That isn’t as big a shift as it may sound. Think about some of the things that enterprises typically measure as KPIs. Things like brand loyalty, patient trust, user confidence or optimism. By reporting these only as numbers, we miss their emotional context. But changing perspective and recognizing these KPIs as EPIs – emotional performance indicators – can unlock huge strategic value. Fractal is designing AI systems that embed emotional intelligence to reflect the complexities of human behavior and decision-making. One recent example is a fitness app developed as part of a government project to encourage people to exercise more. ‘exercise more’ . Our research showed that app users are more likely to measure their progress against their own past performance, not against those of peer group members or influencers. By asking them to achieve 1% more than they did the day before and combining that with an emotionally connected visualization of that goal, the app engaged more users and kept them active. “The magic of AI design happens when you fuse logic with empathy,” says Jieya Rawal, designer and researcher at Fractal. “It’s in this intersection that AI becomes more than a tool – it becomes a companion for decision-making.”
for them both, you’d be setting yourself up to fail. A deeper understanding of what drives each person – the cheapest deal, the best benefits or exploring the latest products, for instance – is the key to getting the best from the relationship. In fact, when customer satisfaction issues are resolved through emotionally intelligent responses, businesses see a 15-20% boost in retention. “Blending AI with design and behavioral science is a paradigm shift in enterprise decision making processes” explains Raj Aradhyula, chief design officer at Fractal. “AI helps us solve problems efficiently, but it’s our understanding of human behavior that makes those solutions truly effective. Together, they allow us to identify the real problem and design solutions that actually work for people. It’s a great reminder: solving problems isn’t just about technology or innovation— it’s about understanding human behavior and creating solutions that fit seamlessly into people’s lives.” Let’s not forget employees either. Too often, they are left to struggle with dry dashboards full of numbers that make it difficult to call out insights and make sound, impactful choices. But research shows that when leadership teams factor emotional intelligence into their decisions, they can boost employee engagement by 30%. “At Fractal, we see AI as more than algorithms,” says Ramchand Matta, and the emotional intelligence that drives real business connections. By designing around the user, we avoid auto-generated calendars that fill executives’ days with back- to-back meetings. Instead, we create an emotionally intelligent system that factors in employees’ needs to reflect on conversations with clients and take comfort breaks and can detect signals design strategist at Fractal. “It’s the bridge between raw data
of burnout. That’s why we design AI from an understanding of what users need to perform at their best, and we train it to deliver that empathy.” Why emotional AI is essential for board leaders Data-driven decisions are valuable, but emotionally aware decisions are transformative. That’s why a board leader’s choices need to account for both the practical, and emotional dimensions for their organization. By aligning data with human emotions, you can make sure your strategic decisions are more impactful. You can drive deeper relationships with customers and employees by nurturing emotional connections, not just transactions. An AI system that fails to do that, risks missing the mark in moments that matter most. “Business leaders recognize that their income, membership and customer growth are closely linked to how their technology engages with employees as well as customers,” comments Vijay Raaghavan, head of enterprise innovation at Fractal. “This is about designing AI that goes beyond the transactional. It’s about creating systems that understand human experience in ways we never thought possible. By designing AI that makes communication fun, friendly, and intuitive – like the workplace collaboration platform Slack, for example – you can build a system that will compete with the best in the world.”
Emotions drive enterprise success
For enterprises, this means AI that helps leadership make better decisions that are empathetic, strategic, and aligned with human values. Here’s a fun fact: in terms of demographic data like gender, age, celebrity and living in a castle, King Charles III of the United Kingdom and rock star Ozzy Osbourne are identical. Yet if you used the same messaging
Building the future of emotional AI
That formula – Stimulus > Goals > Emotions > Decision – is not just theoretical. It’s the cornerstone of how Fractal is reimagining AI for enterprises. We are creating AI that doesn’t just
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Volume 10 ai:sight by Fractal
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