The artificial intelligence market was estimated to be worth $136 billion in 2022, with projections of up to $1,800 billion by the end of the decade. More than a third of companies today implement AI in their business processes, and over 40% will consider doing so in the future.

These whopping numbers testify to the importance, prevalence, and reality of AI in the modern world. If you’re considering an education in AI, you’re looking at a highly rewarding and prosperous future career. But what are the applications of artificial intelligence, and how did it all begin? Let’s start from scratch.

What Is Artificial Intelligence?

Artificial intelligence definition describes AI as a part of computer science that focuses on building programs and software with human intelligence. There are four types of artificial intelligence: the theory of mind, reactive, self-aware, and limited memory.

Reactive AI masters one field, like playing chess, performing a single manufacturing task, and similar. Limited memory machines can gather and remember information and use findings to offer recommendations (hotels, restaurants, etc.).

Theory of mind is a more developed type of AI capable of understanding human emotions. These machines can also take part in social interactions. Finally, self-aware AI is a conscious machine, but its development is reserved for the future.

History of Artificial Intelligence

The concept of artificial intelligence has roots in the 1950s. This was when AI became an academic discipline, and scientists started publishing papers about it. It all started with Alan Turing and his paper about computer machinery and intelligence that introduced basic AI concepts.

Here are some important milestones in the artificial intelligence field:

  • 1952 – Arthur Samuel created a program that taught itself to play checkers.
  • 1955 – John McCarthy’s workshop on AI, where the term was used for the first time.
  • 1961 – First robot worker on a General Motors factory’s assembly line.
  • 1980 – First conference on AI.
  • 1986 – Demonstration of the first driverless car.
  • 1997 – A program beat Gary Kasparov in a legendary chess match, thus becoming the first AI tool to win in a competition over a human.
  • 2000 – Development of a robot that simulates a person’s body movement and human emotions.

AI in the 21st Century

The 21st century has witnessed some of the fastest advancements and applications of artificial intelligence across industries. Robots are becoming more sophisticated, they land on other planets, work in shops, clean, and much more. Global corporations like Facebook, Twitter, Netflix, and others regularly use AI tools in marketing to boost user experience, etc.

We’re also seeing the rise of AI chatbots like ChatGPT that can create content indistinguishable from human content.

Fields Used in Artificial Intelligence

Artificial intelligence relies on the use of numerous technologies:

  • Machine Learning – Making apps and processes that can perform tasks like humans.
  • Natural Language Processing – Training computers to understand words like humans.
  • Computer Vision – Developing tools and programs that can read visual data and take information from it.
  • Robotics – Programming agents to perform tasks in the physical world.

Applications of Artificial Intelligence

Below is an overview of applications of artificial intelligence across industries.

Automation

Any business and sector that relies on automation can use AI tools for faster data processing. By implementing advanced artificial intelligence tools into daily processes, you can save time and resources.

Healthcare

Fraud is common in healthcare. AI in this field is mostly oriented toward lowering the risk of fraud and administrative fees. For example, using AI makes it possible to check insurance claims and find inconsistencies.

Similarly, AI can help advance and finetune medical research, telemedicine, medical training, patient engagement, and support. There’s virtually no aspect of healthcare and medicine that couldn’t benefit from AI.

Business

Businesses across industries benefit from AI to finetune various aspects like the hiring process, threat detection, analytics, task automation, and more. Business owners and managers can make better-informed business decisions with less risk of error.

Education

Modern-day education offers personalized programs tailored to the individual learner’s abilities and goals. By automating tasks with AI tools, teachers can spend more time helping students progress faster in their studies.

Security

Security has never been more important following the rise of web applications, online shopping, and data sharing. With so much sensitive information shared daily, AI can help increase data protection and mitigate hacking attacks and threats. Systems with AI features can diagnose, scan, and detect threats.

Benefits and Challenges of Artificial Intelligence

There are enormous benefits of AI applications that can revolutionize any industry. Here are just some of them:

Automation and Increased Efficiency

AI helps streamline repetitive tasks, automate processes, and boost work efficiency. This characteristic of AI is already visible in all industries, and the use of programming languages like R and Python makes it all possible.

