Impact of AI on Business Operations

This assignment delves into the effects of artificial intelligence (AI) on business operations, highlighting its potential to automate tasks, improve efficiency, and enhance customer experience. The document examines the role of AI in various sectors, including healthcare and social care, and discusses its implications for companies and individuals alike.

Dissertation Proposal

Table of Contents
INTRODUCTION...........................................................................................................................1
Aims and objectives.....................................................................................................................1
Research questions.......................................................................................................................1
Research methodology.....................................................................................................................1
Literature review..............................................................................................................................2
REFERENCES................................................................................................................................6

Topic – A.I. and how it will affect McDonald's staff
INTRODUCTION
Artificial intelligence means machine intelligence where human processes are simulated
by machines. In today’s digitalization world, there has been a lot of technological advancement
occurring constantly. It has made it easy to for business as well people to communicate and share
data and information with each other (Steels and Brooks, 2018). Moreover, the evolution of AI
has transformed the world economy. it has allowed businesses to implement in their operation to
enhance their operational efficiency (Müller, 2016). For example- robots are used in taking and
delivering order in fast food restaurants. This has made it easy in data processing and reducing
waiting time. also, there has been increase in customer satisfaction and restaurants are able to
retain them. it is expected in future AI will bring huge transformation in business. every sector
will be affected with it. companies will be using AI systems in their operation and generating
services and product value. The cost and time of will be reduced and flexibility will be there in
doing activities.
Aims and objectives
Aim – To analyze the effect of AI on staff and food operations. A case study on McDonald’s.
Objective-
 To evaluate use of AI and automation in operations of business
 To analyze effect of AI and automation on food operation.
 To recommend how automation can be implemented within organization
Research questions
What is the role of AI in fast food retail sector ?
How automation has transformed the working of staff and McDonald’s operations ?
What is the affect of AI on performance of staff ?
Research methodology
Research design- In this basically there are two types of research design followed. They are
qualitative and quantitative. In present research, quantitative design will be used. It will help in
collecting stats, facts and figures related to how AI has benefited McDonald’s and whether there
is increase or decrease in sales or not. Actual facts and figures will give results in increase in
efficiency and sales and profits. while words and opinions might be false statement.
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Research philosophy- There are many philosophy approaches such as realism, positivism, etc.
for present research realism approach is followed. This will assist researcher in finding whether
there is positive or negative affect of AI on staff operation. With help of it, researcher can find
out areas where AI has been highly used. Also, this method will be useful in determining positive
impact on food operation. Realism is compatible with research topic as it will give precise results
of use of AI in service industry.
Research approach- There are three types of research approach that are inductive, deductive
and conclusive. in context to present research, inductive approach will be used (Dung, 2016).
This is because it will identify what changes are made by McDonald’s in their food operations by
implementing AI. Inductive will help in determining factors of change inn food operations.
Data collection - usually, there are two types of data collection method that are primary and
secondary. In this researcher will collect both secondary and primary data. from these both facts
and figures will be collected regarding sales and profits. also, secondary will give data about how
AI has enhanced operational efficiency and primary will provide facts and figures related to cost,
profit margin, etc.
Data sampling- it refers to selecting data from population. There are of different types like
random, stratified, etc. thus, researcher will use random sampling method. This is because it will
help in easy selection of employees and saving cost and time of researcher. The sample size will
be 50 employees.
Data analysis – here, collected data is interpreted to obtain precise outcomes. The researcher
will use thematic analysis technique to interpret data. it is because thematic analysis requires less
time to interpret data and easy for user to understand results obtained from it. thematic analysis
will be done by using numeric data.
Literature review
According to Ingrand and Ghallab, 2017, AI is influencing human lives to a great
extent. There has been a lot of improvements in areas such as business operations,
communication, transportation, etc. moreover, technology has provided a platform for business
to expand their operations worldwide. They are able to promote products on social media and
attract more customers. Besides this, AI has reduced process complexity enabled companies to
improve their product and service quality. For instance, integration of AI in machines used in
manufacturing has been useful in detecting minor errors in product quality by comparing it with
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set standards (Putnam, 2018). It has also helped in taking effective decisions. AI has not only
transformed business but also human lives. In this there are several new things emerged such as
smart homes, smart buildings, etc. It has improved their social life and economic growth of
society as well.
