Artificial
Intelligence & Busin
ess Intelligence
Jodi Beyer
Philip Breno
Bridgette Cazzola
Anthony Conte-Flores
Bellevue University
BAN520-T301
Sue McDaniel
A Brief History of AI
• In 1955, the first "thinking machine" the Logic Theorist, developed by Herbert
Simon and Al Newell, could prove theorems using logic.
• Over the next few decades, AI progressed but was held back by the
technology available.
• From 1982-1990, the Fifth Generation Computer Project backed by the
Japanese Government set the foundation of what would be a boom of AI in
the 1990s.
• By 1997, IBM's Deep Blue, a computer program that could play chess,
beat the world chess champion and grand master Gary Kasparov.
• It is now believed that we have entered a golden age of AI
as a technical hurdle that had held AI back, Moore's Law, caught up to the level
of computing power and storage needed.
Machine
Learning
(ML)
• Machine Learning (ML) is
a subset of artificial
intelligence (AI) that
involves the development
of algorithms and
statistical models that
enable computers to
perform specific tasks
without explicit
instructions. Instead,
these systems learn from
and make predictions or
decisions based on data.
The Main Types of Machine
Learning Are
• Supervised Learning: The algorithm learns from labeled data, where
the input-output pairs are provided. The goal is to learn a mapping
from inputs to outputs.
• Unsupervised Learning: The algorithm works with unlabeled data
and tries to find hidden patterns or intrinsic structures within the data.
• Semi-supervised Learning: Combines a small amount of labeled
data with a large amount of unlabeled data during training.
• Reinforcement Learning: The algorithm learns by interacting with an
environment, receiving feedback in the form of rewards or penalties.
Machine Learning
in Business
Intelligence (BI)
• Business Intelligence
(BI) involves the use of
data analysis tools and
techniques to make
informed business
decisions. Machine
learning enhances BI by
providing advanced
analytical capabilities
and predictive insights.
Here are some ways machine
learning is used in BI
Predictive Analytics:
• Sales Forecasting: Predicting future sales based on historical
data, seasonal trends, and market conditions.
• Customer Churn Prediction: Identifying customers who are
likely to stop using a service or product and implementing
retention strategies.
Customer
Insights:
• Customer
Segmentation: Grouping
customers based on
purchasing behavior,
demographics, and other
characteristics for targeted
marketing.
• Sentiment Analysis:
Analyzing customer
reviews and feedback to
gauge sentiment and
improve products/services.
Operational
Efficiency:
• Inventory
Management:
Optimizing stock levels
and predicting demand
to reduce overstocking
and stockouts.
• Process Automation:
Automating routine tasks
such as data entry, report
generation, and anomaly
detection in operations.
Risk
Management
:
• Fraud Detection:
Identifying unusual
patterns or anomalies in
transactions to detect
and prevent fraudulent
activities.
• Credit Scoring:
Assessing the
creditworthiness of loan
applicants by analyzing
their financial behavior
and history.
Marketing
Optimization
• Ad Campaign
Performance: Analyzing
the effectiveness of
marketing campaigns and
optimizing ad spend.
• Recommendation
Systems: Personalizing
product recommendations
based on user behavior
and preferences, similar
to what companies like
Amazon and Netflix do.
AI and Predictiv
e
Analytics
• Predictive analytics uses
formulas, statistical algorithms,
and machine learning techniques
to identify the likelihood of
an outcome.
• Aids businesses to
make better, more informed
decisions, forecast trends,
and optimize operations.
• Applications: Sales forecasting, ris
k management,
customer retention, and supply
chain optimization. Source: https://www.phase-5.com/insights/news/unpacking-the-hype-
making-sense-of-predictive-analytics-machine-learning-and-ai-in-market-
insights
Machine Learning Algorith
ms in Predictive Analytics
• Neural Network
• Models complex relationships through layers of
interconnected nodes (neurons) that process data.
• Used in cases of speech recognition, image processing,
and natural language processing.
