University at Buffalo School of Management

Spring 2017 Buffalo Business 11 D iscussions of artificial intelli- gence (AI) often evoke referenc- es to pop-culture science fiction creations like the murderous Skynet from "Terminator" or the humanoid robot C-3PO from "Star Wars." And while some of the science fiction is becoming reality, like AI-powered weaponry under development in the U.S. Department of Defense, the ultimate goal of AI has yet to be achieved: to create a computer mind that can think like a human. However, simple AI systems have been around for years, doing specific tasks better than any hu- man ever could. These narrow AI applications have wide-reaching practical implications throughout all functions of business. Sanjukta Das Smith, associate professor of management science and systems, says it's becoming common- place for companies to use AI to make business decisions based on the huge amount of data they generate and collect. "With artificial intelligence, busi- nesses can analyze amounts of information that would otherwise be impossible for humans to process," says Smith. "This allows firms to stock shelves more efficiently, hire employees who better fit their roles, match customers with the products they want and even help you decide where to invest your money." Not-so human resources In the early days of the internet, online job boards like Monster and CareerBuilder rose in pop- ularity, allowing recruiters to attract more applicants than ever. Today, job seekers can also find leads on company websites, LinkedIn, Facebook and special- ty job boards. The high volume of applicants created a new challenge for HR professionals: how to narrow down the pool to the most qualified candidates. At McDonald's, a restaurant manager typically oversees 50-60 employees, and the turnover rate is anywhere from 80 to 150 percent. That means, on average, a manager hires someone new every week. According to Richard Floersch, BS '80, MBA '80, retired executive vice president and chief human resources officer of McDonald's Corp., AI can help identify candidates who are up to the challenge of working in a fast-paced restaurant environment. "Traditionally, if you got 50 applicants for an open position, you'd narrow that to about half, then spend hours conducting interviews on the phone and in person," says Floersch. "Artificial intelligence can get you to the top five to seven. The time savings, as well as the higher predictive ability to hire peo- ple who will work effectively in the restaurant, is significant." AI-powered recruiting assistants like Mya, a chatbot launched by job search firm FirstJob in July, aim to automate and streamline up to 75 percent of the recruitment process, freeing up time so HR professionals can focus on adding strategic business value. Through a text message-style interface, Mya uses AI and natural language processing to ask Sanjukta Das Smith Associate Professor of Management Science and Systems " With artificial intelligence, businesses can analyze amounts of information that would otherwise be impossible for humans to process."

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