Introduction of AI
Artificial intelligence means machine intelligence where human processes are simulated
by machines. There are several processes which are included in it such as learning, reasoning and
self correction. Since, evolution of AI technology has transformed. Every area of business is
highly engaged in research and development (Brynjolfsson, Rock and Syverson, 2018). The
engineering and science of making intelligent computers, machine is called Artificial Intelligence
or in simple words it can be said that an ability of a machine to learn and think like robots
controlled by humans, speech recognition or different language translation etc. is called artificial
intelligence. Artificial intelligence is mostly used nowadays in many organizations as well as in
personal lives. Like in telecommunication sector Artificial intelligence is used for speech
recognition or for translating different languages, in transportation sector self driven cars are
produced, in medical field to identify or diagnosing diseases like cancer etc., in software industry
for face recognition and many more.
Use of AI in business operations
In research conducted by Erik, Daniel and Chad, 2017, AI has modernized the
productivity level. The AI system which uses AI surpasses human level performance. It has been
analyzed that error rates have declined from 30%. Also, error rate in recognizing human voice
has decreased from 8.5 % to 5.5 % since 2010. Many private firms are highly investing in AI.
this can be identified by that in 2012 it was $589 million and in 2016 it raised over $5 billion in
2016 in UK (Dung, 2016). Along this, the productivity of employees has increased to a great
extent. In paradox there are four principles that is false hopes, mismeasurement, rent dissipation
and implementation. However, it has been suggested that any change in four areas directly
impact on productivity (Hassabis and et.al., 2017). The main advantage of using AI is it will be
segregate work and standardize things. A smooth flow will enhance efficiency of employees and
making task easier.
According to Brynjolfsson, Rock and Syverson, 2018, AI has eased the process of
performing business operation. The automation and reduction in manual handling have made it
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easy to fasten mode of doing work. Moreover, large companies are highly engaged in research
and development to find out how AI can be implemented so that growth can be enhanced. the
major advantage AI has provided is generating value of services and products. it has attracted
many companies to implement AI. another use of AI is it has simplified work and making
procurement process easy. It has eliminated labor from area where machines can be operated by
computers in more effective way. AI system also track problems and identify time to optimize
them. it has been useful for business to develop strategies on how to resolve problems.
As said by Dung, 2016 automobile companies are highly using AI in service sector. This
has benefited in ensuring quality and standards. The robots are replaced with machines. Now,
order processing and delivering is done with help of robots. It has helped in reducing waiting
time. Furthermore, AI has ensured that minor errors are removed while production. Similarly, AI
has benefited in maintaining consistency in production. It has given a major advantage to
business.
Use of AI in fast food operation
It has been said by (Raedt and et.al., 2016) that there have been many changes in fast
food industry. This is because of use of AI in food operations. robots are highly used by
restaurants. Face detection techniques is used in hotels. this has been made it easy for business to
process it fast so that waiting time is reduced and satisfaction is gained. Another reason of use of
AI in food operations is it has automated the overall process. so, the order processed from robots
are directly sent into database from where preparation of food items starts. In view of (Zahraee,
Assadi and Saidur, 2016) the increase in speed of preparing order have reduced involvement of
humans. AI has also helped in maintaining quality of food and checking ingredients quantity as
well as quality before using it.
According to (Kaplan, 2015) in many countries like US, UK, etc. there are food centers
which is developed by fast food companies. In this system customer arrives and order food. The
machine scans customer Id and automatically payment is done from his or her account. It has
been a major advantage AI has provided. In similar way, AI is used in hospitality sector in
housekeeping operations. the automatic lock of rooms is a technique which has made it easy for
customer to lock / unlock their rooms. Also, voice recognition is used in rooms to start stop
devices or appliances
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In view of Miller, 2018, AI system are mostly used in optimise delivery of goods and
services, warehouse operations and IT support. There is a great positive impact on fast food
industry. As McDonald’s operate all over the world, AI has created a single platform for them to
deliver goods. This has resulted in reducing cost. moreover, AI is able to identify risk by
measuring it with standards. it has added efficiency in taking order and delivering it. As
elucidated by Putnam, 2018, with technological advancement there are many AI application
emerging in world economy. Each of them is having unique function and features (Steels and
Brooks, 2018). Thus, companies need to analyse the system so that appropriate one can be
installed. Generally, four types of AI technologies are available that are sales, accounting,
networking management and market intelligence. In fast food sales and networking management
AI technologies are used. It has simplified process of sales and communication.
