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Home»Business»What is Artificial Intelligence (AI) in Business?
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What is Artificial Intelligence (AI) in Business?

December 18, 2024No Comments
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Artificial intelligence, or the development of computer systems and machine learning to mimic the problem-solving and decision-making capabilities of human intelligence, impacts an array of business processes. Organizations use artificial intelligence (AI) to strengthen data analysis and decision-making, improve customer experiences, generate content, optimize IT operations, sales, marketing and cybersecurity practices and more. As AI technologies improve and evolve, new business applications emerge.

Artificial intelligence is used as a tool to support a human workforce in optimizing workflows and making business operations more efficient. These gains are made in various ways, including using AI to automate repetitive tasks, generate information based on machine learning algorithms, quickly process vast amounts of data sets and extract meaningful insights, and predict future outcomes based on data analysis. AI systems power several types of business automation, including enterprise automation and process automation, helping to reduce human error and free up human workforces for higher-level work.

According to McKinsey & Company, the use of artificial intelligence in business operations has doubled since 2017.1 This is largely because AI technology can be customized to meet an organization’s unique needs. 63% of McKinsey’s respondents expect their investment in AI technologies to increase over the next three years.2 To use AI in an effective business strategy, an organization must have a clear understanding of its business functions, how AI works and what aspects of the business can be improved through AI implementation.

While the use of AI tools to automate repetitive tasks and increase employee productivity remains popular, businesses are also moving beyond these use cases and using AI to assist in higher-level, strategic initiatives that help drive broader business value.

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