AI can make you a better writer, programmer, and researcher. But can the technology enhance your entrepreneurial acumen and improve economic performance?
Well, in a way. In the course of recent research developed an experimental AI mentor that was supposed to answer questions from Kenyan entrepreneurs. And while the mentor was helpful to some, it gave the wrong advice to others. The results varied depending on what state the business was in at the start of the study.
Companies that were already financially stable used AI advice and saw measurable improvements, while those that were already struggling only made things worse, the study authors note.
One of them, Rembrandt Koning, describes the paradoxical result as a “real puzzle.” He says the study contains inspiring insights into the potential of AI to solve business problems, especially in parts of the world where resources are scarce and technology less accessible.
“The fact that generative AI is just over a year old and we can use it as an advisor to several hundred entrepreneurs in Kenya is mind-blowing. We’re already seeing how generative AI can change people’s lives,” says Koning.
Chatbot vs. Advisor
The study involved 640 Kenyan entrepreneurs from a range of industries, including transport, food, clothing, jewellery, cosmetics, construction, carpentry and agriculture.
The researchers randomly divided the entrepreneurs into two groups. One group sought advice from an AI mentor, while the other received a training manual as a placebo.
- Surprisingly, entrepreneurs who performed below the median experienced a 10% drop in revenue and income.
- At the same time, more successful participants were able to improve their results by 15%.
AI can’t handle complex tasks
Overall, entrepreneurs asked the chatbot thousands of questions. The mixed results can likely be explained by the fact that difficult circumstances prompted difficult questions.
“We assume that those who are in a really difficult situation ask difficult questions, and the AI mentor produces what seems like good advice, but it’s not enough to solve the problem,” Koning explains.
“You may have a food kiosk, but the food is bad, the staff are rude, or the location is just bad. A mentor might say, ‘Why not do a better marketing campaign?’ The problem is, I’m not sure if the advertising spend will affect the staff, and the marketing spend may even cause a drop in revenue and performance.”
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Mixed results can also be explained by factors such as AI “overconfidence” or “incorrect recommendations.”
However, the fact that the technology has helped at least some points to the important potential of artificial intelligence in supporting businesses around the world.
“Unfortunately, advice is hard to come by for many entrepreneurs,” says Koning. “It’s especially hard if you’re running a car wash outside of Nairobi. Now there’s technology that allows us to put exceptional business advice into the pockets of billions of people.”
Cover photo: Unsplash
Source: rb.ru
