Leveraging Artificial Intelligence in Decision Making: From Data Discovery to Decision Support Systems (2023)

Gone are the days when decisions were made based on the gut. With more metrics to measure than ever before and more data than anyone can handle, business decisions can sometimes seem impossible.

In the face of doubt, data and diverse stakeholders, companies are turning to artificial intelligence. It helps them analyze large amounts of data quickly and accurately to make the most logical decisions based on numbers, predictions and algorithms.

But what exactly is going on behind the scenes? Can we hand over all business decisions to an invisible robot?

In this article, we take a look behind the scenes of AI decision making. We will cover the following:

  • How to prepare data for AI models

  • How to successfully apply AI to the decision-making process (including ethical debates)

  • and how to use and update your AI tools

Are you ready to make some important decisions with confidence?

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Data preprocessing and feature selection for AI-based decision making

While marketers and content creators are concernedLose your job at ChatGPT, and others understand an important aspect of AI: that it's only as good as the input you give it—and what you end up doing with it.

AI models are based on the data they are trained on. You need to understand data preprocessing and feature selection if you want them to help you make informed decisions.

Data preprocessing involves cleaning, transforming, and normalizing data to prepare it for AI analysis. it's insideData discovery and classificationOn stage, you can think of it like a chef's job – just make sure the AI ​​model uses the right ingredients.

  • Data cleansing involves removing inconsistencies and flagging missing data and outliers.

  • Data transformation means converting all data into a standard format that AI models can easily understand.

  • Normalization scales the data to a common range to ensure that no single variable dominates the analysis.

Once your dataset is fully cleaned, feature selection comes into play. The goal is to identify the most relevant variables or characteristics that have the greatest impact on the decision-making process.

There are several ways to identify the variables most relevant to your particular decision dilemma. These feature selection methods can be broadly classified into three categories: filter, wrapper, and embedding methods.

  1. Filtering methods use statistical tests to assess the relationship between each variable and the target variable.

  2. The wrapper method iteratively selects a subset of variables and evaluates their performance in the model.

  3. With embedded approaches, feature selection is built into the AI ​​model itself.

Without these steps and filters, your AI model will behave like a blindfolded chef with a dull knife. For AI-based decision making, it is important that data pre-processing is done correctly, as wrong decisions can have consequences.

Yes, AI can help simplify decision-making, but accuracy should always come before speed. So don't trust it blindly if the correct protocol is not used.

Application and introduction of artificial intelligence in decision making

It can be scary when your business first turns to AI to help make decisions. Can you trust this technique? What kind of decisions can you handle with artificial intelligence and how can it be integrated into your business processes?

Applying artificial intelligence to the decision-making process does not happen overnight. To do this correctly and safely, it is recommended to use pilot tests and extensions for convenience.

test run

Was a pilot conducted before long-term decisions about AI were made? It can be a fictional project or a completed project. The closer the data is to reality, the better, as this is an opportunity to identify potential problems and improve solutions.


Once a solution has been fully tested and refined, it can be scaled to a larger testing process. These two-step tests help your organization mitigate most of the risks and ensure that your AI solution works before you go ahead and invest in a full implementation.

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Implementation is more than just testing and slowly scaling. This makes your introduction to AI a success:

  • Data governance: Make sure your data is of high quality, your systems are secure and that you comply with relevant regulations.

  • Stakeholder buy-in: It is important to ensure that your AI solution aligns with your business goals and that stakeholders are willing to support AI adoption.

  • Change Management: Finally, your workforce must not only be ready, but also motivated to make the changes that the introduction of AI will bring, including new processes, roles and responsibilities.

Ethics and Artificial Intelligence: An Ongoing Debate

and the need for ongoing discussion. Ultimately, we can't blame AI for bad results, which means companies need to develop clear guidelines for using AI.

When artificial intelligence is used to make decisions,Experts agree that it affects various human rights issues.Privacy is an ongoing debate, bias and discrimination have not been eliminated, and there are many concerns about security, economic distribution, and even political participation.

Following the most logical path based on data does not always produce ethical results, so there must be oversight and strict rules.

An example of how AI-based decision-making can be made more ethical is by actively combating potential bias in AI.

Bias can be introduced at various stages of the AI ​​process, including data collection, feature selection, and model development.

