Impact of Artificial Intelligence on Business Process Management

This report focuses on discussing the impact of artificial intelligence on business process management and the issues related to this subject. It explores different perspectives on the implementation of AI and its effects on business. Solutions to identified issues are also included.

IMPACT OF ARTIFICIAL INTELLIGENCE ON BUSINESS
PROCESS MANAGEMENT
1

Executive summary
This report focuses on discussing over impact of artificial intelligence on business process
management and issues related to this subject are being represented in this study. Argument over
different perspectives of implementation of artificial intelligence and its effect on business is
being added in this report. In addition, solutions to identified issues are included with structure of
this report. This report has mentioned impact of implantation of AI on business process
management of various companies under different business sectors. It has been mentioned that
implementation of artificial intelligence is a part of digital transformation that helps to mitigate
gaps of business process. Large multinational organizations are using AI for reducing human
effort and this aspect is helping them to enhance efficiency. At the end of this report, conclusion
and recommendation part have been added.
2

Table of Contents
Introduction......................................................................................................................................4
Findings and analysis.......................................................................................................................4
Importance of business process management..............................................................................4
Interrelationships between business process management and digital transformation................6
Discussion on issues related to utilization of artificial intelligence.............................................8
Critical evaluation of impact of artificial intelligence on performance of business..................11
Discussion......................................................................................................................................12
Discussion on impact of AI on BPM.........................................................................................12
Conclusion and recommendations.................................................................................................14
Conclusion.................................................................................................................................14
Recommendation.......................................................................................................................14
Appendices....................................................................................................................................18
3

Introduction
Business process management includes development, modifying and evaluation of predictable
business process that helps organizations to improve core processes of their business.
Management monitors activities of all departments on regular basis and identifies potential areas
of development. Implementation of appropriate technologies and strategies helps them in
business process management. Purpose of this report is to discuss on impact of artificial
intelligence on business process management and issues related to this subject are being
represented in this study. Argument over different perspectives of implementation of artificial
intelligence and its effect on business is being added in this report. In addition, solutions to
identified issues are included with structure of this report.
Findings and analysis
Importance of business process management
Business process management (BPM) is an important part of business as it helps to maintain
performance of business. As opined by Van Looy (2018), organizations are bound to maintain
business performance for generating maximum revenue from their business and they focus on
business process management for maintaining position of their business. However, lack of
effective strategies for BPM may lead to unhealthy workplace and dissatisfaction in customers.
BPM includes series o activities that help to obtain a particular outcome at the end.
Organizations implement various kinds of advanced technologies in order to the main
interrelationship between every task of different departments. On another hand, Dirican (2015)
have contradicted that monitoring all actions performed by different departments helps to
recognize potential gaps of business process. BPM helps to embed efficiency in human resources
and allow organizations in integration of technology. Benefits of BPM indicates its importance
within business and common benefits of BPM are mentioned below,
 Maximization of cost efficiency
Effective BPM is considered as driving strategy that helps to maximize cost efficiency of
business process. As it allows managing both process and workflow of business, it has the
4

potential to reduce cost of business by minimum of 30%. On another hand, Ransbotham et al.
(2018) have argued that BPM helps to perform tasks within predetermined budget and this aspect
leads to reduction of cost as well.
 Ensuring agility of business
Business agility refers to ability of organization to respond quickly to changes in business
environment. As stated by Kokina and Davenport (2017), main goal of business process
management is to make business flexible to changing situations. Business agility incorporates
elements such as rule management, management of process, automation, scaling, integration of
technologies and optimization. Business process management helps to manage all mentioned
elopements of agility.
 Improving customer satisfaction
Aim of every business is to retain loyal customers and BPM is helpful in this matter. Maximum
customers of this modern age demand to understand the process of organization to meet their
needs. As mentioned by Appelbaum et al. (2017), BPM helps to connect human resources with
technology and help to provide the best service as per demand of customers. This approach helps
to maintain customer satisfaction and maintaining brand image. Effective BPM helps to deliver
service as well as products on promised time and this approach increase level of customer
satisfaction.
 Enhancing performance of human resource
Well-developed a documented business process helps organization to provide a healthy and safe
workplace to its customers. According to Ng (2016), effective BPM helps employees to get all
required information as per their demand at any time and help them to focus on their specific
tasks. It can be seen that job satisfaction level increases with time in employees, who work under
effective business process. Good business process management helps to maintain healthy and
safe workplace and employees get opportunity to work peacefully. This aspect helps to improve
their performance.
 Implementation of reliable changes
5

