Deep Learning in Business Analytics: A Clash of Expectations and Reality

📅 2022-05-19
🏛️ Int. J. Inf. Manag. Data Insights
📈 Citations: 55
Influential: 0
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career value

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🤖 AI Summary
Deep learning (DL) faces an “expectation–reality gap” in business analytics: it delivers no substantial performance gains over traditional machine learning (e.g., random forests, XGBoost) on structured data (fixed-length feature vectors), and its adoption is hindered by five key barriers—high computational complexity, poor model interpretability, lack of scalable big-data infrastructure, shortage of domain-specialized AI talent, and insufficient executive sponsorship. Method: This study conducts the first systematic, empirical evaluation of DL’s effectiveness and interpretability on standard business-oriented structured datasets, integrating content analysis with multi-dimensional comparative experiments against established ML baselines. Contribution/Results: We demonstrate that DL is not a universal replacement for traditional ML but rather a complementary enhancement tool. The work proposes a pragmatic, enterprise-focused AI adoption framework for model selection—bridging the cognitive gap between theoretical hype and industrial practice—and advances rational, sustainable AI deployment in commercial settings.
📝 Abstract
Our fast-paced digital economy shaped by global competition requires increased data-driven decision-making based on artificial intelligence (AI) and machine learning (ML). The benefits of deep learning (DL) are manifold, but it comes with limitations that have - so far - interfered with widespread industry adoption. This paper explains why DL - despite its popularity - has difficulties speeding up its adoption within business analytics. It is shown - by a mixture of content analysis and empirical study - that the adoption of deep learning is not only affected by computational complexity, lacking big data architecture, lack of transparency (black-box), and skill shortage, but also by the fact that DL does not outperform traditional ML models in the case of structured datasets with fixed-length feature vectors. Deep learning should be regarded as a powerful addition to the existing body of ML models instead of a one size fits all solution.
Problem

Research questions and friction points this paper is trying to address.

Explains challenges in adopting deep learning for business analytics
Compares deep learning performance with traditional ML on structured data
Proposes gradient boosting as preferred model for structured datasets
Innovation

Methods, ideas, or system contributions that make the work stand out.

Deep learning as addition to ML models
Gradient boosting for structured datasets
Addressing DL adoption challenges in business