Introduction

Business applications utilize the specific technologies mentioned earlier to try and
make better sense of potentially enormous variability (for example, unknown
patterns/relationships in sales data, customer buying habits, and so on). However,
within the corporate world, AI is widely used for complex problem-solving and
decision-support techniques in real-time business applications. The business
applicability of AI techniques is spread across functions ranging from finance
management to forecasting and production.
In the fiercely competitive and dynamic market scenario, decision-making has
become fairly complex and latency is inherent in many processes. In addition, the
amount of data to be analyzed has increased substantially. AI technologies help
enterprises reduce latency in making business decisions, minimize fraud and
enhance revenue opportunities.

Definition of AI

AI is a broad discipline that promises to simulate numerous innate human skills such
as automatic programming, case-based reasoning, neural networks, decision-
making, expert systems, natural language processing, pattern recognition and
speech recognition etc. AI technologies bring more complex data-analysis features
to existing applications.
There are many definitions that attempt to explain what Artificial Intelligence (AI) is.
I like to think of AI as a science that investigates knowledge and intelligence,
possibly the intelligent application of knowledge. Knowledge and Intelligence are as
fundamental as the universe within which they exist, it may turn out that they are
more fundamental.
One of the aims of AI is said to be the investigation of human cognition and AI is
part of Cognitive Science. AI is really an investigation into the creation of
intelligence and that there is no reason for the intelligence that is created to be
exactly the same as human intelligence.

Importance of AI

Enterprises that utilize AI-enhanced applications are expected to become more

diverse, as the needs for the ability to analyze data across multiple variables, fraud
detection and customer relationship management emerge as key business drivers
to gain competitive advantage.
Artificial Intelligence is a branch of Science which deals with helping machines, finds
solutions to complex problems in a more human-like fashion. This generally involves
borrowing characteristics from human intelligence, and applying them as algorithms
in a computer friendly way. A more or less flexible or efficient approach can be
taken depending on the requirements established, which influences how artificial
the intelligent behavior appears.
AI is generally associated with Computer Science, but it has many important links
with other fields such as Maths, Psychology, Cognition, Biology and Philosophy,
among many others. Our ability to combine knowledge from all these fields will
ultimately benefit our progress in the quest of creating an intelligent artificial being.

Emergence of AI in business

Artificial Intelligence (AI) has been used in business applications since the early
eighties. As with all technologies, AI initially generated much interest, but failed to
live up to the hype. However, with the advent of web-enabled infrastructure and
rapid strides made by the AI development community, the application of AI
techniques in real-time business applications has picked up substantially in the
recent past.
Computers are fundamentally well suited to performing mechanical computations,
using fixed programmed rules. This allows artificial machines to perform simple
monotonous tasks efficiently and reliably, which humans are ill-suited to. For more
complex problems, things get more difficult... Unlike humans, computers have
trouble understanding specific situations, and adapting to new situations. Artificial
Intelligence aims to improve machine behavior in tackling such complex tasks.
Together with this, much of AI research is allowing us to understand our intelligent
behavior. Humans have an interesting approach to problem-solving, based on
abstract thought, high-level deliberative reasoning and pattern recognition. Artificial
Intelligence can help us understand this process by recreating it, then potentially
enabling us to enhance it beyond our current capabilities.

Applications of AI

The potential applications of Artificial Intelligence are abundant. They stretch from
the military for autonomous control and target identification, to the entertainment
industry for computer games and robotic pets, to the big establishments dealing
with huge amounts of information such as hospitals, banks and insurances, we can
also use AI to predict customer behavior and detect trends.
AI is a broad discipline that promises to simulate numerous innate human skills such
as automatic programming, case-based reasoning, decision-making, expert
systems, natural language processing, pattern recognition and speech recognition
etc. AI technologies bring more complex data-analysis features to existing
applications.
Business applications utilize the specific technologies mentioned earlier to try and
make better sense of potentially enormous variability (for example, unknown
patterns/relationships in sales data, customer buying habits, and so on). However,
within the corporate world, AI is widely used for complex problem-solving and
decision-support techniques in real-time business applications. The business
applicability of AI techniques is spread across functions ranging from finance
management to forecasting and product
Artificial Neural Networks

An artificial neural network (ANN), often just called a "neural network" (NN), is a
mathematical model or computational model based on biological neural networks. It
consists of an interconnected group of artificial neurons and processes information
using a connectionist approach to computation. In most cases an ANN is an
adaptive system that changes its structure based on external or internal
information that flows through the network during the learning phase. In more
practical terms neural networks are non-linear statistical data modeling tools. They
can be used to model complex relationships between inputs and outputs or to find
patterns in data.

