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Artificial intelligence

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Organization Design

Definition

Artificial intelligence (AI) refers to the simulation of human intelligence processes by machines, especially computer systems. This includes learning, reasoning, problem-solving, perception, and language understanding. As AI technology advances, its impact on job and work design evolves, reshaping how tasks are performed and what skills are required in the workplace.

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5 Must Know Facts For Your Next Test

  1. AI can analyze large amounts of data much faster than humans, providing insights that can help organizations make data-driven decisions.
  2. The implementation of AI in workplaces can lead to a shift in job roles, with routine tasks being automated, while higher-level cognitive tasks may require human oversight.
  3. Key performance indicators (KPIs) related to AI might include accuracy of predictions, speed of processing information, and user satisfaction with AI-driven tools.
  4. Emerging AI technologies can create opportunities for new business models by enabling more personalized customer experiences and more efficient operations.
  5. AI's potential to enhance decision-making processes also raises ethical considerations around privacy, bias in algorithms, and the implications for employment.

Review Questions

  • How does artificial intelligence influence job design and the skills needed in the workplace?
    • Artificial intelligence significantly influences job design by automating routine tasks, which allows employees to focus on more complex responsibilities that require critical thinking and creativity. This shift often leads to a demand for new skills such as data analysis, AI management, and adaptability to new technologies. As a result, organizations must rethink their hiring practices and training programs to ensure employees possess the necessary skills to thrive in an AI-enhanced work environment.
  • Discuss how key performance indicators (KPIs) can be affected by the integration of artificial intelligence in organizations.
    • The integration of artificial intelligence can significantly alter key performance indicators within organizations. For instance, KPIs related to productivity may improve as AI automates repetitive tasks, leading to increased output with fewer errors. Additionally, metrics like customer satisfaction might see enhancements due to personalized services enabled by AI analysis. Organizations need to establish new KPIs that accurately reflect the performance of both AI systems and human employees working alongside them.
  • Evaluate the broader impact of emerging artificial intelligence technologies on organizational design and structure.
    • Emerging artificial intelligence technologies can lead to significant changes in organizational design by flattening hierarchies and promoting more agile structures. As AI handles decision-making processes based on data insights, organizations may shift toward decentralized models where teams are empowered to make decisions quickly. Furthermore, integrating AI into various departments can foster collaboration across functions, creating a more interconnected organization focused on innovation and responsiveness to market changes. This evolution requires leaders to navigate new challenges in managing human-AI collaboration and maintaining a positive organizational culture.

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