Rise of the Machines

Rise of the Machines: Why Business Analysts Need to Embrace AI Before the Robots Take Over

The emergence of advanced technologies like ChatGPT has brought about significant changes in many industries, and the profession of Business Analysis is no exception. It seems that wherever you turn these days we are becoming obsessed with AI and the various different platforms that are becoming more and more mainstream.

Given the dominance of the subject, our COO, Jonathon Le Noury decided to jump on the band wagon and delve a bit deeper into the opportunities and potential threats on the profession.

Maybe its not all bad news…

There are many clear benefits and use cases for AI, but its ability to process vast amounts of data quickly and accurately is one of the most significant. By automating the processing and analysis of data, AI algorithms can reduce the time and resources required, resulting in improved efficiency and faster decision-making. McKinsey & Company reports that automation can reduce the time required for data processing and analysis by up to 80%.

AI also has the potential to bring significant cost savings to businesses by automating tasks such as data entry, report generation, and data cleansing. These activities are time-consuming and prone to errors when done manually. One very common example of such automation that has been widely accessible for a number of years is the use of AI-powered chatbots to handle customer service inquiries. This technology not only results in cost savings, but also improves the overall customer experience.

An additional benefit of using AI is its scalability, making it a cost-effective solution for businesses of all sizes. Organisations can easily scale up or down based on their needs without incurring additional costs, which is especially beneficial for small and medium-sized enterprises (SMEs) that need to be agile and adaptable to remain competitive.

But surely there is a downside…

While AI presents many benefits for business analysts, it also poses a considerable threat. As the technology advances, it has the potential to replace some of the tasks that are currently performed by humans. A study by the World Economic Forum predicted that AI and automation could displace up to 75 million jobs globally.

However, it is essential to note that while AI may replace some jobs, it also has the potential to create new jobs that require skills that are currently in short supply. For instance, the demand for data scientists and machine learning engineers is expected to grow significantly.

Another significant challenge of using AI is the lack of transparency associated with some algorithms. The opaque nature of the technology makes it difficult to understand how it arrives to conclusions. This can be particularly problematic in contexts where decisions have significant consequences, such as in financial analysis or medical diagnosis. For instance, if an AI algorithm is used to make a loan decision, it may be challenging for the borrower to understand why their loan application was rejected.

As AI becomes increasingly integrated into business decision making, it is important to acknowledge and address the issue of biases and discrimination. AI algorithms learn from the data they are trained on, and if that data is biased or discriminatory, the algorithm may exhibit those same biases and discriminatory tendencies.

For example, an AI algorithm used in hiring may be trained on historical hiring data, which could include biases against certain groups of people, such as minorities or women. If the algorithm learns these biases, it may continue to discriminate against those groups in future hiring decisions.

From a business analysis perspective it is important to ensure that when training AI that a spread of possible customer personas are considered.

Closing remarks…

In conclusion, AI presents both opportunities and challenges for business analysts. As AI continues to evolve, it is essential for business analysts to understand and navigate these challenges while leveraging the benefits of the technology to remain competitive in the market.

Finally, this article wouldn’t be complete without using a bit of AI myself, so I used ChatGPT to generate a Mid Journey prompt based on the article and then Mid Journey itself to generate the following image, this is what it came up with.

/Imagine you are a business analyst in a company that is considering 
implementing AI technology to improve efficiency and reduce costs. What 
are some potential benefits and challenges that you would need to 
consider in your analysis? How would you ensure that the AI technology is 
transparent and unbiased, and that it does not have negative consequences 
for your customers or employees