Good BPM helps employees to work collaborate and organization gets opportunity to generate
maximum revenue from business. This aspect helps management of organizations to implement
change within minimum time within organization. Implementation of positive helps to enhance
productivity of organizations.
 Building compliance
Complying with regulations of industry is an important part of business and adaptation of BPM
helps to implement requirements related to regulations within minimum time period. From
another viewpoint, it can be stated that adoption of well-developed business process helps to
maintain transparency and visibility of business. This approach helps to enhance satisfaction in
employees.
Figure 1: Benefits of Business process management
(Source: Influenced by Kokina and Davenport, 2017)
Interrelationships between business process management and digital transformation
Digital transformation can be considered as modernization of business n it allows business
owners to focus on implementation of technology as well as innovation within business. as stated
by Kayikci (2018), different advance technologies are there that helps to reduce human effort
6

and helps to get real-time data easily as required in business. Artificial intelligence is one of the
technological advancements that help to automate business process. Many large multinational
organizations are implementing artificial intelligence in order to improve their business process.
This aspect is helping them to communicate with all stakeholders easily. As a result, good
business relationships are being established within important stakeholders of business. For
example, large retail giant Amazon has introduced Alexa, a model consists of artificial
intelligence for gaining financial benefit. Existing, as well as potential customers of this firm,
have praised this new product as it has the potential to provide them good experience of
technological advancement. This example is clearly postulating that introduction of this product
is the result of well-developed business process of Amazon. On another hand, Syed et al. (2018)
have mentioned that another top retailer of Australia, Woolworths, is taking initiative to
implement artificial intelligence in their business for providing best shopping experience to their
customers. Management of this company has mentioned that they are planning for a project
concerned with AI and machine learning. They believe that this approach may help them to
attract maximum potential as well as loyal customers towards their business.
Artificial intelligence is time efficient as t helps to complete work within one blink of an eye.
Due to this reason, many business organizations are using this technology to maintain link
between different departments of organizations. As commented by Kane et al. (2015), AI allows
companies to perform all tasks from receiving order to delivery of order with efficiency and
helps to get customer satisfaction. On another hand, it can be noticed that increasing customer
satisfaction results in enhancement of revenue generation. Banking sector of Australia has
realized that digital transformation may help them to improve their business process. Investment
and banking industry of this country has taken certain initiatives to implement artificial
intelligence into their business for providing better experience to both their customers and
employees. One of the largest banks of Australia, Westpac has taken initiative towards digital
reformation of business system with the support from their customers and employees. In 2016,
management of this bank has mentioned that they are going to invest their six valuable months in
implanting AI into their system. As per the management team, this approach has helped this
company to ensure digital banking system for their existing and potential customers. They have
taken initiative to introduce Chat bots that can provide answer to simple queries of their
customers over phone or online website. As contradicted by Matt et al. (2015), advantageous
7

