Artificial Intelligence in Digital Business: Importance, Development, and Usage

This report discusses the importance, development, and usage of artificial intelligence in digital business. It covers the software and platforms used in AI, the types of businesses that use it, and how it is used as a business tool. The report focuses on Amazon, which uses AI in cloud computing, e-commerce, digital streaming, and more.

Digital Business &
New Technologies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Importance of artificial intelligence.......................................................................................3
How artificial intelligence has developed?.............................................................................4
Detailed description of artificial intelligence and what it is used for.....................................4
What technological platforms and software are used in artificial intelligence?.....................5
What type of business and organisation uses the technology?...............................................5
How artificial intelligence is used as a business tool and is this effective?...........................6
Discussion on the nature of the relationship between digital technologies and both old and
newly emerging theories on business and management structures and practices?................7
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
Digital business refers to the involvement of digital technologies in business. It assist
organisations in improving their efficiencies so that they can achieve their prescribed goals and
targets. New technologies are responsible in upgrading products and services which can attract
large number of customers in appropriate manner (Borges and et.al., 2021). This report is based
on Amazon which majorly focus on cloud computing, e commerce, artificial intelligence and
digital streaming. It was established in 1994 and headquartered in US. This report will discuss
about artificial intelligence and it was developed. A detailed description is carried out about the
technology used in artificial intelligence and its usage is mentioned in this report. Technological;
software and platforms used in technology is described in this report. Types of organisations
which uses artificial intelligence and how this can be used as business tool is included in this
report.
MAIN BODY
Importance of artificial intelligence.
Artificial intelligence help organisations in improving their business processes, assist in
development of better decisions, reduce human errors, etc. Amazon can easily improves their
customer experiences by updating their procedures and operations. This appropriately predicts
the willing buyer of products and services so that organisation can provide them cashier less
facilities to them. Organisations can easily design capabilities which gives customised
recommendations to their customers (Hartley and Sawaya, 2019). All the activities related to
buying behaviour of customers can be analysed with the help of artificial intelligence. The
accuracy and speed of operations can be easily increased by an organisation without any
difficulties which is highly beneficial for them in order to generate higher revenues. It reduces
the time and waste of resources which is mandatory for the achievement of goals and targets.
Amazon operate their services 24*2 without any interruptions so that they can deliver their
services and products in appropriate manner. Complex and critical tasks and be easily carried out
as it provide support to management for accomplishment of particular activities. Risk and threats
related to crimes and cyberattacks can be eliminated with the use of artificial intelligence which
is highly beneficial importance of artificial intelligence.

How artificial intelligence has developed?
Artificial intelligence was developed in 1956 at Dartmouth college but it gets popularity
in the later years. The increase of data volumes, improvement in storage and power of
computing, advanced algorithms assist artificial intelligence in increasing their popularity. In the
early stages of 1950s, artificial intelligence was used for symbolic method and for solving
problems. It was developed as a powerful tool which assist machineries to act and think like
human beings (Heavin and Power, 2018). Modern artificial intelligence can easily understand
and capture the real time practices from the environment. Multiple signals can be evaluated so
that organisations can take optimal decisions. It transform the scenario of different types of
businesses by providing assistance to them for achievement of their goals and targets. It is
considered most beneficial technological shift after development of cloud platforms and mobiles.
Large number of organisations enhanced and improved their value in different ways as it
provides variety of benefits to them. Amazon can gain various competitive advantages as it
provides opportunities to formulate autonomous choices. It enhance quality and standard of the
products which is positive factor in establishing their brand image.
Detailed description of artificial intelligence and what it is used for.
Artificial intelligence provides abilities to machines which make them capable in acting
like humans. The capabilities involve learning, reasoning, creativity and planning which make
operations of an organisation faster and smoother. This helps technical system to analyse and
evaluate the environment which deals in number of operations such as identification of problems
and resolving them (Kimuli, Sendawula and Nagujja, 2021). Data can be received by computers
with the help of sensors like camera so that organisation can process them for providing
responses. The enormous data in large quantity can be managed and utilised easily with the help
of artificial intelligence. It becomes priority of large number of organisations as it support them
to carry out critical operations in appropriate manner. There are two types of artificial
intelligence which are software and embodied artificial intelligence. Software includes image
analysis software face recognition systems, virtual assistance, speech and search engines. On the
other hand, embodied artificial intelligence involves drones, robots, internet of things and
autonomous cars. Artificial intelligence can be used in online shopping, machine translations,
digital personal assistance, web search, cybersecurity, infrastructural development and many
more. It can be also used in manufacturing and production procedures of organisations so that