• K-Nearest Neighbor (KNN)
• Classifies data points based on the "class" of their K-
nearest neighbor, helping to predict the value of
new data points.
• Used in customer segmentation and
pattern recognition.
What is Natural
Language Processin
g?
• Natural Language Processing
(NLP) is a branch of AI
that focuses on
the interaction between
computers and humans
through natural language.
• Enables machines
to understand, interpret, and
respond to human language
in variable ways.
• Used in Chatbots, language
Source: https://revolveai.com/natural-language-processing- translators, voice
techniques/ recognition, and text
summarization.
Relating Predictive Analytics
and AI to BI
• Predictive analytics • Incorporating AI in predictive
often relies on AI analytics extend the capabiliti
techniques, such as ML, to es of BI, allowing businesses
build models that to predict events and make
forecast trends proactive decision. This
and behaviors based extension is a result of
on historical data. AI's ability to store and
process vast amounts of data
efficiently.
Retail: Personalized
recommendations, dynamic pricing,
and demand forecasting.
Practical
Application Finance: Algorithmic trading, credit
scoring, and risk assessment.
s
Healthcare: Predictive diagnostics,
personalized treatment plans, and
operational efficiency in hospitals.
Manufacturing: Predictive
maintenance, quality control, and
supply chain optimization.
AI in Data
Management
• Data management is the
collection, storage, and use of
data
• Traditional data management
systems require manual effort to
ensure data quality
• Poor data quality can cost a large
organization $12.9 million per
year (Collina, et al., 2024)
• AI transforms data management
systems through efficiency, error
reduction, data quality, and frees
up human resources to focus on
other strategic tasks
AI in Data
Warehouses
• AI can be used in cloud-based
data warehouses
• Tasks completed by AI
o Data integration
o Data cleansing
o Data governance
Upadhyay, 2024
Preparing for AI
Implementation
Review current data
Perform gap analysis
management plan
Develop a data
Review or create collection, storage, and usage guidelines
strategy
Data cleansing and
Consolidate data and fix errors
integration
Data governance Create policies for data privacy and responsible use
Data infrastructure Invest in tools and storage solutions to assist AI
Future AI
Considerations
• Ethical data collection and usage
o Regulations and policies around ethical use
o 2023 EU working on Artificial Intelligence Act to prevent facial
recognition databases and use of AI for social or economic manipulation
(Bergmann, 2024)
• GPU shortages
o Smaller AI models and higher cloud storage costs shifting GPU back to
enterprises requiring more hardware and infrastructure
• AI use at work
o Policies on how employees can use enterprise AI tools
o Using unapproved AI can result in security risks and legal issues
Data Security & AI
• With such widespread growth and innovation,
AI has the potential to be a powerful tool
for protecting data as well as to be a weapon
• It is imperative that AI is built with
cybersecurity in mind and
that users understand the risks and
use the technology responsibly.
AI depends on the quality of the data it
is modelled upon.
Risks in AI can hallucinate or provide
incorrect information as facts and otherwise get
things wrong.
AI
AI can inherit the biases of its creators or of
the data it is given.
AI can given bad inputs to prompt it
into creating bad or toxic content in what
are called "prompt injection attacks" or
when "an attacker creates an input designed to
make the model behave in an unintended
way" (AI and Cyber Security : What You Need
to Know).
It is also subject to Data
Poisoning Attacks where the data that the AI
is modelled after and trained on is altered to
produce unintended outcomes.
Business Risks of AI
MANY DATA EXPERTS SAY THAT AI THERE IS CONCERN THAT PROMPTS OR AI COULD ALSO DRIVE ACTS THROUGH
POSES A CHALLENGE TO DATA EVEN THE MODELS THE METHODS DESCRIBED BEFORE OR
SECURITY THEMSELVES COULD PUT SENSITIVE BY MAKING MORE
INFORMATION OR INTELLECTUAL TRADITIONAL THREATS LIKE
PROPERTY AT RISK OF EXPOSURE PHISHING HARDER TO DISTINGUISH
AI in Cyber Security
AI is increasingly being used for Cyber Security.
