Why Do We Need AI Tools for Business Health Assessment ?
- Dithanon Khrutmuang
- Apr 17, 2025
- 5 min read
Updated: Sep 4, 2025
It's just an investment decision. why don't we just use our experience to decide right away?
Table of Content
Let me give an example of events from March through April 2, 2025, a date when Donald Trump declared a trade war or Tariff with over 90 trading partners worldwide. This impacted stock markets globally, especially in the United States, where the Nasdaq market dropped by about 20%. The question is, investors in the stock market never know where the lowest price point will be, and even the smartest AI in the world can't give an accurate answer. This uncertainty is caused by factors like Donald Trump's unpredictable decisions on the severity of tariffs and investors' overall sensitivity which AI cannot predict.
However, many investors overlook the ability of AI to assess internal risks within their investments. The data used for internal assessment is from a closed system with more controllable factors than external factors that are uncontrollable. Hence, if AI is used to evaluate internal investment risks, the predictions are more accurate and have less deviation. Unfortunately, many investors still focus on using AI for predicting external events, such as stock price analysis or social listening for business insights. In reality, using AI for internal risk assessment to identify suitable strategies and business health evaluation, like identifying products or services with the highest return on investment (ROI), yields more accurate and significant results compared to evaluating external situations.
We are still in the simulation of the US stock market from March to April 2, 2025. I will simulate this as myself, having an equal amount of investment capital of $200,000 USD. A condition for this investment is that I am not allowed to use the money needed for the circulation of my business to increase the investment in the stock market.
Example Situations
First Scenario: Lack of both internal and external AI.
I ignore both internal and external AI.
I just read the financial statements of the company I plan to invest in.
Seeing a 5% drop in stock prices on Nasdaq, I hastily invest my entire $200,000.
The stock fell by another 15% by April 2, 2025, due to Trump's trade war announcement.
I missed the opportunity since I had already exhausted my investment on a relatively higher stock price.
Second Scenario: Use only external AI.
I use my financial knowledge and AI for external assessments like price and risk evaluation.
Despite the AI giving recommendations, I invest $200,000 when the stock falls by 12%, only to see it drop another 20% later.
I still miss the chance to buy at a much lower price by the cut-off date.
Final Scenario: Use both external and internal AI.
I use my financial knowledge, external AI evaluations, and an internal AI to assess my risk capacity.
Though AI suggests investing at a 12% price drop, I split my investment, initially investing $100,000.
When the price falls further to 20%, I invest the remaining $100,000.
You'll see that the final scenario creates a better investment opportunity by leveraging the internal risk assessments, offering significant advantages over the first two scenarios grounded in market activity.
Because in the first and second situations, they were preoccupied with the stock market prices of that time and thought it was the best investment opportunity. However, beneath the iceberg, many investors often fall into a trap worse than buying overpriced stocks or assets. That trap is not knowing their own financial status. In this example, in both the first and second situations, I might not have truly known that I only had $200,000 USD to invest in these stocks. On the day of the investment, I might have thought I should have more than $200,000 USD to invest because I checked that my bank account had more than $500,000 USD. But that was because I didn't use AI to assess my own risk, such as the amount of debt I had, the employee salaries I needed to pay that month, and the outstanding amounts owed to suppliers in the business. In financial terms, this is checking the balance sheet, which these days can use AI to help manage finances. Not using internal AI, which actually provides more accurate information and clearer results than using AI to calculate asset prices, can significantly impact decisions. Remember my words, the price of the asset is not as important as our own financial status.
Opportunities can become a business pitfall
In the business context, you can see many opportunities everywhere — such as new business or interesting real estate. Many people invest in these assets. And even if these are good assets that yield long-term investment benefits, if the asset owner does not assess the risks involved, problems such as insufficient cash flow to hold these assets in the long term can arise.
For example, a business owner looking to expand products and services into a new segment may only see the opportunity but fail to understand their own business risks. In his book "Monetizing Innovation," Madhavan Ramanujam (1) states, "Don't try to serve every segment." However, as business owners, we all want to see our businesses grow, expanding our products or services into other segments.
I leave you with this final question: While you decide to invest because you see an opportunity, do you have tools to analyze your business health before investing ?
An example of data visualization in my business is used to make decisions on producing products that match market demand, while also considering the risks in case customers do not desire them.
The difference between amateurs and professionals
Because investing in stocks and investing in business have many similarities, I will refer back to stock investments for a clearer understanding. If you are a business owner who does not understand the stock market, I will explain it briefly as general knowledge that I believe will be beneficial for you
In the stock market, investors must try to find a price they believe is fair so that they can make the correct decision on whether to buy more or sell.
You will see that tools like Investing.com require subscription investments to boost confidence in stock market investments. As mentioned, think of Investing.com as an external AI tool used to find a fair stock price before investing. However, using internal AI to assess the investment risks you can afford is much more critical. In reality, you may not even need AI — you could use a simple Google Sheet to create a risk management tool always by your side. This allows you to check every time before buying stocks how much risk you can afford. Not just checking if there is enough money in the bank account. With this, you will look like a pro in the stock market.
Similarly for business, I want to ask how much AI tools you have for assessing external and internal situations in your business. If you rely solely on intuition, you'll be a wantrepreneur. Paulo Andrez [2] mentioned in his book "Zero Risk Startup" that "a wantrepreneur is usually referred to as an aspiring entrepreneur who dreams of one day owning a business but doesn’t take any significant action upon those plans. A similar concept is wannabe entrepreneur."
At this point, if you are a business owner with a medium-sized business or larger, Power Ladder is ready to be your consultant and offer service plans that match your business goals in creating AI for your business. This allows you to make precise decisions through data and not merely by personal bias. If interested, hit the button below to check out Power Ladder.
References
[1] Madhavan Ramanujam, Georg Tacke. Monetizing Innovation. p61. Wiley
[2] Paulo Andrez. Zero Risk Startup. p1.Forbes Books
Images
[3] www.investing.com. 16 April 2025
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