Contemporary Issue Assignment: Entrepreneurship & Artificial Intelligence
Task: Write a contemporary issue assignment on one of the contemporary issues of entrepreneurship.
A number of challenges are faced by the entrepreneurs at the time of commencing a new venture and managing its growth. This contemporary issue assignment focuses on the link between entrepreneurship and artificial intelligence as the recent contemporary issue. Artificial intelligence is the simulation of human intelligence in machines. This is a new and innovative concept which is capable of reducing human error, assisting in getting more precise analytics and transforming the data collection devices into diagnostic tools. The report on contemporary issue assignment provided that artificial intelligence is playing a massive role in the transformation of the business and industries by offering solutions to a variety of problems that require human intelligence, prediction power and reasoning. In entrepreneurial context, artificial intelligence performs the function of an instigator and facilitator and offers meaningful insights of knowledge from the data collected. The contemporary issue assignment further provides that a number of challenges are faced by the entrepreneurs relating to data analysis, personalization and fraud in digital transactions, however, these can be easily resolved with the help of artificial intelligence. The two theoretical entrepreneurship frameworks that can be linked with artificial intelligence are opportunity based entrepreneurship theory and resource based entrepreneurship theory.
Entrepreneurs face a variety of challenges during the process of starting a new venture, managing the growing business and harvesting the venture. This report on contemporary issue assignment focuses on the recent contemporary issue i.e. the link between entrepreneurship and artificial intelligence.
1.1 Identification of the Issue
The issue identified herein contemporary issue assignment as a contemporary issue is artificial intelligence as it is an emerging trend which is playing a major role in every stage of the lifecycle of an entrepreneurial venture.
a) Description of the Issue
Artificial intelligence can be defined as the simulation of human intelligence in machines which are programmed in a way such that they can think like human beings and are also capable of mimicking their actions. This topic used to develop this contemporary issue assignment is novel or new as earlier machines operated on the basis of commands and were unable to make judgements on their own but with the help of AI machines are now able to think like humans and provides all kinds of requested information, analyse the supplies and trigger events on the basis of findings (Russell, Dewey and Tegmark, 2015).
Figure 1 Artificial Intelligence Robot
b) What makes this topic contemporary?
Artificial intelligence (AI) has been considered among the greatest sources of innovation in the recent years which has played a major role in fuelling transformation in most of the industries from filmmaking to farming. As stated in this contemporary issue assignment, this is a new concept which able to significantly reduce human error, transform data collection devices into great diagnostic tools and assist in the creation of more accurate analytics.
1.2 Relevance of the topic for Entrepreneurs and the Challenges faced by them in Business Environment
Entrepreneurs from all across the globe are now recognizing the importance of artificial intelligence in the automation of standardized tasks. Entrepreneurs now understand that in order to stay competitive in the market, they are required to focus on AI research along with introducing products based on AI in the market and implementing AI applications and tools. The business environment is dynamic, complex and uncertain which, in turn, leads the entrepreneurs to face a variety of challenges relating to customer support, personalization, data analysis, productivity and fraud due to digitalization. These challenges discussed in the contemporary issue assignment can be addressed effectively by the entrepreneurs with the help of AI powered solutions (Huarng, 2018).
2. Literature Review on the Contemporary Issue
2.1 Evidence of the Contemporary Issue
As per the views of Obschonka and Audretsch (2019) considered in the contemporary issue assignment, there is a growing attention around artificial intelligence in a variety of application and research fields such as business management, innovation and industry. It is further argued that this AI has received comparatively less attention in the context of entrepreneurship. AI has further been considered as the ‘new electricity;’ which is capable of transforming the business and industry in a fundamental way just like electricity brought a huge transformation in the world 100 years back. The analysis further provided that AI is creating an impact on the position and concrete role of people in this transformed AI- infused world in a various ways.
According to Dirican (2015), artificial intelligence can be explained as an intelligence which is demonstrated by the machines. In other words, it is an examination of how algorithms and digital computers undertake the performance of tasks and provide the solution of difficult problems which usually requires reasoning, human intelligence, and prediction power for its adaptation to the dynamic circumstances. The application of AI in entrepreneurship results in diverse questions relating to uncertainty and rationality, logic and intelligence, ideation and discovery, experience based pattern recognition and strategy. It is further argued in the contemporary issue assignment that all these topics are of prime concern for entrepreneur researchers from the past many years.
Nawaz (2019) stated that technological changes, innovation, ideas are knowledge are some of the most essential factors in the economic growth and entrepreneurship. Majority of the entrepreneurs are willing to make the use of AI technology for the production of innovation generating entrepreneurial potential and encouraging change in economic and social sector for the development of a higher living standard. At present, artificial intelligence is performing the function of an instigator and facilitator for the generation of high level entrepreneurial recognition.
