For those working on their own projects, AI applications can be useful in helping to draw the main frameworks for a project feasibility study, as AI has the ability to analyze data and information quickly and effectively, and extract important patterns and directions.
If you are taking your first steps in the world of your “business”, and preparing to start your project, artificial intelligence can assist you in several aspects of the feasibility study of the project, including:
- Market analysis
- Cost and revenue estimation
- Risk analysis
- Big data analysis
However, these important services provided by artificial intelligence are not recognized accurately and completely, because artificial intelligence is considered an auxiliary tool and not a substitute for human analysis, and you may need to combine human knowledge and experience with the capabilities of artificial intelligence to obtain better and more accurate results for managing your project.
It is also recommended to cooperate with a financial advisor or an expert in the feasibility study to obtain a detailed and accurate assessment. While artificial intelligence technologies are developing tremendously, enabling them in the future to play broader roles in this context.
Practical experience
As a practical experiment, and with the help of one of the most prominent artificial intelligence applications, Chat GPT, we asked him for ideas about establishing a company working in a field related to water purification, and the result was as follows:
- The results of Chat GPT provided an “overview” of the outlines of the potential feasibility study for the project, according to a defined hierarchy on the basis of identical science and the basic rules for formulating a feasibility study.
- The outputs constituted estimates that “must be completed” by providing it with more accurate and specific details, including information about the city (the location of the project), the potential market, and more data about material capabilities and targets.
- The outputs provided basic instructions at the beginning, highlighting a set of required data regarding (collecting data on local competitors and surveys of potential customers), as well as identifying the target audience, etc.
The outputs set a theoretical framework for the axes of the feasibility project plan, including starting from (market analysis) and ending with (risks and financial analysis), passing through (costs and potential returns), and (competitiveness), (marketing and promotion plan). Each of these items needs more inputs with complete data and information to be explained and analyzed in detail.
The more accurate and complete the inputs, the more this will help in generating a full-fledged feasibility study based on scientific foundations about studying the potential market and in light of the main objectives of the project.
It is possible to employ more than one artificial intelligence tool at the same time to analyze, formulate and merge data and take advantage of all the advantages offered by each tool separately, to come up with an integrated formula for the desired feasibility study.
Insights and tips
In this context, an expert in information technology from the United States, an academic advisor at San Jose State University in California, Dr. Ahmed Banafa, said in exclusive statements to “Economy Sky News Arabia” that artificial intelligence can greatly assist individuals in studying the feasibility of their projects, explaining that AI is a powerful tool that can provide accurate and valuable insights and guidance to decision makers and project owners.
Here are some considerations when using artificial intelligence in project feasibility studies:
- Data collection: It is necessary to collect a large variety of data related to the project, including financial, economic, social, competitive and marketing data. The quality and quantity of the input data is essential for accurate analysis.
- Choosing the right model: Choosing an appropriate AI model that specializes in analyzing financial and business data is crucial. This may include machine learning, big data analytics, neural networks, and more.
- Data optimization: Techniques such as data cleaning, normalization and missing value processing should be applied to ensure accurate and reliable results.
- Financial forecasts: Artificial intelligence can analyze financial and accounting data to predict the expected financial returns of the project in the long term.
- Risk analysis: AI can be used to assess potential risks that a project may face and provide strategies to deal with them.
- Market and competition study: AI can analyze marketing and competitive data to guide project owners to a better understanding of the market and competitors.
- Understanding Customers: AI can help you understand customer needs and expectations.
- Develop a business plan: AI can help you develop an effective business plan for your project.
Limitations of reliance on artificial intelligence
At the same time, an expert in information technology from the United States, an academic advisor at San Jose State University in California, talks about the limits of relying on artificial intelligence, stressing that:
- Despite the benefits of using AI in project feasibility studies, human intervention is necessary to fully understand the data and interpret the analysis.
- Some variables may not be fully handled by AI, and human judgment is necessary.
- Consider individual circumstances: Project owners should consider that individual circumstances may not be fully accounted for by AI, and should study these conditions independently.
He adds: Artificial intelligence can guide you through your project by analyzing data and making recommendations based on knowledge and past experiences. However, you should be aware of the limitations and considerations mentioned and realize that AI is not a substitute for human analysis and subjective judgments. It is advised to treat AI as a powerful tool that complements your efforts and helps you make smarter and more accurate decisions.
Precise input
He states that the results and outputs generated through artificial intelligence are highly dependent on the accuracy of the inputs. For example, in a practical experiment, fictitious data was entered about an idea to establish a project for a trade that is prohibited by law in a country. The results were that it was not possible to put in place the main frameworks for the feasibility study of the project, given that the location of the said project is not suitable and faces legal obstacles within the framework of the laws that are in force in this country.
While entering the same data and writing the name of another country that does not warn dealing with that trade and there are no legal prohibitions that conflict with its establishment, the immediate results came out in the context of the general frameworks for studying the feasibility of the project in this region naturally.
project management
In context, AI applications can broadly assist you in managing your project according to the feasibility study. And the AI for this can, for example:
- Project planning and scheduling
- Resource Management
- Monitor and evaluate progress
- Process optimization
- Interaction and communication (whether with partners, customers, etc.)
AI can also help you predict potential problems, manage risks, analyze financial data, and provide recommendations for making strategic decisions.
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