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Business Term

Artificial Intelligence

Artificial intelligence (AI) uses data to classify, predict, summarize, or recommend. It is useful when you define the task clearly and treat it as a tool, not as magic.

AIUpdated: 03/16/2026
What it means

Artificial intelligence is a broad group of techniques that let systems learn from data and support tasks such as classification, prediction, recommendation, and reasoning. In practice, the hard part is not only building the model. You must also define the use case, the success criteria, the acceptable error, and who remains responsible when the model is wrong.

When it helps

Use it when the team repeats the same kind of judgment at scale, such as triage, forecasting, or classification. Use it when human-only processing is too slow, but a human can still review or approve the result. Be careful when errors are costly or explanation is required; those cases need stronger controls.

  • Use it when the team repeats the same kind of judgment at scale, such as triage, forecasting, or classification.
  • Use it when human-only processing is too slow, but a human can still review or approve the result.
  • Be careful when errors are costly or explanation is required; those cases need stronger controls.
How to use it
  • Start with one clear task. Do not begin with a vague goal such as 'use AI somewhere'.
  • Check the training and evaluation data before you trust the output. Bias and missing cases matter.
  • Choose success metrics in advance. Accuracy alone is often not enough.
  • Plan monitoring after launch. Models drift as data and behavior change.
  • Decide who owns the final decision when the model output looks wrong or uncertain.
Example

Example: A support team wants AI to classify inbound customer inquiries. Instead of full automation, the team uses AI only to suggest the priority and category, while human agents keep final approval. Response speed improves, but harmful misclassifications stay limited because the team starts with support, not full replacement.

Compare with

AI is broader than simple automation because it learns patterns from data instead of only following fixed rules. Big data refers to large datasets. AI refers to the methods used to classify, predict, or recommend from those datasets.

  • AI is broader than simple automation because it learns patterns from data instead of only following fixed rules.
  • Big data refers to large datasets. AI refers to the methods used to classify, predict, or recommend from those datasets.
Common mistakes
  • AI is not a replacement for human judgment in every situation.
  • A small or biased dataset will limit reliability, even if the model looks sophisticated.
  • A deployed model does not stay good forever; it degrades if nobody monitors it.
Sources
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Artificial Intelligence (Fall 2010) | MIT OpenCourseWareOpen courseOpen
Frequently asked questions
Q. Does AI remove the need for human judgment?
A. No. In high-impact situations, a human still needs to review, approve, or override the result.
Q. What is the safest way to start using AI?
A. Start with support tasks such as classification or summarization, define the success criteria, and keep human review in place.
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03/16/2026
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