Artificial intelligence (AI) has actually existed since the 1950s, but companies of all sizes have been able to utilize this technology. AI has evolved to be relevant to almost every sector. In fact, AI usage in small and medium-sized businesses is more than doubled compared to 2023, with two in five business owners reporting that they use AI.
When you explore the various ways to integrate AI, you may hear the terms “generated AI” and “traditional AI.” Here's how these types of AI can do and how you can determine what your business needs:
What is traditional AI?
Traditional AI is a subset of artificial intelligence that focuses on performing preset tasks using given algorithms and rules. These AI applications are designed to excel in a single activity or a limited set of tasks, such as playing chess, diagnosing illnesses, and translating languages.
Traditional AI is smart, but it's not always responsive. “Other examples of traditional AI are voice assistants like Siri or Alexa, recommendation engines from Netflix or Amazon, or search algorithms from Google. These AIs are trained to follow certain rules, do certain tasks and do well, but don't create anything new,” writes Forbes.
Traditional AI has many useful applications. For example, some artificial intelligence spam filters use predefined rules to separate spam emails from your main inbox. Ultimately, however, traditional AI is as effective as the data used to train algorithms. Its effectiveness in streamlining and optimizing businesses is limited.
How does traditional AI work?
Traditional AI systems are typically trained on large datasets of labeled data. The system learns to identify patterns in data and uses them to generate predictions or output.
Here are some examples of traditional AI.
- Expert System: These systems are designed to emulate the knowledge and expertise of skilled human beings in a particular field. For example, it can be used to diagnose illness, troubleshoot technical issues, or provide financial advice using a professional system.
- Decision Tree: These systems are used to make decisions based on a set of rules. For example, you can use a decision tree to decide whether to approve a loan application or recommend the product to your customers.
- Natural Language Processing (NLP): The NLP system is used to understand and generate human language. For example, NLP systems are used in search engines, chatbots, and machine translation systems.
While traditional AI is still widely used, generative AI is rapidly becoming a favorable technology for business owners across the industry.
[Read more: 4 Effective Ways Small Businesses Can Leverage AI]
Traditional generative AI helps small and medium-sized businesses operate more efficiently.
What is Generated AI?
Generate AI generates text, videos, images, and other types of content. Popular tools like ChatGpt, Gemini, Dall-E are all examples of generator AI. Simply put, the key difference between traditional AI and generation AI is that it allows generation AI to create new ones.
“[G]Energy AI models are provided with a large supply of existing content, which trains the model to create new content. They learn to identify the underlying patterns of the dataset based on probability distributions, and when given a prompt, they create similar patterns (or output based on these patterns),” writes Investopedia.
Generated AI relies on machine learning to understand, predict and create content from data. Generator AI requires a huge amount of data to work, and machine learning provides training to fuel AI and generate results.
Which type of AI is suitable for your business?
Both traditional generative AI are responsible for helping your business run more efficiently.
“Traditional and generation AI have distinct features, but they are not mutually exclusive,” writes Forbes. “Generated AI can work with traditional AI to provide even more powerful solutions. For example, traditional AI can analyze user behavior data, and the generated AI can use this analysis to create personalized content.”
Look for repetitive, routine tasks that you can outsource to AI to make the most of these technologies. Sales, marketing, recruitment and customer service all have activities that can be improved through traditional, generic AI tools.
Risks and Limitations of Generating AI Tools
Generic AI tools have exploded in popularity, but there are several drawbacks to using these tools. “Generative AI helps us achieve great things, but it comes at ethical, social, environmental and human costs,” writes the University of Leeds. “It is important to consider these factors and support an ethical framework for the use of generative and other forms of AI. It is also very important to always ensure that the generated content is accurate and not AI hallucinations.”
AI hallucinations are often inaccurate information, although they appear factual. AI models can make mistakes. In fact, experts estimate that AI models model hallucinations from 3% to 27% of the time. So, before sharing with customers or employees, fact check everything that comes from the generated AI model.
Generation AI also has creative limitations. It can generate an idea, image, or copy depending on the prompt you will give it. If the prompt is vague or general, expect a somewhat general response. To make your brand unique, you will need to edit your content, images and other assets. Harvard University's Information Technology Department has useful tips on how to write better AI prompts.
Business Use Cases for Traditional AI and Generated AI
Traditional generative AI helps small and medium-sized businesses operate more efficiently.
Traditional AI can help you analyze information, improve speed workflows, and improve your decision-making. “The power of traditional AI lies in its ability to automate everyday tasks that can enhance decision-making processes and improve prediction capabilities,” writes Presidio, a global provider of digital services.
For example, traditional AI can be found in fraud detection solutions that scan thousands of transactions, identify patterns of normal activity, and flag abnormally. Traditional AI is often used in project management software and scheduling tools to send reminders, route documents for signatures, and set deadlines. Also, AI appears in many financial tools to help with forecasting and budgeting.
Generated AI is especially useful for creative tasks related to customer outreach. “Generating AI can support sales and marketing efforts by helping you study long-term information about your audience and the market,” Google writes.
Generated AI can perform basic writing and editing, brainstorm content ideas, analyze subject and email content, and help sales teams hone the pitch of different lead groups. Generation AI is also available in tools that can help you build websites and design visual elements. For example, Wix's artificial design intelligence can generate royalty-free images that you can add to your website to attract audiences.
How to start AI in a small business
When you understand how to integrate AI, start by looking for simple, everyday tasks that can benefit from automation. Scheduling, social media posting, and customer service are several business areas ripe for AI integration.
Next, look for a specific tool or platform that provides the type of AI you need to solve your business problems. “Comparative research on features and pricing allows you to choose the right AI tool for your application and results,” writes Investopedia. “Make sure your tools can be integrated with current systems and scaled according to the needs of your business as they grow.”
Provide the right training to the team members who use AI software the most, monitor their performance to ensure that they have found the right solution. You may need to provide advanced training so that staff can create write prompts for generated AI tools. Alternatively, you may need to provide the right data to traditional AI and produce the desired results.
“Reflect and solicit feedback on how tools work for your business and their employees, and take advantage of the machine learning capabilities that tools can provide over time,” Investopedia writes.
CO-We aim to bring inspiration from leading, respected professionals. However, before making business decisions, you should consult with an expert who can advise you based on your individual situation.
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