Businesses looking to navigate uncertain times can take heart: a recent study from Charles Darwin University (CDU) shows how artificial intelligence (AI) can be a lifeline.

The study, led by CDU, looked at how AI can predict the things that help organizations deal with economic disruptions: preparing for them, handling them, and bouncing back. They talked to 44 people in different industries across Australia, including private companies, government agencies, universities, and non-profits.

Most of the people they talked to were from education, IT, hospitality, tourism, construction, and engineering. They asked about how agile their organizations were and what challenges they might face in the future.

Using AI methods that can explain their reasoning, the researchers found the top five things that affect how adaptable organizations are: changes in laws or government rules, how connected a company is globally, how mature its processes are, new technology, and how much digital changes disrupt their business.

Agility matters

“Failure to prioritize agility and responsiveness can result in increased costs, missed opportunities, competition and reputational damage, and ultimately, loss of customers, revenue, profitability, and market share,” the researchers explain.

“The COVID-19 pandemic has highlighted the importance of organizational agility and resilience. Organizations that are able to adapt quickly to change, anticipate and prepare for disruptions, and respond and recover effectively are more likely to succeed in the current volatile business environment.”

The researchers suggest that organizations could take even more advantage of this technology by using AI systems that offer tailored advice.

“Using this methodology, AI can provide personalized recommendations to each business depending on their own dynamics on the areas they should focus on to enhance their agility,” they conclude.