How Organizational Decision-Making is Getting an AI Shakeup – And Why It’s a Good Thing

At this moment in time, virtually no industries remain that are untouched by AI penetration. From finance to healthcare, manufacturing to education, sectors are witnessing nothing less than an AI-powered revolution, one that is transforming the landscape of organizational operations, particularly in terms of how decisions are made.

As businesses increasingly harness the power of AI-enabled analytics to tap into vast volumes of data, complex questions emerge. How much AI is too much? How can we best combine human experience, ingenuity and instinct with Machine Learning and Large Language Models (LLMs)? These queries are likely to ignite fierce debate for many years to come.

One thing that cannot be denied is the utility and power of AI: even the most ardent skeptic must grudgingly acknowledge the technology’s potentially enormous impact on productivity, even if they bemoan the downstream effect on, say, human jobs or wages.

Embracing the AI Revolution

By far the most talked-about topic relating to AI’s effect on businesses is its ability to reduce dependence on manual labor. This article will not dwell on the moral ramifications of this trend, but rather consider the technology’s impact on organizations themselves.

The most obvious example of AI in action is digital customer support agents, which are increasingly used to replace human operators. These chatbot agents are trained on common customer queries and provide 24/7 assistance, handling mostly routine inquiries with unprecedented efficiency. A McKinsey report suggests that about half of all customer service tasks could be automated by the end of the decade.

Real-time production process monitoring, automated accounting, and simplified regulatory reporting are just a few other examples of how AI is transforming traditional business functions. As for the impact on workplaces themselves, PwC’s 2024 AI Jobs Barometer provides plenty of food for thought.

The PwC survey shows that 84% of CEOs whose firms have begun adopting AI believe it will increase employee efficiency. Moreover, 70% of leaders anticipate AI will significantly change the way their business creates, delivers, and captures value over the next three years.

AI can certainly analyze huge volumes and automate processes that would be time-consuming for a human to carry out. But what about making meaningful decisions? Can an AI-powered system really make educated judgment calls on matters of recruitment, budgeting, and so on?

GenLayer, an intelligent blockchain that operates at the intersection of AI and distributed ledger technology, believes the answer could be yes. That’s because its AI-powered smart contracts are able to leverage Large Language Models and, unlike regular smart contracts, access the internet to autonomously make complex decisions in a decentralized manner.

Indeed, these so-called Intelligent Contracts can handle a variety of non-deterministic operations including processing natural language and making complex judgments without human intervention. In fact, they’re flexible enough to incorporate multiple legal frameworks – meaning they could even be used to make nuanced decisions in matters of jurisprudence.

This August, investors backed GenLayer to the tune of $7.5 million, with one of them, North Island Ventures’ Travis Scher, stating the intelligent blockchain could “enhance current decentralized applications (dApps) and unlock new potentials.”

The Arrival of AI-Powered DAOs

The way decisions are actually made is through an organizational structure familiar to those working in blockchain: DAOs, or decentralized autonomous organizations. The difference is, with GenLayer the DAOs are AI-powered. The breakthrough represents a new paradigm in organizational management, offering more transparent, efficient, and data-driven means of decision-making.

Any organization that relies on real-time data to make decisions (virtually every business, in truth) can leverage GenLayer to make judgments that would otherwise fall on the shoulders of executives. Armed with accurate internet-sourced information, the DAO can even take decisions that accord with a constitution encoded directly into its Intelligent Contract.

In the 13th century, the Consulate of the Sea provided a unified legal framework for maritime trade across borders. What GenLayer hopes to achieve is consulate status in the age of AI, offering a global, adaptable jurisdiction that enables efficient and secure AI-driven commerce.

Why AI-Powered Decisions?

AI’s ability to process enormous data sets, and to do so quickly, makes it the perfect decision making system or tool. After all, not all judgments can be made based purely on computation. While some decisions can be delegated to AI, others require human input. Nonetheless, even in the second scenario AI plays a role in presenting to the decision-maker the mother lode of data and insight required to make the right call.

The phrase AI-powered decision-making is apposite: the AI remains a tool, and its integration into organizational processes, coupled with the emergence of technologies like GenLayer, promises to bring about a dynamic new era of operational efficiency.

As we navigate this evolving landscape, it’s vital for leaders of businesses and governments to stay informed about these technologies and consider how they can be leveraged to create value, improve decision-making, and drive innovation. While challenges and questions remain, the potential benefits of AI and intelligent blockchain technologies are immense.

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