What Is Artificial Intelligence? Why AI Matters
Conversations around artificial intelligence are happening everywhere, but how is this technology relevant to the world of work? Break through the jargon and learn about the business benefits of AI.
Conversations around artificial intelligence are happening everywhere, but how is this technology relevant to the world of work? Break through the jargon and learn about the business benefits of AI.
In this article we discuss:
Few terms are as widely discussed and poorly understood as artificial intelligence (AI). Over the last 60 years, AI has been subject to speculation—whether from market analysts or science-fiction authors. Now that the AI market has reached maturity, AI is continuously changing how we work with each other. For business leaders, knowing what AI is and how it elevates human performance is essential.
The days of limiting AI to playing chess and computer games are behind us. Today, people use AI in every facet of their daily lives, whether it’s powering smarter search results, real-time image recognition, or self-driving cars. Simultaneously, businesses are using AI for a wide variety of applications, from identifying employee skills gaps to detecting financial anomalies. Organizations that continue to rely on outdated and manual processes risk falling behind.
Forrester reports that the global AI software market will double from $33 billion in 2021, to $64 billion in 2025. The majority of that growth will come from business applications infused with AI.
In this article, we first define the term artificial intelligence and the different types of AI. We then outline the main business benefits that are motivating companies to adopt AI. Finally, we outline the importance of ethical AI, and how AI techniques will define the future of the global marketplace. As AI research continues to accelerate, so too will the competitive advantage of businesses that leverage AI.
Artificial intelligence is the ability for machines to perform tasks traditionally seen as requiring human intelligence.
Artificial intelligence is the ability for machines to perform tasks traditionally seen as requiring human intelligence. These functions include solving problems, making decisions, and understanding language. As with any other major technological innovation, the goal of AI is to improve human lives and enhance productivity.
There are many popular terms related to AI, such as machine learning, natural language processing, and deep learning. Sometimes people use these terms interchangeably, particularly machine learning and artificial intelligence, but there are key differences. Here are some quick definitions of different AI technologies to help clarify the distinctions.
One of the most popular methods for classifying AI is to compare its functionality with human performance. While there are already numerous business applications for AI, this comparison shows the potential future scope for advancement. Early adopters will see major benefits further down the line as computing power continues to increase. The four main types of AI are:
As we look ahead to future AI developments, it’s critical that businesses recognise the massive changes that have already occurred in the global workplace. HR has shifted to a skills-based economy. Finance has embraced touchless transactions. And IT must now manage tools for a distributed workforce while keeping up with emerging laws and compliance guidelines.
In each instance, AI enables businesses to better address past, present, and future change.
In the Workday report “AI IQ: Insights on Artificial Intelligence in the Enterprise,” 1,000 senior decision-makers were surveyed about artificial intelligence. Of those leaders, 99% stated that they believed there were clear benefits to investing in AI and ML. But what functions should companies be looking to support with artificial intelligence?
Here's a breakdown of six key areas where AI is already supporting organizations:
For each of the above areas, AI automates manual processes to assist employees and drive efficiencies. Rather than removing human input, the future of AI relies on humans and machines working in partnership. In this method, AI provides data and recommendations, while humans remain in control of the major strategy and decisions. This human-machine collaboration is known as the “human-in-the-loop” approach, and is critical for the long-term success of AI.
According to Workday research, 94% of enterprise companies are investing in AI technology.
With AI becoming the market standard across industries, it’s important to understand the reasons driving its adoption. According to Workday research, 94% of enterprise companies are investing in AI technology. The question is, why are employers dedicating so many resources to AI?
At this point, the benefits of AI are far from speculative. PwC found that 54% of executives stated that AI solutions had already increased productivity in their business. By automating tedious and repetitive work, you allow employees to prioritize larger-scale problems across the business. PwC further predicted a 26% boost in gross domestic product for local economies from AI by 2030.
In its “State of AI in the Enterprise” report, Deloitte identifies companies with a high level of AI deployment and strategy as “transformers.” Within this group, respondents report positive impacts across company culture:
When Alan Turing proposed the “imitation game” in 1950, the goal was to evaluate the power of artificial intelligences. Later renamed the Turing test, the imitation game was designed to assess whether a computer could demonstrate human-like intelligence. However, Turing didn’t account for whether or not someone created that AI responsibly.
The recent explosion of interest in generative AI has brought the debate surrounding responsible AI to the fore. With consumer AI now writing academic essays, creating fake images of public figures, and mimicking musician’s vocal styles, a major question mark hangs over the trustworthiness of AI technology.
In the 2024 Global Study “Closing the AI Trust Gap,” Workday surveyed 1,375 business leaders and 4,000 employees worldwide. Results indicated that 70% of business leaders and 66% of employees believed that AI should be developed and used in such a way that easily allows for human review and intervention. That need for transparency and accountability are major factors guiding Workday AI development.
AI is still a nascent marketplace, and, as with any new development, it’s important to put safeguards in place. At Workday, our commitment to responsible AI directly reflects our core values, focusing on our employees, customer service, innovation, and integrity. In doing so, we aspire to achieve the following goals:
PwC found that 54% of executives stated that AI solutions had already increased productivity in their businesses.
As businesses look to the future of AI, the decisions made now will define each company’s future success. Those that succeed will have AI embedded natively into the foundation of their products, ensuring they evolve together organically. Here’s how AI is already impacting the future of work across HR, IT, and finance:
With more than 65 million users on the same version of Workday, only our customers have the trusted HR and finance data necessary to realize the potential of AI. For more information on how Workday can support you in the new world of work, read about our innovations with AI.
More Reading
The EU AI Act is setting a new standard for responsible AI, and Workday is committed to leading the way. Learn how our innovative approach to AI development and deployment aligns with the act’s requirements while empowering customers to build trust and drive ethical AI adoption.
Finance leaders who devote resources to a few key elements will be well positioned to elevate their roles to that of a futurist, according to a new eBook from Workday.
Read more on how we’re helping our customers succeed with innovative HR technology.