Artificial Intelligence (AI) is no longer a source for science-fiction only, but the driving force behind many technological breakthroughs. While China presented the world’s first AI anchor in 2018 (The Guardian, 2018), football clubs in London employ an AI Coach for tactical insights to improve their team performance (Independent, 2019). Today, it improves the efficiency of simple tasks at home and at work. In fact, AI has the potential to fundamentally change the way companies do business.
A PwC investigation of the economic potential of AI predicts an increase in global GDP by up to 14% until 2030. This is equivalent to an additional $15.7 trillion contribution to the world’s economy (PWC, 2017). Now is the time to invest in AI technology and to fully recap its benefits in the future (Mahidhar & Davenport, 2018).
While AI-systems are of great importance for companies, many people are afraid of this highly complex technology – a black box that is difficult to understand. This may be one reason why only 16% of employees trust AI-generated results (McKinsey, 2018). In contrast to human intelligence, artificial intelligence is solely focused on detecting repeated patterns in given data. It does not consider external influences and thus prevents cognitive biases. But first things first...
What is Artificial Intelligence?
The cognitive scientist Marvin Minsky (1968) simply defines AI as “the science of making machines do things that would require intelligence if done by men”. In other words, Artificial Intelligence can be explained as a system’s ability to correctly interpret external data, to learn from such data, and to use those learnings to achieve specific goals and tasks through flexible adaptation (Kaplan & Haenlein, 2018).
Three different generations of AI applications can be distinguished:
Artificial Narrow Intelligence (ANI): In first generation applications, that already permeate our everyday life, AI is applied to specific tasks only.
Artificial General Intelligence (AGI): Second generation applications will be able to autonomously solve problems of various areas. Imagine Siri evolve into a humanoid robot that prepares your coffee or writes a novel.
Artificial Super Intelligence (ASI): In the third stage, AI will have strong problem-solving skills and used for any area. One day Siri is going to outperform human beings by solving complex mathematical problems or writing a bestseller (Kaplan & Haenlein, 2018).
How does Artificial Intelligence work?
AI analyses huge amounts of data coming from various data sources, e.g. sensors, applications, etc. Based on approaches of machine learning, AI tries to identify underlying rules and patterns in data. Machine learning is a method that supports computers to learn from data without being programmed to do this in a prescribed way. The more data available the better this learning process is (Kaplan & Haenlein, 2018).
How can Artificial Intelligence be classified?
Management literature detects three skills which are essential for an outstanding performance of managers and employees: cognitive intelligence (e.g. analytical thinking), emotional intelligence (e.g. self-confidence) and social intelligence (e.g. empathy). Even though AI has no ability to feel, it can be trained to recognize emotions and behave accordingly through the analysis of facial expressions (Kaplan & Haenlein, 2018). Following these three types of human competencies, AI systems can be classified into three groups (Kaplan & Haenlein, 2018):
- Analytical AI involves cognitive intelligence and uses learnings from past experiences as basis for future decisions. Most AI systems applied by firms nowadays fall into this category (e.g. systems for fraud prevention in financial services or self-driving cars).
- Human-Inspired AI includes components from cognitive as well as emotional intelligence. These systems can, in addition to cognitive elements, understand human emotions and consider them in their decision making. retorio uses advanced vision systems to recognize not only speech patterns but also facial expressions and emotions. Hereby retorio can support HR or sales reps to quickly recognize emotions or even analyze personality traits while recruiting new employees or preparing the next sales pitch.
- Humanized AI is characterized by all types of competencies (i.e., cognitive, emotional, and social intelligence). Although it is not available by now, it is likely that such thinking machines would interact self-conscious and self-aware with others.
What is the future of Artificial Intelligence?
Since Alan Turing developed the Turing-test in 1950 to investigate if machines can think, AI has evolved tremendously. By now, even standard microprocessors run at 10 million times the speed of human neurons. Computers are able to memorize more information in one second than a human being in his whole life. Consequently, AI can support humans in various areas, where human beings reach their limits:
- Healthcare, to improve clinical decisions as well as to minimize diagnostic and therapeutic errors (Jiang et al., 2017).
- Marketing, to tailor persuasive messages for specific target groups (Youyou, Kosinski & Stillwell, 2015)
- Financial Services, to prevent and help detect fraud in near real time, therefore preventing millions from loss (Forbes, 2018)
Even more fascinating is that researchers discovered computers to make more accurate and less biased personality judgments than humans when using digital records of human behavior (e.g. Facebook Likes) (Youyou, Kosinski & Stillwell, 2015). Especially in recruiting decisions, AI improves the matching of candidates and jobs based on personality traits (Youyou, Kosinski & Stillwell, 2015).
One of the most promising trends in 2019 are AI-powered recruiting tools (Entrepreneur Europe, 2018). For many companies recruiting is a time-consuming and stressful process. A recent survey from Indeed found that 42% of employers worry about finding the right talents (Indeed, 2017). This is where retorio comes into play: retorio’s plug-in enables applicants to easily record and upload videos. Combined with the AI-powered personality analysis, retorio can pre-select qualified candidates - without any bias. This process will not only help recruiters save time, but find the right candidates as well.
Click here to learn more about retorio's revolutionary HR solution.
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Youyou, W., Kosinski, M., & Stillwell, D. (2015). Computer-based personality judgments are more accurate than those made by humans. Proceedings of the National Academy of Sciences, 112(4), 1036–1040. doi/10.1073/pnas.1418680112