What is Artificial Intelligence?
Artificial intelligence is a term that is used to describe the ability of a computer to interpret external data, learn from that data and take actions based on it. This is similar to the way a human takes in information and adapts to its environment. AI has become an integral part of our daily lives, but it is so ubiquitous that we do not even know that it is working behind the scenes to make our lives better. Take a minute to explore AI and its use in business.
What is a Model?
The ability of a computer to mimic human decision-making depends on developing an appropriate mathematical model. Modeling involves developing an algorithm based on the physical world. The usefulness and accuracy of the model and the decisions that it generates are dependent upon how accurately it describes the physical phenomenon.
The ability of the artificial intelligence to make decisions is only as good as the data put into the model and its ability to account for all of the factors that affect the outcome. One example of this is algorithms used by investors to predict stock prices in the future. For instance, an algorithm that predicts grain futures would be more accurate if it included historical climate data than one that did not account for this factor.
What Models Are AIs Using?
Many different models are available for AI to make their predictions with. All of them have specific uses and applications. For example, the Naive Bayes model is used for classifying data. Linear Regression is used for predicting the future, and the K-Nearest Neighbor groups together things that are similar. In these models, the algorithms mimic human neurons.
How Are Business Using These AIs?
There is a good chance that you interact with AI on a daily basis and do not even realize it. The smartphone predictive text that can be so useful, and sometimes annoying, is based on a predictive modeling algorithm. Linear regression algorithms are being used to forecast stock market movement. Google maps uses it to recommend the best route.
AI is everywhere in the modern world and will continue to help businesses improve their processes and adapt to the world around them. AI is a little bit like having a crystal ball, but one that has a hint of human intelligence. Businesses of the future will depend on AI to retain their competitive advantage in a data-driven world.
If you need help growing your business in the technological age, keep ApptekGroup in mind!