COMPANIES pursuing artificial intelligence (AI) initiatives could end up with AI being a cost center in the absence of alignment with their business goals, a data science professor said.
“The AI problem that they are pursuing is not aligned with the business goals. As a result, the company will not adopt it,” according to Professor Christopher P. Monterola, who holds the data science chair and heads the Aboitiz School of Innovation, Technology, and Entrepreneurship (ASITE) at the Asian Institute of Management (AIM).
At the 56th FINEX Conference, Mr. Monterola warned of situations where culture and people are not ready to adopt the technology being developed.
He cited success stories such as an AI application used by the Bangko Sentral ng Pilipinas (BSP) to monitor financial accounts that reduced the review process from 20,000 man-hours per month to 11 minutes.
Mr. Monterola also noted a project by a conglomerate that can forecast the movement of people and wealth up to 20 years ahead.
“It’s important that we continue educating business leaders, and decision-makers on the technology and the benefits of AI, helping our organizations and even governments in improving productivity and efficiency,” Reynaldo C. Lugtu, Jr., the founder and chief executive officer of Hungry Work Horse Consultancy, Inc., said.
Mr. Lugtu said a distinction must be made between businesses that are service-oriented or product-oriented.
Service-oriented businesses require more people, a more human touch, empathy, collaboration, and other human elements, he said.
“The value proposition there is humans being assisted by AI. So AI can definitely help augment customer service,” he said.
Mr. Lugtu said the main impact of AI on product companies is in design and content, with the roles reversed — AI will be assisted by humans.
He cited the Work Trend Index 2024 report by Microsoft and LinkedIn, which found that 89% of leaders in the Philippines believe their company needs to adopt AI to stay competitive.
Nevertheless 55% of such leaders worry that their organization lacks a plan to implement AI. — Aubrey Rose A. Inosante