Management Information Systems Blog 4

AI systems are relatively new approaches to solving business problems.   Since they are some new approaches, some difficulties with these new IT approaches would be validity. Since they are so new, they are not fully understood how these approaches will affect business problems. Also some difficulties would be in the value that these approaches are offering, such as solving one problem but creating another.

Some advantages with AI

• Can replace human decision making by imitating closely to human thinking and behavior
• No emotional blockades that can affect decision making
• Is more cost effective
• Can be used to do a wide variety of tasks as well as be developed in a wide number of businesses and organizations all over the world..

Some disadvantages with AI over traditional business process:

• Can replace human connections
• Loss of jobs
• Potential hazard for information loss, due to machinery breaking down.

EX.
If I were selling specialty teas and had brick and click stores, I don't think I would use the same type of Ai system for each part of the business. There are some similar aspects of the AI system that would share such as expert systems and agent based technologies.

In small specialty businesses, I believe that there is a  place for decision support and artificial intelligence techniques. They just have to be adapted differently. It will still provide information for the business and make it easier for certain data to be obtained and operated by the business, it just needs to have a different scale compared to larger corporations.

DSS and AI systems would be value reducing  according to Porter’s value chain theory, by reflecting an overall generic business. If a majority of businesses are using DSS and AI systems, then it is unclear whether a particular business is going to stand out amongst its competitors with the same systems.
Some major differences between running a mammoth concern and a small specialty business would be how well they are going to connect with the customer, as well as how they would use their artificial intelligence systems in their businesses. With smaller, specialty businesses, it is really dialed down in obtaining the information they want.