How AI-powered crisis simulations help organizations avert nightmare scenarios

Organizations can face all kinds of issues in their day-to-day operations. Being well prepared can provide a competitive edge, with AI-powered crisis simulations adding a new frontier for preparedness. For more on the matter, we spoke with Maarten Schreuder and Rob Grondhuis from consulting firm Protiviti.

Cybersecurity breaches, geopolitical crisis, market downturns, critical data loss, product failures, reputation scandals… These are just a few examples on a long list of major meltdowns that can very quickly turn a company upside down if it is unprepared.

AI-powered crisis simulation, a rapidly emerging phenomenon on the back of the AI innovation wave, has proven to be a powerful tool for organizations that are looking to be prepared for anything. The approach provides valuable training exercises that prepare teams better than traditional methods.

“In a world where unpredictability has become the norm, organizations are constantly seeking innovative methods to ensure their teams are prepared for any crisis,” says Schreuder. “Traditional training approaches fall short in simulating the complexity of real-world crises and are not tailored to the organization. This is precisely where AI-powered crisis simulations come into play.”

Planning and preparing for crises remains a significant blind spot for many organizations. Some leaders learned that the hard way when the Covid-19 pandemic caused chaos and brought business resilience to the edge. Meanwhile, there are also numerous continuous threats, such as digital criminals exploiting security vulnerabilities through ransomware and business e-mail compromise.

“Issues can be particularly acute within mission-critical departments, such as IT,” says Grondhuis, pointing out that over half of IT businesses experienced a significant downtime incident within the last five years. Such incidents can cost companies millions of euro’s in lost revenue or damages.

How it works

The real value of an AI-powered crisis simulation lies in its ability to offer lively, tailored scenarios that play out in different ways depending on users’ responses. In that way, it offers an unlimited and randomized set of outcomes. “Unlike traditional methods with predefined scenarios, AI-powered crisis simulations bring new developments as the scenario unfolds,” notes Schreuder.

“The responses of participants during the crisis simulation exercise immediately impact the scenario and further developments, which is less the case in traditional exercises. Their responses are fed back into the AI model in real time, enabling their actions to impact and determine the course of the crisis.”

This AI element results in a far more realistic and engaging exercise that is closer to a real-world crisis than traditional simulations. Rather than just a static mechanism, they are comprehensive exercises run by experts with an AI-powered model running in the background.

“AI-powered crisis simulation exercises should be led by experts who encourage attendees to employ critical thinking and decision making and who can steer and correct the AI-model where needed. With expert guidance and interactive elements, the simulations offer strong engagement and improved learning outcomes,” Grondhuis adds.

Why it matters

These types of simulations are important because they help companies prepare for the unforeseen, allowing them to more effectively respond to emergencies and minimize potential damage. “Simulations help organizations test and enhance critical response skills, thus fortifying the organization’s resilience,” says Schreuder.

On top of that, they help in building a culture of continuous awareness of the risks landscape. “Crisis simulation exercises serve to educate employees about their roles during crises and increase their awareness of potential threats. While specific preparation for all possible crisis scenarios is impossible, frequent simulations help build the organizations resilience capabilities and will enable better, more efficient, and more confident decision making during real-life events.”