Context Is King When It Comes to AI and Business Advice

Artificial intelligence (AI) business advice could be a double-edged sword, boosting profits for high-performing companies while leading to setbacks for those already struggling. An experimental AI mentor for Kenyan entrepreneurs yielded divergent results, improving the performance of successful businesses but harming struggling ones. A study found that high-performing companies increased their performance by 15% when following AI-generated advice. Struggling businesses saw a 10% decline in revenues and profits. “These findings suggest that AI advice may be amplifying existing advantages and disadvantages rather than leveling the playing field,” the researchers noted in their paper. The contrast raises questions about AI’s effectiveness in business consulting. Tech executives emphasize AI’s strengths but also highlight its limitations. Sidharth Ramsinghaney of Twilio told PYMNTS that AI’s prowess is in “pattern recognition, data analysis and predictive modeling” but noted it may not replace human consultants’ nuanced understanding.

To read what Ilia Badeev, head of data science at Trevolution Group, told PYMNTS, click here