CONSIDERATIONS AS AI IS CHANGING THE IR LANDSCAPE

As we enter an age of advanced digitalization, it’s no surprise that companies are becoming more interested in how they can adopt Machine Learning or Artificial Intelligence (AI) into their current business processes to drive performance. There’s much to look forward to with the level of innovation possible and it opens many new doors for accelerating or automating several different data-driven processes. At the same time, it’s important to be practical in how we integrate these new systems and to stay informed with its nuances. Our company is always excited about new ways of working and we’re committed to guiding you through these changes so your business can thrive. Here are some considerations to be mindful of as AI is changing the IR landscape:

Embrace the limitations

The term AI encompasses various advanced technologies, in which data science and algorithms are used to teach computers to do things that humans would usually do. Though AI is changing the business landscape, it’s important to recognize that there are instances where the intrinsic value of human involvement cannot be replicated. As AI systems are completely reliant on data and algorithms, there are limitations within the presence of a data error or when the system is less knowledgeable. It’s important to view AI as a tool that simplifies and supports current efforts, rather than as a replacement of the efforts themselves. Like humans, AI is doing a great job but still has much to learn.

Resilience over reliance

Although these new systems can help streamline various business operations, becoming too reliant on these systems can lead to problems that are much harder to fix than when experiencing instances of human error. In the absence of human involvement, it would be much harder to catch these issues in real-time, and someone with an advanced skillset would need to be readily available to troubleshoot these problems as they arise.

In KPMG’s Audit of AI poll, 80% of delegates from companies where AI was already being used to some extent, indicated they weren’t confident about the governance in place at the time. In most instances, human involvement and basic decision-making skills will still be essential to ensuring everything runs smoothly with the integration of AI. Rather than completely relying on AI, it would be ideal to take on approach where we only view it as an additional tool that can be used to help simplify/streamline tasks where human involvement is still very much there.

Ensuring adequate skills capacity

As with any other technology, AI systems can be unpredictable and there could be gaps within the data system itself, making it vulnerable to corruption. According to KPMG, “The introduction of any new technology opens up new threat vectors which hackers will look to exploit: where the workforce is predominantly an AI solution, this can make entities very vulnerable.” That said, companies will need to ensure they have the right systems in place to mitigate these challenges, which includes complex knowledge of AI systems and advanced IT skills.

More specifically, businesses will need to pay more attention to whether they have the right skills capacity within their organization to monitor these systems and to ensure these tasks are being performed accurately. According to KPMG, “Understanding the end to end controls to ensure security and resilience will be critical, with consideration made for standalone and separate AI solutions so that they do not get contaminated with bad data.”

Keeping up with innovation

 AI is changing the business landscape in many more ways than we ever could’ve imagined just a few short years ago. And when it comes to what AI can do for your business, the possibilities are vast and endless. However, it’s important to view these enhancements as tools that make work functions easier, rather than using them to perform the functions entirely. AI and human intellect combined may be the ultimate combination after all. Have any questions for us? Connect with us at happyinvestors@irlabs.ca.