DOES AI IMPEDE DECISION MAKING?

The promise of artificial intelligence (AI) was that it would improve decision-making by taking vast amounts of data and turning them into useful intelligence. However, according to a new study by Oracle, business leaders are overwhelmed by data, leading them to feel less confident in their decision-making abilities. The study found that 86% of people feel that even with more data, decision-making is more complicated. As a result, 72% admit that they have been unable to make any decision at all.

The study surveyed over 14,000 employees and business leaders across 17 countries, and the findings are clear: the volume of data is having the opposite effect of what was expected. More data is not making decisions easier. It is creating a decision dilemma, where people are unsure which data sources to trust, overwhelmed by the sheer volume of information, and questioning the accuracy of their decisions.

This dilemma is negatively impacting both personal and professional lives. 85% of people say the inability to make decisions is having a negative impact on their quality of life. In their professional lives, people report experiencing burnout, stalling career progress, and facing consequences such as being fired, demoted, or moved to a different team due to incorrect decisions being made. In their personal lives, people waste money, question major life choices, and cause arguments between family and friends.

The Oracle study highlights a mismatch between the pace of technological evolution and the ability of societal institutions to think and adapt. Business leaders must find ways to manage the volume of data they receive and turn it into actionable intelligence. Otherwise, the promise of AI will continue to fall short, and decision-making will continue to be a source of stress and confusion.

To overcome the decision dilemma, business leaders need to prioritize their intelligence requirements and focus on what data is most relevant to their decisions. They also need to ensure that they have the right tools and technologies to manage and analyze their data effectively. Moreover, they need to train their teams to use data correctly and develop a data-driven decision-making culture.

In conclusion, the Oracle study serves as a wake-up call for business leaders to rethink their approach to data management and analysis. The promise of AI is still attainable, but it requires a more strategic and thoughtful approach. By prioritizing their intelligence requirements and developing a data-driven decision-making culture, business leaders can increase their return on data and achieve better decision-making outcomes.