Artificial Intelligence: Evaluating its Impact on Business Operations

This report provides a comprehensive analysis of artificial intelligence (AI) in business, exploring its advantages and disadvantages across various organizational contexts. The introduction defines AI and its applications, including machine learning and automation, highlighting its potential to enhance business efficiency. The report's objective is to ascertain the benefits and drawbacks of AI adoption, examining its current state and future implications. The scope includes evaluating AI from the perspective of different organizations like Google, eBay, Uber, and Microsoft, with a literature review establishing the context of AI's evolution. The advantages of AI discussed include error reduction, the ability to perform difficult tasks, virtual assistance, and medical applications. The disadvantages include high costs, job losses, and the limitations of AI in matching human creativity. The report concludes by summarizing the potential of AI and its impact on the business world.

Running head: ARTIFICIAL INTELLIGENCE 0
Business Research

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Table of Contents
Introduction................................................................................................................................3
Project Objective........................................................................................................................4
Project Scope..............................................................................................................................4
Literature Review.......................................................................................................................5
Current State of Artificial Intelligence.......................................................................................5
Advantages of Artificial Intelligence.........................................................................................6
Reduction in Errors................................................................................................................6
Difficult Tasks........................................................................................................................6
Virtual Assistance..................................................................................................................7
Medical Applications.............................................................................................................7
Performing Daily Mundane Tasks.........................................................................................7
No Pause or Breaks................................................................................................................8
Disadvantages of Artificial Intelligence.....................................................................................8
High Costs..............................................................................................................................8
Job Losses..............................................................................................................................8
No Match of Human Creativity..............................................................................................9
No Benefit of Experience.......................................................................................................9
Cyber attacks..........................................................................................................................9
Future of Artificial Intelligence.................................................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12
Appendix..................................................................................................................................14

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List of Figures
Figure 1: Automated Activities................................................................................................13
Figure 2: Part of AI..................................................................................................................13

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Introduction
Artificial intelligence refers to the intelligence of machines, rather than the natural
intelligence of human or animals. The artificial intelligence allows a machine to think like
human and perform tasks without any programming. It helps machines to solve complex
takes and learn new things without any previous programming. The activities of artificial
intelligence include speech recognition, planning, learning, and problem-solving. Artificial
intelligence is a broad term which includes machine learning, deep learning, automation and
many more parts. In the modern world, many companies use artificial intelligence to enhance
the efficiency of performing various takes in the business, which were traditionally
performed by humans.
Using artificial intelligence in business can benefit a company, but due to lack of
technological advancements, the artificial intelligence has many flaws. This report will
discuss various benefits and drawbacks of using artificial intelligence in the business by
different companies. Further, the report will analyse these benefits and drawbacks based on
the different perspective of organisations, such as Google, eBay, Uber and Microsoft.

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Project Objective
The primary objective of this report is to ascertain different advantages and disadvantages of
adopting artificial intelligence strategy in a business. This report will discuss the current
status of artificial intelligence and its uses in different companies. Further, this report will
analyse the risks of adopting artificial intelligence in business and its necessity in
organisations of different industries. The secondary objective of this report is to analysing
different companies that are using artificial intelligence in their business and ascertain AI’s
value in business from their perspective.
Project Scope
The report will focus on the various use of artificial intelligence that could be beneficial or
detrimental for an organisation. This report will evaluate the use of AI from the perspective
of different organisations. Further, the report will ascertain the current state and latest
development in artificial intelligence for business. The experience of using AI in business
from the viewpoint of various companies will be discussed in the report.

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Literature Review
Artificial intelligence is defined as the intelligence of machinery, which is different from
human intelligence. It is a part of computer science that focuses on producing an intellectual
machine that performs tasks and reacts like a human. Various activates for which artificial
intelligence is designed to include planning, learning, problem-solving, reasoning and speech
recognition. According to Rouse (2016), Artificial intelligence can be categorised in different
parts such as strong AI, weak AI, narrow AI, and broad AI or other. Apple’s virtual personal
assistance called Siri is an example of weak AI.
According to Reddy (2016), in recent times, artificial intelligence has gained popularity due
to growth in size, speed, and variation of data collected by organisations. AI allows
companies to perform complex activities such as recognising patterns in information, more
efficiently than humans, which help companies in gaining more insight from their data. The
companies such as Apple, Google, Accenture and Uber, use AI in analysing a large amount
of data from their customers and identifying patterns in them, which help them to recognise
their customer's requirements and formulating strategies based on such data.
Current State of Artificial Intelligence
According to Nusca (2016), the artificial intelligence will have a significant impact on the
economies, culture, and businesses of companies in coming years. Currently, AI is moving
into the commercial market and use of AI in business has grown substantially, as compared to
past few years. Various aspects of AI are used in different commercial takes such as machine
learning is used in advertising or marketing products in different markets. Google is using
machine learning to enhancing the prediction of web searches which allow the company to
gain competitive advantage. 2015 was the year for AI accomplishments with the
advancement in different areas such as virtual assistants, web searches, and automation
(Figure 2).
As per recent advancements, the introduction of deep learning has changed the form of AI.
This system is capable of learning new information itself, for example, it identifies an orange
without any programming. In 2015, Microsoft and Google software was able to defeat human
at image recognition. Google, Facebook, and Microsoft are using modern AI to learn voice
recognition on smartphones. But there are also some problems in AI development as well. In

