THE ROLE OF ARTIFICIAL INTELLIGENCE IN BUSINESS PROCESSES
ARTIFICIAL INTELLIGENCE SCIENTIFIC PUBLICATIONS
Kaplan Jaroslav
President of Kaplan Research Company
Founder of the Business IQ project
Kaplan Jaroslav
President of Kaplan Research Company
Founder of the Business IQ project
Abstract
It is unlikely that anyone would contest that the focal business process in entrepreneurship is the interaction between the entrepreneur and consumers. As obvious as this may be, such situations still arise where an organization puts all of its efforts on putting "things in order inside," and there is no strength or attention left for consumer relations. This leads to a common situation today when, figuratively speaking, someone lost in the woods begins to scrutinize every single tree. This creates a lot of difficulties for the person because in order to find the way out, they must "see the whole forest", not consider each tree separately.
Keywords:
Artificial Intelligence, co-pilot, business processes, customer interaction area, product value perception.
It is unlikely that anyone would contest that the focal business process in entrepreneurship is the interaction between the entrepreneur and consumers. As obvious as this may be, such situations still arise where an organization puts all of its efforts on putting "things in order inside," and there is no strength or attention left for consumer relations. This leads to a common situation today when, figuratively speaking, someone lost in the woods begins to scrutinize every single tree. This creates a lot of difficulties for the person because in order to find the way out, they must "see the whole forest", not consider each tree separately.
Keywords:
Artificial Intelligence, co-pilot, business processes, customer interaction area, product value perception.
In the 20th century, business often ignored human factors. Milton Friedman argued that economists could neglect this, but this approach is wrong, as successful business and customer relations require taking these very human factors into account [Friedman 1953].
To account for these factors, we need not a mechanical solution or algorithm but something that could be designated as "Intelligence." Here, I say "Intelligence" to mean "the ability to set and solve problems while avoiding confusion."
In this article, we will not compare and contrast natural Intelligence with artificial Intelligence but only note that, like any process of separating "natural" and "artificial," it has its own evolution and development vector. From my point of view, the key direction for the development vector of artificial Intelligence can be expressed as a "co-pilot." At the moment, there is no generally accepted definition for this term, but I use it to mean "artificial Intelligence systems designed to support and expand human capabilities." Similar to an airplane co-pilot who assists in controlling the aircraft and making decisions, the artificial Intelligence system helps entrepreneurs navigate the market space.
The key point in the "co-pilot" concept is the idea of cooperation between man and machine, wherein AI complements human abilities but does not completely replace human intervention.
Now, let's define what "artificial Intelligence" is in general and what role this technology can play in the modern (read: digital) world of entrepreneurship. A. Kaplan and M. Haenlein define artificial Intelligence as "the ability of a system to correctly interpret external data, learn from this data, and use this knowledge to achieve specific goals and objectives through flexible adaptation" [Kaplan, Haenlein 2019].
Further in this article, we will consider a "specific" area of entrepreneurial activity - the area of interaction between an entrepreneur and consumers, as a system-forming element of such activity.
To account for these factors, we need not a mechanical solution or algorithm but something that could be designated as "Intelligence." Here, I say "Intelligence" to mean "the ability to set and solve problems while avoiding confusion."
In this article, we will not compare and contrast natural Intelligence with artificial Intelligence but only note that, like any process of separating "natural" and "artificial," it has its own evolution and development vector. From my point of view, the key direction for the development vector of artificial Intelligence can be expressed as a "co-pilot." At the moment, there is no generally accepted definition for this term, but I use it to mean "artificial Intelligence systems designed to support and expand human capabilities." Similar to an airplane co-pilot who assists in controlling the aircraft and making decisions, the artificial Intelligence system helps entrepreneurs navigate the market space.
The key point in the "co-pilot" concept is the idea of cooperation between man and machine, wherein AI complements human abilities but does not completely replace human intervention.
Now, let's define what "artificial Intelligence" is in general and what role this technology can play in the modern (read: digital) world of entrepreneurship. A. Kaplan and M. Haenlein define artificial Intelligence as "the ability of a system to correctly interpret external data, learn from this data, and use this knowledge to achieve specific goals and objectives through flexible adaptation" [Kaplan, Haenlein 2019].
Further in this article, we will consider a "specific" area of entrepreneurial activity - the area of interaction between an entrepreneur and consumers, as a system-forming element of such activity.
Context of Interaction with Consumers
The interaction between entrepreneurs and consumers does not occur in a vacuum. It occurs in a certain context of such interaction, including geography, language, culture, etc. [Kaplan, Gurov 2023].
Based on our experience, we know that the meaning of an event is always connected with the chosen point of view. Changing the point of view on the problem will lead to a different formulation of this problem and a different solution. Meaning is the very "connection" or "link" between the physical world and the world of human thinking. It is the meaning that defines the context, the boundaries within which individual phenomena have significance.
One of the central conclusions of my research on the causes of high-level failures in entrepreneurship is the fact that an entrepreneur's products can be "relevant" to the consumer only within some existing communication system. Outside of such a known system, there is no perception of the value of products; the concept of "value" becomes an abstraction, not tied to anything specific [Kaplan 2022]. Based on these considerations, I believe that this direction - working with meanings that arise as a result of the interaction of an entrepreneur with consumers in the communication system (entrepreneur-product-consumer) - is the most promising direction for artificial Intelligence in entrepreneurship.
We can even say more, each discovered "point of meaning" in interaction with consumers can become a starting point for building a new business communication system or restructuring an existing one.
