Research studies

The effectiveness of using artificial intelligence applications on institutional performance

 

Prepared by the researcher

  • JABER HAMOOD  HAMDOON AL-NAUMANI– Sultanate of Oman The Professor Supervisor
  • Dr. Latifa Ben  Arfa Rabai– Universite de  Tunis, Institut Superieur de Gestion de Tunis, SMART Laboratory

Democratic Arab Center

Journal of Afro-Asian Studies : Seventeenth Issue – May 2023

A Periodical International Journal published by the “Democratic Arab Center” Germany – Berlin

Nationales ISSN-Zentrum für Deutschland
ISSN  2628-6475
Journal of Afro-Asian Studies

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Abstract

The study aimed to identify the effectiveness of the use of artificial intelligence applications on institutional performance in the Sultanate of Oman,  It used the descriptive approach in the sampling survey method as a tool for data collection, The sample consisted of (122) individual from theemployee of the Omani government institutions, Show results: The vast majority of respondents prefer to use artificial intelligence applications in government institutions because they are more effective in improving institutional performance, There is a statistically significant correlation between the respondents’ use of artificial intelligence applications and the improvement of institutional performance.

Introduction:

Artificial intelligence (AI) has become increasingly popular in recent years, with organizations across various industries adopting AI applications to improve their performance. In the institutional context, AI applications can be used to enhance various aspects of performance, including productivity, efficiency, decision-making, and customer service. AI has the potential to revolutionize the way institutions operate and provide services to their stakeholders.

AI applications can be used to automate routine tasks, reduce errors, and improve operational efficiency. For example, chatbots can be used to handle customer queries and support requests, freeing up staff time to focus on more complex tasks. Machine learning algorithms can be used to analyze large amounts of data and identify patterns and insights, which can inform decision-making and improve organizational performance.([1]).

In addition, AI can also enhance the quality of services provided by institutions. Natural language processing (NLP) and sentiment analysis can be used to analyze customer feedback and improve the quality of customer service. AI can also be used to personalize services and experiences for individual customers, based on their preferences and behaviors.

Despite the potential benefits of AI, there are also concerns about its impact on society, including issues related to privacy, bias, and the displacement of human jobs. Therefore, it is essential to carefully consider the potential benefits and risks of AI applications and implement appropriate ethical and governance frameworks to ensure that AI is used responsibly and ethically.([2]).

In this context, this paper aims to explore the effectiveness of using AI applications on institutional performance. By examining case studies and empirical research, we seek to understand how AI can be used to improve institutional performance, the challenges and risks associated with using AI, and the ethical and governance considerations that need to be taken into account.

Research Problem:

Artificial intelligence (AI) is rapidly transforming the way institutions operate, and its potential benefits are significant. However, as institutions increasingly adopt AI applications, it is important to understand the effectiveness of using AI on institutional performance. This study aims to investigate the following research problem:

  • What is the effectiveness of using AI applications on institutional performance, specifically in terms of:
  • Productivity and operational efficiency: How does AI improve productivity and operational efficiency in institutions, and what are the potential risks and challenges associated with its adoption?
  • Customer service and experience: How does AI improve customer service and personalize the customer experience, and what are the ethical and governance considerations that need to be taken into account?
  • Decision-making and strategic planning: How does AI enhance decision-making and support strategic planning, and what are the potential biases and limitations of AI in these areas? 

Research Objectives:       

  • The objective of this study is to investigate the effectiveness of using artificial intelligence (AI) applications on institutional performance, focusing on three specific points:
  • To examine how AI improves productivity and operational efficiency in institutions and to identify the potential risks and challenges associated with its adoption.
  • To evaluate how AI enhances customer service and personalize the customer experience, and to identify the ethical and governance considerations that need to be taken into account.
  • To assess how AI improves decision-making and supports strategic planning, and to identify the potential biases and limitations of AI in these areas.

The first axis: artificial intelligence

The concept of artificial intelligence:

Bashar for artificial intelligence in English “Artifical intelligence”, which is an abbreviation for Al and means a branch of the branch of computer science that is concerned with imitating and modeling machines for the behavior of Al. It is a science concerned with inventing smart computer devices and programs similar to the way the human mind thinks, where it learns as it learns, and decides as it decides, which includes robots, speech recognition, image recognition, natural language processing, expert systems, learning and planning, and problem-solving. ([3]) .

