AI, including large language models (LLMs), excel at composing poems. The distinction between AI and a conventional algorithm lies in our understanding of the solutions they propose—when we fully understand the solution, it is merely an algorithm.
If one utilizes advanced AI for setting pricing—given that an unbiased solution is provided, but is not fully understood by the user—they risk not comprehending the rationale behind the proposed segmentation.
Without understanding the reasoning behind the optimal segmentation, a business lacks a strategy and therefore has no competitive advantage.
Implementing IAS 19 is critical for companies that offer employee benefits. However, how can AI better determine how to design the benefit plan to create more room for employees?
Why is rCOr better than AI in setting pricing?
When we design the pricing process, we have a precise understanding of where our correlated competitive advantage lies.