This leads us to the idea of serial entrepreneurship - a special reproduction of activity, in which each new "point of meaning" becomes the nucleus of a potentially new direction of development.
According to the international consulting agency McKinsey, only 7% of respondents in a study (April 2023) reported using artificial Intelligence in strategic planning, while in the areas of marketing, supply chain, and service operations, 25-30% of respondents use AI technologies.
One of the reasons for the lag in the implementation of AI in strategic planning is that development strategy itself is the most context-dependent area of activity [Kaplan 2023]. Entrepreneurs often find themselves unable to choose a certain point of view on their development, that is, to choose a certain meaning and context of interaction with their customers. And this is where artificial Intelligence systems as co-pilots can come to the aid of the entrepreneur.
Based on our experience, we know that the meaning of an event is always connected with the chosen point of view. Changing the point of view on the problem will lead to a different formulation of this problem and a different solution. Meaning is the very "connection" or "link" between the physical world and the world of human thinking. It is the meaning that defines the context, the boundaries within which individual phenomena have significance.
One of the central conclusions of my research on the causes of high-level failures in entrepreneurship is the fact that an entrepreneur's products can be "relevant" to the consumer only within some existing communication system. Outside of such a known system, there is no perception of the value of products; the concept of "value" becomes an abstraction, not tied to anything specific [Kaplan 2022]. Based on these considerations, I believe that this direction - working with meanings that arise as a result of the interaction of an entrepreneur with consumers in the communication system (entrepreneur-product-consumer) - is the most promising direction for artificial Intelligence in entrepreneurship.
We can even say more, each discovered "point of meaning" in interaction with consumers can become a starting point for building a new business communication system or restructuring an existing one.
This leads us to the idea of serial entrepreneurship - a special reproduction of activity, in which each new "point of meaning" becomes the nucleus of a potentially new direction of development.
According to the international consulting agency McKinsey, only 7% of respondents in a study (April 2023) reported using artificial Intelligence in strategic planning, while in the areas of marketing, supply chain, and service operations, 25-30% of respondents use AI technologies.
One of the reasons for the lag in the implementation of AI in strategic planning is that development strategy itself is the most context-dependent area of activity [Kaplan 2023]. Entrepreneurs often find themselves unable to choose a certain point of view on their development, that is, to choose a certain meaning and context of interaction with their customers. And this is where artificial Intelligence systems as co-pilots can come to the aid of the entrepreneur.
Jaroslav Kaplan
Author of the book "Business Incognita. How to push the boundaries of entrepreneurial thinking". Expert in the field of sustainable development of organizations and discovering new sources of growth. Developer of the methodology of contextual market research. Member of the International Association of Strategic and Competitive Intellect Professionals SCIP (USA).
Blog: https://www.kaplanresearch.pro/eng
In this light (yet profound) business fable a very magical and sincerely nice goldfish, Goshio, navigates her aquarium and the seas of the Paraquarian world beyond. The heroine's journey is an allegory of the entrepreneurial world (and of life) – based on the author's own research journey to circumnavigate the fascinating World of Entrepreneurship. www.goshio.com
Contact:
E-mail: work@kaplan4research.com
Linkedin: www.linkedin.com/in/jaroslavs-kaplans-11255b
Author of the book "Business Incognita. How to push the boundaries of entrepreneurial thinking". Expert in the field of sustainable development of organizations and discovering new sources of growth. Developer of the methodology of contextual market research. Member of the International Association of Strategic and Competitive Intellect Professionals SCIP (USA).
Blog: https://www.kaplanresearch.pro/eng
In this light (yet profound) business fable a very magical and sincerely nice goldfish, Goshio, navigates her aquarium and the seas of the Paraquarian world beyond. The heroine's journey is an allegory of the entrepreneurial world (and of life) – based on the author's own research journey to circumnavigate the fascinating World of Entrepreneurship. www.goshio.com
Contact:
E-mail: work@kaplan4research.com
Linkedin: www.linkedin.com/in/jaroslavs-kaplans-11255b
Reference list
1. Kaplan Y., Gurov F. N. (2023). "Business Intellect" and its role in various types of activity // Values and Meanings. 2023. No. 2 (84). P. 125–138.
2. Kaplan J. (2022). Business incognita: how to expand the boundaries of entrepreneurial thinking. M.: Alpina Publisher, 256 p.
3. Friedman M. (1953). The Methodology of Positive Economics // Friedman M. Essays in Positive Economics. Chicago: University of Chicago Press. P. 3–43.
4. Kaplan J. (2023). Communication in entrepreneurial activity: the use of artificial Intellect // Communicology. Vol. 11. No. 2 P. 139–147.
5. Kaplan A., Haenlein M. (2019). Siri, Siri, in my hand: who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial Intellect // Business Horizons. No. 62 (1). P. 15–25.
1. Kaplan Y., Gurov F. N. (2023). "Business Intellect" and its role in various types of activity // Values and Meanings. 2023. No. 2 (84). P. 125–138.
2. Kaplan J. (2022). Business incognita: how to expand the boundaries of entrepreneurial thinking. M.: Alpina Publisher, 256 p.
3. Friedman M. (1953). The Methodology of Positive Economics // Friedman M. Essays in Positive Economics. Chicago: University of Chicago Press. P. 3–43.
4. Kaplan J. (2023). Communication in entrepreneurial activity: the use of artificial Intellect // Communicology. Vol. 11. No. 2 P. 139–147.
5. Kaplan A., Haenlein M. (2019). Siri, Siri, in my hand: who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial Intellect // Business Horizons. No. 62 (1). P. 15–25.
