Provocative Perspectives : The Problem with the new buzzword "AI"

The Problem with the New Buzzword “AI”: Misleading Consumers and Damaging the Industry?by Fadi Sader

In recent months, the term "AI", or artificial intelligence, has become a buzzword in the business world. However, as AI continues to gain popularity, it is essential to differentiate between actual AI and basic automation, where the lines seem to become blurred.

AI is a complex field that involves advanced algorithms and machine learning. It is a field of computer science that aims to create intelligent machines that can perform tasks without explicit instructions. It requires machine learning, natural language processing, and computer vision. However, not all products or services that claim to use AI actually do. True AI can learn, reason, and make decisions based on data. In comparison, basic automation is rule-based and can only perform pre-programmed tasks.

As companies start to jump on the AI bandwagon, claiming to offer AI-powered products or services. It is crucial to verify whether these claims are genuine or misleading. One way to differentiate between real AI and basic automation is by asking whether the product can adapt and learn from new data. Another way is by understanding the level of human involvement needed to operate the product.

?Many companies now use it as an arbitrary term to describe their products or services, even without actual AI capabilities. Unfortunately, this is leading to confusion among consumers, who may need help understanding what AI is and what it can do.

Let's quickly discuss some use cases for AI in the consumer and business world.

·Personalised Recommendations: AI can assist consumers in making better purchasing decisions by providing customised recommendations based on their preferences, browsing history, and purchase history, which in turn helps businesses improve customer satisfaction and loyalty while increasing sales.

· Chatbots: AI-powered chatbots can assist businesses in providing 24/7 customer support, answering frequently asked questions, and resolving issues quickly and efficiently. This can improve customer experience, reduce response times, and lower business support costs.

· Fraud Detection: Helping companies prevent fraudulent activities by analysing large amounts of data and patterns, which can help protect their customer's sensitive information.

·?Predictive Maintenance: This can help businesses minimise downtime, reduce maintenance costs, and improve overall efficiency.

While there are several ways AI can assist businesses and consumers. The use of the term has become so widespread that it has lost its meaning.

This arbitrary use of the term is becoming so misleading that it's starting to damage the industry as a whole. It creates false expectations among consumers, who may believe that a product or service has AI capabilities. Which is beginning to lead to more significant disappointment and a lack of trust in businesses that use this as a marketing tactic.

Moreover, it undermines the efforts of companies that have invested in developing proper AI technologies. As a result, companies are starting to struggle to stand out in a market saturated with businesses making arbitrary claims.

Companies need to be transparent about their use of AI to address this issue. They should clearly define what AI means to them and how their products or services incorporate AI technologies that can assist their consumers. This will help consumers understand what they are getting and prevent them from being misled by false claims of AI capabilities.

To ensure that consumers are not misled, businesses should be transparent about their products and services by providing information about the technology they use, how it works, and the benefits it provides. Companies must refrain from using the term "AI" as a marketing gimmick if their product does not incorporate AI. All claims about a product's capabilities should be accurate and supported by evidence, as consumers will become increasingly aware of AI technology and be able to identify false claims.

In conclusion, while the rise of AI has brought significant benefits to businesses and consumers alike, the arbitrary use of the term AI has become a problem. By using AI as an arbitrary term, companies risk misleading consumers, eroding trust, and undermining the industry's credibility as a whole, which will become detrimental to businesses and consumers in the long run.

As such, it is essential for businesses to be transparent about their use of AI and to educate their customers about the capabilities and limitations of their technologies. Levelling the playing field helps companies to excel in their areas of expertise. Sometimes, machine intervention can turn customers away. By making informed decisions about the products and services they use, businesses and consumers can ensure that the AI industry continues to grow responsibly and sustainably.

If you are keen to explore this subject further drop me an email at [email protected] to be part of our upcoming roundtable discussion on AI Use Cases in Practical Application for Business June 2023