What Is Artificial Intelligence (AI)?

Artificial intelligence (AI) refers to the simulation of human intelligence in

machines that are programmed to think like humans and mimic their actions. The
term may also be applied to any machine that exhibits traits associated with a
human mind such as learning and problem-solving.

The ideal characteristic of artificial intelligence is its ability to rationalize and take
actions that have the best chance of achieving a specific goal.

Categorization of Artificial Intelligence

Artificial intelligence can be divided into two different categories:

 WEAK
 STRONG.

Weak artificial intelligence system designed to carry out one particular job. Weak
AI systems include video games such as the chess and personal assistants such as
Amazon's Alexa and Apple's Siri.

Strong artificial intelligence systems are systems that carry on the tasks
considered to be human-like. These tend to be more complex and complicated
systems. They are programmed to handle situations in which they may be required
to problem solve without having a person intervene. These kinds of systems can be
found in applications like self-driving cars or in hospital operating rooms.

KEY TAKEAWAYS

 Artificial intelligence refers to the simulation of human intelligence in

machines.

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  The goals of artificial intelligence include learning, reasoning, and
perception.
 AI is being used across different industries including finance and healthcare.
 Weak AI tends to be simple and single task oriented, while strong AI carries
on tasks that are more complex and human-like.

Examples of AI technology
AI is incorporated into a variety of different types of technology. Here are seven
examples:

 Automation. This makes a system or process function automatically. For

example, robotic process automation (RPA) can be programmed to perform
high-volume, repeatable tasks that human normally performed. RPA is
different from IT automation in that it can adapt to changing circumstances.

 Machine learning. This is the science of getting a computer to act without

programming. Deep learning is a subset of machine learning that, in very
simple terms, can be thought of as the automation of predictive analytics. There
are three types of machine learning algorithms:

o Supervised learning. Data sets are labeled so that patterns can be detected
and used to label new data sets.

o Unsupervised learning. Data sets aren't labeled and are sorted according to
similarities or differences.

o Reinforcement learning. Data sets aren't labeled but, after performing an

action or several actions, the AI system is given feedback.

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 Machine vision. This is the science of allowing computers to see. This
technology captures and analyzes visual information using a camera, analog-to-
digital conversion and digital signal processing. It is often compared to human
eyesight, but machine vision isn't bound by biology and can be programmed to
see through walls, for example. It is used in a range of applications from
signature identification to medical image analysis. Computer vision, which is
focused on machine-based image processing, is often conflated with machine
vision.

 Natural language processing. This is processing of human -- and

not computer -- language by a computer program. One of the older and best-
known examples of NLP is spam detection, which looks at the subject line and
the text of an email and decides if it's junk. Current approaches to NLP are
based on machine learning. NLP tasks include text translation, sentiment
analysis and speech recognition.

 Robotics. This field of engineering focuses on the design and manufacturing of

robots. Robots are often used to perform tasks that are difficult for humans to
perform or perform consistently. They are used in assembly lines for car
production or by NASA to move large objects in space. Researchers are also
using machine learning to build robots that can interact in social settings.

 Self-driving cars. These use a combination of computer vision, image

recognition and deep learning to build automated skill at piloting a vehicle
while staying in a given lane and avoiding unexpected obstructions, such as
pedestrians.

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 BUSINESS ANALYTICS

Business analytics is the process of collating, sorting, processing, and studying

business data, and using statistical models and iterative methodologies to transform
data into business insights.

The goal of business analytics is to determine which datasets are useful and how
they can be leveraged to solve problems and increase efficiency, productivity, and
revenue.

COMPONENTS OF BUSINESS ANALYTICS

 Data Aggregation
 Data Mining
 Association and Sequence Identification
 Text Mining
 Forecasting
 Predictive Analytics
 Optimization
 Data Visualization

TYPES OF BUSINESS ANALYTICS

There are four types of business analytics-

By leveraging these four types of analytics, big data can be dissected, absorbed,
and used to create solutions for many of the biggest challenges facing businesses
today.

 Descriptive Analytics
Descriptive analytics describes or summarizes a business’s existing data to get a
picture of what has happened in the past or is happening currently. It is the
simplest form of analytics and employs data aggregation and mining techniques.

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 The most common physical product of descriptive analysis is a report heavy with
visual statistical aids.

 Diagnostic Analytics
Diagnostic analytics shifts from the “what” of past and current events to “how” and
“why,” focusing on past performance to determine which factors influence trends.
This type of business analytics employs techniques such as drill-down, data
discovery, data mining, and correlations to uncover the root causes of events.

Diagnostic analytics uses probabilities, likelihoods, and the distribution of

outcomes to understand why events may occur and employs techniques including
attribute importance, sensitivity analysis, and training algorithms for classification
and regression. The most common physical product of diagnostic analysis is
a business dashboard.

 Predictive Analytics
Predictive analytics forecasts the possibility of future events using statistical
models and machine learning techniques. This type of business analytics builds on
descriptive analytics results to devise models that can extrapolate the likelihood of
select outcomes.

Machine learning experts and trained data scientists are typically employed to run
predictive analysis using learning algorithms and statistical models, enabling a
higher level of predictive accuracy than is achievable by business intelligence
alone. The most common physical product of predictive analysis is a detailed
report used to support complex forecasts in sales and marketing.

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 Prescriptive Analytics
Prescriptive analytics goes a step beyond predictive analytics, providing
recommendations for next best actions and allowing potential manipulation of
events to drive better outcomes. This type of business analytics is capable of not
only suggesting all favorable outcomes according to a specified course of action,
but recommending specific actions to deliver the most desired result.

Prescriptive analytics relies on a strong feedback system and constant iterative

analysis and testing to continually learn more about the relationships between
different actions and outcomes. The most common physical product of prescriptive
analysis is a focused recommendation for next best actions, which can be applied
to clearly identified business goals.

These four different types of analytics may be implemented sequentially, but

there is no mandate. In many scenarios, organizations may jump directly
from descriptive to prescriptive analytics thanks to artificial intelligence,
which streamlines the process.

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