What is Artificial Intelligence (AI)? The Technology That Will Transform Business
Artificial Intelligence (AI) is the ability to think, analyze, and make decisions in a way that mimics humans, which is very important as a strategy for businesses to increase sales due to the advantages AI provides.
Artificial Intelligence (AI) is no longer just a technology of the future; it is a critical tool that many businesses are using today to gain a competitive advantage. From reducing costs with automation to providing superior data-driven insights, this article will introduce you to what AI is, how it works, what the benefits of AI are, and how it is set to transform various aspects of business.
Article Contents
- What is Artificial Intelligence (AI)?
- How does AI work?
- Why do modern businesses need AI?
- How many types of Artificial Intelligence (AI) are there?
- 5 benefits of Artificial Intelligence (AI) in business
- Examples of AI usage today
- Artificial Intelligence (AI): A modern tool that no business should overlook
What is Artificial Intelligence (AI)?
What does AI stand for? The full name is Artificial Intelligence. AI refers to a computer program created to have the ability to think, analyze, distinguish, process, respond, and make decisions in a manner similar to the human brain. AI relies on learning from vast amounts of various types of data, whether it be images, text, videos, or sound.
Therefore, the meaning of AI, or artificial intelligence, is different from robots or other machinery. This is because AI is a thinking system developed to mimic the human processes of analysis and decision-making; it does not have a tangible physical form. Instead, AI is integrated into robots, systems, applications, CCTV cameras, or other hardware to enhance their capabilities.
How does AI work?
The operation of AI involves developing a computer system to learn and make decisions in a way that closely resembles humans. The working principle of AI can be divided into 5 key steps as follows:
- 1. AI Data Input: The first step in the operation of AI is to collect large amounts of data, in the form of text, numbers, images, or sound. This data serves as the crucial foundation for the system's learning process.
- 2. AI Processing & Learning: The collected data is then analyzed, filtered, and learned from using various algorithms, such as Machine Learning and Deep Learning.
- 3. AI Analysis and Decision Making: When new data is received, AI uses its previously acquired knowledge to analyze the situation and decide how to act or predict the appropriate outcome in each case.
- 4. Continuous Improvement: AI can learn from experience and new data, and it adjusts its algorithms to continuously improve its accuracy.
- 5. AI Application: Finally, the trained and developed AI is applied in real-world tasks, such as AI assisting doctors in diagnosing diseases, AI-powered autonomous vehicle systems, or AI smart assistants in mobile phones.
Why do modern businesses need AI?
In the digital age, where technology is rapidly advancing, a significant gap is emerging between businesses that are driven by employees without AI and businesses that apply AI technology in various tasks. Whether it's analyzing data to create tailored services or using personalized customer response systems, this allows businesses using AI to develop faster and operate with higher efficiency. Meanwhile, businesses that still rely on traditional processes may not be able to keep up, leading to a domino effect such as a decline in competitiveness and a long-term loss of market share.
How many types of Artificial Intelligence (AI) are there?
How many types of AI are there? The types of AI, or artificial intelligence, can be classified based on two main criteria as follows:
AI classified by capability
Classifying AI types by capability means considering the level at which the AI can think, analyze, or mimic humans. It can be divided into 3 levels:
- Artificial Superintelligence (ASI) or AI that is smarter than humans, is the concept of an Artificial Intelligence that possesses an intellect superior to humans in every aspect. This means that whether it's planning skills, creativity, emotional intelligence, decision-making, or innovation, this level of AI can perform better than humans in all areas. However, this type of AI is currently still only a theory.
- Artificial General Intelligence (AGI) or human-level AI, is an AI that can learn, think, analyze, and solve various problems without specific training. It is currently still in the research and development phase.
- Artificial Narrow Intelligence (ANI) or specialized AI, can perform well only in specific, pre-defined tasks. Examples include Chat GPT, which is a Generative AI from OpenAI, Google Assistant from Google, Siri from Apple, or Alexa from Amazon.
