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Expert view: The benefits and risks of embracing artificial intelligence

Artificial intelligence is rapidly disrupting the way businesses are conducted in all walks of life, yet skeptics still abound. But do we really have reason to be afraid of artificial intelligence?

Artificial intelligence will change the way we work and do business, and its impact is already being felt. That doesn't mean it's always scary, though. Instead, businesses that embrace AI and harness its potential can now gain many competitive advantages.

Understanding Artificial Intelligence

According to IBM, at its most basic, artificial intelligence is anything that “uses computers and machines to imitate the problem-solving and decision-making abilities of the human mind.” But not all artificial intelligence is created equal. Currently, there are two main types of AI: weak AI and strong AI.

Weak AI (Weak AI) is also called Narrow AI or Applied AI, which refers to artificial intelligence that can only complete a specific task or solve a certain problem. Artificial intelligence for a specific problem.

Narrow artificial intelligence is trained to perform specific tasks. A customer service robot that can hold conversations with potential customers is an example of weak AI, but AI has many more powerful applications, and we are moving toward powerful artificial intelligence that can perform all the complex tasks and decision-making processes of humans. For example, emotionally intelligent machines that can make tough decisions, reflect on their implications, and recalibrate accordingly. Whether powerful artificial intelligence is just another flying car remains to be seen.

From flying cars to artificial intelligence

As history has shown time and time again, some visions of the future simply will not come true. The first patent for a flying car was granted in 1918, and more than a century later, we still haven’t seen the skies filled with flying cars. That hasn't stopped people from dreaming and worrying about a future where the sky replaces the roads. As the co-founder of an AI-driven business, my best guess is that AI is today’s flying car.

Since 2010, there have been growing concerns about the impact of artificial intelligence on the economy and the future of work. Unless you’ve been living in an off-grid world, you’ve probably seen countless articles on this topic by now, such as a 2020 article from Time magazine that read: “From 1990 to 2007, Artificial Intelligence Works Automation has replaced approximately 400,000 factory jobs in the United States, and 2 million more are about to be replaced."

This article in "Time" magazine is actually not incorrect. Some industries have already experienced job losses, and I think more are likely to come. The article also rightly points out that AI allows businesses to do more with less. But that doesn't mean our jobs are at risk.

For example, consider the real estate industry. Today, artificial intelligence is starting to take over some of the work of lead acquisition and nurturing. While this may seem like a threat, as someone who runs two successful brokerages and a technology company, I can assure you that the need for human agents has not gone away. Artificial intelligence will help agents serve more consumers, but I don’t foresee anyone using robots to complete home transactions. Why? Because AI lacks the emotional intelligence and sophistication needed to help people make big decisions, including buying and selling a home.

How Business Leaders Can Leverage Artificial Intelligence

While the ultimate vision of artificial intelligence may seem far out of reach, even small and medium-sized business owners can embrace it.

Use artificial intelligence to acquire potential customers. No one likes the current crappy bots, but with a small investment and the right talent, it’s possible to build a truly effective AI-powered platform. If you're in a fast-paced, customer-centric industry, such as real estate or any other high-stakes sales industry, investing in AI can help businesses respond quickly to customer inquiries and close more deals over time.

Use artificial intelligence to find and recruit talent. Hiring great talent and building a great team takes time and effort. Able to sort through thousands of applications faster than any human can, artificial intelligence is changing the way we recruit talent. Even better, it helps us uncover great candidates that we may have overlooked in the past due to our own biases and assumptions. While AI is not perfect (biases can be built into algorithms), it still has the potential to help business owners expand their networks, review more candidate applications, and use increasingly nuanced criteria to recruit and build the best talent pool.

Let artificial intelligence point the way forward. Artificial intelligence, unleashed to its full potential, can also point businesses in entirely new directions, and it’s easy to see why. When embracing artificial intelligence, vast amounts of data about your customer base can be accessed. Companies can use this information to continue doing what they are already doing, but the smartest business leaders will let their AI point them in new directions.

Common Mistakes New AI Adopters Make

We’ve all heard the saying: “If you can’t beat ‘em, join ‘em.” This applies to artificial intelligence as well. Artificial intelligence is not going away. Business owners who embrace AI now and start exploring how it can help them do more will be the biggest winners. Still, it's important to avoid these three common mistakes.

1. Failure to recruit suitable talents for the team. If AI isn’t already being used, the team may not have the right talent. While outsourcing AI initiatives is always an option, the return on investment is ultimately higher if you build your AI projects in-house. This may mean recruiting new talent.

2. Not aware of the potential risks of investing in artificial intelligence. Artificial intelligence also poses unique risks. If an investment is made in a new factory and the bet does not pay off, it is still possible to sell the factory and the equipment within it to recoup some of the lost investment. The situation is different if you invest in AI and don't get a return, as you may not be able to sell an algorithm developed specifically for your business. In this regard, artificial intelligence, for all its benefits, also poses unique risks to business owners.

3. Assume that artificial intelligence can solve all problems. Finally, it is important to keep artificial intelligence in perspective. It can transform your business, but that doesn’t mean you can put your business on autopilot. Even as artificial intelligence transforms business, business leaders are still calling the shots.

In the next few decades, artificial intelligence will profoundly change the way we live, learn and do business. But it won’t do anything without our vision, insight and permission. As business leaders, the most strategic thing we can do is use AI as an opportunity to serve our broader business mission.

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