aspects of AI have affected financial advisors of Australia and they are using AI to perform
required tasks of their business. Financial advice providers have admitted that introducing
artificial intelligence have helped them to enhance rate of customers satisfaction. Renowned
financial advisors, such as Acorns Australia and Ignition Direct are offering automated advice
regarding finance and investment. Customers are being asked to mention their financial goals
and rate of tolerance for potential risks. Robot advisor is considering provided information and
providing advice regarding investment strategy with the help of mathematics and other complex
algorithms. It has been noticed that customers prefer to have experience of shopping with AI
technology. [Referred to Appendix 1]
Robotic Process Automation is being used to observe actions taken by people within business.
Behavior of employees is being monitored with the help of this technology and this aspect is
helping in performance improvement. As opined by Wisskirchen et al. (2017), triggering of new
application within business is a complicated task and various stages are included within this
process. AI is helpful in this regard as it helps in execution of project plan regarding
implementation of new application in business. On another hand, machine learning helps to
make appropriate decision. After analyzing received data, AI suggests recommendations to users
and most of the people find it meaningful while applying. Effectiveness of AI depends on
artificial the decision of business owners regarding selection of AI technology for their business.
However, Waibel et al. (2017) have mentioned that it is important to adopt technology as per
requirement of business and this aspect can help to enhance productivity.
Discussion on issues related to utilization of artificial intelligence
Implementation of artificial intelligence has negative aspects as well and it can negatively
influence BPM. As stated by Kane et al. (2017), organizations that use AI in their business
process often face numerous issues. It can be noticed that issues related to AI affect workforce
and reduce efficiency level of business. As a result, organizations face financial breakdown and
reducing level of customer satisfaction. Identification of potential issues related to AI must be
done by leaders and managers of companies. Industries Australia is facing ethical issues due to
use of Ai at different levels of business. Unemployment rate is increasing day by day as machine
is replacing human resources. Implementation of effective strategies may help firms to mitigate
potential issues generated from their decision of implantation of AI in their business. Issues
8

related to artificial intelligence affect all important stakeholders of business. Major issues related
to AI implementation are mentioned below,
 Privacy related risk
Maintaining privacy is an essential part of business as it helps to provide values to stakeholders.
On another hand, maintaining confidentiality of information helps to beat competitors. However,
privacy-concerned firms often face difficulties while implementing artificial intelligence into
their business. as commented by Chaffey (2015), AI is capable to recognize voice and written
comment of human being. This aspect helps it to reduce human effort and make tasks easier as
well as time efficient. However, this criterion allows technology to understand conversation over
phone and email content. Important data and information may be shared with unauthorized
person easily. This potential risk can affect business process a well.
 Expensive
Digital transformation helps to improve business process and it has become an essential part of
today’s digital business era. However, Paul et al. (2018) have argued that digitalization of
business process is expensive by nature. Purchasing and implementation of AI are costly and it
can affect budget control. Companies are bound to spend huge amount per year for maintenance
and repair of AI. Technology cannot be used for a long time without updating. It is important to
update technology in order to make it better. However, it consumes money and companies
allocate separate budget for this matter. This issue can be considered as an effective con of AI.
 Unable to think creatively
Creativity and innovation are two main part of business that help to meet expectation of
consumers. Wu et al. (2018) have mentioned that human workforce can think out of the box and
can help company to implement innovation. However, AI can perform programmed tasks and
cannot do anything different from that. Due to this reason, this digital transformation is unable to
replace all human employees.
 Increasing rate of dependency on technology
9

Majority of organizations are choosing AI for improving their business process as it is helping
them to maximize generation of revenue. Human resources are depending on technology instead
of using their own ability to achieve goals. As opined by Dirican (2015), this aspect is gradually
reducing ability of human beings and making them lazy at workplace. However, occurrence of
sudden defect in machine may force firms to face large financial risk. Due to this reason, it can
be said that human beings must be dependent on AI to a certain level.
 Risk of life
Healthcare industry of Australia has realized benefits of AI and technology is being used to
provide medical support to patients. As mentioned by Şahin and Topal (2018), machine can get
affected by dispute and it can harm human beings. Patients can face major risks while they are
being served with disputed technological system. It is important to monitor machinery on regular
basis in order to avoid life risks of patients. Healthcare sectors need to understand and work on
drawback of AI.
Figure 2: Discussion on issues related to utilization of artificial intelligence
(Source: Influenced by Wu et al. 2018)
10
PrivacyrelatedriskExpensiveUnabletothinkcreativelyIncreasingrateofdependencyontechnologyRiskoflife

