The rise of Artificial Intelligence prompted significant companies to incorporate this technological advancement within their business operations. Artificial Intelligence enables firms in understanding the change in market trends and demands, forecasting sales, customer interactions, productivity, and convenience. According to research, 70 percent of business owners consider Artificial Intelligence as a significant competitive advantage for the firm.
Cost of Acquisition
Despite all the advantages Artificial Intelligence has its flaws, some of which have a drastic effect on the environment. According to a recent study, over 20 percent of companies have no plans of investing in this revolutionary technology. The cost of acquiring and incorporating Artificial Intelligence is expensive, and the probability of success is not 100 percent guaranteed.
Artificial Intelligence relies on algorithms created by people who are biased, which threatens the authenticity of the results generated. Major firms rely on Artificial Intelligence for sorting through massive amounts of CVs to make the job selection process convenient. Artificial Intelligence uses information like job experience, qualification, and personal attributes to find the best candidates out of the lot.
Job selection
One such company to uses Artificial Intelligence for convenient job selection processes is Amazon. Despite the initial success of the program, companies witnessed that the program preferred male workers over female ones. Because male workers initially dominated the industry and hence, they had more work experience compared to female applicants. Once Amazon identified this flaw, they immediately retracted the program from their job selection process.
According to market research, Artificial Intelligence will displace more than 400 million of the workforce globally. Even though Artificial Intelligence will create new opportunities, it will mainly be for more educated employees. The cost of education increased by 2.6 percent in the past few decades compared to wages which grew by 0.3 percent. Therefore, people may face difficulties in acquiring an excellent job in the future due to the rising cost of education. The introduction of Artificial Intelligence in companies will lead to record-breaking rates of unemployment. According to research, by the year 2030, more than 40 percent of jobs will be replaced by Artificial Intelligence.
Lack of Personal Communication
The rise in technological developments urged retailers to opt for utilizing Artificial Intelligence for communication purposes. Many corporations introduced Chat-Bot on their web page that responds to any queries regarding the company and the product offerings. But despite the advantages of Chat-Bot, studies prove that 50 percent of shoppers were not comfortable with using such technologies. In other words, customers are dissatisfied with Chat-Bot because they are unable to explain queries without a human interface. Humans are complex creatures which makes them unpredictable, hence it’s crucial to understand what may or may not offend them. Artificial Intelligence even though made with complex algorithms can’t communicate easily with the different personalities present in the world.
Privacy and Security Concerns
A major problem associated with the use of Artificial Intelligence is the lack of privacy and security of data. Artificial Intelligence uses data to learn and adapt, and they access this data from the Internet. According to market research, more than 75 percent of the respondents perceive Artificial Intelligence as a threat to their privacy. In addition, respondents have also displayed concerns concerning the proper usage of their personal data.
Issues regarding Artificial Intelligence caused scepticism among industry leaders like Bill Gates, who called for stronger regulations against technological companies. Businesses should analyze the impact of the damage caused by the misuse of data collected through Artificial Intelligence programs. Moreover, it is vital for proper regulations in place to control the impact of Artificial Intelligence in the online world.