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recent news, Facebook has to shut off their AI program because it unpredictably generated its
own different language (King 2017). This shows that there are several risks in AI
development, which companies have to ascertain while developing or implementing AI
application in their businesses.
Advantages of Artificial Intelligence
The modern technology allows companies to use artificial intelligence in performing their
tasks. The use of AI has increased due to the limitation of human beings for performing
certain tasks (Figure 1). The AI can collect a large amount of data from several sources and
analyse it with significantly fast speed (Wenger 2014).
Reduction in Errors
Artificial intelligence allows organisations to avoid error and increases the chances of
achieving accuracy, with a high degree of precision. In case of humans, while performing
certain tasks there are chances of error because of human cause errors from time to time.
Computer, if programmed correctly, do not make mistakes like humans, therefore, the
company’s data can be managed error-free despite its size. Organisations could use AI in the
process, such as space exploration, since they are metal bodies which do not get affected by
space atmosphere. This allows them to collect a large amount of data without performing any
life threating activities (Glymour, Scheines and Spirtes 2014).
According to Ruth (2017), an application such as SAP, Avanade, and DONO allow
organisation such as Wal-Mart, eBay, MasterCard, and Accenture, to collect a large amount
of customer’s data from Facebook, Google Analytics, Shopify and various other platforms.
They analyse it to predict information regarding customers such as shopping pattern,
requirements and market demand.
Difficult Tasks
According to the research of Cohen and Feigenbaum (2014), the artificial intelligence can use
by companies in performing difficult tasks such as mining, ocean floor exploration, and oil
exploration. The AI takes the risks for human advancement because human have various
limitations. For example, the Mars rover sends by NASA called Curiosity, allow scientists to
explore Mars surface and collect data without actually risking their lives. The rover travels on
Mars surface while collecting data and determine its path, which helps him learn to think for
itself. The AI inventions like this are beneficial for human knowledge advancement.

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Virtual Assistance
The research of Bond and Gasser (2014) has concluded that, the popularity of virtual
assistance or digital assistance has raised significantly in past few years. A virtual assistance
communicates with humans to perform certain tasks. They lack emotional feelings which
help them think logically and find a logical solution to problems. Many organisations use
such digital assistance to perform small tasks for their employees such as setting up their
calendar, meeting reminders and general web searches.
The most popular method of AI is the virtual assistances used in modern smartphones.
According to the research conducted by Ramaswamy (2017), various smartphone or software
manufacturer install virtual assistance to their smartphones which interact with the user to
perform certain tasks. Few examples include Google Now, Siri, Cortana, and Bixby. These
digital assistances performs different tasks in smartphones such as searching something on
the web, setting reminders or alarms, sending messages, or turning on or off certain feature in
the phone. But with the latest development in AI and specifically machine learning, these
assistances are able to communicate with users like a human assistance, such as telling a joke,
remembering something or continuing a conversation.
Medical Applications
Many medical organisations use AI to improve their medical procedures. According to Huhns
(2012), the AI allows efficient evaluation of patient condition by doctors and helps them
assess their health hazards. AI help doctors to analyse the side effects of different medicines
and many professional doctors are taught with an artificial surgery simulator. Use of Robotics
helps mental health patients in different medical problems such as depression. Radiosurgery
is a good example of modern advancement of AI which helps in operating tumors. This
allows doctors to perform surgery without causing any damage to surrounding tissues.
Performing Daily Mundane Tasks
Fethi and Pasiouras (2010) concluded that, the artificial intelligence allows companies to deal
with their daily boring takes by use of automation that enhances the productivity in takes.
Theoretically, by using AI, companies can eliminate “boring” jobs from human and provide
them free time to perform creative takes. The automation allows companies to perform
repetitive tasks of large volume with high efficiency, fewer errors and high speed, as
compared to humans who are slow, cannot process large data quickly and cause errors.

