Artificial intelligence sparks widespread debate
The use of artificial intelligence is revolutionizing many different areas of business. Given the amount of data these technologies generate and their ability to analyze and provide appropriate information and guidance, in this way they can build on these efforts and play the role of the main assistant of the human factor, both at the beginning of the event and its planning, as well as in the management of the event and problem solving.
For those working on their own projects, AI applications can help map out the main framework of a project’s feasibility study, as AI can quickly and efficiently analyze data and information and extract important patterns and directions.
If you are taking your first steps in the “business” world and are ready to launch your project, artificial intelligence can assist you in several aspects of project feasibility studies, including:
- Market analysis
- Cost and Revenue Estimation
- Risk Analysis
- big data analysis
However, these important services provided by artificial intelligence are not accurately and completely recognized, because artificial intelligence is considered as an auxiliary tool, not a substitute for human analysis, you may need to combine human knowledge and experience with the ability of artificial intelligence to obtain better and more accurate results to manage your projects.
It is also recommended to work with a financial advisor or a feasibility study specialist to obtain a detailed and accurate assessment. Artificial intelligence technology is advancing rapidly, enabling its future to play a broader role in this context.
Experience
As a practical experiment, with the help of Chat GPT, one of the most famous artificial intelligence applications, we asked him about the idea of establishing a company in a field related to water purification, and the results are as follows:
- The results of the Chat GPT provide a synoptic “overview” of a potential feasibility study for the project, based on a hierarchy defined on the same scientific basis as well as ground rules for formulating a feasibility study.
- The output constitutes a “must do” estimate, requiring more precise and specific details, including information on the city (where the project is located), potential markets, and more data on material capabilities and objectives.
- The output provides basic instructions at the outset, highlights a set of required data (collection of local competitor data and survey of potential customers), identification of target audience, etc.
The output results set the theoretical framework for the axis of the feasible project plan, including from (market analysis) to (risk and financial analysis), through (cost and potential return), (competitiveness), (marketing and promotion plan), each of which requires more input and complete data and information to explain and analyze in detail.
Artificial intelligence worries the press
The more accurate and complete the input, the more it will help to conduct a comprehensive feasibility study based on the scientific basis for studying the potential market and in line with the main objectives of the project.
Multiple artificial intelligence tools can be used simultaneously to analyze, formulate and combine data and utilize all the advantages offered by each tool separately to come up with a comprehensive formula for the required feasibility study.
Insights and Tips
In this context, Dr. Ahmed Banafa, an American information technology expert and academic advisor to San Jose State University in California, said in an exclusive speech to Economic Sky News Arabia that artificial intelligence can greatly help individuals study the feasibility of their projects, and explained that artificial intelligence is a powerful tool that can provide accurate and valuable insights and guidance to decision makers and project owners.
Here are some considerations when using artificial intelligence in project feasibility studies:
- Data collection: A large amount of various data related to the project needs to be collected, including financial, economic, social, competitive and marketing data. The quality and quantity of input data are critical for accurate analysis.
- Choose the right model: Choosing the right AI model that specializes in analyzing financial and business data is critical. This could include machine learning, big data analytics, neural networks, and more.
- Data optimization: Apply technologies such as data cleaning, normalization, and missing value processing to ensure accurate and reliable results.
- Financial Forecasting: AI can analyze financial and accounting data to predict long-term expected financial returns for projects.
- Risk analysis: Artificial intelligence can be used to assess potential risks that a project may face and provide countermeasures.
- Market and competition research: Artificial intelligence can analyze marketing and competition data to guide project parties to better understand the market and competitors.
- Know your customers: AI can help you understand your customers’ needs and expectations.
- Develop a business plan: AI can help you create an effective business plan for your project.
Limitations of Relying on AI
At the same time, an information technology expert from the United States and an academic advisor at San Jose State University in California emphasized the limitations of relying on artificial intelligence:
- Despite the many benefits of using artificial intelligence in project feasibility studies, human intervention is still required in order to fully understand the data and interpret the analysis.
- Some variables may not be fully handled by AI and require human judgment.
- Consideration of individual circumstances: Project owners should consider that AI may not fully account for individual circumstances and should independently research these circumstances.
He added: AI can guide you through projects by analyzing data and making recommendations based on knowledge and past experience. However, you should be aware of the limitations and caveats mentioned and realize that artificial intelligence is not a substitute for human analysis and subjective judgment. It is recommended to consider artificial intelligence as a powerful tool that can complement your efforts and help you make smarter and more accurate decisions.
Accurate input
He pointed out that the results and output generated by artificial intelligence are highly dependent on the accuracy of the input. For example, in the actual experiment, fictitious data on the establishment of a trade project prohibited by national law was entered, and as a result, the main framework of the feasibility study of the project could not be established due to the inappropriate location of the project and legal obstacles faced within the current legal framework of the country.
When entering the same data and writing the name of another country, which does not warn against this trade and has no legal prohibitions that conflict with its establishment, the immediate result emerges naturally in the context of the general framework for studying the feasibility of the project in the region.
project management
In context, artificial intelligence applications can broadly help you manage your projects based on feasibility studies. For example, artificial intelligence can:
- Project Planning and Scheduling
- resource management
- Monitor and evaluate progress
- Process Optimization
- Interact and communicate (whether with partners, customers, etc.)
AI can also help you predict potential problems, manage risk, analyze financial data and provide recommendations for making strategic decisions.
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The magic of artificial intelligence