What is automated decision-making?

Prepare for the AI for Managers Test with comprehensive flashcards and multiple choice questions. Each question is designed for learning with hints and explanations. Make sure you're ready for your exam!

Automated decision-making refers to the process where algorithms analyze data and make decisions with little to no human involvement. This approach leverages machine learning and data analytics to evaluate various factors and arrive at conclusions or actions based on predefined rules or learned patterns. The primary advantage of automated decision-making is its ability to process large volumes of data at high speed, often leading to more efficient and consistent decision-making than human input alone.

The option suggesting the need for continuous human oversight relates to semi-automated processes, which integrate human involvement, while truly automated systems aim to reduce or eliminate that necessity. The idea that decisions should be based solely on intuition does not align with the evidence-based characteristics of automated decision-making, which relies on data-driven insights. Lastly, the technique requiring manual data entry conflicts with the nature of automation, which aims to minimize manual processes to enhance efficiency and reduce the potential for human error.

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