Real life applications of ANN

The tasks to which artificial neural networks are applied tend to fall within the
following broad categories:
• Function approximation, or regression analysis, including time series prediction
and modeling.
• Classification, including pattern and sequence recognition, novelty detection and
sequential decision making.
• Data processing, including filtering, clustering, blind source separation and
compression.
Application areas include system identification and control (vehicle control, process
control), game-playing and decision making (backgammon, chess, racing), pattern
recognition (radar systems, face identification, object recognition and more),
sequence recognition (gesture, speech, handwritten text recognition), medical
diagnosis, financial applications (automated trading systems), data mining (or
knowledge discovery in databases, "KDD"), visualization and e-mail spam filtering.
The proven success of Artificial Neural Networks (ANN) and expert systems has
helped AI gain widespread adoption in enterprise business applications. In some
instances, such as fraud detection, the use of AI has already become the most
preferred method. In addition, neural networks have become a well-established
technique for pattern recognition, particularly of images, data streams and complex
data sources and, in turn, have emerged as a modeling backbone for a majority of
data-mining tools available in the market. Some of the key business applications of
AI/ANN include fraud detection, cross-selling, customer relationship management
analytics, demand prediction, failure prediction, and non-linear control.
A majority of the enterprises adopt horizontal or vertical solutions that embed
neural networks such as insurance risk assessment or fraud-detection tools, or data-
mining tools that include neural networks (for instance, from SAS, IBM and SPSS) as
one of the modeling options.
Artificial Intelligence in Manufacturing
As the manufacturing industry becomes increasingly competitive, sophisticated
technology has emerged to improve productivity. Artificial Intelligence in
manufacturing can be applied to a variety of systems. It can recognize patterns,
plus perform time consuming and mentally challenging tasks. Artificial Intelligence
can optimize your production schedule and production runs. In order for
organizations to meet ever increasing customer demands, and to be able to survive
in an environment where change is inevitable, it is crucial that they offer more
reliable delivery dates and control their costs by analyzing them on a continual
basis. For businesses, being capable of delivering high quality goods at low costs
and short delivery times is akin to operating in a whirlpool environment like the
Devil's Triangle, and this is no easy task for any organization. Managing so that
production takes place at the right time, on the right equipment, and using the right
tools will minimize any deviations in delivery dates promised to the customer.
Utilizing equipment, personnel and tools to their maximal efficiency will no doubt
improve any organization's competitive strength. In return, proper utilization of
these capabilities will result in lower costs for the organization
Optimal scheduling of jobs on equipment, without the use of computer software, is a
truly difficult undertaking. Performing planning using the "Deterministic Simulation
Method" will provide you with schedules that will indicate job loads per equipment.
Even in the case limited to a single piece of equipment, as the number of jobs to
schedule on that equipment increases, finding the right solution in the "Possible
Solutions Set" becomes next to impossible. And in the real world, the difficulties
arising from the large size of the solutions set due to the recipes formed by jobs,
equipment and products, and shaped by the technological restrictions, as well as
the complexity in finding a close to ideal solution, are readily apparent.
Research and studies are being conducted worldwide on the subject of scheduling.
Software vendors working in this area follow developments closely, and they are
coming out with new products to better meet demands. "Genetic Algorithms",
"Artificial Intelligence", and "Neural Networks" are some of the technologies being
used for scheduling

Advantages

• View your best product runs and the corresponding settings.

• Increase efficiency and quality by using optimal settings from past production.
• Artificial Intelligence can optimize your schedule beyond normal human
capabilities.
• Increase productivity by eliminating downtime due to unpredictable changes in
the schedule.

Artificial Intelligence in Financial services

AI has found a home in financial services and is recognized as a valuable addition to

