We make decisions in virtually every aspect of our lives. However, when it comes to a professional context where decisions made by business leaders and managers can have broader consequences, it can generate various levels of stress, leaving the path for decision-making itself unclear.
Considering this context, it is becoming increasingly common for companies to turn to AI-powered technologies that use data perception and enhance their decision-making capabilities in critical and high-pressure situations.
In the Harvard Business Review article “How AI Can Help Leaders Make Better Decisions Under Pressure,” three ways of using AI for decision-making are analyzed:
1. Real-time tracking and enhanced prediction of on-site business developments.
Citing examples such as the global company Unilever and maritime ports, it is increasingly common for companies to use tracking technologies to make more efficient and sustainable decisions based on their own supply chains and databases. Unilever uses AI to detect signs of deforestation in its palm oil supply chain—an essential ingredient in the manufacturing of food, cosmetics, and fuels. The Port of Rotterdam, Europe’s largest maritime port, uses AI to optimize port operations, infrastructure, and improve environmental impacts. The same platform is being used by maritime ports worldwide, optimizing decision-making and long-term planning around port operations.
2. Virtual role-play to train workers in realistic business scenarios
Virtual reality is utilized by the American telecommunications company Verizon to create virtual environments in which interns can swap places with the customer and understand the issues from that perspective. The article also mentions other training situations where VR is applied, such as the Fort Myers Police Department in Florida, which uses immersive technologies to learn to make decisions in high-pressure or emergency situations. In the healthcare field, professionals are adopting AI to assist with diagnoses, eliminate dosage errors, and perform safer surgeries. Such technology can yield benefits like reducing stress, following correct protocols, and eliminating errors during decision-making.
3. Generative AI tools that can answer questions and act as virtual advisors and “resonance boxes” for decision-makers.
The article cites Konstantinos Mitsopoulos, a researcher at the Institute for Human and Machine Cognition (IHMC) in Florida:
“In principle, generative AI systems can help overcome some of the problems affecting human decision-making, such as limited working memory, low attention capacity, and decision fatigue, especially when it comes to making decisions under pressure. Generative AI tools can potentially help decision-makers save time, conserve energy, and free up time to focus on more important problems or issues.”
AI systems can reduce cognitive load on doctors by filtering and summarizing the most important data, generating more effective decisions for the patient. AI is also being used to develop “co-pilots.” This is what Fusion Risk Management, a Chicago-based company providing operational risk management software, is developing. The so-called Resilience Copilot uses technology to filter large volumes of operational risk data, identifying the most relevant elements for decision-makers, generating summaries, instant insights, smart recommendations, and improvements. In terms of corporate reputation, generative AI is also applied through tools like “social listening,” which tracks online feedback and evaluations to help customer success professionals respond in the best way. Reputation, a California-based reputation management software company, provides real-time monitoring of online company reviews across various social media channels, including alerts to flag negative comments, crisis event monitoring, and decision recommendations for industry professionals. Idea verification and testing, which provide a kind of virtual “resonance box,” is one of the most potential applications of generative AI.
Faced with a large amount of data from various sources, leaders and managers may find themselves under pressure to make the right decisions. AI technology, enriched by data from each situation, can alleviate this cognitive burden, generating more effective outcomes. However, what may seem like a light at the end of the tunnel also comes with a warning light: human decisions, considering their skills, experience, and judgment, should not be atrophied by technology but developed in conjunction to generate more effective decisions and minimize margins of errors and risks.
Reference: https://hbr.org/2023/10/how-ai-can-help-leaders-make-better-decisions-under-pressure
