Artificial Intelligence (AI), first defined in 1956 as the science and engineering of creating intelligent machines, has now evolved into a technology that is transforming many business sectors. AI is designed to mimic human intelligence such as the ability to learn, analyze, solve problems, and adapt. In business, AI allows companies to analyze big data in real-time, improve efficiency with automation, and personalize customer experience through intelligent recommendation systems.
AI also has capabilities such as Object Recognition to visually recognize objects, Language Understanding to understand human language, and Learning that allows machines to evolve over time. In addition, AI can provide Recommendations relevant to user preferences and perform Autonomous Actions, operating without human input for efficiency and quick decisions. AI provides various benefits, such as Task Automation that automates repetitive tasks, Decision Making that improves decision making with accurate data, and Data Insights that provide faster insights from data. AI also reduces Error Reduction with high accuracy, reduces Risk Reduction by automating dangerous tasks, and ensures Continuous Availability with 24/7 system availability.
Although AI offers many benefits, there are some challenges and risks that need to be considered. One of them is Data Risks, which includes the potential for data leakage or data loss that can threaten privacy and information security. In addition, there are Ethics and Legal Risks, such as regulatory compliance issues and ethical dilemmas that arise when AI is used to make decisions that affect individuals or groups.
On the other hand, the use of AI can also present challenges in Business Operations, such as the high cost of implementation, as well as Resource Mismanagement and Process Inefficiencies that can arise if not managed properly. Operational Risks can also arise, especially if AI systems fail to function properly, which can disrupt smooth operations.
The role of AI in global business is becoming increasingly crucial as companies integrate technology to transform operations and enhance customer experiences. Alibaba, a leading Chinese e-commerce company, demonstrated this with the launch of the FlyZoo Hotel in December 2018. At FlyZoo, guests check in using facial recognition technology, and elevators and hotel rooms equipped with Tmall Genie respond to voice commands to adjust lighting, temperature, and other amenities. Robots are utilized for room service, laundry, and restaurant tasks, offering a fully automated and seamless hospitality experience.
In a similar move toward AI integration, Domino’s Pizza partnered with Microsoft to improve both customer ordering and store management. Through the use of AI and cloud computing, Domino’s personalizes the ordering experience and streamlines tasks such as inventory control and scheduling. Tesla has also adopted AI at the core of its operations, applying Industry 4.0 principles by combining AI, IoT, and robotics to refine manufacturing. With AI-driven computer vision, Tesla detects production defects in real time, reduces waste, and enhances operational efficiency, while predictive maintenance helps prevent equipment breakdowns.
The importance of AI in enhancing collaboration and innovation is reflected in companies like Unilever, which introduced a cloud-based eB2B platform to link distributors, sales teams, and retailers across countries. Powered by AI, this platform enables real-time data sharing, improving inventory management and planning, as demonstrated in its collaboration with Walmart Mexico.
Domino’s has also embraced innovation with its Pinpoint Delivery service, allowing customers to receive orders nearly anywhere while tracking them via GPS and receiving live updates. Coca-Cola, on the other hand, leveraged AI technology to create Y3000, a limited-edition beverage developed by analyzing consumer preferences and projecting future flavor trends.
The use of AI in supporting global expansion is particularly evident as companies adapt their strategies for diverse markets. Netflix, for instance, uses AI to personalize content recommendations, promotional images, and subtitles based on regional language and viewing habits. Coca-Cola’s "Real Magic" campaign applied AI to produce thousands of localized advertisement variations, successfully resonating with audiences in over 100 countries.
Spotify also employs AI to tailor playlists, recommendations, and advertisements according to local music trends and cultural events, ensuring relevance across global markets. Moreover, Alibaba’s AI translation system, Marco MT, facilitates smooth communication between international buyers and sellers by automatically translating product descriptions and customer interactions, boosting cross-border e-commerce efficiency.
Looking ahead, the future of AI promises even deeper integration into both business and society. Rather than being a temporary trend, AI is now a fundamental force behind the evolution from traditional business models to innovative, tech-driven practices. Its continued development will depend on how humans guide its use to enhance business performance and promote societal well-being.
