Artificial Intelligence

September 23, 20247 min read
Table of content

What is artificial intelligence? It’s a question everyone was asking about 10 years ago, without realizing how much it was becoming a part of our everyday lives.

From voice recognition to eye implants, AI is everywhere, and it continues to revolutionize industries. Let’s see how it works and how it’s used.

KEY TAKEAWAYS

  • Artificial intelligence is the concept of various technologies that simulate human intelligence using data and machine processes.
  • AI operates by training models on diverse datasets through supervised, unsupervised, and reinforcement learning.
  • Machine learning is a subset of artificial intelligence that focuses on learning patterns from data and making predictions.
  • AI is heavily used in multiple industries, including healthcare, finance, retail, marketing, automotive, and more.

What is Artificial Intelligence?

Artificial intelligence (AI) technology uses data to simulate human intelligence through machines. Its primary purpose is to mimic the human mind, enabling systems to perform tasks more efficiently without human involvement. AI has various techniques, including machine learning, natural language programming, deep learning, etc., all of which serve different purposes.

How Does Artificial Intelligence Work?

Data is at the heart of AI. AI models are built to process and train on data collected from multiple sources. The learning process can be of three main types:

artificial intelligence tools
  • Supervised learning, where the input is paired with a known output. For instance, the task might be categorizing incoming emails into “spam” or “not spam.”
  • Unsupervised learning, where the output is unknown, and the model learns to find patterns. For example, a task might be to categorize customers into different behavioral groups without giving predetermined labels.
  • Reinforcement learning, where the model learns from its own accomplishments and failures by receiving rewards and penalties.

During this learning process, the model makes predictions. The results are compared to the desired outcomes, and adjustments are made until the model makes accurate predictions. Once trained and tuned, the AI model can be deployed to perform tasks autonomously or assist humans in decision-making processes.

What Is Machine Learning?

Machine learning (ML) is a subset of artificial intelligence that allows computers to learn and interpret data without originally being programmed to do so. Unlike AI that encompasses a broader range of technologies that simulate human intelligence, machine learning focuses only on building systems that learn and adapt from data.

It involves feeding data into algorithms and letting them observe patterns and make predictions. For example, ML can recommend products based on your shopping history or TV shows you’d be interested in based on your Netflix watching history. 

Modern Applications of Artificial Intelligence

AI is infiltrating almost every industry and aspect of our lives. CEOs of leading organizations worldwide are using AI in their operations. After all, what is artificial intelligence for if not helping humanity advance, right? Here are a few examples of how AI is used in different sectors:

artificial intelligence tools

Healthcare

AI in healthcare is used to diagnose diseases through medical imaging faster and more accurately than traditional methods. These models analyze patients’ medical histories and recommend personalized treatment plans. Additionally, advanced AI models accelerate drug development and predict drug success rates based on biological factors.

Finance

AI is revolutionizing algorithmic trading by tracking the stock market in real-time and making millions of transactions in seconds — something humans aren’t capable of. It also assists in detecting fraudulent activities by quickly identifying and flagging suspicious activity for review.

Retail

Retail veterans like Amazon use AI to customize their recommendations to buyers based on their browsing histories and past purchases. Moreover, Amazon, Walmart, and others actively employ AI in inventory management, helping them stock the right amount of products based on market trends and demand.

Marketing

AI in marketing is expressed through customer insights and segmentation, chatbots, content generation, and more. By analyzing customer information, companies are better able to target their online ads effectively and increase conversions. Moreover, AI-powered chatbots and virtual assistants provide instant customer service 24/7 and facilitate a more seamless customer experience.

Automotive

It is artificial intelligence that stands behind self-driving cars, managing everything from navigation to obstacle avoidance to parking. It also powers predictive maintenance, where AI models can predict when a part of the vehicle might need maintenance before it fails.

We’ve only scratched the surface of artificial intelligence and how it will continue to change our lives. It’s an exciting time for the development of maybe the most important technology of our lifetimes. We can’t wait to see what comes next!

James Robinson Senior Content Creator, Financial Analyst

James Robinson is a Financial Analyst with 12+ years of experience. Specializing in investment strategies, risk management, and financial planning, James helps clients make informed decisions.

Our Recent Blog Articles

Lifestyle Savings
By Avery QuinnDecember 23, 2024
How to Set Financial Goals: Tips and Examples

When Benjamin Franklin said, “If you fail to plan, you are planning to fail,” he wasn’t just talking about preparing for life’s daily tasks — he was also addressing something...

Read More
By Grayson HaleDecember 10, 2024
Best Strategies to Check Your Credit Score

Knowing your credit score is the first step to controlling your finances. But do you know how to check your credit score?  Whether planning ahead or simply curious about your...

Read More
By Grayson HaleDecember 06, 2024
How to Ask to Borrow Money Politely: 12 Tips

Asking for money is uncomfortable, whether it is from a friend, relative, or even a bank. However, we are all in need of a helping hand sometimes. Here are some tips for...

Read More