It is further argued by Gajawada (2016) that AI can be regarded as the incremental innovation in the processes of business and is the excellence source of opportunities for the entrepreneurs. The analysis done in this section of contemporary issue assignment also provided that the main advantage of this automated technology is that it significantly reduces and other related costs. Moreover, it allows the business to extract a lot of meaningful insights of knowledge from the collected data which is useful in machine learning algorithms and data mining.
It is also found by Shafigullina, Akhmetshin, Martynova, Vorontsova and Sergienko, (2020) that entrepreneurship involving artificial intelligence is successful all across the world. However, there are some issues or challenges faced by such enterprises such as lack of acquaintance to AI, lack of information relating to AI training, talent shortage, and difficulties faced while raising funds. On the other hand, once it is implemented, it allows effectively managing the marketing channels and achieving the desired results from the marketing strategies. Moreover, it is helpful in suggesting or automating answers to the questions of the customers, direct inquiries to the suitable department and classifies help tickets. The analysis made herein contemporary issue assignment further provided that artificial intelligence is also useful in customer relationship management (CRM) as it can analyse real time data for offering predictions and recommendations on the basis of customer data and unique business processes of the organization.
2.2 What are the challenges faced by entrepreneurs and its resolution through artificial intelligence mentioned in the context of contemporary issue assignment?
The present contemporary issue assignment examines the words of Makridakis (2017) hat entrepreneurs are making efforts for the purpose of fulfilling the needs of the customers by allowing the customers to handle the transactions through digital mode. It is argued that it also increases the risk of fraud relating to misuse of personal and financial data of the customers. The entrepreneurs strive to meet the expectations of the customers relating to the transaction speed while ensuring that there is proper scanning of every traction regarding the potential fraud. It is further argued that AI has become the only technology which is fast and is capable of processing such speedy transactions. Entrepreneurs are now utilizing artificial intelligence and machine learning algorithms for the purpose of sorting and assessing the data in few seconds for decreasing frauds and financial crimes.
It is also found by Burns (2016) that entrepreneurs starting a new venture also suffer from the challenge relating to data analysis. However, AI has the ability for analyzing the data in an accurate, transparent and trustworthy manner. In this way, as illustrated in this segment of contemporary issue assignment it is capable of assisting variety of industries including marketing, manufacturing, healthcare, insurance and finance for improving the manner data is analysed and business decisions are made. Also, for a new venture, it is very difficult to get the most out of the workforce and get the desired level of productivity. However, the use of artificial intelligence in businesses by the new entrepreneurs has provided a better solution for this problem. AI assist the entrepreneurs in the prediction and prevention of IT issues before they transform into a major problem and create a massive impact on the productivity.
According to Copeland (2015), the evaluation further provides that in the initial stage of the business, the entrepreneurs suffer from the challenge regarding offering a personalized experience to their customers. The customers are constantly looking for brands that see them as individuals and make efforts for undertaking personalized interactions. The entrepreneurs suffer from this challenge due to lack of face to face transactions. It is argued on this contemporary issue assignment that the use of AI is capable of assisting the entrepreneurs in providing personalized recommendations for the customers on the basis of past orders. AI further allows the entrepreneurs to send customized marketing messages to the customers on the basis of the continual learning processes of the technology for the assessment word positioning, formatting, word choices, etc.
I would like to specify in the current context of contemporary issue assignment that in my opinion, artificial intelligence is both an enabler and an obstacle to entrepreneurship. It allows augmenting the intelligence of an individual and assists in becoming more productive and efficient. I have also found that most of today’s leading companies such as Facebook, Google and Amazon are investing in artificial intelligence which was commenced as a small garage start- up with a brilliant idea and passion. It can be argued that these companies are motivated by the productivity, cost and efficiency gains for making investment in this technology. Also, I believe that new start-ups also understand the role of AI in remaining competitive and relevant in the market and therefore, they are introducing AI- based services and products along with implementing AI applications and tools.