Critical evaluation of impact of artificial intelligence on performance of business
Implementation of AI is one form of digital transformation of business and it helps to manage
business process with efficiency. Kłosowski et al. (2016) have mentioned that beneficial side of
AI helps to improve business performance and allow management of firms to earn maximum
financial benefits from their business operations. Technology is supporting human workforce to
perform task with more efficiency. In addition, AI is helping in delivery of products and services
within minimum time period. Business performance is getting improved day by day and
organizations are being able to maximize their customer base. For example, different industries
in Australia are using AI to improve BPM. They have understood that use of AI helps to serve
customers as per their expectation and this aspect helps to maintain higher level of customer
satisfaction. On another hand, Nemati et al. (2016) have contradicted that it can be stated that
growing influence of artificial intelligence of business process management has become a topic
of research as everyone is showing eagerness to understand about all perspectives of AI. It is one
kind of digital innovation that is driving performance of business with efficiency. It has been
found that AI has the potential to speed up internal business process and helps in fast revenue
generation. As opined by Li et al. (2017), managers are being able to monitor activities of
different department with the help of innovative digital technology. Different companies are
taking initiatives to develop AI-based system and offering those systems to their customers. For
example, IBM is offering AI software to their customers since the year 1950 and they have
bought 3 startups that are based on AI. On another hand, Microsoft is undertaking AI projects in
order to provide better experience to their customers.
On contrary, it can be noticed that AI has negative impact as well on business performance.
Technology is replacing human resources and reducing level of innovation in industries.
According to Moro et al. (2015), lack of innovation has become a global issue and many
companies are being unable to meet expectation of their customers. Employees are showing
reluctant to use their brains as technology is performing most of the task. This aspect is
preventing organizations to obtain and retain maximum competitive advantages. Organizations
are focusing on implementation of AI, which consumes time and is being unable to focus on
other areas of business. Most of the companies are adopting AI technology for their business to
maintain higher level of customer satisfaction. However, Szajna et al. (2018) have mentioned
that management of these firms is not caring about job satisfaction level of their employees.
11

Many employees do not have technical knowledge and they are getting affected with
implementation of AI in business. This aspect is preventing them to perform their best at
workplace. This scenario is impacting negatively on business performance. However, provision
of training to employees can be considered as an effective solution to this issue.
Discussion
Discussion on impact of AI on BPM
Findings of this report have mentioned that BPM is an important part of business as it helps
organizations to improve performance of individual employee and performance of organization.
According to Makridakis (2017), it can be considered that there is two purposes of BPM and
these are reduction of cost and increases of business efficiency. On another hand, this study has
discussed the importance of digital transformation in order to perform task differently to meet
objectives of business. This report findings have shed light on all perspective related o digital
transformation and business press management. It has linked implementation of AI into business
with BPM. Digital transformation is about use of technological advancement that allows
organizations to improve effectiveness of business.
After analyzing overall findings of this report, it can be understood that AI has great impact on
business process management. Business process management includes all business operations
that help owner to operate business successfully. It has been noticed that many companies are
using AI to manage customers. Relich (2015) have mentioned that Chat Bots is being introduced
to ensure time-efficient customer service. On another hand, healthcare industry is using AI in
provision of medical support to customers. Some of the organizations are using AI to increase
revenue generation. Many software manufacturing companies are developing AI software to
meet expectation of their customers. This study has mentioned that there are several companies
that are maintaining interrelationship between various departments with the help of AI.
According to Ehret and Wirtz (2017), aim of BPM is to improve business process an AI
technology to help in this regard. However, organization is bound to consider all perspectives if
AI before implanting it for improving their business process. Managers need to focus on hiring
of employees, who have core knowledge regarding dealing with technology. All stakeholders
must be involved in making decision regarding introduction of AI in business. it has been found
12

that Ai contributes to automate BPM and allow firms to maintain their business position. For this
reason, this technological advancement can be considered as one of the greatest drivers of
innovation.
Efforts of business process management are considered as natural partner of artificial
intelligence. User interface gets improved and routine tasks get automated with the help of
appropriate AI system. On another hand, Ustundag and Cevikcan (2017) have mentioned that
analysis of data one is included within BPM and organizations use AI for performing this task
with efficiency. It has been found that AI can improve all tasks by near about 45% and this
criterion makes technology popular. In healthcare industry, Doctors use AI-driven natural
language processing that helps to provide dictation of clinical information into particular device.
Important healthcare related data such as orders of laboratory, prescription, and forms get
populated after this action. On another hand, Wilson et al. (2017) have narrated that AI is able to
understand interrelationship between data by going through data set. After this task, AI helps to
make appropriate decision from the understanding. AI evaluates each decision made by
management of organization and develops rules related to decision made. It has the potential to
help in management of inventory and supply chain. AI evaluates stock and rate of resource usage
in order to assume appropriate time when stocks can be running out. This benefit helps
management of firms to manage supply chain. On another hand, Van Looy (2018) has added that
surplus of products are determined previously by AI technology and business owners change
product price as per this information generated by AI.
However, drawback of AI is affecting people and many of the business owners are showing
reluctant to implement this system to improve business process management. According to
Dirican (2015), time and cost constraints are preventing adaptation of AI by all business owners.
In another hand, management of companies fears of disputes that may lead to huge loss. In
addition, it takes a huge amount to repair and maintains AI. Due to this reason, many
organizations managing business process and still they are relying on human resources in case of
business process management. It is not incorrect to use AI for improving BPM. However, certain
limit needs to be maintained while depending upon AI-based technology. Findings of this report
have mentioned that different factors are there that affect implementation of AI for the
13