And there are those who define it as: “One of the branches of informatics that studies the development of smart algorithms and techniques for application in computers and robots, so that it possesses intelligent behavior in performing tasks or solving problems.”

Characteristics of artificial intelligence:

Artificial intelligence has unique characteristics that distinguish it from others, and the most prominent of these characteristics are what it proposed as follows:

  • It presents an appropriate solution to each problem and one solution that fits a number of similar problems.
  • He uses a method similar to the method that a person uses in dealing with issues.
  • It deals with hypotheses in a way that exceeds the limits of performance and speed specified by default.
  • Follow the methods of an organized process, not random occurrence.
  • Its formation requires the representation of huge amounts of knowledge specific to a particular field.
  • It seeks to model the human being in terms of way of thinking and style.
  • Preserving human experience.
  • Deal with non-numeric symbolic data through logical analysis and comparisoThe .

  importance of artificial intelligence:

The importance of artificial intelligence lies in what Al-Sulami presented in 2017 as follows: ([4])

  • Preserving stored human experiences and transferring them to smart systems.
  • Humans can employ natural language when dealing with machines instead of computer programming languages.
  • It works to reduce obstacles and psychological pressures, by using these smart devices to perform arduous and dangerous work, or that involve complex details, and requires more mental focus, continuous mental presence, and strict and eloquent decisions that cannot bear delay and error.
  • These smart machines can be used in areas that need to make a decision about them, as these systems enjoy independence, objectivity, extreme accuracy, and distance from bias and racism.
  • It can be adapted to serve different cases, such as the medical field, where it is useful in diagnosing diseases, prescribing medicines, and in legal and professional consultations  and also in the security and military fields, and computerized interactive education.

Artificial intelligence obstacles:

Artificial intelligence contributed to achieving many benefits that had a clear role in facilitating human life, raising the quality of life, and achieving happiness, well-being and satisfaction, but it created problems and obstacles that cannot be ignored, which are represented in the following points: ([5])

  • The need for a set of big data: In general, smart systems learn through a developed model with the help of a huge amount of data during training and verifying its validity. The presence of quantitative storage units for data and the ability to interact with it is considered one of the most obstacles that limit the development of traditional systems. programs.
  • Multimodal interactions: The efficiency and accuracy of perceptual recognition requirements, which surround computer vision methods, can be developed and improved by taking advantage of the ability to analyze and process different modes of data simultaneously. This allows the model to simulate human intelligence that works appropriately With different senses such as touch, vision, hearing and others
  • High unemployment rate: Artificial intelligence contributed to the abandonment of some existing jobs, but at the same time it created a number of new jobs, as human cadres were dispensed as a result of the use of artificial intelligence systems and reliance on them and the dispensation of humans, and this matter increased the unemployment rate.
  • Fears of the extinction of the human race: The future contains many fears that threaten the extinction of the human race. Dispensing with human labor in exchange for the assimilation of machines has become evident, and thinking has become almost impossible about the roles in which a person may work, especially in light of what the world is going through. A clear manifestation of vague job patterns for artificial intelligence applications will make foreseeing the future almost not easy.
  • Loss and loss of data: Although machines have a huge memory, there is no link between this information when saving and retrieving it, as in humans, and this may cause great damage to these machines and contribute to losing all the data stored on them.

Types of artificial intelligence

Artificial intelligence can be classified according to its basic tasks as follows: ([6])

  • Weak or limited Artificial Intelligence Artificual Narrow Inteiligence: It is the simplest type of artificial intelligence, and it is programmed to perform certain roles individually within a specific environment through software that simulates human capabilities, but this type is limited in capabilities so that it cannot bypass the roles for which it was found.
  • General artificial intelligence: indicates the extent to which artificial intelligence can learn, understand, comprehend, and perform tasks as humans do through modeling human capabilities, then it will be able to build different capabilities and discover links and generalizations to various fields, and this would shorten a lot of the required time To train and teach these systems.
  • Superior Artificial Intelligence: It is a model that is still being implemented and aspires to simulate humans, and it is possible to distinguish between two important types. While the second type is a model of the theory of mind, where these models can reveal what is inside them, as well as reveal the feelings of others and interact with them, as they are the next generation of super-intelligent machines.

