If you’ve been hearing about AI everywhere, you’re not alone. But what exactly is it, and why does it matter for your business? Let’s break it down without the tech jargon. 

  • At its core, AI is a software. Most softwares that you are familiar with follow a fixed script or have a set outcome. If you put in X, it does Y. Microsoft Excel, Adobe Photoshop, Slack, Oracle, are all examples of this. 
  • The difference between traditional softwares and AI is that AI can learn and adapt instead of following a fixed script. AI is trained to spot patterns in data and make it’s own best guess as what to do next.
  • Think of it as a difference between a calculator and an assistant. A calculator follows the exact steps you punch in and gives you a set outcome while an assistant remembers tasks, notices trends, and gives suggestions. 


Here is a simple analogy. Imagine teaching your child what a cat is.

  1. You show them hundreds of pictures of cats, dogs, and other animals.
  2. They start to notice patterns such as cats usually have pointy ears, certain whiskers, and certain shapes.
  3. Later you show a new picture of a cat, and they say, “That looks like a cat!” 
  • This is exactly what AI does with data, and what it means when you hear the phrases “AI learns” or “AI model training.” This can be done for AI with almost anything, so instead of pictures of cats it could be recognizing patters in sales numbers, finding patters to answer most common customer questions, or even handwritten invoices.


You are likely already using AI every day without even realizing it. Here are some real world examples you already see.

  • Email spam filters - learning which emails are junk and automatically sending them to the junk box.
  • Netflix or Spotify recommendations - these spot patterns in the shows or music that you like and have listened to and recommend new media based on that data.
  • Maps and GPS - predicting traffic delays and rerouting you if it can find a faster route.


AI can do a lot of powerful things, but I think it’s just as important to know what AI is not.

  • It’s not magic. AI doesn’t know everything, it is trained on data sets so it is limited to the knowledge within that data.
  • It’s not human. It doesn’t “think” or “feel” like we do as humans, it just recognizes patters, makes predictions, and can execute tasks.
  • It’s not perfect. AI makes mistakes and needs human oversight.


So why does AI matter for you?

  • AI matters for you because it can save you time on repetitive tasks, save you money catching mistakes or improving efficiency, and help you grow by spotting opportunities in your data.
  • AI isn’t here to replace small businesses or replace people, it’s here to give them tools once only big companies could afford.


Next step: Curious about what AI can (and can’t) do for your business? Check out our 3 Things AI can and can't do guide.


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