Benefits of AI and Algorithms

In a world exploding with data, human intellect can no longer handle the vast amount of information generated each millisecond by countless numbers of sensors and devices. Artificial Intelligence and Algorithms are necessary to pull the signal from the noise. Further, they can process the information at enormous speed. AI and Algorithms are often orders of magnitude more effective than humans at certain tasks—for example, assessing medical scans or driving. And they can be trained in virtual environments, racking up years of learning in hours or minutes of computer time. For example, many self-driving Algorithms are being trained in virtual worlds to complement their real-world training, covering millions of miles in time spans impossible in the real world.

Other benefits include:

• Scale: By far, the biggest benefit of AI and Algorithms is their ability to scale products and services. Netflix is the most famous example: their AI-based recommendation engine drove enormous engagement.

• New data: AI and Algorithms leverage new data streams from connected devices and sensors.

• Reliability: A much lower error rate stabilizes growth and bolsters predictability.

• RPA: Robotic Process Automation frees up other team members’ time for more creative and value-added work.

• Cost and speed: Product managers can push many more features (e.g., personalization or complexity simplification and analysis) due to lower costs. They can also create new products and services much faster and generate customized user experiences automatically.

• Persistence: AIs operate on a 24/7 basis and never need time off (though they do get sick sometimes).

Reduced cognitive bias: AI and Algorithms help overcome the cognitive biases that characterize human decision-making processes—although AI can exhibit such biases if its source programming reflects them.