The second axis: institutional performance

Developing countries tend to give the government sector more attention and care in managing its activities and productive resources with high transparency. The concerns of international financing institutions are increasing regarding the need to restructure the government sector with all its divisions and central and local organizations for the purposes of conferring the characteristic of excellence and leadership to government units when producing and providing Its sovereign, social and economic services, and the government apparatus in all global systems is based on providing public services and enhancing the effectiveness of the national economy. In addition, government services in various fields, such as security, justice or judiciary, infrastructure (roads, bridges, ports, communications, etc.) are an indicator of the quality of life for citizens and the attractiveness of the investment environment. This importance is growing in an era when all countries of the world – east and west, north and south, whether they are advanced or seeking growth – are competing to court investors and attract investments, whether local or global ([7]).

The Trend has recently appeared towards the effectiveness and efficiency of institutions in performing their functions and achieving the goals for which they were established, whether these institutions are industrial, commercial or service, and focusing on managing the resources of these institutions in a way that guarantees them access to their goals and ensures their continuity and development. . This cannot be done without an effective system for evaluating the performance of institutions and raising the level of performance in economic, social and cultural institutions.([8])

Performance Measurement:

Regulatory standards alone do not enable performance evaluation and detection of deviations in the absence of actual performance measures. The next and natural step is to measure actual performance. It is required to measure the degree of efficiency in the completion of work in all areas of results, as long as there is a clear picture of the required performance patterns, and as in the case of defining regulatory standards, it is required to choose the measurement method that suits the field in which

performance is to be measured.

Problems facing performance appraisal:

When applying the system of follow-up and performance evaluation to judge the efficiency of the performance of business organizations affiliated to various sectors (industrial, agricultural, construction, housing and utilities, transport and communications, education, health, tourism and hotels, internal and external trade, banking …, etc.). The person in charge of the performance appraisal process encounters some problems and difficulties as a result of the lack of some data and information necessary to conduct the process of follow-up and performance evaluation in an optimal manner. The most important of these problems are:([9]).

  • A-Shortcomings of information systems in some business organizations: The existence of an integrated system of technical, economic, financial and administrative information is one of the pillars on which the performance appraisal process is based. Many business organizations are making serious and continuous attempts to develop in order to find an information system that allows serving the multiple goals of management and helps them in making rational decisions. While others do not have an information system or are in the way of making decisions related to the application of the information system, and in this case obtaining the necessary data for follow-up and evaluation of performance is considered very difficult, and the problem of the lack of information system is due in some business organizations.
  • B- The difficulty of measuring and defining some performance criteria in some economic activities: Some business organizations face many difficulties when measuring and determining some criteria and indicators related to the results of their activities and evaluating their performance. The degree of difficulty varies according to the nature of the activity, and some of these difficulties can be explained

The concept of performance appraisal:

Evaluation in its simplified sense is an assessment of a situation in the light of studying the extent to which this situation or field has achieved a specific goal. Evaluation is usually carried out in two directions. Developing an implementation plan with the need for a control plan on the implementation process in order to assess the adequacy and effectiveness of achieving goals.([10])

And performance evaluation can be defined – in light of this, as ensuring the adequacy of using the available resources in the best way to achieve the planned goals through studying the quality of performance, and taking corrective decisions to redirect the paths of activities in the organization in order to achieve the desired goals.

The importance of performance appraisal:

Tracking the importance of performance evaluation through its nature as a function that aims to study the degree of consistency and coordination between the factors of the coalition between production factors to identify the extent of their efficiency. And the development of that efficiency in successive periods of time, by comparing what has been achieved with the goal. The importance of performance appraisal is due to the following reasons:

  • It helps direct the attention of senior management to centers of responsibility that are more in need of supervision and where supervision is more productive.
  • It works to rationalize the human energy in the organization in the future, where the successful elements are highlighted and developed. As well as non-productive elements that need to be dispensed with. Or try to reform it to increase its efficiency, as performance evaluation represents an objective basis for developing incentive systems and incentive rewards.
  • It helps department managers to make decisions that achieve goals by directing their activities towards the areas that will be subject to measurement and judgment.
  • Assisting in the existence of a kind of functional conviction that the manager knows how to perform the work that he will undertake in advance, as well as providing a sound basis for establishing a sound and effective system of incentives. It also helps to determine the extent to which administrative responsibilities are achieved.