AI classified by functionality
Classifying AI types by functionality considers the manner in which the AI operates and its level of complexity. It can be divided into 4 types as follows:
- Self-aware AI This is an AI that has feelings, consciousness, and self-awareness, as if it has a "conscience." It is the highest level of AI and does not yet exist today.
- Theory of Mind This is an AI that, in the future, will be able to understand human emotions, thoughts, or intentions to interact naturally (currently in the research stage).
- Limited Memory This is an AI that can remember information for a period and use that information to make decisions, such as a driverless car system that remembers routes.
- Reactive Machines This is an AI that responds to information instantly but cannot store data or learn, such as early chess programs.
5 benefits of Artificial Intelligence (AI) in business
Using AI is like having a crucial tool to enhance business performance across the board, because AI offers numerous benefits:
1. Increases work efficiency
Implementing AI in work processes allows businesses to operate continuously, as artificial intelligence technology can work 24 hours a day, reducing delays and increasing speed. For example, Amazon uses AI automation and AI robots in its warehouses to help sort and move goods, making various stages of work more efficient and helping to reduce labor costs.
2. Reduces employee errors
AI is a key tool in reducing errors that can arise from human factors, such as fatigue or lack of focus, especially in tasks that require high precision. For instance, in the production lines of industrial factories, AI Vision technology is used to inspect product quality instead of human visual inspection, which helps reduce errors in checking details.
3. Helps create a better customer experience
AI plays a crucial role in making the customer experience smoother, faster, and more tailored to their needs by personalizing services in real-time. For example, in the Fintech industry, artificial intelligence, or AI, plays a role in developing financial services that respond to customers on an individual basis, thereby providing an impressive customer experience.
4. Provides precision in decision-making
In tasks that require the analysis of large and complex datasets, AI can support decision-making that demands high accuracy. For example, using AI to analyze medical images like X-ray films or CT scans helps doctors diagnose diseases more accurately and quickly. The use of artificial intelligence helps reduce errors from overlooking small details.
5. Analyzes customer behavior
AI can collect and process large amounts of data from customer usage patterns to draw conclusions and inform marketing strategies. For example, Netflix uses AI to analyze the viewing behavior of each customer to recommend content that matches the user's interests. This results in customers feeling satisfied and spending more time on the platform, which in turn increases the business's value.
Examples of AI usage today
To provide a clearer picture of where AI technology is being applied, we have compiled some interesting examples of AI system usage today:
- AI in online payment services such as OMISE AI, which features a smart assistant and an automated dashboard that helps businesses make more accurate, faster, and safer decisions.
- AI in customer care with smart chatbots that can answer questions and provide service 24 hours a day.
- AI in creative work, whether it's using AI systems to edit photos, create videos, write articles, or compose music. Tools like ChatGPT, DALL·E, and Midjourney are highly popular assistants that reduce the time needed to produce media and content.
- AI in employee recruitment (Recruitment AI). Some companies use AI to help screen applications to select suitable candidates for positions.
- AI in product and content recommendation. Streaming platforms and e-commerce sites use AI to analyze user behavior to recommend products or content that match their interests.
- AI in production lines, especially for quality inspection tasks. AI can reduce errors from human labor and increase production accuracy.
- AI in medicine and health. AI can be used to analyze medical images like X-rays or MRIs to help radiologists diagnose diseases more accurately.
Artificial Intelligence (AI): A modern tool that no business should overlook
The meaning of AI, or Artificial Intelligence, refers to technology that can think and respond in a manner similar to the human brain by being trained on large amounts of data. AI plays a crucial role in driving business operational efficiency. Therefore, understanding the potential of AI is extremely important. Furthermore, implementing AI in business is something entrepreneurs should not overlook.
Similarly, implementing an online payment system in a business is a key component that helps increase efficiency, enhance transaction security, and elevate the customer experience. KGP is a provider of online payment system services designed to facilitate customers with a variety of payment channels, such as Meta Pay, which helps increase the chances of closing sales through Facebook. Customers can easily pay via credit/debit cards, mobile banking, or QR Code, complete with a "Shop–Chat–Confirm" feature on Facebook Messenger that helps close sales in just a few steps.
KGP, Payment. Make It Smooth.
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