Artificial intelligence is the simulation of human intelligence processes by machines, especially computer systems. Specific applications of AI include expert systems, natural language processing, speech recognition and machine vision.

Artificial intelligence is based on the principle that human intelligence can be defined in a way that a machine can easily mimic it and execute tasks, from the most simple to those that are even more complex. The goals of artificial intelligence include mimicking human cognitive activity. Researchers and developers in the field are making surprisingly rapid strides in mimicking activities such as learning, reasoning, and perception, to the extent that these can be concretely defined. Some believe that innovators may soon be able to develop systems that exceed the capacity of humans to learn or reason out any subject. But others remain skeptical because all cognitive activity is laced with value judgments that are subject to human experience.

AI is used extensively across a range of applications today, with varying levels of sophistication. Recommendation algorithms that suggest what you might like next are popular AI implementations, as are chatbots that appear on websites or in the form of smart speakers (e.g., Alexa or Siri). AI is used to make predictions in terms of weather and financial forecasting, to streamline production processes, and to cut down on various forms of redundant cognitive labor.

1. Reactive AI uses algorithms to optimize outputs based on a set of inputs. Chess-playing AIs, for example, are reactive systems that optimize the best strategy to win the game. Reactive AI tends to be fairly static, unable to learn or adapt to novel situations. Thus, it will produce the same output given identical inputs.
2. Limited memory AI can adapt to past experience or update itself based on new observations or data. Often, the amount of updating is limited (hence the name), and the length of memory is relatively short. Autonomous vehicles, for example, can "read the road" and adapt to novel situations, even "learning" from past experience.
3. Theory-of-mind AI are fully-adaptive and have an extensive ability to learn and retain past experiences. These types of AI include advanced chat-bots that could pass the Turing Test, fooling a person into believing the AI was a human being. While advanced and impressive, these AI are not self-aware.
4. Self-aware AI, as the name suggests, become sentient and aware of their own existence. Still in the realm of science fiction, some experts believe that an AI will never become conscious or "alive".

1. Automation. Automation is one of the most commonly cited benefits of AI technology, and it has had significant impacts on the communications, transportation, consumer products, and service industries. Automation not just leads to higher production rates and increased productivity in these sectors but also allows more efficient use of raw materials, improved product quality, reduced lead times, and superior safety.
2. Smart Decision Making. Artificial Intelligence has always been used for making smarter business decisions. AI technology can coordinate data delivery, analyze trends, develop data consistency, provide forecasts, and quantify uncertainties to make the best decisions for the company. As long as AI is not programmed to imitate human emotions, it will remain unbiased on the matter at hand and will help to make the right decision to support business efficiency.
3. Enhanced Customer Experience. AI-powered solutions can help businesses to respond to customer queries and grievances quickly and address the situations efficiently. The use of chatbots that couple conversational AI with Natural Language Processing technology can generate highly personalized messages for customers, which helps to find the best solution for their needs. AI tools can also help to reduce the strain from the customer service staff, which will lead to better productivity.
4. Research and Data Analysis. AI and Machine Learning technology can be used to analyze data much more efficiently. It can help to create predictive models and algorithms to process data and understand the potential outcomes of different trends and scenarios. Moreover, the advanced computing capabilities of AI can also speed up the processing and analysis of data for research and development, which could have taken too long for humans to review and understand.
5. Minimizing Errors.Another great benefit of automating regular business tasks using AI tools is that it helps to reduce the chances of manual errors. As Robotic Process Automation tools take care of the data entry and processing jobs, it can make the digital systems more efficient and less likely to run into or create any problems due to data processing mistakes. This can be especially beneficial for businesses that cannot afford to make even the slightest of errors.