Changing trends in AI and Behavioral Sciences and it's impact on the service industry

Can human behaviour fundamentally impact the industry and how big a role can AI play in this?

June 14 | 4 min read

Human psychology is complex and the areas from which information can be retrieved and tracked are vast. The behavior of an individual or an organisation matters and when this observable data is collected and linked with AI, it can completely change the rules of the game about engagement, customers and companies. AI can be involved in data to gather more insights in human behavior. Behavioral data collection is like an unconscious absorbing that can be gathered without sampling. It is important to comprehend carefully about how this algorithmic data might reveal untenable or unforeseen aspects of a customer or employee’s behavior.

As we all know our psyche is designed to function differently in contrasting situations and this is one area of research that needs special attention. Human brains need to process information to make daily business judgments and decisions. What we mostly see is a discrepancy from rationality in judgement which is subjective to the personal bigotry of an individual – cognitive bias. The heuristics approach tends to percolate a flawed view.With the incorporation of big data, this field of science has enhanced many folds. A person of psychology with a previous understanding of data science and artificial intelligence can discover ways to tackle related issues. It is this union between behavioral science and AI that will enable us to understand what shapes human behavior and how this knowledge can be used for a healthy work space. Data and social sciences need to have a collaboration and think considerably about incorporating not only the economic context of the company but also its human dimensions.

Also, technological advancements can make companies smarter but having an understanding of behavioral science can make the transition from pointers to an overall knowledge driven powerhouse is easier. As we know an important part of data science is to highlight actionable and  understandable data that will drive change. A shift in the mindset or revamp in the traditional structure is required to transform the current setup into a digitized one where data-driven decision-making is at the core.

Considering a real-life scenario, an impact is felt immediately when an employee resigns or is asked to vacate his position and their truancy makes a deficit in the profit margins of an organisation. Having to pay for continuing benefits, together with the cost of hiring someone to fill their place, results in loss of productivity and loss of revenue. Human resource agencies can make use of big data to decrease employee turnover (voluntary and involuntary), and identify individual and organizational trends to expeditiously act on them and counter pole trends which are detrimental.

To sum up, compiling and customizing big data and predictive analytics to change or rectify performance proactively is the next big trend in the service industry. If organizations start using applied behavior analysis for behavior change of employees and clients, it could apply those same principles to decisions derived from AI and expect to have tremendous increases in the capability of business processes and quality of services. Behavior is now calculable, therefore easier to analyse and channel.

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