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AI

AI / Artificial Intelligence

Systems that simulate human intelligence – learning, problem-solving, pattern recognition. Used in business for automation, analysis, chatbots and forecasting.

Artificial intelligence is one of the most transformative technologies. From recommendations and autonomous driving to medical diagnosis – AI is everywhere. For businesses it offers concrete benefits: process automation, data analysis, personalized service and decision support. The question is no longer whether to use AI but where and how.

What is AI / Artificial Intelligence?

Artificial intelligence (AI) is an umbrella term for systems that perform tasks that normally require human intelligence: learning from experience, understanding language, recognizing patterns, making decisions and solving problems. The field includes: Machine Learning (ML) – algorithms that learn from data; Deep Learning – multi-layer neural networks; NLP – language (ChatGPT, translation); Computer Vision – images; and robotics. Generative AI (GenAI) with large language models (LLMs) like GPT-4 has opened a new era since 2023.

How does AI / Artificial Intelligence work?

AI systems learn from data in three main paradigms: Supervised (labelled data: input → expected output), Unsupervised (patterns in unlabelled data: clustering, anomalies), Reinforcement (trial and reward). Deep learning uses many-layer networks: CNNs for images, RNNs for sequences, Transformers for language (GPT, BERT). Typical workflow: collect data → preprocess → feature engineering → train → evaluate → deploy → monitor. MLOps automates this lifecycle.

Practical Examples

1

AI chatbot with RAG: Answers customer questions from the company knowledge base – many requests resolved automatically.

2

Predictive maintenance: ML predicts machine failure weeks in advance from sensor data – fewer unplanned outages.

3

Document processing: AI extracts data from invoices, contracts and forms – large reduction in manual entry.

4

Fraud detection: ML analyses transaction patterns in real time and flags suspicious activity.

5

Recommendation system: AI suggests products or content from user behaviour – higher cross-sell.

Typical Use Cases

Customer service: Chatbots, email classification and sentiment analysis

Process automation: Document processing, workflow optimization and RPA with AI

Data analysis: Forecasting, anomaly detection and natural language queries

Quality control: Visual inspection with computer vision

Personalization: Recommendations, dynamic pricing and targeting

Advantages and Disadvantages

Advantages

  • Efficiency: Automate repetitive, data-heavy tasks with better quality
  • Scale: Handle data volumes that humans cannot
  • Insights: ML finds patterns humans miss
  • 24/7: AI systems don’t get tired
  • Competitive advantage: Early adopters in an industry gain an edge

Disadvantages

  • Data dependency: AI is only as good as the training data (garbage in, garbage out)
  • Bias: Systems can inherit and amplify bias from data
  • Black box: Complex models are hard to interpret
  • Cost: Training, infrastructure and expertise need investment
  • Regulation: EU AI Act and others add compliance requirements

Frequently Asked Questions about AI / Artificial Intelligence

Where should I start with AI?

Start with quick wins: 1) FAQ chatbot (low complexity, high ROI). 2) Document processing (invoices, emails). 3) Natural language queries on business data. Focus on processes that are data-heavy, repetitive and rule-based. A 4–8 week PoC shows value before big investment.

What AI strategy do I need?

Strategy should cover: 1) Use cases (where does AI create most value?). 2) Data (what’s available and how good?). 3) Build vs buy. 4) Team and skills. 5) Ethics and governance. Start small, learn fast, scale what works.

What does an AI project cost?

PoC: about €10,000–30,000 (4–8 weeks). MVP with API-based AI (GPT, Claude): €20,000–60,000. Custom ML model (training, deployment, monitoring): €50,000–200,000. Enterprise AI platform: €200,000–1,000,000+. API-based solutions lower entry cost – e.g. a chatbot in 2–4 weeks for under €20,000.

Related Terms

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What is Artificial Intelligence (AI)? Definition