Artificial Intelligence technology (AI) continues to become increasingly sophisticated and integrated into our lives. Understanding it is a key to staying competitive in the modern economy. An essential but sometimes elusive concept, this blog post will provide an easily digestible guide on AI. The text covers its definition, features, and benefits for businesses.
According to Grand View Research data, the global AI market will be worth a staggering $1,811.75 billion by 2030. Yet the use of Artificial Intelligence (AI) solutions is not a matter of the future, but a current reality. IBM research shows that 35% of companies were using AI-based solutions by the end of 2022.
One of the earliest forms of AI was the tech behind Pac-Man’s success. Computer gaming was a great field for the experiments of AI developers. Yet, modern applications of Machine Learning (ML)-based AI are far more sophisticated and perform vastly different types of tasks.
From this text, you will learn:
- The definition of AI (Artificial Intelligence)
- A short history of Artificial Intelligence
- The business benefits of Artificial Intelligence
- Examples of Artificial Intelligence applications in Business
- Best practices for implementing AI-based solutions
- Challenges and risks to consider when implementing AI in your company
What is Artificial Intelligence – the Definition, History, and Overview
The definition of Artificial Intelligence may sound like this – it is a technology that attempts to simulate the natural intelligence of human beings. It is done by giving machines the capacity to learn, analyze data, recognize patterns, and make decisions with minimal human intervention.
AI has a long history of development, beginning as early as the 1950s. Alan Turing proposed a theoretical framework for determining whether a machine is intelligent or not in his paper Computing Machinery and Intelligence. The first theoretical models of artificial neural networks were created in 1943. But back then researchers lacked the computing power to push the boundaries further.
The introduction of cloud computing and the later availability of exponential computational power increase/ GPU computing were the game changers behind the explosion of modern machine learning. With the nearly infinite computing power available through the internet, companies and data scientists were provided with tools to build and develop their own models.
Today, from self-driving cars and autonomous robots to natural language processing and facial recognition technologies, AI has profoundly changed our lives. AI promises even more dramatic changes in the future with its potential applications ranging from healthcare to finance.
What are the Benefits of Artificial Intelligence for Businesses
Businesses harness the benefits of artificial intelligence to become more competitive and efficient. Artificial intelligence provides enhanced problem-solving capabilities, faster decision-making, accurate predictions, and recommendations.
The benefits of applying ML-based solutions and AI technologies in daily tasks include:
- Automation of mundane tasks to free up professionals for higher-impact work – according to The Conversation study, 85% of employees are not against AI supporting their work. Only 14% are against automating administrative processes using machine learning-based solutions.
- Improved customer satisfaction – AI-powered customer support is available 24/7. Robots don’t need to sleep, eat, or pick up children from school.
- Income boosts by automated product predictions – AI is making it easier to anticipate customer needs, making it an attractive concept for any business. Recommendation systems in e-commerce are the best example of this approach.
- Improved decision-making through real-time insights from data – companies can use artificial intelligence to gnaw through massive amounts of data, be that structured or unstructured, and get more information and knowledge from it. Armed with knowledge, better decisions can be made.
- Savings to boost productivity and increase process efficiency – various estimations show that the use of Artificial Intelligence can boost labor productivity in developed countries by up to 40%.
Artificial Intelligence examples in Businesses
Today, businesses across multiple industries are leveraging the power of AI and machine learning to drive higher levels of efficiency and better quality customer service.
Some examples of business applications for artificial intelligence include:
- Robotics – Light has augmented their stereoscopic cameras used for depth estimation with double-checks performed by AI-based computer vision systems
- Supporting human training – ETH Zurich has used AI and AR-based tools to support the training of medical staff.
- Diagnosis augmentation – Virtum is a digital AI-ready platform that is used to analyze and share microscopic data. The system is enriched with an AI-based tool to search for similar images in a medical publications database.
And many more!
AI applications in business range from simple tasks such as automated chatbots and product recommendations to advanced data analysis and predictive analytics. By leveraging the power of AI in these applications, businesses are now able to maximize productivity and create a customer experience like never before.
Challenges and Risks Associated with AI
Implementing artificial intelligence into a business strategy can be a daunting prospect, as it often comes with unique challenges and risks. These can include:
- Sourcing and managing data – to perform correctly, the systems require a tremendous amount of data. When implementing an AI-based solution, data collection and building a balanced dataset is one of the first challenges to overcome.
- Developing core algorithms and creating trusted systems for control purposes – Data privacy is also key when using AI, as the incorrect handling of private data can lead to serious legal repercussions.
- AI solutions can be more complicated than initially expected prior to implementation – as with every IT implementation, it is challenging to estimate the scale of the project and resource investment. Even the best-planned solution may end up exceeding budget.
To ensure success without facing major complications, establishing clear goals from the outset and a clear plan for integration is crucial. The rewards of embracing this technology, however, outweigh all these risks if implemented and managed properly.
Summary
Artificial Intelligence (AI) has become an integral part of the modern business world. It can provide businesses of all sizes with increased automation, predictive insights, and collaboration capabilities that can help them operate more efficiently and effectively.
Although AI does present certain risks and challenges to consider, companies that integrate AI into their operations could be well-positioned to unlock a great deal of value from this technology. Ultimately, it is important for business owners and C-levels to understand how they can best leverage AI in their current business models.
We hope that this guide has been instrumental in helping professionals find the answers they need to get started in leveraging artificial intelligence for their current business model. If you have any further questions or need any guidance on how to better implement AI in your organization’s operations, please contact us – your AI partner – as we are more than happy to help.