numerous business applications. Sophisticated technologies encompassing neural
networks and business rules along with AI-based techniques are yielding positive
results in transaction-oriented scenarios for financial services. AI has been widely
adopted in such areas of risk management, compliance, and securities trading and
monitoring, with an extension into customer relationship management (CRM).
Tangible benefits of AI adoption include reduced risk of fraud, increased revenues
from existing customers due to newer opportunities, avoidance of fines stemming
from non-compliance and averted securities trade exceptions that could result in
delayed settlement, if not detected.
Warren Buffet is known as the ultimate investor in this age. So good is he, in fact,
that artificial intelligence software developed in Carnegie Mellon that predicts stock
movements was named after him by. But can machines really take the place of
human traders, much less surpass them? When Deep Blue defeated Chess
Grandmaster Kasparov in 1997, AI was propelled into the limelight. Indeed, if a
machine can whiz through the intricacies of the ultimate game of strategy, why not
beat man in other fields as well – thereby facilitating work, decreasing costs and
errors and increasing productivity and quality. This study focuses on applying AI in
Finance, particularly in stock trading. In the field of Finance, artificial intelligence
has long been used. Some applications of Artificial Intelligence are
• Credit authorization screening
• Mortgage risk assessment
• Project management and bidding strategy
• Financial and economic forecasting
• Risk rating of exchange-traded, fixed income investments
• Detection of regularities in security price movements
• Prediction of default and bankruptcy
• Security/and or Asset Portfolio Management
Artificial intelligence types used in finance include neural networks, fuzzy logic,
genetic algorithms, expert systems and intelligent agents. They are often used in
combination with each other. When AI first appeared a decade ago, it generated
mass media hype but delivered inconsistent results. A number of those who praised
its ability were paralyzed in the end. One such case is Fidelity Investments. In this
paper, we set the stage by describing how traditional stock trading differs from AI-
powered stock trading. We define the various AI systems available and also explore
the various solutions available in the market, their IT foundations and how salient
they are. Then, we move into how AI systems for stock trading will affect traders,
companies and individuals. Benefits, risks and competitive strategy will be defined
and real-world examples cited, as grounding for our recommendations in the end.
Recommendations include getting management buy-in, implementing the system
and managing the whole structure to succeed.

Artificial Intelligence in Marketing

Advances in artificial intelligence (AI) eventually could turbo-boost customer
analytics to give companies speedier insights into individual buying patterns and a
host of other consumer habits.
Artificial intelligence functions are made possible by computerized neural networks
that simulate the same types of connections that are made in the human brain to
generate thought. Currently, the technology is used mostly to analyze data for
genetics, pharmaceutical and other scientific research. It's seeing little use in CRM
right now, though it has tremendous potential in the future
AI-enhanced analytics programs also provide survival modeling capabilities --
suggesting changes to products based on use. For example, customer patterns are
analyzed to learn ways to extend the life of light bulbs or to help decide the correct
dosage for medications.
High-tech data mining can give companies a precise view of how particular
segments of the customer base react to a product or service and propose changes
consistent with those findings. In addition to further exploring customers" buying
patterns, analytics could help companies react much more quickly to the
marketplace.
According to Meta Group vice president Liz Shahnam, intelligent agents could let
companies make real-time changes to marketing campaigns. "New technologies
would have the model refreshed on the fly based on each new incoming piece of
customer information -- reaction to the campaign -- for a more targeted offer,"

Artificial Intelligence in HR

It is widely believed that the role of managers is becoming a key determinant for
enterprises' competitiveness in today's knowledge economy era. Owing to fast
development of information technologies (ITs), corporations are employed to
enhance the capability of human resource management, which is called human
resource information system (HRIS). Recently, due to promising results of artificial
neural networks (ANNs) and fuzzy theory in engineering, they have also become
candidates for HRIS. The artificial intelligence (AT) field can play a role in this,
especially; in assuring that the fuzzy neural network has the characteristics and
functions of training, learning, and simulation to make an optimal and accurate
judgment according to the human thinking model. The main purposes of the study
are to discuss the appointment of managers in enterprises through fuzzy neural
network, to construct a new model for evaluation of managerial talent, and
accordingly to develop a decision support system in human resource selection.
Therefore, the research methods of reviewing literature, in-depth interview,
questionnaire survey, and fuzzy neural network are used in the study. The fuzzy
neural network is used to train the concrete database, based on 191 questionnaires
from experts, for getting the best network model in different training conditions. In
order to let decision-makers adjust weighted values and obtain decisive results of
each phase's scores, we adopted the simple additive weighting (SAW) and fuzzy
analytic hierarchy process (FAHP) methods in the study. Finally, the human
resource selection system of Java user interface has been constructed by FNN in the
study.

Conclusion

It is difficult for business to see general relevance from AI. This is probably one of
the reasons for the compartmentalization of AI into things like Knowledge Based
Systems, Neural Networks, and Genetic Algorithms etc. Some of these separate sub
topics have been shown to be very useful in solving certain difficult business and
industrial problems and consequently funding bodies influence research directions
by encouraging work on these more application based areas. This can have a
positive effect for business benefit and has lead to some very useful systems that
have found their way into the heart of business activity. Business should not lose
sight of where AI could go because there are many potential benefits to current and
new businesses of future research. The idea of robotic domestic workers is still far
fetched but companies are making progress even here. There is already a Robot
Vacuum Cleaner marketed by Electrolux and doubtless improved systems with
better functionality will follow. .
I would like to close by quoting from Tom Peters, a leading management guru:
"When you think you've reached the top, tear down everything and do it all over
again. If you don't, your competitor will." To this, I would like to add my own: "If
your competitor won't, new investors will enter the market segment who will do the
same job better."