Artificial Intelligence and Its Importance in Digital Technology and Business

This report discusses the importance of Artificial Intelligence (AI) in digital technology and business. It covers the applications of AI, emerging theories, and business models. AI helps in making work faster, obtaining correct insights, and taking corrective decisions. Desklib provides study material with solved assignments, essays, dissertations, and more.

Digital Technology and
Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Importance of AI and Platforms..................................................................................................3
Task 2...............................................................................................................................................5
Relationship between digital technology and old/new theories..................................................5
Use of AI in Business Model......................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The technology may be defined as the application of science which is used to solve the
complex problems by the invention of the useful tools. It makes the task easier and helps in
saving of time and energy. The work can be done within seconds such as calculation of larger
digit numbers and many more useful work (Popkova and Gulzat, 2019). This report is based on
Artificial Intelligence and the review of themes along with the description of the AI and the
trends and emerging theories of that influence the business and management. It also covers
various types of e-commerce models in which it can be used in an effective way.
TASK 1
Importance of AI and Platforms
Artificial Intelligence has the ability to understand human understanding, perception,
planning that is recognised by the software in a very effective and efficient manner with a
minimum cost. This is the very important which should be considered in he dynamic world of
technology. It is based on some algorithms which mimics the human behaviour through the
applications. It enables the computer to act and think like humans. In recent years, it has evolved
as a powerful tool with improved in various areas such as in the speech recognition, vision and
generation (Aithal and Aithal, 2019). It helps in increasing the efficiency of the work by
automating the routine process which makes the task easier and faster. It helps in elimination of
human errors and the availability of all 24*7. It enables in faster decision making as compared to
human with a low rate of error. In various segments the AI has developed its algorithm
applications better which makes the work easier and quicker. It helps in perceiving the
environment and deals with certain obstacles in a very effective way. It gathers the data from the
various sensors of different components of system and stores in its memory. In today's world it
becomes very important in various industries. Earlier, human is needed to analyse and solve the
problems according to his thoughts and perceptions but AI has replaced by introducing machine
learning with the similar capabilities of a human. AI is developed by the human and the system
learn and grow based on the surroundings. It is different from human learning as it does not
have IQ which makes it unique. The applications of AI can perform better as compared to human
with accurate results and with more objective. AI used in various platforms and can be used in
several business operations.

 Digital Technology and Business Cybersecurity – The application of AI can be used in
the cybersecurity sector as monitors and have the ability to recognize the cyber attack
from an unauthorised source. It detect the source of the cyberattack and can be used in
backtracking the for the prevention of the future attack. It is referred as the extra eyes
which prevents the system from the malware and cyber attacks.
 CRM – It is widely used in Customer Relationship Management in providing the better
response to the customers accurate, based on the past learnings. It updates itself regularly
based on the responses from the customers. It is majorly used in Banks and in service
provider companies.
 Research based companies - Various companies are opting this technology as it
becomes complex to collect and interpret the data with accurate outcomes. It enables it
collecting the similar data and analysing based on its application of learnings and provide
with a feasible outcome.
 Digital Personal Assistant - AI bots are used in various companies in order to save the
time of the customer as well as of the company employees(Sousa and Rocha, 2019). It
provides a easy and quick solution to the minor problems such as providing the invoices
and many more.
It is considered as an effective tool in the modern era as it analyse the problem and analyse the
outcomes and provides with the most suitable solution. It will also help in new business start-ups
and can be referred as the future of technology. It becomes the work easier that took hours to
complete by the human. Productivity can be increased by opting this technology in the business.
Based on high amount of data, it becomes complex to understand, interpret and provide a
feasible decision for that data. It will automate the process and made the work faster. Earlier the
human have not the ability to retain all the data that he has observed based on his surroundings
but AI facilitates to store huge amount of data in its memory and retrieves, when encounter with
similar condition (Singh A and Hess, 2020) It also helps a business enterprise in making insights
which enables a manager to make correct decision. There are various invaluable source
available for obtaining the data, so AI helps in generating the useful data and eliminates the same
double counting of same data. Customer service can also be improved as it provides 24*7
customer care services to the simultaneously to many customers. It is beneficial for the
forecasting of financial records as it becomes complex to prone the error of human. Business can

attain its objectives effectively and in a time and cost effective manner. If a company is having
thousands of customers, then it would difficult to solve their problems simultaneously because of
the lack of workforce but Artificial Intelligence provides with its assistance through AI bots. It
also saves cost of the workforce which was earlier too high before AI. Based on the predictive
analysis. It also provides the personalised experience to the customers on the basis of similar
customer experiences and insights of buying patterns.
Task 2
Relationship between digital technology and old/new theories
Business technology enables a small business in improving their communication process.
The use of AI influences its operations broadly and facilitates the improved productivity. It helps
in generating the revenue of the business enterprise along with decreased the operating cost.
Digital technology aids in enhancing the value of various business models. Artificial Intelligence
plays a vital role in the expansion of an enterprise. Following are the new emerging theories in
which AI can contribute in its components in order to formulate better plans.
 Decision making theory – It is a very crucial step in an organisation that defines the
success criteria. The management formulates various policies based on the past
experience but its becomes difficult to opt the right decision. Before AI, the company
encounters with some difficulties in taking the correct decision but AI provides with the
best outcomes available based on the past leaning by the applications of algorithm. In
order to target the customers, it involves the needs of customers and align them in a
personalised category (Kotarba, 2018). Consumer behaviour can be predicted by the
modeling techniques and simulation of AI. It allows in making the correct decision by
analysing and forecasting the real time data.
 Quantitative theory - It can be referred as the mathematical ans statistical model that
can be used in the various management situations. It helps in decision making by the set
of some applications that processes the data and provide the best outcome. AI is different
from the models of quantitative theories because these model do not allow in adapting
and self learning of various situations (Svahn, Mathiassen, Lindgren , 2017). The models
are based on several theories, proofs of various situations whereas machine learning

