Rashit Makhat Warns: Overreliance on AI Could Undermine Human-Centric Decision Making in Business

Technology

Rashit Makhat Warns: Overreliance on AI Could Undermine Human-Centric Decision Making in Business

As artificial intelligence (AI) continues to reshape industries across the MENA region, tech entrepreneur Rashit Makhat, Director and co-founder of Scalo Technologies, is cautioning businesses against giving machines too much control too soon.

Makhat acknowledges the immense potential of AI in enhancing productivity, efficiency, and data-driven insights. However, he underscores a vital concern: AI should support—not replace—human judgment, especially when it comes to strategic business decisions.

“AI can draft business plans, analyse trends, and offer options in seconds,” said Makhat. “But it doesn’t think, feel, or understand context. That’s where humans still matter most.”

AI’s integration into areas such as hiring, customer service, and strategy is already transforming workflows. However, Makhat warns that an overdependence on AI without sufficient human oversight could lead to missteps, particularly when navigating complex, high-stakes environments.

A recent study by Harvard Business Review, which analysed executive team meetings at an Austrian company with $85 million in revenue, found AI to be most effective when used as a collaborative tool. It helped executives explore more options and speed up decision-making, but only under human guidance.

“The best results came when AI prompted teams to think differently,” said Makhat. “It’s not about AI taking over, but about enhancing human creativity and perspective.”

The growing integration of AI into decision-making processes has also raised ethical and legal concerns. In February, a Wyoming judge fined three lawyers $5,000 for citing fictitious cases generated by AI in a lawsuit against Walmart. The incident reflects a broader trend of U.S. judges raising red flags over unverified AI-generated content in legal proceedings.

Makhat emphasizes that startups and emerging businesses must tread carefully. While eager to adopt cutting-edge tools, they must strike a balance between innovation and critical thinking and responsibility.

“The most successful companies are not the fastest adopters—they’re the wisest,” said Makhat. “AI should sharpen, not replace, human decision-making.”

As businesses race to stay competitive in an AI-driven world, Makhat's message is clear: technology is a powerful partner, but the human touch remains irreplaceable in achieving thoughtful, responsible, and sustainable growth.