they can improve quality of their developed products. Amazon can easily innovate their
products and services with the help of artificial intelligence in effective and efficient manner.
What technological platforms and software are used in artificial intelligence?
There are large number of artificial intelligence software development tools which
includes IBM Watson, google cloud AI platform, Big Ml Dialogflow, Microsoft Azure AI
platform. It has been analysed that python is majorly used for AI which includes different
combination of applications such as natural language language processing, general AI, neural
networks and machine learnings. Top artificial intelligence platforms are NVIDIA GPU Cloud
(NGC), SAS, Amazon Web Services , Oracle AI, etc (Osmundsen, Iden and Bygstad, 2018).
Various other tools and software of AI are sales force Einstein, Infosys Nia, Symantec,
Outmatch, Rainbird, Symphony and many more. These software and platforms of artificial
intelligence enhance the efficiency of operations in required manner. Amazon used these in order
to get number of opportunities so that they can lead in their respective industry. Organisations
adopt artificial intelligence in order to sustain in the market because it provide alternative
solutions for commencement of smooth operations. All these software and platforms assisted
proper functioning of artificial intelligence so that organisations get benefits out of it. AI bases
solutions are less expensive and maintains accuracy so that it create better and positive brand
image in the market. Customers tend to believe more in an organisation who involve artificial in
their operations.
What type of business and organisation uses the technology?
Nowadays large number of organisations uses artificial intelligence in their operations in
order to improve their sustain ability in the market. Various operations such as sales, healthcare,
manufacturing, human resource, marketing and operations are assisted with the help of artificial
intelligence. Along with the Amazon, there are various industries who implement artificial
intelligence in their operations such as food tech, healthcare, advertising, cybersecurity,
information security, automotive, financial and banking services, e commerce and retail
industries (Pencarelli, 2020). This provides ability to use new marketing channels for increment
of their brand awareness in the market. Business can effectively formulate decisions against
fraud detection activities as it predict negative elements in the operations. 35% of overall sale of
Amazon is tend to rise due to the usage of artificial intelligence which is positive factor
contributing towards growth and success. Customer experiences can be increased as it effectively

undertake queries and doubts of customers on regular basis so that they can increase the
customer retention rate. Some of the products of Amazon like Alexa works on conversational
artificial intelligence platform. Businesses can easily maintain uniformity in their operations as it
eliminate the efforts of human in each and every stage of operations. It improves methods and
processes of organisations so that they can capture large market area for their further growth and
expansion.
How artificial intelligence is used as a business tool and is this effective?
Artificial intelligence transforms the capabilities and procedures of overall industry by
adding values to it (Sahut, Iandoli and Teulon, 2021). Various business needs majorly
undertaken by it are improving engagement of customers, automating business processes and
gaining insights with the help of data analysis. Amazon can use artificial in various aspects
which are mentioned below:
For customer support, experience and service: Businesses can use this as tool in order
to maximise the experiences of their customers. Problems and queries of customers can be
resolved in appropriate manner by using chatbots. Data of customers can be recorded and
analysed so that organisation can understand their buying pattern. Serving customers in better
manner improves the growth rate of an organisation which is beneficial factor.
To target markets: With the analysation of buying pattern of customers, organisations
can easily offer products which are highly demanded in the market. Amazon can select
particular advertisements for their products so that they can save their cost and reduce
unnecessary wastage of resources (Sandhu, 2018). It becomes easier for organisations to target
their most profitable segment of the market so that they can generate higher revenues.
Smarter operations: Developers of business process applications improves their
capabilities with the assistance of artificial intelligence. It provide support like finance, human
resource and legal to organisations so that they can commence operations in appropriate manner.
Retailers can use this in order to optimise products, store design, in store activities control.
This is highly effective tool which results in maintaining the appropriate standard of the
operations. It maximises profitability of organisations in cost effective manner. Businesses can
save excessive cost incurred in unnecessary activities which is most beneficial factor of this
technology.

