Benefits of AI (pros and cons)

Like the Internet of Things (IoT), AI is here to stay. The global AI market is set to grow up to 54% each year through 2025, according to a recent study by Statista.

With that said, it’s up to business leaders to understand the pros and cons of leveraging artificial intelligence and develop ways the technology can best serve customers. AI offers a wide range of benefits across various industries and sectors.

Businesses realize the need for accurate data collection, easy processing, and adequate analytics to further vital decision-making processes for critical insights — to name a few.

However, the large-scale volume and amount of generated data cannot be handled at the same rate by humans. AI plays a crucial role in breaking down these massive datasets into valuable, accurate information that makes our day-to-day lives easier.

In some industries, AI’s introduction greatly expedites processes and minimizes human error, which leads to the replacement of human labor. In others, AI creates new hybrid roles where AI augments human capabilities.

The use cases and advantages of AI grow daily. Here are a few benefits for organizations leveraging artificial intelligence:

1. Completing repetitive tasks: AI-powered systems and automation can free human workers to focus on more creative and strategic activities, leading to increased productivity and faster decisions.
    
2. Easily handles big data: AI can process and analyze large volumes of real-time data quickly and accurately, which helps businesses and data scientists extract valuable insights and make better decisions. For example, in the financial world, AI algorithms can identify complex economic patterns, optimize trading strategies, and manage risk more effectively.
    
   Plus, AI drives predictive analytics. Algorithms can analyze historical data to predict future trends, behavior, and outcomes. This can be particularly useful for businesses to anticipate customer preferences for personalizing digital experiences, optimize supply chains and services, such as energy consumption, and monitor environmental changes that impact pollution and natural resources.
    
3. Helps improve processes and workflows: AI-powered tools are able to assist individuals and teams with its generative functionality, speeding up the time it takes to complete complex processes. For example, AI-powered language translation tools have improved the accessibility of information across languages and cultures.
    
   In terms of digital customer experiences, generative AI is helping marketing teams research and create copy, plus create and quickly modify images and graphics for content.
    
   This also expands into verticals, such as the entertainment industry where AI technology is used in the creation of video games, special effects in movies, music composition, and even generate art.
    
4. Reducing human error: AI is improving at powering autonomous systems, such as vehicles, drones, and robots. They help systems better operate in hazardous environments, perform tasks without human intervention, and contribute to transportation, logistics, and manufacturing industries.
    
   In healthcare, the technology can assist in diagnosing diseases, predicting outbreaks, and discovering potential drug candidates. It also enhances medical image analysis, making diagnostic procedures more accurate.
    
   AI can also accelerate scientific discoveries by analyzing complex data sets, simulating experiments, and identifying patterns that might be difficult for the human brain to discern.
    
5. Fraud detection and cybersecurity: AI can detect unusual patterns and behaviors, aiding in fraud detection and enhancing cybersecurity measures by identifying potential threats.
    
6. Fulltime availability: AI’s ability to be available when humans cannot be helps organizations maintain key functions without a lot of oversight. In customer service for example, chatbots and virtual assistants powered by AI provide 24/7 customer support and can handle a wide range of inquiries.

Like with any tech advancement, AI can contribute to a multitude of complex problems. Some of the prominent cons include:

Cost: Creating a machine that can simulate human intelligence is no small feat. It requires time and human resources, which can lead to high costs. AI must operate on the latest hardware and software to stay updated and meet the latest requirements.

Bias and fairness issues: AI can be influenced by human biases. Systems can inherit biases from the data they are trained on, leading to discriminatory outcomes or reinforcing existing societal biases. AI can perpetuate and even amplify biases in the data it processes, if not adequately addressed.

Privacy concerns: AI often relies on large datasets to function effectively. That can raise privacy concerns if sensitive or personal data is used without proper consent or security measures. We’re all familiar with how widespread collection and analysis of personal information can infringe on individuals’ privacy.

Security risks: AI systems can be vulnerable to attacks from a security standpoint and as potential tools for cybercriminals. Attacks can manipulate AI systems into making incorrect predictions or decisions.

Ethical dilemmas: This is a problem where AI systems are tasked with making decisions that have moral implications. For example, autonomous vehicles might need to make split-second decisions that involve potential harm to different individuals.

Lack of accountability: Who’s to blame? When AI systems make errors or create undesirable outcomes, it can be challenging to assign responsibility or accountability. This lack of accountability can prove one of the major disadvantages of artificial intelligence in critical applications such as healthcare or autonomous systems.

Dependence on data: AI models require substantial amounts of high-quality data to train effectively. If the available data is incomplete, biased, or of poor quality, it can lead to less-than-desirable AI performance and results.

High energy consumption: Training and running large AI models can consume a significant amount of energy, contributing to environmental concerns and climate change.

We can’t talk about AI without addressing how it can affect the workforce, itself. AI and automation can potentially lead to job displacement in certain industries because machines and algorithms can perform tasks more efficiently and accurately than humans.

This can result in job loss for workers whose roles can be automated.

While AI can create new job opportunities in fields, such as machine learning and data science, it can also contribute to job losses and unemployment if the workforce lacks the necessary skills to adapt to new technological demands.

With all the AI development, there is also a concern that certain traditionally human-centered interactions, such as customer service or medical diagnoses, might lose the personal touch and empathy that humans provide.

Needless to say, artificial intelligence is here to stay, and it’s a tool that brands can leverage to drive optimization across the business with the right strategy. Sitecore’s portfolio of SaaS solutions — for content, engagement, and commerce — has AI-powered functionality built in to empower brands and their teams to personalize customers’ digital experiences.

Whether you have thousands or millions of monthly visits, Sitecore has the right solution to help you personalize every customer experience at scale.

Learn more about artificial intelligence by exploring our blog.