AI can make decisions faster and more accurately than humans by automating certain processes. For example, airlines can optimize ticket prices using artificial intelligence to analyze demand, competition, and other factors in real time, allowing them to make more efficient pricing decisions. AI models and algorithms are the basis for decision-making. They are designed to systematically extract useful information from data.
This information is then used to provide predictions, forecasts, or interpretations to support decision-making. Whether it's autonomous cars, diagnosing diseases to improve healthcare, or helping you make better purchases online, AI continues to find new applications that make our lives better, safer and, hopefully, more satisfying. Delegates largely transfer their decision-making authority to AI to reduce the individual risk they perceive. For these executives, the use of AI significantly increases the speed of the strategic decision-making process and can overcome a potential stalemate.
However, delegates can also misuse AI to evade personal liability; they can rely on its recommendations as a personal insurance policy in case something goes wrong. This transfer of risk from the decision maker to the machine could lead the company to take unjustified risks.