consist the approach of models that are based on real world. The quantitative theory
needs to be alter in order to obtain the correct decision.
 System theory – This theory is based on the some key elements of the organisation such
as culture, belief and custom. Based on these, it is difficult for a human to make
personalised choices for the customers. It creates a personalised system for both
employees and for the customers too. Machine learning helps in self learning and stores
the relevant information in its memory.
 Contingency theory – This theory is based on the traits of leadership. In every situation
it requires different traits of leadership. As the market is dynamic, so it is required to be
flexible in order to face the changing environment. A particular trait cannot be used in
every situation. The AI keeps on learning the new traits of the environment and can be
used in the upcoming critical condition of similar nature. The market is full of
uncertainties and it is needed to be deal with the best possible decision in order to
eliminate the risk of failure. So AI retrieves the problems of same nature and provide
with the best available solution for that.
Use of AI in Business Model
The implementation of AI has raised in the last years as it provide various applications
that help in the automation of work and scanning of billions of documents in order to obtain the
insights of the data (Steininger, 2019). AI helps in bringing the productivity to the business as it
serves the facility to handle millions of customers simultaneously. This helps in the automation
of the business. Some of the examples of business models are discussed below:
 B2C – Based on the preferences of an individual, AI helps in getting the similar product
that he had bought earlier. It also recommends in addition to his behaviour(Schweer and
Sahl, 2017). In this model of Business to Consumer, it creates a customised list of
products and services based on his preference.
 B2B - It is very important in this business model, as it provides the order forecasting
decisions that is based on the buying patterns. Business can forecast it sales volume from
a particular vendor. It also helps in creating better products based on the requirement of
the market.
 C2C – This model helps in trading with customer to customer without having any
intermediary on an online platform. It helps in understanding the consumer behaviour and

making insights based on their taste. For ex-if a customer wants to sale one of its
products on the internet, then AI will help in showing the relevant info about the buyers
who have searched for the particular product.
 Business to Administration – This model deals with providing the special software to
the government in order to access its services such as licensing and public health. AI
enables these software to learn the daily process and relevant data will be entered
automatically which is required to entered manually without the Artificial Intelligence. It
also allows in creating categories of various individuals to store and analyse the data and
can be retrieved when necessary.
 Consumer to Administration – This model is used in establishing a effective
communication between consumers and government. It facilitates the service of tax
filling to the citizens shows the amount tax by calculating the financial figures in
background.
CONCLUSION
From the above report, it was concluded that AI plays an important role in the
digitalization of business either for a small or large scale enterprise. It helps in making the work
faster and also facilitates in obtaining the correct insights of the entered data. It can be used in
various industries which helps in taking corrective decisions. It is referred as the future of digital
technology. It becomes complex to understand and store the data of the dynamic market, so AI
helps in making it easier for the business. Business should update its operations to the digital
technology and AI should be taken into consideration in order to make the process automates and
decrease the risk of error. Decision making can be easier by the AI and the human efforts can be
minimised by the use of technology.

REFERENCES
Books and Journals
Aithal, P.S. and Aithal, S., 2019. Management of ICCT underlying technologies used for digital
service innovation. International Journal of Management, Technology, and Social Sciences
(IJMTS), 4(2), pp.110-136.
Kotarba, M., 2018. Digital transformation of business models. Foundations of
management, 10(1), pp.123-142.
Popkova, E.G. and Gulzat, K., 2019, May. Technological revolution in the 21 st century: digital
society vs. artificial intelligence. In Institute of Scientific Communications Conference (pp. 339-
345). Springer, Cham.
Schweer, D. and Sahl, J.C., 2017. The digital transformation of industry–the benefit for
Germany. In The drivers of digital transformation (pp. 23-31). Springer, Cham.
Singh, A. and Hess, T., 2020. How chief digital officers promote the digital transformation of
their companies. In Strategic Information Management (pp. 202-220). Routledge.
Sousa, M.J. and Rocha, Á., 2019. Digital learning: Developing skills for digital transformation of
organizations. Future Generation Computer Systems, 91, pp.327-334.
Steininger, D.M., 2019. Linking information systems and entrepreneurship: A review and agenda
for IT‐associated and digital entrepreneurship research. Information Systems Journal, 29(2),
pp.363-407.
Svahn, F., Mathiassen, L., Lindgren, R. and Kane, G.C., 2017. Mastering the digital innovation
challenge. MIT Sloan Management Review, 58(3), p.14.