Artificial Intelligence (AI) has brought great achievements to the technological world, such as voice recognition, automobiles or autonomous vacuum cleaners. However, not everyone is in favor of AI advancement. In this post, we review some of the advantages and disadvantages of Artificial Intelligence.
AI is predicted to have a huge economic impact in the coming years. This can be seen with brands such as Amazon, Google, Apple, Microsoft or Netflix running on AI technologies. This is because AI has significant advantages when it comes to business growth. We review some of the key advantages and disadvantages of Artificial Intelligence.
6 Key Advantages and Disadvantages of Artificial Intelligence
1. Better Predictions
AI technologies and Machine Learning have the ability to recognize patterns thanks to Big Data, this allows, then employ those patterns and make predictions about businesses. What Artificial Intelligence will be able to do will range from accelerating revenue growth, to reducing costs and generating higher ROI on campaigns, to reducing time spent on repetitive data-driven tasks.
2. Revenue Acceleration
As we discussed earlier, AI accelerates revenue and does so in two important ways.
First, AI leverages the value of big data including marketing, sales and website data, finding information that can have a very big impact on the business.
For example, one company in the United States achieved a 3,000% ROAS (return on advertising spend) thanks to an AI model.
Secondly, AI generates better predictions of humans every day thanks to the collection and processing of millions of data.
eBay uses Artificial Intelligence for email marketing to know in advance which subject will be opened more by users, after applying this model, it increased by 15% the opening of its campaigns.
3. Cost Reduction
Artificial Intelligence can significantly reduce costs through automation. The technology has one of its strongest points in automating repetitive data-driven tasks. Activities in which humans spend a lot of time and energy that could be spent on other processes.
Today, AI is used to mechanize many procedures from report writing and press releases to advertising management and lead nurturing.
However, despite its many advantages, AI has drawbacks to contend with. Below, we discuss some of its disadvantages.
4. Cost and Data Requirements
AI is only as efficient as the data it possesses. Therefore, not every company can reap the benefits of AI tools right from the start. It is very often the case that a minimum amount of data is needed to get started, and this data must be clean and of high quality.
Thus, high investment and significant work is required to prepare the internal data for AI. In addition, maintenance also increases the investment. However, this is a problem that can be solved as the technology for their manufacture becomes cheaper and their use becomes more democratized.
5. Low Understanding
In the world of Artificial Intelligence there are some systems that are called “black boxes”. This is because the user has little or no understanding of how AI makes decisions. When making good decisions this does not matter, however, in a poor prediction or error, this system makes it difficult or impossible to get to the heart of the problem.
This mechanism causes companies to hesitate to rely on AI to make very sensitive business decisions, such as when revenue or jobs are at stake. However, for this reason some AI vendors are encouraging greater compression in AI tools.
6. Adaptive Limits
One of the main differences between humans and AI-enabled machines is their adaptive capacity. For example, in situations of changing environments, AI-enabled machines are very limited in their ability to adapt, and thus in their problem-solving ability. But this is something that is being worked on and is intended to be solved thanks to Machine Learning, which allows machines to learn without being programs to do so by making predictions.
We have reviewed some of the key advantages and disadvantages of Artificial Intelligence, the technology that is changing the world as we know it. If you want to enter the world of AI, then it is the right time.