63% of companies that adopted artificial intelligence (AI) into their operations in 2023 reported revenue increases, according to one survey by McKinsey. While this may seemingly spell out good news for those who will be joining the workforce after graduation, it’s imperative to consider both the opportunities and potential threats that the technology may bring. From the array of pros and potential cons to how today’s business graduates can prepare — and effectively leverage the power of AI in the long run — there’s no question that the technology will transform the business landscape on a worldwide scale.
Addressing the pros and cons
AI presents a variety of uses when used in the business landscape. For example, Forbes cites predictions by Accenture, which note that AI in business operations is expected to double the efficiency of the workforce and boost profitability by an average of 38% by 2035. While this prediction alone highlights the (likely) rapid adoption of AI in the business realm, the specific advantages that the technology can bring to business is extensive. In addition to minimising human error and saving time in regard to mundane tasks via automation, AI can also cut down on costs as well as improve the consumer experience. To further expand on the benefits, 87% of organisations believe that AI and machine learning will help them increase revenue, boost operational efficiency and improve customer experiences, according to the research firm Frost & Sullivan’s ‘Global State of AI, 2022’ report. TechTarget expands on the uses of AI in the business realm, from the use of the technology to make data-driven decisions and beyond — from business model expansion to the creation of personalised customer services and experiences.
While AI presents a variety of advantages in the business realm, there are several risks that graduates should be aware of upon entering the workforce. “As AI advances, companies will face a number of legal and business risks, first, from bad actors leveraging these technologies to harm businesses and, second, when businesses themselves wish to implement chatbots or other forms of aI into their functions,” Matthew F. Ferraro, a cybersecurity attorney with the law firm Wilmer Hale wrote. The Forbes article dives deeper into the potential threats — for example, those such as data privacy and cybersecurity. For example, it’s noted that chatbots have the potential to create malware and impersonate human-like conversations, which can be used for phishing or other scams. Data privacy can also be a concern, as AI tools can collect personal data that may be shared with third parties.
The value of preparation
The Society for Human Resource Management (SHRM) highlights a vast majority of U.S. professionals (83%) think that students should be prepared to use AI upon entering the workforce, and they expect higher education to play a critical role in that preparation, according to one survey of 1,200 U.S. professionals. The survey, from Washington State University Carson College of Business and Research, in partnership with KRC Research, highlighted key findings — such as the fact that 74% think that incoming college graduates “should already have AI user experience prior to entering the workforce.”
As far as generative AI is concerned, Forbes highlights the challenges of integrating the technology into business education, from the overhaul it will require in regard to existing curriculums to the role that educators must play. “It requires a fundamental rethinking of curriculum design, teaching methods, and the role of educators,” states the article. “Educators must become facilitators of learning experiences where AI tools serve as both the medium and the message.” It’s further noted that business education must place a strong emphasis on the ethical considerations involved.
Effectively leveraging the power of AI
Beyond education itself, it’s important for business graduates to leverage the power of AI in order to maintain a competitive edge within the field. In addition to proper preparation via education, those who wish to relocate for job opportunities upon graduation can opt to move to a location that embraces AI or a location that is positioned to withstand the rise of AI in the job market. In the United States, for example, the ideal location varies depending on what specific field a business graduate chooses. For example, professions such as software developers in states like California are poised to face high exposure to AI with risk scores exceeding 1.0, a number that demonstrates a high risk of AI job losses. On the other hand, states such as Hawaii, Indiana, North Dakota, and Nevada are among states that are least at risk for varying reasons. For example, Hawaii has the lowest risk score with sectors such as tourism currently less affected by the technology (however, future transformations as AI technologies evolve is imperative to consider).
In many cases, businesses must leverage the power of AI in order to maintain a competitive edge in 2024 and beyond, with future entrepreneurs and business owners needing to have a basic understanding in regard to the options. Thankfully, there are several simple avenues to explore in which AI integration can be helpful, according to one LinkedIn post. In addition to the use of chatbots that can lessen the strain on sales and customer service teams, AI can be used to collect and analyse customer experiences while AI can also be used to enhance marketing strategies — for example, tools like ChatGPT can predict trends and identify patterns in order to efficiently optimise a campaign. By understanding how AI can be effectively implemented early on, business graduates can adapt to a technology-forward industry in ways that put productivity and results at the forefront of their business.
The rapid development and rising popularity of artificial intelligence can be intimidating for business graduates, especially with so much uncertainty cloaking the future of the industry. However, by understanding the uses and potential threats involved, business graduates can prepare accordingly while leveraging the technology for best results.