Methods of evaluating the performance of government programs:

It may be useful – before explaining some methods of evaluating the performance of government programs – to divide the types of evaluation research in terms of the evaluation subject into four main types:([11])

  • An evaluation that is based on the procedures for implementing or implementing government programs (Process Evaluation). The importance of this type is due to the implementation of the government program as approved by the project.
  • An evaluation that focuses on the feasibility or effects of the government program (Evaluation Impact), and its aim is to judge the extent of success of the government program in bringing about the desired change. This is the most widespread type of assessment, and success in carrying it out requires precise identification and definition of the objectives of the program, and a description of the measures or criteria that are used to judge the success in achieving the objectives, and their real and realistic measurement of the progress that has actually been achieved as a result of the implementation of the government program.
  • Comprehensive evaluation (Evaluation Comprehensive)) and includes judgment on procedures and effects together. In the sense that the comprehensive evaluation is the use of accurate and appropriate scientific methods to determine whether the executive body adheres to the plans, programs and procedures drawn on the one hand, and is intended to judge whether the application has brought about a change consistent with the objectives of the government program on the other hand. It is clear that this type is the best and the most difficult type at the same time, and that it serves the needs of both the aware public and those responsible for the government program at the same time.
  • An evaluation focused on the economics of the government program, i.e. comparing the efficiency of spending on the one hand, and the effectiveness of implementation on the other hand, i.e. the cost-benefit equation or return from it (Efficiency/Cost Effectiveness Economic) and the importance of this type of evaluation is clear, especially in times of economic crisis or recession and the desire of the government And citizens alike in ensuring that they get the maximum benefit from public spending on projects or social services. That is why this type of evaluation aims to judge the cost of evaluating the service on the one hand, and the interest or benefit accruing to its beneficiaries in particular and society in general on the other hand. It also aims to judge whether this government program is the best alternative for using limited financial resources.

Conclusion:

In conclusion, artificial intelligence is a rapidly advancing field of computer science that seeks to develop intelligent machines that can mimic human thought processes, learn from experience, and make decisions. Its applications are varied and numerous, ranging from speech and image recognition to natural language processing, expert systems, learning and planning, and problem-solving. The potential benefits of using artificial intelligence in institutions are significant, including improved efficiency, accuracy, and decision-making capabilities. However, there are also challenges and ethical concerns associated with its implementation, such as job displacement, bias, privacy, and security. Therefore, institutions must carefully consider the benefits and risks of using artificial intelligence and develop responsible and ethical strategies for its deployment

References:

  • Al-Masarwah, Muhannad Kassab Abdullah, and Al-Sarhan, Atallah bin Fahd Sayyah (2021). The Impact of Artificial Intelligence on Institutional Performance: A Variable Mediator of Intellectual Capital and Commercial Banks in Jordan, Master Thesis, Al-Bayt Al-Mafraq University, p. 4
  • Laanzi, Saad Hammoud Saad Al-Shamlani, and Al-Saud, Anas Ratib (2020).The impact of artificial intelligence on the performance of organizations: a case study of the Primary Health Care Corporation in the State of Qatar (unpublished master’s thesis). Al-Ahliyya Amman University, Al-Sibt, pg. 20
  • Al-Qasima, Ghazi Muhammad Ali Salameh, and Abu Salim, Khalil Suleiman Muhammad (2021). The impact of artificial intelligence on the characteristics of accounting information: the modified role of the efficiency of accounting locations in Jordanian commercial banks, an unpublished doctoral thesis. International Islamic Sciences University, Amman, pg. 3
  • Judges, Mishaal Muhammad, and Al-Qurashi, Zahir Raddad. 2021. The Impact of Artificial Intelligence on Innovation for Jordanian Telecom Companies “Unpublished Master’s Thesis). Amman Arab University, Amman, pg. 4
  • Abu Hasira, Maysa Fathy Eid, Al-Habil, Wassim Ismail, and Radwan, Eid Al-Karim Saeed (2016). Evaluation of the quality of the performance of governmental health institutions according to the standards of the World Health Organization: a case study of the maternity hospital in Al-Shiqaa Medical Complex (unpublished master’s thesis), the Islamic University (Gaza).
  • Al-Mikhlafi, Abd al-Wasa Abd al-Ghani Saif Qasim, and al-Hasan, Ribhi Muhammad (2000). The performance of government media institutions in the Republic of Yemen: administrative and environmental problems: a field study (unpublished master’s thesis), University of Jordan, Amman.
  • Al-Anzi, Saad Hammoud Saad Al-Shamlani / and Al-Saud, Anas Ratib. 2020. The Impact of Artificial Intelligence on the Performance of Organizations: A Case Study of the Primary Health Care Corporation in the State of Qatar, Master Thesis, Al-Ahliyya Amman University, pg. 13.
  • Hamed, Amr (2009). Institutional Performance Evaluation in Government Units, Meetings and Seminars: Measurement and Evaluation of Performance as an Introduction to Improving the Quality of Institutional Performance, Cairo: Arab Organization for Administrative Development, p. 109.