Improved Decision Making

Stakeholders can use AI to analyze immense amounts of data (with millions or billions of pieces of information) and make better-informed business decisions. Compare this to limited data analysis of the past, where researchers only had access to local documents or libraries, and you can understand how AI empowers present-day business owners.

Cost Savings

By automating tasks and streamlining processes, businesses also spend less money. Savings in terms of energy, extra work hour costs, materials, and even HR are significant. When you use AI right, you can turn almost any project into reality with minimal cost.

Challenges of AI

Despite the numerous benefits, AI also comes with a few challenges:

Data Privacy and Security

All AI developments take place online. The web still lacks proper laws on data protection and privacy, and it’s highly possible that user data is being used without consent in AI projects worldwide. Until strict laws are enacted, AI will continue to pose a threat to data privacy.

Algorithmic Bias

Algorithms today assist humans in decision-making. Stakeholders and regular users rely on data provided by AI tools to complete or approach tasks and even form new beliefs and behaviors. Poorly trained machines can encourage human biases, which can be especially harmful.

Job Less

AI is developing at the speed of light. Many tools are already replacing human labor in both the physical and digital worlds. A question remains to what degree machines will overtake the labor market in the future.

Artificial Intelligence Examples

Let’s look at real-world examples of artificial intelligence across applications and industries.

Virtual Assistants

Apple was the first company to introduce a virtual assistant based on AI. We know the tool today by the name of Siri. Numerous other companies like Amazon and Google have followed suit, so now we have Alexa, Google Assistant, and many other AI talking assistants.

Recommendation Systems

Users today find it ever more challenging to resist addictive content online. We’re often glued to our phones because our Instagram feed keeps suggesting must-watch Reels. The same goes for Netflix and its binge-worthy shows. These platforms use AI to enhance their recommendation system and offer ads, TV shows, or videos you love.

Shopping on Amazon works in a similar fashion. Even Spotify uses AI to offer audio recommendations to customers. It relies on your previous search history, liked content, and similar data to provide new suggestions.

Autonomous Vehicles

New-age vehicles powered by AI have sophisticated systems that make commuting easier than ever. Tesla’s latest AI software can collect information in real-time from the multiple cameras on the vehicles. The AI makes a 3D map with roads, obstacles, traffic lights, and other elements to make your ride safer.

Waymo has a similar system of lidar sensors around the vehicles that send pulsations around the car and offer an overview of the car’s surroundings.

Fraud Detection

Banks and credit card companies implement AI algorithms to prevent fraud. Advanced software helps these companies understand their customers and prevent non-authorized users from making payments or completing other unauthorized actions.

Image and Voice Recognition

If you have a newer smartphone, you’re already familiar with Face ID and voice assistant tools. These are built on basic AI principles and are being integrated into broader systems like vehicles, vending machines, home appliances, and more.

Deep Learning

Artificial intelligence encompasses both deep learning and machine learning. Machine learning encompasses deep learning and uses algorithms that learn from data, explore patterns, and predict outputs.

Deep learning relies on sophisticated neural networks similar to the networks in the human brain. Deep learning specialists use these neural networks to pinpoint patterns in large data sets.

Artificial Intelligence Continues to Grow and Develop

Although predicting the future is impossible, numerous AI specialists expect to see further development in this computer science discipline. More businesses will start implementing AI and we’ll see more autonomous vehicles and smarter robotics. That said, it’s increasingly important to take into account ethical considerations. As long as we use AI ethically, there’s no danger to our social interactions and privacy.

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Il Sole 24 Ore: Integrating Artificial Intelligence into the Enterprise – Challenges and Opportunities for CEOs and Management
OPIT - Open Institute of Technology
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Expert Pierluigi Casale analyzes the adoption of AI by companies, the ethical and regulatory challenges and the differentiated approach between large companies and SMEs

By Gianni Rusconi

Easier said than done: to paraphrase the well-known proverb, and to place it in the increasingly large collection of critical issues and opportunities related to artificial intelligence, the task that CEOs and management have to adequately integrate this technology into the company is indeed difficult. Pierluigi Casale, professor at OPIT (Open Institute of Technology, an academic institution founded two years ago and specialized in the field of Computer Science) and technical consultant to the European Parliament for the implementation and regulation of AI, is among those who contributed to the definition of the AI ​​Act, providing advice on aspects of safety and civil liability. His task, in short, is to ensure that the adoption of artificial intelligence (primarily within the parliamentary committees operating in Brussels) is not only efficient, but also ethical and compliant with regulations. And, obviously, his is not an easy task.