betterment of business process management. Consideration of these factors may help to ensure
bright future for collaboration of AI and BPM.
Conclusion and recommendations
Conclusion
From the above discussion, it can be concluded that artificial intelligence has become one of the
popular technological advancement in this digital age of business. This report has mentioned
impact of implantation of AI on business process management of various companies under
different business sectors. It has been mentioned that implementation of artificial intelligence is a
part of digital transformation that helps to mitigate gaps of business process. Large multinational
organizations are using AI for reducing human effort and this aspect is helping them to enhance
efficiency. As a result, organizations are being able to gain maximum financial benefits from
their business operations. However, there are several issues associated with AI and these issues
must be mitigated through consideration of effective solutions.
Recommendation
Following recommendations may be considered in order to mitigate identified issues of artificial
intelligence that are harming business process management in different industries,
 Monitoring efficiency of artificial intelligence on regular basis in order to identify
disputes at right time.
 Provision of training to employees to help them to learn about appropriate process to deal
with machines.
 Selection of appropriate AI system that can be afforded by organization within minimum
budget.
 Limited us of Ai technologies in healthcare sector to avoid life risks of service users.
14

Reference list
Appelbaum, D., Kogan, A., Vasarhelyi, M. and Yan, Z., 2017. Impact of business analytics and
enterprise systems on managerial accounting. International Journal of Accounting Information
Systems, 25, pp.29-44.
Chaffey, D., 2015. Digital business and e-commerce management. London: Pearson Education
Limited.
Dirican, C., 2015. The impacts of robotics, artificial intelligence on business and
economics. Procedia-Social and Behavioral Sciences, 195, pp.564-573.
Dirican, C., 2015. The impacts of robotics, artificial intelligence on business and
economics. Procedia-Social and Behavioral Sciences, 195, pp.564-573.
Ehret, M. and Wirtz, J., 2017. Unlocking value from machines: business models and the
industrial internet of things. Journal of Marketing Management, 33(1-2), pp.111-130.
Kane, G.C., Palmer, D., Phillips, A.N. and Kiron, D., 2015. Is your business ready for a digital
future?. MIT Sloan management review, 56(4), p.37.
Kane, G.C., Palmer, D., Phillips, A.N., Kiron, D., and Buckley, N., 2015. Strategy, not
technology, drives digital transformation. MIT Sloan Management Review and Deloitte
University Press, 14, pp.1-25.
Kayikci, Y., 2018. Sustainability impact of digitization in logistics. Procedia manufacturing, 21,
pp.782-789.
Kłosowski, G., Gola, A. and Świć, A., 2016. Application of fuzzy logic in assigning workers to
production tasks. In Distributed Computing and Artificial Intelligence, 13th International
Conference (pp. 505-513). Springer, Cham.
Kokina, J. and Davenport, T.H., 2017. The emergence of artificial intelligence: How automation
is changing auditing. Journal of Emerging Technologies in Accounting, 14(1), pp.115-122.
[online] available at http://aaapubs.org/doi/full/10.2308/jeta-51730 [Accssed on 8th April 2019]
15