Impact of use of AI on society
Moreover, in study conducted by Makridakis and Spyros, 2017, since past years AI
revolution will have a great impact on society and firms. The integration of AI with computer
and robots will become a serious competitor to jobs which are been performed by humans. Thus,
there is high risk of end of human supremacy (Gunning, 2017). The unemployment rate will rise
which will make it difficult for people to fulfil their needs. But on other hand semi skilled and
skilled labors will be replaced by robots. Through this, developed nations can eliminate cheap
labors and achieve same by using AI technology (Kaplan, 2015). Thus, it will change trend of
reshoring. Second drawback of AI will that underdeveloped countries will not be able to invest in
AI. it may be due to lack of technology or infra. Another challenge is it will result in gap in
wealth inequalities and social life of people. Therefore, many people have to depend on part time
jobs in order to fulfil their needs. It will effect on economic growth on nation.
But on the other hand as elucidated by Hassabis and et.al., 2017, AI have transformed
way of living of people. There is a positive impact on lives of humans. Also, internet of things
(IOT) has make task automated through voice recognition. This is due to development of robots
with use of AI. companies are highly engaged in using IOT in machines and production process.
however, it has benefited in combining operations and performing at similar time. thus, the cost
incurred has reduced. On contrary new systems and tools are installed to maintain and control
AI. also, continuous monitoring is required in order to measure its performance that whether it
has been implemented in right area or not. The rise in use of AI will led to increase in expenses.
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Businesses will require more space to set up an IT infrastructure. Apart from it, more advance
technology will be required to monitor AI. it will create a burden on them. So, there will be a
negative impact on their operations. furthermore, in order to secure their concept patents and
copyrights are needed.
Challenges faced in implementing AI
In a study conducted by Matthew Scherer 2016, it is very difficult to regulate AI
systems. It requires a proper integrated system to monitor and regulate AI. the systems perform
complex task such as driving car, controlling things, etc. in the future AI will reduce the demand
of labor in industry. This is because complex activities can be performed easily in less time as
well as cost. There are various challenges which restricts businesses to integrate AI with
operations. the first is lack of expertise that how to manage and control AI. another challenge is
misaligned incentives. So far AI has created a great impact on staff operations. due to complex
systems of AI it has been difficult for business to develop infra. Through which monitoring and
controlling can be done. In addition to this, the major challenge in AI is risk and security issues.
if not implemented properly it can lead to failure of entire concept. Apart from it, frequent
technological advancement is a big challenge to cope up pace of business. in the opinion of
(Müller, 2016) main challenge faced is access of data. AI requires fast and quick access of data.
In includes large set of clear data algorithms. Without proper algo it is not possible to implement
AI in machines. Moreover, it requires proper system to run and test data algo. It is necessary to
test and check algo so that it can be implemented in AI. this requires various tools and
techniques. For this a plan is developed so that AI can be installed in systematic way. so, if an
algo failed it has to be developed and tested again completely. This also has a challenge for
business.
As elucidated by (Steels and Brooks, 2018) small and medium size companies are
facing critical challenges in AI. they are not able to implement it in proper way. due to this their
performance is been highly impacted. The main challenge in AI is its implementation. It is very
difficult to implement AI according to operations. many changes are required and strategies are
developed. The overall change implementation affects on operational efficiency. Moreover, if
there occurs any change in market conditions the operations can not be modified as they are
rigid. Employees are required to be given proper and effective training regarding how to handle
and operate AI. sometimes, they do not understand it properly and it leads to mishandling. This
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affects the overall business productivity. For example, IBM announced that they will use Watson
platform to manage its campaigns. The cost was reduced with 35% but in some cases, it went
high up to 71%.
In view of Gunning, 2017, another major challenge which can be faced in future while
implementing AI system will be security issues. it will be a huge threat for business. the hacker
can easily hack algo and misuse data and information. also, they can access systems and steal
confidential data of company. So, rise in cyber crime can restrict businesses to implement AI.
