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Technology

What is AI?

Artificial Intelligence

Last updated: January 15, 2025

On this page

TL;DRExampleExplanationWhy It MattersRelated Terms

TL;DR

AI (Artificial Intelligence) is technology that enables computers to perform tasks that typically require human intelligence, like understanding language, recognizing images, or making decisions.

Example

AI you use every day:

  • Netflix recommending shows you'll like
  • Gmail suggesting email replies
  • Spotify creating personalized playlists
  • Google translating websites instantly
  • Phone unlocking with your face

AI in business:

ApplicationWhat It Does
ChatbotsAnswer customer questions 24/7
Email filtersSort and prioritize inbox
Fraud detectionFlag suspicious transactions
Sales forecastingPredict future revenue
Content writingDraft marketing copy

Recent AI tools:

  • ChatGPT, Claude: Conversational AI assistants
  • Midjourney, DALL-E: Image generation
  • GitHub Copilot: Code suggestions

Explanation

Types of AI

Narrow AI (what we have today): Good at specific tasks. ChatGPT writes text, but can't drive a car.

General AI (theoretical): Human-level intelligence across all domains. Doesn't exist yet.

Key AI Technologies

Machine Learning: AI that improves from data Deep Learning: Complex neural networks Natural Language Processing: Understanding human text Computer Vision: Understanding images/video Generative AI: Creating new content (text, images, code)

AI Limitations

  • Requires large amounts of data
  • Can reproduce biases in training data
  • Doesn't truly "understand" like humans
  • Needs human oversight for important decisions
  • Can generate plausible-sounding but incorrect info

Why It Matters

For Business Owners

AI is no longer optional. Competitors are using AI to work faster, serve customers better, and reduce costs. You need to understand where AI fits in your business.

AI excels at repetitive, high-volume tasks. Customer support, data entry, content drafting, email sorting. Places where humans do the same thing repeatedly.

AI augments, doesn't replace, most jobs. A lawyer with AI tools can review contracts 10x faster. The lawyer is still needed for judgment and client relationships.

Start small. You don't need to build custom AI. Start with existing tools like ChatGPT for drafting, or AI features in software you already use.

Where to Start

  1. Identify repetitive tasks in your business
  2. Look for AI features in current software
  3. Try free AI tools for content and research
  4. Consider AI chatbots for customer support

Related Terms

SaaS

SaaS (Software as a Service) is software you access through the internet and pay for monthly, instead of installing it on your computer.

Automation

Automation means using technology to perform tasks that would otherwise require manual human effort, saving time and reducing errors.

Machine Learning

Machine learning is a type of AI where computers learn patterns from data instead of being explicitly programmed with rules.

Chatbot

A chatbot is software that can have text or voice conversations with people, answering questions and completing tasks automatically.

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