3. Application of Theoretical Entrepreneurship Frameworks
3.1 Opportunity Based Entrepreneurship Theory
As per the opportunity based entrepreneurship theory illustrated in this aspect of contemporary issue assignment, which is a conceptual framework for entrepreneurial research, entrepreneurs do not effect a change but they perform the function of exploiting the opportunities which is created by change such as consumer preferences, technology, etc. It can further be argued that entrepreneur is always involved in searching for change and is found to actively respond to it along with ensuring its exploitation in the form of an opportunity. It is also stated that resourcefulness is also a part of opportunity based construct. The hub of entrepreneurial management is pursuing the opportunity without having any regard for the resources under control (Simpeh, 2011). This can be linked with artificial intelligence as AI is offering an opportunity to the entrepreneurs who are being grabbed by them for creating a competitive edge in the market. It can be argued that the most important opportunity offered by the AI technology to the entrepreneurs is that it provides the ability to track the competitors in an effective manner (Jackson, 2019). This is the most crucial aspect for the new entrepreneurs to keep a track of the activities and strategies of the competitors. As provided in the contemporary issue assignment, the competitive analysis tools such as Crayon are able to track the activities of the competitions with the help of a variety of channels such as social media, websites and apps. Through this, it offers a close look into the marketing planning of the competitors in various areas such as changes in price, PR activities and subtle message modifications. Along with this, AI is also providing the opportunity of understanding the big data and even emotions which play a great role for the entrepreneurs in understanding the needs and expectations of the customers in a more human way (Dimitratos, Johnson, Plakoyiannaki and Young, 2016).
3.2 Resource- Based Entrepreneurship Theory
Another theory illustrated in the present contemporary issue assignment is resource- based entrepreneurship theory which provides that the growth of new venture and opportunity based entrepreneurship is determined by the access to the resources by the founders. In order words, the growth of the venture is predicted with the help of founder’s access to the resources. The importance of human, social and financial resources is stressed upon by this theory. It is argued that the access to resources performs the function of enhancing the ability of an individual to detect and act on the opportunities identified. The individual specific resources possessed by the entrepreneurs play a great role in facilitating the recognition of new opportunities and in arranging new resources for the emerging business. This can be linked with artificial intelligence as three main types of resources are also required for the purpose of developing AI (Kellermanns, Walter, Crook, Kemmerer and Narayanan, 2016). As per the views of Mikalef, Fjortoft and Torvatn (2019) utilized to prepare this contemporary issue assignment, these types of resources involve intangible resources like organizational culture, tangible resources like data and physical resources and human knowledge and skills such as competencies of the employees. It can be argued that growth of the venture linked with artificial intelligence is possible only when it has these types of resources. As far as the tangible resources are concerned, the major emphasis is on the data needed for the purpose of enabling AI and the technology which is able to support it. Intangible resources are also equally important as these are requiring to be developed across the firm. The entrepreneurs can only succeed in the implementation of AI when they are capable of developing an AI oriented culture in the organization. The key barriers in the adoption of AI mentioned in this contemporary issue assignment are the competing investment priorities and cultural resistance to approaches relating to AI. This, in turn, provides that the embracement of an AI culture and the development of a strategy for supporting it are essential resources for the realization of performance gains. Furthermore, human skills are also equally important for the development of AI applications. Along with this, there is also a requirement for developing the managerial capability within a business for the application of such methods to the problems faced by the business.
Therefore, it is stated in this part of contemporary issue assignment that my contribution to this body of knowledge is the identification of the entrepreneurship theoretical frameworks that are linked with the contemporary issue of artificial intelligence. I have also identified that the entrepreneurs face some challenges while starting a new venture and managing its growth which impacts the entire lifecycle of such a venture. However, the applicability of artificial intelligence can easily resolve such issues but it requires the on- time identification of opportunity and the availability of the required resources including tangible, intangible and human resources.
4.1 Application and Interpretation of Judgement
By applying and interpreting the judgements of various scholars and authors, it can be analysed that AI is a contemporary issue which is increasingly being adopted by the entrepreneurs due to its capability of resolving complex business challenges which arises while operating in the dynamic and uncertain business environment. Till now, AI received comparatively less attention in the context of entrepreneurship, however, its power to act as an instigator and facilitator has provided it recognition in entrepreneurship. It also allows the entrepreneurs in extracting meaningful insights which can assist them in dealing with a variety of challenges such as fraud relating to information, problems in data analysis and lack of personalization. In other words, artificial intelligence can be regarded as both i.e. an enabler and an obstacle to entrepreneurship.
This helps to conclude that this new concept explored in the above context of contemporary issue assignment works in the form of machines with human intelligence which is able to think like humans and is also capable of mimicking their actions. The analysis and interpretation of the judgements helped in the development of advantage knowledge of this contemporary issue. This report on contemporary issue assignment further provided that the entrepreneurial theoretical frameworks that can be linked with this contemporary issue are opportunity based entrepreneurial theory and resource based entrepreneurial theory. Opportunity based theory highlighted that the entrepreneurs exploit the opportunities created by change while the resource based entrepreneurship theory provided that the venture growth is predicted by the founder’s access to resources.
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