The experience gained over the last 15 years in the field of machine learning and the role played in organizations such as Europol and in leading technology companies are the requirements that Casale brings to the table to balance the needs of EU bodies with the pressure exerted by American Big Tech and to preserve an independent approach to the regulation of artificial intelligence. A technology, it is worth remembering, that implies broad and diversified knowledge, ranging from the regulatory/application spectrum to geopolitical issues, from computational limitations (common to European companies and public institutions) to the challenges related to training large-format language models.

CEOs and AI

When we specifically asked how CEOs and C-suites are “digesting” AI in terms of ethics, safety and responsibility, Casale did not shy away, framing the topic based on his own professional career. “I have noticed two trends in particular: the first concerns companies that started using artificial intelligence before the AI ​​Act and that today have the need, as well as the obligation, to adapt to the new ethical framework to be compliant and avoid sanctions; the second concerns companies, like the Italian ones, that are only now approaching this topic, often in terms of experimental and incomplete projects (the expression used literally is “proof of concept”, ed.) and without these having produced value. In this case, the ethical and regulatory component is integrated into the adoption process.”

In general, according to Casale, there is still a lot to do even from a purely regulatory perspective, due to the fact that there is not a total coherence of vision among the different countries and there is not the same speed in implementing the indications. Spain, in this regard, is setting an example, having established (with a royal decree of 8 November 2023) a dedicated “sandbox”, i.e. a regulatory experimentation space for artificial intelligence through the creation of a controlled test environment in the development and pre-marketing phase of some artificial intelligence systems, in order to verify compliance with the requirements and obligations set out in the AI ​​Act and to guide companies towards a path of regulated adoption of the technology.

Read the full article below (in Italian):

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The Lucky Future: How AI Aims to Change Everything
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Apr 10, 2025 7 min read

There is no question that the spread of artificial intelligence (AI) is having a profound impact on nearly every aspect of our lives.

But is an AI-powered future one to be feared, or does AI offer the promise of a “lucky future.”

That “lucky future” prediction comes from Zorina Alliata, principal AI Strategist at Amazon and AI faculty member at Georgetown University and the Open Institute of Technology (OPIT), in her recent webinar “The Lucky Future: How AI Aims to Change Everything” (February 18, 2025).

However, according to Alliata, such a future depends on how the technology develops and whether strategies can be implemented to mitigate the risks.

How AI Aims to Change Everything

For many people, AI is already changing the way they work. However, more broadly, AI has profoundly impacted how we consume information.

From the curation of a social media feed and the summary answer to a search query from Gemini at the top of your Google results page to the AI-powered chatbot that resolves your customer service issues, AI has quickly and quietly infiltrated nearly every aspect of our lives in the past few years.

While there have been significant concerns recently about the possibly negative impact of AI, Alliata’s “lucky future” prediction takes these fears into account. As she detailed in her webinar, a future with AI will have to take into consideration:

  • Where we are currently with AI and future trajectories
  • The impact AI is having on the job landscape
  • Sustainability concerns and ethical dilemmas
  • The fundamental risks associated with current AI technology

According to Alliata, by addressing these risks, we can craft a future in which AI helps individuals better align their needs with potential opportunities and limitations of the new technology.

Industry Applications of AI

While AI has been in development for decades, Alliata describes a period known as the “AI winter” during which educators like herself studied AI technology, but hadn’t arrived at a point of practical applications. Contributing to this period of uncertainty were concerns over how to make AI profitable as well.

That all changed about 10-15 years ago when machine learning (ML) improved significantly. This development led to a surge in the creation of business applications for AI. Beginning with automation and robotics for repetitive tasks, the technology progressed to data analysis – taking a deep dive into data and finding not only new information but new opportunities as well.

This further developed into generative AI capable of completing creative tasks. Generative AI now produces around one billion words per day, compared to the one trillion produced by humans.

