Impact of an Emerging Technology Trend on Business Strategy and Governance
Executive Summary Artificial Intelligence (AI), the selected emergent technology, and its business consequences are briefly described in the Executive Summary. Artificial Intelligence (AI) is a disruptive force with a wide range of applications since it can mimic human intelligence. Our industry of choice, financial services, stands to gain a great deal from the adoption of AI. Personalized client experiences, data-driven decision-making, and increased operational efficiency are among the main ramifications. Even though there are many advantages, there are obstacles to overcome, including upfront costs, moral dilemmas, and cyber security threats. Establishing a strong governance structure with distinct roles and duties, putting in place extensive regulations for the moral use of AI, and placing a high priority on continuous employee training are all advised when it comes to managing AI in the workplace. It is imperative to take regulatory compliance, security measures, and risk management into proactive consideration. To sum up, the company must strategically implement AI if it is to remain competitive, but long-term success depends on careful management and commitment to moral principles. Table of Contents Executive Summary. 2 Introduction. 4 Overview of the Chosen Emerging Technology. 4 Identification of the Business/Industry under Consideration. 4 Contextualize the Importance of the Technology Trends in the Industry. 4 Overview of the Emerging Technology. 5 Definition and Explanation of Artificial Intelligence (AI). 5 Current State and Adoption Trends in the Industry. 5 Key Features and Functionalities of AI. 5 Business Value and Implications. 6 Evaluation of the Potential Business Value of AI for the Financial Organization. 6 Analysis of Implications for Business Processes, Strategies, and Operations. 6 Consideration of Economic, Competitive, and Market Impact 6 Benefits and Challenges. 7 Exploration of the Benefits of Deploying AI. 7 Determination and Evaluation of Possible Obstacles and Hazards. 7 Governance and Management 7 Discussion on the Governance Structure Required for AI. 7 Recommendations for Managing AI in the Business. 8 Consideration of Regulatory Compliance, Security, and Risk Management 8 Evaluation of Social, Business, Legal, Technical, and Ethical Implications. 8 In-depth analysis of Social, Business, Legal, Technical, and Ethical Aspects. 8 Consideration of How These Implications May Affect the Organization and Its Stakeholders. 9 Conclusion. 9 Summarize Key Findings and Recommendations. 9 Emphasize the Significance of Adopting or Not Adopting the Technology. 9 References. 10 Introduction Overview of the Chosen Emerging Technology Artificial Intelligence (AI), the selected emergent technology, and its business consequences are briefly described in the Executive Summary. Artificial Intelligence (AI) is a disruptive force with a wide range of applications since it can mimic human intelligence. Our industry of choice, financial services, stands to gain a great deal from the adoption of AI. Personalized client experiences, data-driven decision-making, and increased operational efficiency are among the main ramifications (Shrestha, 2021). Even though there are many advantages, there are obstacles to overcome, including upfront costs, moral dilemmas, and cyber security threats. Establishing a strong governance structure with distinct roles and duties, putting in place extensive regulations for the moral use of AI, and placing a high priority on continuous employee training are all advised when it comes to managing AI in the workplace. It is imperative to take regulatory compliance, security measures, and risk management into proactive consideration. To sum up, the company must strategically implement AI if it is to remain competitive, but long-term success depends on careful management and commitment to moral principles (Liu, 2020). Identification of the Business/Industry under Consideration The financial services sector, which is crucial to the world economy, is the industry that is being examined in this investigation. The financial sector works in a highly regulated, dynamic environment where regulations, consumer expectations, and technology are changing quickly. AI technologies have great potential to transform procedures, including risk management, fraud detection, customer service, and investment strategies, because financial operations are data-intensive (Sestino, 2022). Contextualize the Importance of the Technology Trends in the Industry AI adoption in the financial services industry is not just a technical advancement but a strategic necessity for businesses to maintain competitiveness in a rapidly changing market. AI technologies like machine learning and natural language processing help financial institutions understand large datasets, make accurate decisions, automate repetitive operations, and improve client experiences. AI also unlocks the wealth hidden in large datasets, enabling data-driven decision-making and innovation (Sestino, 2022). It can analyze patterns, spot anomalies, and forecast market movements, reinventing business models and building a competitive edge. The significant influence of AI on companies and stakeholders is crucial in evaluating its benefits, challenges, and implications (Sjödin, 2021). Overview of the Emerging Technology Definition and Explanation of Artificial Intelligence (AI) Artificial intelligence (AI) is a computer science field that focuses on creating robots and systems capable of performing tasks that require human intelligence. It aims to create algorithms and models that enable machines to learn from data, adapt to changing conditions, and make judgments similar to human cognition. AI includes technologies like computer vision, natural language processing, machine learning, and expert systems, enhancing machine capabilities in various fields (Fosso Wamba, 2022). Current State and Adoption Trends in the Industry The condition of AI today reflects a market where companies from a range of industries are seeing more and more of its disruptive potential. AI is being more and more widely used in the financial services industry. Organizations are using machine learning algorithms for fraud detection, risk assessment, and predictive analytics. An example of the industry’s dedication to improving client experiences and operational efficiency is the inclusion of AI-driven chatbots in personalized financial recommendations and customer care. Increasing awareness of AI’s importance in obtaining a competitive advantage is reflected in adoption trends. In order to automate repetitive processes, optimize investment portfolios, and get insights from large datasets, financial institutions are investing in artificial intelligence (AI) technologies. Furthermore, as a result of the industry’s dedication to using technology to reduce risk and conform to changing regulatory frameworks, the application of AI in cyber-security and regulatory compliance has become crucial (Ashmore, 2022). Key Features and Functionalities of AI Machine Learning Algorithms: … Read more