Some of the ways that AI is being used are Security
Awareness Training, Advanced Encryption, Security
App Development, Anomaly Detection, and Phishing Detection.
AI is being used now to protect data and sensitive information.
Works Cited
• AI and cyber security: What you need to know. NCSC. (n.d.).
https://www.ncsc.gov.uk/guidance/ai-and-cyber-security-what-you-need-to-know#section_4
• Anyoha, R. (2020, April 23). The history of Artificial Intelligence. Science in the News.
https://sitn.hms.harvard.edu/flash/2017/history-artificial-intelligence/
• Collina, L., Sayyadi, M., & Provitera, M. (2024). Thew new data management model: effective
data management for AI systems. California Management Review, 66(3).
https://cmr.berkeley.edu/2024/03/the-new-data-management-model-effective-data-management-fo
r-ai-systems/
• Djere, R. (2023, August 14). AI Fundamentals. Djere.com. Retrieved July 14, 2024, from
https://djere.com/ai-fundamentals.html
• Edjlali, R., Beyer, M., Zaidi, E., Chien, M., & Showell, N. (2024, January 23). Innovation insight:
how generative AI is transforming data management solutions. Gartner.
https://www.gartner.com/document/5131531?ref=solrAll&refval=420548836&
Works Cited Continued
• Gugerty, L. (n.d.). (PDF) Newell and simon’s logic theorist: Historical background and impact on cognitive modeling.
https://www.researchgate.net/publication/276216226_Newell_and_Simon’s_Logic_Theorist_Historical_Background_a
nd_Impact_on_Cognitive_Modeling
• IBM Data and AI Team. (2024, April 15). AI vs. Machine Learning vs. Deep Learning vs. neural networks. IBM.
https://www.ibm.com/think/topics/ai-vs-machine-learning-vs-deep-learning-vs-neural-networks
• Khardah, K. (2022, May 9). ARTIFICIAL INTELLIGENCE. ICMT Academy. Retrieved July 14, 2024, from
https://icmt.in/artificial-intelligence/
• K-Nearest Neighbor(KNN) algorithm. GeeksforGeeks. (2024, July 15).
https://www.geeksforgeeks.org/k-nearest-neighbours/
• Optimus AI Labs. (2024, April 30). Optimizing data management for effective AI implementation. Linkedin.
https://www.linkedin.com/pulse/optimizing-data-management-effective-ai-implementation-bcduf/
• SEO (2023, December 15). Business Analytics and Data Analytics. SEO Consulting. Retrieved July 14, 2024, from
https://icmt.in/artificial-intelligence/
• Staff, S. (2024, May 6). 80% of data experts believe AI increases data security challenges. Security Magazine RSS.
https://www.securitymagazine.com/articles/100631-80-of-data-experts-believe-ai-increases-data-security-challenges
Works Cited Continued
• Tardi, C. (n.d.). What is Moore’s law and is it still true? Investopedia.
https://www.investopedia.com/terms/m/mooreslaw.asp
• Upadhyay, V. (2024, May 22). What is the role of AI in data management? Futran Solutions.
https://futransolutions.com/blog/what-is-the-role-of-ai-in-data-management/
• Vagi, R. (2020, March 13). Unpacking the hype: Making sense of predictive analytics, machine learning and AI
in market insights. Phase 5 - Marketing Research, Innovation, Experience Design.
https://www.phase-5.com/insights/news/unpacking-the-hype-making-sense-of-predictive-analytics-machine-lea
rning-and-ai-in-market-insights
• Wu, Z., Johnston, K. E., Arnold, F. H., & Yang, K. K. (2021, December 14). Protein sequence design with deep
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• 14 natural language processing techniques evolving the NLP industry. Revolveai. (2022, May 17).
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