AI in Businesses

Written by Erina Jain

Table of Contents

Introduction

Artificial intelligence (AI) is no longer a futuristic buzzword—it’s rapidly becoming the backbone of modern business. According to the World Economic Forum, 80% of companies now say that they are using AI in at least one of their business functions, although whether they are using it to its full capacity, data isn’t available yet. From supply chain management to financial forecasting, AI is reshaping how decisions are made, how customers are served, and how profits are earned.

But as businesses embrace these new tools, questions of regulation, ethics, and long-term impacts loom larger than ever. And this article will discuss all the ways AI is changing businesses and how exactly.

Real-Life Uses

But how exactly are businesses using AI, especially the ones we know and use everyday? From content management to predictive analytics, the unique ways in which a business moulds and teaches AI to do tasks will leave you shocked!

Dynamic content delivery

Whenever you open Netflix, you immediately find a show or movie that feels like it was chosen just for you. This isn’t a coincidence. With over 282 million subscribers across 190 countries, Netflix has revolutionized the way we watch TV and movies, but how? Netflix uses AI to analyze viewing habits and recommend personalized content to keep viewers engaged, increasing customer satisfaction and retention.

Predictive Analytics

Amazon and Walmart are leveraging AI to predict consumer demand and optimize inventory, cutting supply chain costs and reducing waste. With the increasing demand for faster deliveries and seamless customer experiences, artificial intelligence (AI) is revolutionizing how products are sourced, stored, and shipped. That’s why whenever you open Amazon, you see your wishlist right up there, getting more and more accurste as you add your favorite items to cart.

Benefits

But why do such large businesses require AI now when all these years, they never relied on it? But you should know, every big-business decision, has calculated analysis behind it. Let’s broadly explore the pros and cons of using AI in a business.

Efficiency

AI is well-known for its ability to enhance efficiency and productivity in the workplace by, automating repetitive tasks, streamlining workflows, and providing data-driven insights. These improvements can lead to significant gains in operational performance and employee effectiveness. According to management consulting firm McKinsey, AI and other technologies have the potential to automate work activities that absorb 60 to 70 percent of employees’ time, enabling them to focus on more strategic initiatives. Imagine how much time they can save to invest in other tasks, like innovation, marketing, etc. This is why businesses are increasing so rapidly, because they have machines to do the simple tasks for them, so they can focus on the big stuff. And because these businesses are using AI to do the time consuming, automated tasks, they cut costs on employees hired to do these jobs, cutting costs and increasing profit!

Decision-making

AI is revolutionizing business decision-making by analyzing vast amounts of data to identify patterns and trends not easily detected by humans, helping leaders make informed, strategic choices and reduce errors. In a Deloitte survey, 59% of executives said AI gave them more actionable insights. Shell uses AI-driven predictive analytics to optimize drilling and predict equipment failures, while IBM’s Watson analyzes patient data and literature to guide doctors in choosing effective cancer treatments. No matter what industry you’re in, AI can aid in highly complex decision-making in today’s fast-moving world. Decision-making with AI doesn’t just avoid mistakes—it also opens doors to creative, new ideas, boosting innovation and development in a business/economy.

Customer Experiences

AI is transforming customer experiences by providing personalized and efficient interactions. Through advanced data analysis, AI can help you determine customer preferences, behaviors, and needs, making it easier to tailor your products and services. For example, leading beauty retailer Sephora utilizes AI through its Virtual Artist feature, an augmented reality tool that allows customers to try on makeup virtually. It analyzes facial features and skin tones to provide personalized product recommendations, which users can then purchase in the app. Leveraging AI in customer interactions can also help you offer more tailored, engaging experiences that boost brand loyalty. Sephora’s AI-powered chatbots and assistants can anticipate customer needs, respond to inquiries promptly, and provide recommendations that align with individual preferences.

Challenges

However there also disadvantages, because such a huge teachnological innovation obviously comes with its economic risks and challenges. Here are some of them:

Inequality

 AI mostly helps skilled workers and big companies. People in lower-skilled jobs or small businesses might miss out, making the rich–poor gap bigger. A Brookings study found that about half of Americans think AI will increase income inequality and make society more divided.

Job Displacement & Wage Pressure

 AI and automation can replace some jobs, especially in customer service, factories, or basic office work. In the UK, a report says 1–3 million jobs could be affected. Workers may need retraining, and wages might drop temporarily while companies save money.

Regulation & Trust

 Many people don’t fully trust AI. A Gallup poll found only 2% of Americans completely trust AI to make fair decisions, while 60% are worried it could be unfair or make mistakes. This shows that rules and transparency are very important.

Climate & Infrastructure Risks

 Running AI uses a lot of electricity. By 2030, data centers could use 945 terawatt-hours, more than Japan’s current electricity use. This makes AI expensive and can cause problems in countries with weak energy systems or high costs.

Expert Voices and Emerging Trends

Economists at World Economic Forum warn that global growth is under strain both from trade policy shocks and AI disruption. Governments must invest in AI infrastructure, upskilling, and regulate proactively. They also say, and I quote, “Artificial intelligence (AI) is poised to drive the next wave of economic transformation, unlocking significant growth potential but also introducing serious risks.” Half of the chief economists expect AI to increase GDP percentage, but 47% are expected net job losses over the next decade, compared to just 19% a few years ago.

People in emerging economies are more willing to trust AI than those in advanced economies and are more optimistic and excited about its benefits, a major survey by the University of Melbourne and professional services firm KPMG has found. The global study showed two-thirds of those surveyed were now using artificial intelligence regularly and even more - 83% - believed it would result in a wide range of benefits, but job losses and the risks that I discussed above still persist.

Conclusion

AI’s economic potential in 2025 and beyond is massive. The numbers—GDP % gains, trade growth, regional economic boosts—are already being forecasted by credible institutions. But the story isn’t just about technology; it’s about policy, trust, workforce, sustainability. Businesses that prepare—by investing in AI infrastructure, embracing cross‐industry innovation, retraining workers, and aligning with policy/regulatory expectations—will likely be among the winners. Others risk being left behind as revenue gets reallocated. As for us individuals, all we can do is wait and see what the future unfolds for us, while being responsible with this Golden Apple we call AI.

References