What Is Artificial Intelligence?

Artificial intelligence refers to computer systems that are capable of performing

tasks traditionally associated with human intelligence — such as making
predictions, identifying objects, interpreting speech and generating natural
language. AI systems learn how to do so by processing massive amounts of data and
looking for patterns to model in their own decision-making. In many cases, humans
will supervise an AI’s learning process, reinforcing good decisions and
discouraging bad ones, but some AI systems are designed to learn without
supervision.

Over time, AI systems improve on their performance of specific tasks, allowing them
to adapt to new inputs and make decisions without being explicitly programmed to do
so. In essence, artificial intelligence is about teaching machines to think and
learn like humans, with the goal of automating work and solving problems more
efficiently.

How Does AI Work?

Artificial intelligence systems work by using algorithms and data. First, a massive
amount of data is collected and applied to mathematical models, or algorithms,
which use the information to recognize patterns and make predictions in a process
known as training. Once algorithms have been trained, they are deployed within
various applications, where they continuously learn from and adapt to new data.
This allows AI systems to perform complex tasks like image recognition, language
processing and data analysis with greater accuracy and efficiency over time.
Machine Learning

The primary approach to building AI systems is through machine learning (ML), where
computers learn from large datasets by identifying patterns and relationships
within the data. A machine learning algorithm uses statistical techniques to help
it “learn” how to get progressively better at a task, without necessarily having
been programmed for that certain task. It uses historical data as input to predict
new output values. Machine learning consists of both supervised learning (where the
expected output for the input is known thanks to labeled data sets) and
unsupervised learning (where the expected outputs are unknown due to the use of
unlabeled data sets).
Neural Networks

Machine learning is typically done using neural networks, a series of algorithms

that process data by mimicking the structure of the human brain. These networks
consist of layers of interconnected nodes, or “neurons,” that process information
and pass it between each other. By adjusting the strength of connections between
these neurons, the network can learn to recognize complex patterns within data,
make predictions based on new inputs and even learn from mistakes. This makes
neural networks useful for recognizing images, understanding human speech and
translating words between languages.
Deep Learning

Deep learning is an important subset of machine learning. It uses a type of

artificial neural network known as deep neural networks, which contain a number of
hidden layers through which data is processed, allowing a machine to go “deep” in
its learning and recognize increasingly complex patterns, making connections and
weighting input for the best results. Deep learning is particularly effective at
tasks like image and speech recognition and natural language processing, making it
a crucial component in the development and advancement of AI systems.
Natural Language Processing
Natural language processing (NLP) involves teaching computers to understand and
produce written and spoken language in a similar manner as humans. NLP combines
computer science, linguistics, machine learning and deep learning concepts to help
computers analyze unstructured text or voice data and extract relevant information
from it. NLP mainly tackles speech recognition and natural language generation, and
it’s leveraged for use cases like spam detection and virtual assistants.
Computer Vision

Computer vision is another prevalent application of machine learning techniques,

where machines process raw images, videos and visual media, and extract useful
insights from them. Deep learning and convolutional neural networks are used to
break down images into pixels and tag them accordingly, which helps computers
discern the difference between visual shapes and patterns. Computer vision is used
for image recognition, image classification and object detection, and completes
tasks like facial recognition and detection in self-driving cars and robots.

Why Is Artificial Intelligence Important?

Artificial intelligence aims to provide machines with similar processing and

analysis capabilities as humans, making AI a useful counterpart to people in
everyday life. AI is able to interpret and sort data at scale, solve complicated
problems and automate various tasks simultaneously, which can save time and fill in
operational gaps missed by humans.

AI serves as the foundation for computer learning and is used in almost every
industry — from healthcare and finance to manufacturing and education — helping to
make data-driven decisions and carry out repetitive or computationally intensive
tasks.

Many existing technologies use artificial intelligence to enhance capabilities. We

see it in smartphones with AI assistants, e-commerce platforms with recommendation
systems and vehicles with autonomous driving abilities. AI also helps protect
people by piloting fraud detection systems online and robots for dangerous jobs, as
well as leading research in healthcare and climate initiatives.

Types of Artificial Intelligence

Artificial intelligence can be classified in several different ways.

Strong AI vs. Weak AI

AI can be organized into two broad categories: weak AI and strong AI.

Weak AI (or narrow AI) refers to AI that automates specific tasks. It typically
outperforms humans, but it operates within a limited context and is applied to a
narrowly defined problem. For now, all AI systems are examples of weak AI, ranging
from email inbox spam filters to recommendation engines to chatbots.
Strong AI, often referred to as artificial general intelligence (AGI), is a
hypothetical benchmark at which AI could possess human-like intelligence and
adaptability, solving problems it’s never been trained to work on. AGI does not
actually exist yet, and it is unclear whether it ever will.