To mitigate these biases, companies must ensure the diversity and representativeness of data and conduct feature selection and model development in an objective and transparent manner. It simply means that responsibility and accountability remain with the company.

Use of AI in decision support systems

Now that you've laid the groundwork, it's time to build the next level: a decision support system (DSS), the real tool that helps decision makers.

Integrating AI algorithms and human decision making

With the right setup, you get the best of both worlds. AI algorithms can process large amounts of data quickly and accurately to provide decision makers with relevant information and recommendations.

Because accountability, responsibility, and ethics are still important, we can never fully replace human decision-making—nor should we. Instead, AI should support and enhance human decision-making by providing data-driven insights and recommendations. This can happen on more levels than you might think.

Using artificial intelligence to support decision-making at all levels of the organization

One of the great things about AI is its flexibility – it can be used to support decision-making at the strategic, tactical and operational levels of an organization. It could look something like this:

  • At a strategic level, AI can predict and identify emerging trends and create long-term plans.

  • At the tactical level, AI can help policymakers make more informed decisions in the short term.

  • At the business level, AI can be used to automate routine tasks, freeing up your employees to focus on more complex tasks.

Applying machine learning and NLP algorithms to DSS

Understanding how your chosen AI tool reaches its conclusions is crucial, and you can influence its capabilities in more ways than the data you feed it.

Machine learning algorithms and natural language processing can further enhance your AI.

By incorporating machine learning algorithms, your DSS can analyze historical data to identify patterns and trends and make better decisions about future conditions. By incorporating natural language processing (NLP), decision makers can more intuitively interact with DSS to process requests and provide relevant information and recommendations.

These "pinches" are more of a necessity than an option, especially for high-impact decisions. In addition, it makes your DSS more user-friendly, making implementation and adoption much easier.

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Examples of artificial intelligence in decision making

Artificial intelligence is widely used in the decision-making process of all types of businesses. Healthcare, financial services, and even your Netflix recommendations are powered by AI. Here are some examples to show you how flexible AI can be in decision making:

  • Supply Chain Management: Companies can use data on inventory levels, customer demand and shipping schedules to optimize their inventory levels. For example, companies likeWalmart uses artificial intelligence algorithmsAnalyze various sales and local data to forecast demand and optimize inventory levels.

  • Problem solving and change management: AI can identify the root causes of problems and develop effective solutions by analyzing large amounts of data – something that would take humans a long time to do. Think howData is basically the fuel that runs Tesla.They use artificial intelligence to analyze vehicle data, including sensor data and customer feedback, to identify problems and develop targeted solutions.

  • Strategic change and performance measurement: When you combine past and current data about customer behavior, market trends and competitor performance, you can find ways to stay ahead of the competition.Various fast fashion brands are using artificial intelligenceSpot trends faster – luckily, this also helps you become more sustainable.

  • Customer Relations: We all know algorithms and know what we want and need before we realize it ourselves. Used correctly, AI can personalize the customer experience and improve customer service. AI can provide in-depth consumer and customer analysis and reveal countless strategic steps businesses can take, from personalized recommendations to specific content.

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AI will stick around and make it worth it

Artificial intelligence has already revolutionized countless business processes, and decision-making will no longer be an expectation. With the capabilities we have today and knowing how to use them properly, now is the right time for companies of all sizes to explore the benefits of implementing artificial intelligence.

Are you interested? who isn't If you want to gain a deeper understanding of how AI is impacting a specific industry,read here.


questions:Is AI only for large organizations?

A: No, AI can be used by organizations of all sizes. While larger companies may have more resources to invest in AI development, there are many affordable AI solutions available for SMBs as well.

questions:How can artificial intelligence be used to make decisions without replacing human decision makers?

A: Artificial intelligence can be used to support and enhance human decision-making without completely replacing it. By analyzing vast amounts of data and providing previously undiscovered insights, AI can help human decision makers make smarter, more effective decisions. More importantly, AI can be used to automate routine tasks, allowing human decision-makers to focus on more complex decision-making tasks.

questions:What are the challenges of applying artificial intelligence to decision making?

A: One of the biggest challenges in applying AI to decision making is the quality and availability of data. AI algorithms rely on high-quality data to generate accurate insights and recommendations. So companies need to ensure that their data is clean and in the right format. Additionally, organizations must consider the ethical and legal implications of AI-based decisions, such as bias and privacy concerns.

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