Explainable artificial intelligence (AI) is becoming increasingly crucial for c-level executives as it can help improve the profitability of their companies. According to a study by McKinsey, companies that adopt explainable AI tend to have EBIT growth rates north of 10 percent.
First, explainable AI helps c-level executives make better business decisions by providing more transparent and accurate insights into the underlying data and processes driving their organizations. Traditional machine learning algorithms can sometimes produce difficult results, making it challenging for c-level executives to understand how the AI system arrived at a particular conclusion. On the other hand, explainable AI can provide a clear and concise explanation of the factors that contributed to a specific output, enabling c-level executives better to understand the reasoning behind the AI system’s recommendations and make informed decisions based on this information.
Second, explainable AI helps c-level executives build trust and credibility with their employees, customers, and stakeholders by clearly and transparently understanding their AI systems’ operations. In an era where concerns about AI and automation are widespread, c-level executives who can clearly explain the inner workings of their AI systems will be better positioned to ease concerns and build trust with their stakeholders. Explainable AI can also help c-level executives address concerns about bias in AI systems, as it allows them to identify and address any potential biases in the data and algorithms used to train their systems.
Third, explainable AI helps c-level executives improve the efficiency and effectiveness of their AI systems by providing a more detailed understanding of how the systems are performing. By providing insight into the factors driving their AI systems’ performance, c-level executives can identify areas for improvement and make necessary adjustments to optimize their systems for better results. Explainable AI can also help c-level executives troubleshoot problems with their AI systems more quickly and effectively, as it allows them to identify the root cause of any issues and take corrective action.
Fourth, explainable AI helps c-level executives comply with regulatory requirements and reduce the risk of legal challenges. In many industries, there are strict regulations governing the use of AI, and c-level executives must be able to demonstrate that their AI systems are operating ethically and transparently. Explainable AI helps c-level executives meet these requirements by providing a clear and detailed understanding of how their AI systems make decisions to help ensure that their systems comply with relevant laws and regulations.
Fifth, explainable AI helps c-level executives gain a competitive advantage by allowing them to differentiate their products and services from those of their competitors. In many industries, AI is becoming an increasingly important differentiator, and c-level executives who can effectively communicate the value of their AI systems to their customers will be better positioned to win business. Explainable AI helps c-level executives clearly articulate the benefits of their AI systems to their customers, which can help them stand out in a crowded market.
Sixth, explainable AI helps c-level executives improve customer satisfaction by providing more personalized and relevant experiences. By understanding the factors driving the recommendations of their AI systems, c-level executives can fine-tune their systems to provide more targeted and personalized recommendations to their customers. This leads to increased customer loyalty and satisfaction, as customers feel that their products and services are tailored to their needs and preferences.
Seventh, explainable AI helps c-level executives foster a culture of innovation within their organizations. By providing a clear and transparent understanding of how their AI systems operate, c-level executives can encourage their employees to explore new ideas and approaches, as they will better understand the capabilities and limitations of the AI systems at their disposal. This leads to development of new products and services that can drive business growth and success.
Finally, explainable AI helps c-level executives drive business growth by providing a foundation for developing new AI applications and capabilities. By understanding the factors driving their AI systems’ performance, c-level executives can identify opportunities to leverage AI to solve new business problems and create value for their organizations. This can help them stay ahead of the curve and drive long-term business growth and success.
Explainable AI is a key tool for c-level executives as it can help improve the profitability of their companies in many ways: enable better business decision-making, build trust and credibility with stakeholders, improve the efficiency and effectiveness of systems, comply with regulatory requirements, gain a competitive advantage, improve customer satisfaction, foster a culture of innovation, and drive business growth. By adopting explainable AI, c-level executives can harness the full potential of its predictive power to drive business success.