Alongside it, if systems are hacked it will impact on overall operations. this might also affect
efficiency of systems.
Future of AI
In a study conducted by Copeland and Reynoldson, 2017, it is stated that the future of
AI will be very complicated. The overall service sector will get transformed. By taking order to
delivery will be automated. Every small task will be replaced by robots or machines (Future of
AI. 2016). the manual handling of task will be eliminated. Apart from service sector, AI will be
highly used in another sector as well. First of all the transportation system will be changed. self
driving cars will emerge in market. also, cyborg technology will be used in enhancing human
capabilities. It will be help in identifying natural capability of human and helping in fulfilling
needs. for example, if any individual in not having hand or leg then AI can be used in developing
artificial one. Hence, it can be attached to body of person and fulfilling his or her needs.
It is said by Miller, 2018, that by using AI in business operations, big fast food brand
will compete with each other. in addition to it, waiting time will get reduced resulting in
generating service value in market. when customer will enter in any physical store, robots will
take order and deliver it. therefore, people will not have to do anything. Everything will be
automated even payment system. AI system will be implemented at large scale fulfilling
requirement of companies. but in order to control and manage AI systems experienced people
will be required. Other than this, depth knowledge and skills is required to ensure that AI
systems are working properly. It will also be used in providing health and social care services.
the task which are not possible in performing health practices can be easily done with help of AI
system.
According to Putnam, 2018, AI will have a great impact on human life. Robots will
become an integral part of human beings. They will understand human emotions and help in
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solving their problems. furthermore, complex task will be easily done in less time and efficient
way. it will be beneficial for disabled people. It is because with development in technology it
will be difficult to maintain AI systems. Companies will require high and advance tools to
monitor and maintain efficiency of AI systems. Thus, as elucidated by Gunning, 2017 in coming
years AI will play crucial role in bringing technological change.
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REFERENCES
Books and journals
Brynjolfsson, E., Rock, D. and Syverson, C., 2018. Artificial intelligence and the modern
productivity paradox: A clash of expectations and statistics. In The Economics of Artificial
Intelligence: An Agenda. University of Chicago Press.
Copeland, D. and Reynoldson, L., 2017. How to avoid'summoning the demon': The legal
review of weapons with artificial intelligence. Pandora's Box, (2017), p.97.
Dung, P.M., 2016. An axiomatic analysis of structured argumentation with
priorities. Artificial Intelligence, 231, pp.107-150.
Gunning, D., 2017. Explainable artificial intelligence (xai). Defense Advanced Research
Projects Agency (DARPA), nd Web.
Hassabis, D. and et.al., 2017. Neuroscience-inspired artificial intelligence. Neuron, 95(2),
pp.245-258.
Ingrand, F. and Ghallab, M., 2017. Deliberation for autonomous robots: A survey. Artificial
Intelligence, 247, pp.10-44.
Kaplan, J., 2015. Humans need not apply: A guide to wealth and work in the age of
artificial intelligence. Yale University Press.
Miller, T., 2018. Explanation in artificial intelligence: Insights from the social
sciences. Artificial Intelligence.
Müller, V.C. ed., 2016. Fundamental issues of artificial intelligence (Vol. 376). Berlin:
Springer.
Putnam, H., 2018. Computational psychology and interpretation theory. In Artificial
Intelligence (pp. 1-17). Routledge.
Raedt, L.D. and et.al., 2016. Statistical relational artificial intelligence: Logic, probability,
and computation. Synthesis Lectures on Artificial Intelligence and Machine Learning, 10(2),
pp.1-189.
Steels, L. and Brooks, R., 2018. The artificial life route to artificial intelligence: Building
embodied, situated agents. Routledge.
Zahraee, S.M., Assadi, M.K. and Saidur, R., 2016. Application of artificial intelligence
methods for hybrid energy system optimization. Renewable and Sustainable Energy Reviews, 66,
pp.617-630.
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Online
Future of AI. 2016. [online] Available through : < https://bigdata-madesimple.com/the-future-of-
artificial-intelligence-6-ways-it-will-impact-everyday-life/>
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