[1] Al-Masarwah, Muhannad Kassab Abdullah, and Al-Sarhan, Atallah bin Fahd Sayyah 2021 The Impact of Artificial Intelligence on Institutional Performance: A Variable Mediator of Intellectual Capital and Commercial Banks in Jordan, Master Thesis, Al-Bayt Al-Mafraq University, p. 4

[2] Laanzi, Saad Hammoud Saad Al-Shamlani, and Al-Saud, Anas Ratib, 2020. The impact of artificial intelligence on the performance of organizations: a case study of the Primary Health Care Corporation in the State of Qatar (unpublished master’s thesis). Al-Ahliyya Amman University, Al-Sibt, pg. 20

[3] Laanzi, Saad Hammoud Saad Al-Shamlani, and Al-Saud, Anas Ratib, 2020. The impact of artificial intelligence on the performance of organizations: a case study of the Primary Health Care Corporation in the State of Qatar (unpublished master’s thesis). Al-Ahliyya Amman University, Al-Sibt, pg. 20

[4] Al-Qasima, Ghazi Muhammad Ali Salameh, and Abu Salim, Khalil Suleiman Muhammad (2021). The impact of artificial intelligence on the characteristics of accounting information: the modified role of the efficiency of accounting locations in Jordanian commercial banks, an unpublished doctoral thesis. International Islamic Sciences University, Amman, pg. 3

[5] Judges, Mishaal Muhammad, and Al-Qurashi, Zahir Raddad (2021). The Impact of Artificial Intelligence on Innovation for Jordanian Telecom Companies “Unpublished Master’s Thesis). Amman Arab University, Amman, pg. 4

[6] Al-Anzi, Saad Hammoud Saad Al-Shamlani / and Al-Saud, Anas Ratib. 2020. The Impact of Artificial Intelligence on the Performance of Organizations: A Case Study of the Primary Health Care Corporation in the State of Qatar, Master Thesis, Al-Ahliyya Amman University, pg. 13

[7] Abu Hasira, Maysa Fathy Eid, Al-Habil, Wassim Ismail, and Radwan, Eid Al-Karim Saeed (2016). Evaluation of the quality of the performance of governmental health institutions according to the standards of the World Health Organization: a case study of the maternity hospital in Al-Shiqaa Medical Complex (unpublished master’s thesis), the Islamic University (Gaza).

[8] Al-Mikhlafi, Abd al-Wasa Abd al-Ghani Saif Qasim, and al-Hasan, Ribhi Muhammad (2000). The performance of government media institutions in the Republic of Yemen: administrative and environmental problems: a field study (unpublished master’s thesis), University of Jordan, Amman.

[9] Hamed, Amr (2009). Institutional Performance Evaluation in Government Units, Meetings and Seminars: Measurement and Evaluation of Performance as an Introduction to Improving the Quality of Institutional Performance, Cairo: Arab Organization for Administrative Development, p. 109.

[10] Raslan, Nabil Ismail (2008). Measuring and evaluating government performance: (necessity – justifications – goals – methods), works and seminars: modern methods for measuring government performance during the years 2005, 2006, 2007, Cairo: Arab Organization for Administrative Development, p. 25

[11] Al-Mikhlafi, Abd al-Wasa Abd al-Ghani Saif Qasim, and al-Hasan, Ribhi Muhammad (2000). The performance of government media institutions in the Republic of Yemen: administrative and environmental problems: a field study (unpublished master’s thesis), University of Jordan, Amman

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