Artificial Intelligence (AI) is becoming an important and increasingly significant contribution to organizational performance. In Artificial Intelligence (AI) and the Accounting Function—A Revisit and a New Perspective for Developing Framework, Petkov (2020) explores the introduction of AI into the financial accounting function of organizations.Read the article and address the following in a 1–2 page paper:
Discuss some of the challenges that organizations might face when attempting to implement AI in their operations.
Propose two ways small businesses might take advantage of AI so they do not fall behind in an ever-evolving business environment.
Use two sources to support your writing. Choose sources that are credible, relevant, and appropriate
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Implementing artificial intelligence (AI) in organizational operations can provide various benefits, but it also comes with its fair share of challenges. Some of the challenges that organizations might face when attempting to implement AI in their operations are as follows:
1. Cost: AI implementation can be expensive, especially for small businesses with limited financial resources. The cost of purchasing and maintaining AI technology, training employees, and addressing potential technical issues can be significant.
2. Data quality and availability: AI systems rely on vast amounts of high-quality data to function effectively. Organizations often face challenges in securing and managing data in a structured and accessible manner. Inaccurate or incomplete data can result in unreliable AI outputs.
3. Workforce adaptation: Implementing AI technologies often requires a shift in the skills and capabilities of the workforce. Organizations may face challenges in training and upskilling employees to work harmoniously with the AI systems. Resistance or lack of willingness to embrace AI can hinder the successful implementation of such technologies.
4. Ethical considerations and privacy concerns: AI systems can raise ethical concerns regarding privacy, bias, and accountability. Organizations must ensure that data usage and decision-making processes are transparent, fair, and comply with relevant regulations. Failure to address these concerns may result in legal implications and damage to the organization's reputation.
Considering the challenges mentioned above, small businesses can take advantage of AI in several ways to not fall behind in an ever-evolving business environment:
1. Enhanced customer experience: Small businesses can leverage AI-powered chatbots or virtual assistants to provide 24/7 customer support, resolve queries, and streamline interactions. This improves customer satisfaction and reduces the need for extensive human customer support resources.
2. Data analytics for informed decision-making: Implementing AI-driven analytics tools can help small businesses identify patterns, trends, and insights from large volumes of data. This enables effective decision-making, such as identifying customer preferences, optimizing pricing strategies, and forecasting market demand.
Sources:
1. Bughin, J., Manyika, J., & Ramaswamy, S. (2018). The impact of artificial intelligence on the world economy. McKinsey Global Institute, 1-30.
2. Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 1-9.
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