ARTIFICIAL INTELLIGENCE IN MANAGEMENT
In layman's terms, Artificial Intelligence (AI) refers to any computer software that engages in any human activity such as problem-solving, learning, detecting malware, image recognition, and other activities.
Earlier, the notion was that AI is a replacement for human capabilities. Instead, AI is seen as a helping hand to human activities. Even though there has been much advancement in AI, it still can't perform common-sense tasks; instead, it has helped humans gather data and give optimized solutions.
AI is used in many areas such as banking, agriculture, sports, and fashion. Now let us look at how it is used in the management world.
- Human Resources Department – It was hard to believe that AI could be used in HRM. Over the last two years, AI has been used at various hiring stages. A candidate needs to submit an application form before the hiring process, and sometimes entering the same information can leave a wrong impression on the employer; with the help of AI-driven systems, this effort from the side of an applicant has been reduced.
Also, based on work-ex, one can easily filter out the jobs he can apply to in an organization. AI-powered Video Interviews have recently come into the picture and have gained more popularity after the covid hit.
- Marketing and Sales – Chatbox was a breakthrough in reviewing customer expectations online. Chat box also helps in solving customer problems, providing services, and also helps in supporting sales activities. This helps in building what customer desires. AI helps in providing professional insights from time to time. So this allows the company to follow up with interested people.
- Accounting and Finance – AI helps accountants to be more productive and efficient. AI focuses on automation, allowing workers to save 80-90 per cent of the time they would have spent manually. It also improves the output quality by decreasing human error. Almost all accounting functions, including payroll, tax, banking, and audits, have been automated by AI, causing disruption in the accounting industry and a significant shift in how business is conducted. AI improves efficiency and output quality and also enhances transparency.AI opens up a wide range of possibilities and frees up the finance team's time to explore other avenues for business expansion.AI aids in precise forecasting of financial statements.
- Operations and Risk Management – When used alongside human intelligence, AI-based software has helped reduce the risk associated with investing. Not only Risk management, but it has also helped in providing optimal solutions to problems related to operations such as procurement and inventory control. Though, one cannot rely entirely on AI-based solutions. AI has helped solve complex problems and provided feasible solutions to the issues. Nevertheless, it has made human work easy, but more is yet to come.
About the author,
- Shreya Kalkhandey, a PGDM-Finance
student from the batch of 2023 sheds
light on the use of AI in management.