The 4 Kinds of AI

AI can then be further categorized into four main types: reactive machines, limited
memory, theory of mind and self-awareness.
 Reactive machines perceive the world in front of them and react. They can carry
out specific commands and requests, but they cannot store memory or rely on past
experiences to inform their decision making in real time. This makes reactive
machines useful for completing a limited number of specialized duties. Examples
include Netflix’s recommendation engine and IBM’s Deep Blue (used to play chess).
Limited memory AI has the ability to store previous data and predictions when
gathering information and making decisions. Essentially, it looks into the past for
clues to predict what may come next. Limited memory AI is created when a team
continuously trains a model in how to analyze and utilize new data, or an AI
environment is built so models can be automatically trained and renewed. Examples
include ChatGPT and self-driving cars.
Theory of mind is a type of AI that does not actually exist yet, but it
describes the idea of an AI system that can perceive and understand human emotions,
and then use that information to predict future actions and make decisions on its
own.
Self-aware AI refers to artificial intelligence that has self-awareness, or a
sense of self. This type of AI does not currently exist. In theory, though, self-
aware AI possesses human-like consciousness and understands its own existence in
the world, as well as the emotional state of others.

Benefits of AI

AI is beneficial for automating repetitive tasks, solving complex problems,

reducing human error and much more.
Automating Repetitive Tasks

Repetitive tasks such as data entry and factory work, as well as customer service
conversations, can all be automated using AI technology. This lets humans focus on
other priorities.
Solving Complex Problems

AI’s ability to process large amounts of data at once allows it to quickly find
patterns and solve complex problems that may be too difficult for humans, such as
predicting financial outlooks or optimizing energy solutions.
Improving Customer Experience

AI can be applied through user personalization, chatbots and automated self-service

technologies, making the customer experience more seamless and increasing customer
retention for businesses.
Advancing Healthcare and Medicine

AI works to advance healthcare by accelerating medical diagnoses, drug discovery

and development and medical robot implementation throughout hospitals and care
centers.
Reducing Human Error

The ability to quickly identify relationships in data makes AI effective for

catching mistakes or anomalies among mounds of digital information, overall
reducing human error and ensuring accuracy.

Disadvantages of AI

While artificial intelligence has its benefits, the technology also comes with
risks and potential dangers to consider.
Job Displacement
AI’s abilities to automate processes, generate rapid content and work for long
periods of time can mean job displacement for human workers.
Bias and Discrimination

AI models may be trained on data that reflects biased human decisions, leading to
outputs that are biased or discriminatory against certain demographics.
Hallucinations

AI systems may inadvertently “hallucinate” or produce inaccurate outputs when

trained on insufficient or biased data, leading to the generation of false
information.
Privacy Concerns

The data collected and stored by AI systems may be done so without user consent or
knowledge, and may even be accessed by unauthorized individuals in the case of a
data breach.
Lack of Explainability

AI systems may be developed in a manner that isn’t transparent or inclusive,

resulting in a lack of explanation for potentially harmful AI decisions as well as
a negative impact on users and businesses.
Environmental Costs

Large-scale AI systems can require a substantial amount of energy to operate and

process data, which increases carbon emissions and water consumption.

Artificial Intelligence Applications

Artificial intelligence has applications across multiple industries, ultimately

helping to streamline processes and boost business efficiency.
Healthcare

AI is used in healthcare to improve the accuracy of medical diagnoses, facilitate

drug research and development, manage sensitive healthcare data and automate online
patient experiences. It is also a driving factor behind medical robots, which work
to provide assisted therapy or guide surgeons during surgical procedures.
Retail

AI in retail amplifies the customer experience by powering user personalization,

product recommendations, shopping assistants and facial recognition for payments.
For retailers and suppliers, AI helps automate retail marketing, identify
counterfeit products on marketplaces, manage product inventories and pull online
data to identify product trends.
Customer Service

In the customer service industry, AI enables faster and more personalized support.
AI-powered chatbots and virtual assistants can handle routine customer inquiries,
provide product recommendations and troubleshoot common issues in real-time. And
through NLP, AI systems can understand and respond to customer inquiries in a more
human-like way, improving overall satisfaction and reducing response times.
Manufacturing

AI in manufacturing can reduce assembly errors and production times while

increasing worker safety. Factory floors may be monitored by AI systems to help
identify incidents, track quality control and predict potential equipment failure.
AI also drives factory and warehouse robots, which can automate manufacturing
workflows and handle dangerous tasks.
Finance
The finance industry utilizes AI to detect fraud in banking activities, assess
financial credit standings, predict financial risk for businesses plus manage stock
and bond trading based on market patterns. AI is also implemented across fintech
and banking apps, working to personalize banking and provide 24/7 customer service
support.
Marketing

In the marketing industry, AI plays a crucial role in enhancing customer engagement

and driving more targeted advertising campaigns. Advanced data analytics allows
marketers to gain deeper insights into customer behavior, preferences and trends,
while AI content generators help them create more personalized content and
recommendations at scale. AI can also be used to automate repetitive tasks such as
email marketing and social media management.
Gaming

Video game developers apply AI to make gaming experiences more immersive. Non-
playable characters (NPCs) in video games use AI to respond accordingly to player
interactions and the surrounding environment, creating game scenarios that can be
more realistic, enjoyable and unique to each player.
Military

AI assists militaries on and off the battlefield, whether it’s to help process
military intelligence data faster, detect cyberwarfare attacks or automate military
weaponry, defense systems and vehicles. Drones and robots in particular may be
imbued with AI, making them applicable for autonomous combat or search and rescue
operations.