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No Pause or Breaks
Rich and Waters (2014) provided that, the benefit of AI includes its efficiency to work
without any pause or breaks. The AI machine programs which mean they performed a large
number of takes for longer hires without getting bored or frustrated. In case of humans, after
a certain period, they require breaks or refreshments to continue their work. This gives
artificial intelligence an advantage over humans.
Disadvantages of Artificial Intelligence
According to Palm (2012), with the advancement in artificial intelligence technology, certain
risks have raised as well. The use of AI in business tasks has several drawbacks such as high
expenses, unemployment in the industry and cyber crimes. Before implementing AI
technology in companies business, the management requires evaluating these risks of AI.
High Costs
According to Quantrille and Liu (2012), the adaptation of Artificial intelligence in business
requires the company to spend large capital since they are complex machinery. The
maintenance and repairing costs of AI machine are also significantly high. The AI machinery
requires constant software up gradation to keep working efficiently and to keep getting
smarter each day. In case there is a severe breakdown in the machinery, the recovery cost for
lost data and reinstating expenses require a significant amount of time and money. Due to this
disadvantage, small and medium organisations cannot apply AI technology in their
operations. Therefore, the AI technology is available only for large corporations.
Job Losses
According to the research of Jones (2015), replacing persons with machinery can cause a
large scale unemployment stage in the market. The use of AI will displace a lot of low-skilled
jobs from the market. Many experts believe that robots have already taken a large number of
jobs from peoples on assembly lines. The advancement of AI can cause humans to highly
dependent on them for even smaller tasks. They could become lazy and lost their creative
abilities. For example, with the introduction of self-driving cars by Tesla, BMW, and other
car manufacturers, the job of millions of taxi drivers are in threat.

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No Match of Human Creativity
Shoham (2014) concluded that, when it comes to original creativity, AI common is compared
to human capabilities. The AI is no match for the creative power of human brain. Human
beings are capable of seeing, hearing and feeling emotions, and they are highly emotional
intellectuals. The human being decisions are affected by their feeling which lacks in an AI.
The power of human brains cannot be replicated by artificial intelligence software.
No Benefit of Experience
In case of artificial intelligence, they cannot be improved with experiences like human
beings. The AI store a large amount of data but the method of accessing and processing is
significantly different from the human brain. The AI is unable to change their responses to
different environmental factors. There is no heart, passion, care or concern in an artificially
intelligent machine, like a human. The humans have the ability to differentiate wrong from
the right which is a huge disadvantage of AI. Many experts or visionaries such as Stephen
Hawking or Elon Musk have warned people regarding the danger of AI. The AI’s ability to
learn new things could adversely impact on the existence of human beings.
Cyber attacks
According to the research of Dietterich (2015), just like every other software, the artificial
intelligence applications also have the same risk of viruses or hacking. The algorithms of AI
are no different from any other software when it comes to their vulnerability to hacking. But
since AI is used to make important judgments, such as driving cars or controlling machines,
the effect of cyber-attacks could be highly dangerous than previous attacks. The United States
government is funding different department and agencies to analysing the risk of AI cyber-
attacks and finding solutions for avoiding any damages to life or property.
Future of Artificial Intelligence
According to Carey (2017), in the future, use of artificial intelligence could revolutionise
different industries such as medical, space, oil exploration, data analysing, virtual assistance
and software. Artificial intelligence will allow scientists to collect data or research on
different projects without actually risking their lives. Furthermore, many medical scientists
believe that artificial intelligence will allow humans to get immunity from viruses. The AI
will affect small sections as well such as advance personal assistance, home automation, and
smart appliances.

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The development of AI has several drawbacks in the future such as an increase in laziness,
unemployment, and the threat of cyber crimes. The implementation of AI in everyday takes
will reduce the creative, thinking and analysing power of humans. Therefore, implementing
the AI in business require thorough prior planning.

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Conclusion
From the above report, it can be concluded that use of artificial intelligence has grown
substantially in previous few years. Companies are using AI for different activities such as
collecting large data from online sources or evaluation of such data. The benefits of AI
include faster performance, no breaks, no errors and medical advancements. But there are
several problems in using AI for business as well such as huge costs, the risk of cyber-attack
and unemployment in industry. The companies should evaluate their conditions before
implementing AI applications in their businesses.
AI is not at that stage where every organisation could benefit from it. They are a necessity for
advancement in AI technology before its complete implementation. The organisations are
requiring analysing its risks and creating proper strategies to avoid such risks in the future. In
modern times, the small and medium organisation can use only weak AI application such as
virtual assistance, but large organisation such as Google, Apple, Facebook, and Microsoft
have enough resources to implement AI technology in their business.