Li, B.H., Hou, B.C., Yu, W.T., Lu, X.B. and Yang, C.W., 2017. Applications of artificial
intelligence in intelligent manufacturing: a review. Frontiers of Information Technology &
Electronic Engineering, 18(1), pp.86-96. [online] available at
https://link.springer.com/article/10.1631/FITEE.1601885 [Accssed on 8th April 2019]
Makridakis, S., 2017. The forthcoming Artificial Intelligence (AI) revolution: Its impact on
society and firms. Futures, 90, pp.46-60.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering, 57(5), pp.339-343. [online] available
at:https://www.semanticscholar.org/paper/Digital-Transformation-Strategies-Matt-Hess/
721740d91cf716a179ec716ea241c48c8796f7f1 [Accssed on 8th April 2019]
Moro, S., Cortez, P. and Rita, P., 2015. Business intelligence in banking: A literature analysis
from 2002 to 2013 using text mining and latent Dirichlet allocation. Expert Systems with
Applications, 42(3), pp.1314-1324.
Nemati, H.R., Steiger, D.M., Iyer, L.S. and Herschel, R.T., 2016. Knowledge warehouse: an
architectural integration of knowledge management, decision support, artificial intelligence and
data warehousing. Decision Support Systems, 33(2), pp.143-161.
Ng, A., 2016. What artificial intelligence can and can’t do right now. Harvard Business
Review, 9.
Paul, P., Bhuimali, A., Aithal, P.S. and Bhowmick, S., 2018. Business Information Sciences
emphasizing Digital Marketing as an emerging field of Business & IT: A Study of Indian Private
Universities. IRA International Journal of Management & Social Sciences,(ISSN 2455-
2267), 10(2), pp.63-73.
Ransbotham, S., Gerbert, P., Reeves, M.A.R.T.I.N., Kiron, D.A.V.I.D. and Spira,
M.I.C.H.A.E.L., 2018. Artificial Intelligence in Business Gets Real. MIT Sloan Management
Review, September, 17. [online] available at: https://sloanreview.mit.edu/projects/artificial-
intelligence-in-business-gets-real/ [Accssed on 8th April 2019]
16

Relich, M., 2015, May. A computational intelligence approach to predicting new product
success. In Proceedings of the 11th International Conference on Strategic Management and its
Support by Information Systems (pp. 142-150).
Şahin, H. and Topal, B., 2018. Impact of information technology on business performance:
integrated structural equation modeling and artificial neural network approach. Scientia
Iranica, 25(3), pp.1272-1280.
Syed, R., Bandara, W. and French, E., 2018, September. Effective Leadership in BPM
Implementations: A Case Study of BPM in a Developing Country, Public Sector Context.
In International Conference on Business Process Management(pp. 376-391). Springer, Cham.
Szajna, A., Szajna, J., Stryjski, R., Basl, J. and Brodny, J., 2018. New Way of Monitoring of the
Production Environment with Application of Augmented Reality and Artificial
Intelligence. Multidisciplinary Aspects of Production Engineering, 1(1), pp.307-313.
Ustundag, A. and Cevikcan, E., 2017. Industry 4.0: managing digital transformation. UK:
Springer.
Van Looy, A., 2018, September. On the Synergies Between Business Process Management and
Digital Innovation. In International Conference on Business Process Management(pp. 359-375).
Springer, Cham.
Waibel, M.W., Steenkamp, L.P., Moloko, N. and Oosthuizen, G.A., 2017. Investigating the
effects of smart production systems on sustainability elements. Procedia Manufacturing, 8,
pp.731-737.
Wilson, H.J., Daugherty, P. and Bianzino, N., 2017. The jobs that artificial intelligence will
create. MIT Sloan Management Review, 58(4), p.14.
Wisskirchen, G., Biacabe, B.T., Bormann, U., Muntz, A., Niehaus, G., Soler, G.J. and von
Brauchitsch, B., 2017. Artificial intelligence and robotics and their impact on the workplace. IBA
Global Employment Institute, pp.2012-2017.
Wu, D.D., Chen, S.H. and Olson, D.L., 2014. Business intelligence in risk management: Some
recent progress. Information Sciences, 256, pp.1-7.
17

Appendices
Appendix 1: Preference of Australian Consumers regarding shopping with AI
(Source: https://voicebot.ai/2017/12/19/almost-half-australians-want-shop-voice-commerce/)
18