Four Types of AI Value Creation

Summary

From a technical perspective, artificial intelligence (AI) can be seen in the form of chatbots and natural language processing, computer vision and image recognition, pattern recognition, and robotics. However, neural networks, random forests, and gradient boosting machines are some of the algorithms that have been used to create value analytically. From a business perspective, AI's use cases can range from network optimisation in the telecommunications sector to drug discovery and diagnostics in health care, to budget optimisation for media departments to lead generation for sales teams. This chapter identifies four distinct ways in which AI can create value: process optimisation, decision‐making augmentation, decision‐making automation, and AI products and services. A value chain is a sequence of activities involving the application of capabilities transforming inputs into valuable outputs. The automation of decision‐making with AI is extending the decision augmentation process by offering not only actionable insights but also taking action itself.