We are now at the stage where AI can complete complex tasks involving multiple steps. In her webinar, Alliata gave the example of a team creating storyboards and user pathways for a new app they wanted to develop. Using photos and rough images, they were able to use AI to generate the code for the app, saving hundreds of hours of manpower.

The next step in AI evolution is Artificial General Intelligence (AGI), an extremely autonomous level of AI that can replicate or in some cases exceed human intelligence. While the benefits of such technology may readily be obvious to some, the industry itself is divided as to not only whether this form of AI is close at hand or simply unachievable with current tools and technology, but also whether it should be developed at all.

This unpredictability, according to Alliata, represents both the excitement and the concerns about AI.

The AI Revolution and the Job Market

According to Alliata, the job market is the next area where the AI revolution can profoundly impact our lives.

To date, the AI revolution has not resulted in widespread layoffs as initially feared. Instead of making employees redundant, many jobs have evolved to allow them to work alongside AI. In fact, AI has also created new jobs such as AI prompt writer.

However, the prediction is that as AI becomes more sophisticated, it will need less human support, resulting in a greater job churn. Alliata shared statistics from various studies predicting as many as 27% of all jobs being at high risk of becoming redundant from AI and 40% of working hours being impacted by language learning models (LLMs) like Chat GPT.

Furthermore, AI may impact some roles and industries more than others. For example, one study suggests that in high-income countries, 8.5% of jobs held by women were likely to be impacted by potential automation, compared to just 3.9% of jobs held by men.

Is AI Sustainable?

While Alliata shared the many ways in which AI can potentially save businesses time and money, she also highlighted that it is an expensive technology in terms of sustainability.

Conducting AI training and processing puts a heavy strain on central processing units (CPUs), requiring a great deal of energy. According to estimates, Chat GPT 3 alone uses as much electricity per day as 121 U.S. households in an entire year. Gartner predicts that by 2030, AI could consume 3.5% of the world’s electricity.

To reduce the energy requirements, Alliata highlighted potential paths forward in terms of hardware optimization, such as more energy-efficient chips, greater use of renewable energy sources, and algorithm optimization. For example, models that can be applied to a variety of uses based on prompt engineering and parameter-efficient tuning are more energy-efficient than training models from scratch.

Risks of Using Generative AI

While Alliata is clearly an advocate for the benefits of AI, she also highlighted the risks associated with using generative AI, particularly LLMs.

  • Uncertainty – While we rely on AI for answers, we aren’t always sure that the answers provided are accurate.
  • Hallucinations – Technology designed to answer questions can make up facts when it does not know the answer.
  • Copyright – The training of LLMs often uses copyrighted data for training without permission from the creator.
  • Bias – Biased data often trains LLMs, and that bias becomes part of the LLM’s programming and production.
  • Vulnerability – Users can bypass the original functionality of an LLM and use it for a different purpose.
  • Ethical Risks – AI applications pose significant ethical risks, including the creation of deepfakes, the erosion of human creativity, and the aforementioned risks of unemployment.

Mitigating these risks relies on pillars of responsibility for using AI, including value alignment of the application, accountability, transparency, and explainability.

The last one, according to Alliata, is vital on a human level. Imagine you work for a bank using AI to assess loan applications. If a loan is denied, the explanation you give to the customer can’t simply be “Because the AI said so.” There needs to be firm and explainable data behind the reasoning.

OPIT’s Masters in Responsible Artificial Intelligence explores the risks and responsibilities inherent in AI, as well as others.

A Lucky Future

Despite the potential risks, Alliata concludes that AI presents even more opportunities and solutions in the future.

Information overload and decision fatigue are major challenges today. Imagine you want to buy a new car. You have a dozen features you desire, alongside hundreds of options, as well as thousands of websites containing the relevant information. AI can help you cut through the noise and narrow the information down to what you need based on your specific requirements.

Alliata also shared how AI is changing healthcare, allowing patients to understand their health data, make informed choices, and find healthcare professionals who meet their needs.

It is this functionality that can lead to the “lucky future.” Personalized guidance based on an analysis of vast amounts of data means that each person is more likely to make the right decision with the right information at the right time.

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