Discussion on the nature of the relationship between digital technologies and both old and newly
emerging theories on business and management structures and practices?
Various old and new theories of business and management are used by organisations.
These theories assist in improving the operations of an organisation so that they can achieve their
goals and targets. The theory can be discussed as follows:
Decision making theory
This theory was developed by Simon which shows realistic view so that individuals can
effectively formulate decisions (Sousa and Rocha, 2019). This theory suggested that decision
making should be formulated by selecting best appropriate alternative from pool of different
options. Internal factors should be analysed such as motivation and stress so that organisations
can resolve complexities by carrying out best decisions. This theory involve three stages which
are as follows:
Intelligence activity stage: This is the initial stage which identify problems in an
organisation. Upper level management of an organisation monitor all the activities and
operations so that it become easier for them top resolve problems.
Design activity stage: After the evaluation of problems, management have to undertake
different strategies according to the problems. They can use artificial intelligence if it best suit to
the problems. The particular course of action should be undertaken by the management so that
they can get positive outcomes.
Choice activity stage: This is the last stage which works on final strategies and decisions
so that they can begin the process of resolving problems (Weill and Woerner, 2018). All the
consequences have analysed so that positive and negative factors can be examined.

CONCLUSION
From the above report it can be concluded that digital business involves large number of
opportunities. They involve technological advancements which allows businesses in
implementing innovative and creative ideas. New technologies assist organisations in gaining
various competitive advantages. It results in establishment of positive brand image in the market
which is essential for further growth and exposure. Use of artificial intelligence in businesses
results in maintaining proper accuracy and standard. This report discussed about the importance
and usage of artificial intelligence in an organisation. The development of this technology is
described along with the software and platforms used in this technology. Various businesses
involve this technology on regular basis which is described in this report.

REFERENCES:
Books and Journals
Borges and et.al., 2021. The strategic use of artificial intelligence in the digital era: Systematic
literature review and future research directions. International Journal of Information
Management, 57, p.102225.
Hartley, J.L. and Sawaya, W.J., 2019. Tortoise, not the hare: Digital transformation of supply
chain business processes. Business Horizons, 62(6), pp.707-715.
Heavin, C. and Power, D.J., 2018. Challenges for digital transformation–towards a conceptual
decision support guide for managers. Journal of Decision Systems, 27(sup1), pp.38-45.
Kimuli, S.N.L., Sendawula, K. and Nagujja, S., 2021. Digital technologies in micro and small
enterprise: evidence from Uganda's informal sector during the COVID-19
pandemic. World Journal of Science, Technology and Sustainable Development.
Osmundsen, K., Iden, J. and Bygstad, B., 2018, September. Digital Transformation: Drivers,
Success Factors, and Implications. In MCIS (p. 37).
Pencarelli, T., 2020. The digital revolution in the travel and tourism industry. Information
Technology & Tourism, 22(3), pp.455-476.
Sahut, J.M., Iandoli, L. and Teulon, F., 2021. The age of digital entrepreneurship. Small
Business Economics, 56(3), pp.1159-1169.
Sandhu, G., 2018, February. The role of academic libraries in the digital transformation of the
universities. In 2018 5th International Symposium on Emerging Trends and
Technologies in Libraries and Information Services (ETTLIS) (pp. 292-296). IEEE.
Sousa, M.J. and Rocha, Á., 2019. Digital learning: Developing skills for digital transformation
of organizations. Future Generation Computer Systems, 91, pp.327-334.
Weill, P. and Woerner, S., 2018. What's your digital business model?: six questions to help you
build the next-generation enterprise. Harvard Business Press.