What is the difference between AI and BI?

by Imdad
What is the difference between AI and BI

AI (Artificial Intelligence) can be overwhelming.  Even the programmers who created these computer models do not know how they work.

BI (Business Intelligence) is critical for business decision-makers but many think AI can function like BI which it really can’t.

In simple terms, the difference between AI and BI is as follows:

AI (Artificial Intelligence): AI functions like a smart assistant that learns from data and makes decisions autonomously. It can analyze vast amounts of data to identify patterns, predict outcomes, and even understand human language. AI automates tasks, suggests solutions, and adapts to new situations without explicit programming.

BI (Business Intelligence): BI involves reviewing reports or dashboards that inform you about your business’s current status. It helps you understand past performance, monitor key metrics, and identify trends through data visualization and analytics. While BI doesn’t make decisions for you, it provides insights that enable humans to make informed decisions.

BI is good at displaying the patterns in data, and AI is good at helping to explain the patterns.What is the difference between AI and BI middle image

AI excels as an assistant and in uncovering hidden patterns within data. To leverage AI effectively, start by preparing your data using a comprehensive checklist. Begin with a clear understanding of what you want to find, which sets a solid foundation for more complex data inquiries.

For example, questions like “What ZIP code do most of our clients reside in?” or “What is the average age of our clients?” can be answered by BI tools. However, using AI to go beyond BI involves deeper data insights. For instance, an AI query like “Generate a list of clients who purchased more than five times and then stopped purchasing for a year, and analyze their purchase history to identify five reasons they stopped” illustrates AI’s advanced capabilities beyond what BI can offer.

While BI focuses on using data to understand and improve business operations through human interpretation and decision-making, AI utilizes smart algorithms that can learn and act autonomously

We have been testing, programming, and working with AI and BI for years. If you’d like to have a conversation to discuss what you need, give us a call. We are happy to help.

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