How Businesses Use AI and Automation to Improve Management Efficiency
According to the United States Census Bureau, about 78 percent of organizations used artificial intelligence (AI) in 2024 — an increase of 55 percent from the previous year. Today, you’d be hard-pressed to find an industry that hasn’t been impacted by AI tools, ranging from chatbots and workflow systems to predictive analytics software.
Whether you’re already serving as a business leader or have plans to advance into a management role down the road, knowing how to leverage AI could help you drive productivity for your sales teams, streamline processes, and achieve organizational goals.
The Role of Automation and AI in Modern Business
Across the globe, businesses are implementing AI solutions to automate repetitive tasks, optimize operational efficiency, and support decision-making at the management level.
What Automation Means for Managers Today
More specifically, managers rely on AI and machine learning for business process automation, which encompasses a wide range of tasks, including administrative duties, resource allocation, team management, customer support, communication, and even generating detailed reports.
For many managers, automation frees up more valuable time to focus on other essential aspects of their work while ensuring that repetitive and time-consuming tasks are handled as efficiently as possible (and with minimal risk for error).
How Artificial Intelligence Is Transforming Decision-Making
Aside from its ability to automate cumbersome administrative tasks, artificial intelligence is also aiding managers in making more informed business decisions. For example, many managers are relying on AI to extract valuable insights from large amounts of data, uncovering patterns and trends that may otherwise be invisible to the human eye.
In some cases, AI in business management can be used to analyze data for fraud detection and to predict future trends, taking predictive analytics to the next level. These predictive analytics tools can then inform short- and long-term business decision-making and strategic planning, empowering managers to better allocate resources and mitigate operational risks.
Real-World Examples of AI and Automation in Management
So, how exactly is AI and automation being used in the modern workplace? Let’s explore some practical examples.
Workflow Automation and Operations Efficiency
Today, innovative platforms like Asana, Zapier, and enterprise resource management (ERP) systems can be used to streamline and optimize many everyday business processes, ranging from basic data entry to content generation. The use of these tools can lead to increased efficiency, reduced costs, lower risk of human error, and enhanced decision-making overall. In fact, Zoom saves 133 work weeks per year using Asana’s workflow automation software and process standardization.
Chatbots and Customer Experience Management
Meanwhile, many businesses have also successfully implemented AI chatbots and other AI-powered tools to enhance communication and overall customer service. Offering 24/7 availability, AI chatbots can improve the customer experience by handling inquiries and addressing issues around the clock. Meanwhile, businesses can leverage these tools to cultivate personalized interactions with customers and even offer multilingual support to remove language barriers.
One study on the use of AI chatbots in business found that this software can actually handle up to 70 percent of routine customer inquiries, freeing up valuable time for customer service professionals to focus on more complex issues.
Predictive Analytics in Strategic Planning
Finally, businesses are now using AI tools to forecast demand, identify risk, and support management decisions with long-term goals and strategic planning in mind. Consider, for example, Subway relying on predictive analytics tools to determine whether it could raise the price of its famous $5 footlong sandwich without hindering sales. Today, the average price of a footlong sandwich at Subway hovers somewhere between $10 and $14—yet, as predicted by AI analytics tools, sales remain strong.
Benefits for Managers and Business Leaders
AI and automation, including robotic process automation and software solutions, for managers may still be in their early phases—but within just the last few years, businesses have seen how the responsible use of this technology can transform decision-making, improve efficiency, and positively impact bottom lines.
Increased Productivity and Time Optimization
For starters, leveraging AI in the workplace can empower managers to improve overall productivity. This includes not only managers’ own time, but also that of team members. When AI is used to automate time-consuming, routine tasks, and streamline processes, managers and employees alike enjoy more free time to focus on other aspects of their job that matter most like innovation and leadership. In fact, one study of AI adoption in the workplace found an overwhelmingly positive correlation between AI and both employee productivity and organizational performance.
