use of AI in business - to drive strategic decision-making rather than just operational efficiency.
Key Points
- 1AI can be used in two modes: production mode to speed up existing tasks, and decision-making mode to explore alternatives and surface hidden assumptions
- 2Examples of using AI for decision-making include pricing, client selection, service design, and positioning
- 3The efficiency gains from automation are real but less impactful than the insights AI can provide to change the direction of the business
Details
The article suggests that most current AI use cases focus on increasing efficiency by automating existing tasks and workflows. However, the author argues that the more impactful application of AI is to use it upstream, before key decisions are made, to pressure-test assumptions, explore alternatives, and surface unintended consequences. Examples are provided across pricing, client selection, service design, and positioning - areas where AI can provide valuable insights to change the direction of the business, rather than just speeding up existing processes. The article emphasizes that while the efficiency gains from AI are real, they are secondary to the strategic advantages of using AI to inform decisions before committing time, energy and resources.
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