Smarter Data-Backed Decision-Making
Today’s managers are expected to do more with data than ever before but the very process of analyzing enormous volumes and trying to make sense of it all can be both time-consuming and challenging. Fortunately, AI tools now enable the generation of data reports in seconds, allowing managers to readily identify emerging trends, risks, and opportunities that inform their decision-making. As this Security, Privacy, and Data Analytics article discusses, AI-driven decision-making is becoming the norm across numerous industries, ranging from healthcare to finance.
Using data-driven insights through AI, managers can come to conclusions more proactively and with greater confidence than ever before, effectively shifting from intuition-based to insight-based decision-making.
Challenges and Ethical Considerations
Of course, any new technology comes with some obstacles related to widespread adoption, and AI is no exception. From challenges surrounding human oversight to long-term workforce concerns, managers seeking to implement AI solutions have a multitude of issues to address.
Balancing Human Oversight and Machine Efficiency
Perhaps one of the most significant challenges related to AI adoption in business is the ongoing need to strike the ideal balance between human oversight and machine efficiency in AI systems. As more businesses continue to adopt AI tools to streamline and automate processes, there remains a need for human intervention and oversight to avoid critical errors and biases.
In other words, responsible business automation management is essential. Managers must have clear strategies and plans for implementing AI tools responsibly and ethically.
Addressing Workforce Fears and Change Management
Another notable challenge when it comes to AI and automation in business is the perceived threat that AI tools could essentially replace human workers, eliminating jobs and disrupting the economy. In fact, more than half of workers surveyed in a Pew Research study indicated that they’re worried about the future impact of AI in the workplace, with 32 percent responding that they believe AI will cause fewer job opportunities for them down the road.
To overcome employee resistance to generative AI tools, managers should adopt a proactive change management strategy, essential for successful digital transformation. This approach will highlight AI’s role as an efficiency tool that operates in real time, rather than a replacement for human workers, thereby demonstrating its true value to employees. More specifically, leaders can approach change management around generative AI more effectively by:
- Developing a clear plan for implementation that team members can easily follow.
- Keeping lines of communication open.
- Providing team members ongoing training and support.
How Business Management Students Can Prepare
Professionals currently studying to become part of the next generation of business leaders must acknowledge that AI, a technology that mimics human intelligence, is here to stay and take proactive measures to integrate predictive maintenance into their future work. This includes being proactive about developing tech literacy, conducting risk assessments and becoming a versatile, future-ready leader.
Developing Tech Literacy in Management Education
Choosing the first business program can make all the difference in your ability to prepare for a future in management with AI tools at your side. Specifically, business programs like St. Thomas University’s Bachelor of Business Administration integrates coursework in essential topics such as analytics, AI awareness, and digital tools to develop students’ technical literacy and prepare them for successful careers in management.
Becoming a Future-Ready Leader
In addition to the right education, aspiring business leaders are encouraged to embark on their professional journeys with a commitment to adaptability, strategic thinking, and innovation. This includes focusing on compliance management and various business functions, as well as participating in relevant training programs. By building leadership skills that are versatile and being ready to pivot as the industry evolves around you, you’ll be better prepared to adopt and leverage new technologies as they emerge rather than being left in the dust.
Stay Sharp With a Business Management Degree
The world of business management can change on a dime and the most successful leaders are those who are ready to adapt their skills as needed, leveraging advanced data, such as big data and customer behavior analysis, embracing new technologies, and overcoming challenges that come with change.
If you’re serious about advancing your business management skills while gaining foundational knowledge in leadership, organizational behavior, and other core areas of business, St. Thomas University’s Bachelor of Business Administration in Management could be right for you.
In this 100% online program, you’ll explore coursework that centers around business operations, strategy, and leadership. Meanwhile, small class sizes, opportunities for real-world applications, and a dedicated Career Services Center allow you to balance your education with your busy schedule while pursuing your professional goals.
Already have your undergraduate degree? Check out St. Thomas University’s Master of Business Administration (MBA) program, which is available with your choice of 12 concentrations—including one in management.
Get in touch to request more information about STU’s online Business Administration in Management or MBA program today, or take the next step by completing your online application for admission.
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