Artificial intelligence explained

Artificial intelligence (AI) is technology that learns from data and recognises patterns. It uses those patterns to generate predictions, recommendations or content.

AI supports many tools people use every day. It helps software do tasks that usually need human thinking, such as:

• understanding language
• identifying images
• making predictions.

AI systems rely on two core elements:

• data to learn from
• a model or algorithm that can analyse the data and produce a result or recommendation.

Unlike traditional software that follows fixed rules, AI learns patterns from data. This allows it to generate new results rather than repeat the same instructions each time.

Many organisations are beginning to use AI as part of everyday work. It’s used to support a range of tasks, such as:

• writing or summarising documents
• analysing information or data
• automating routine work.

AI is built into many everyday tools and is also available as standalone products. Used well, AI can help you:

• save time on manual tasks
• reduce operating costs
• support growth.

Learn more about why organisations use AI.

You may already be using AI without realising it. Many AI features are built into everyday business tools, such as accounting, payroll and customer support software.

Different types of AI support different tasks.

GenerativeAI (GenAI)

Creates new content based on prompts or examples. It can create text, images, code, audio or video. Most people access GenAI through chat-based tools, where they type a question or instruction and get a response. Organisations use it to draft emails, create marketing content or generate ideas.

Machine learning (ML)

Analyses data to find patterns and make predictions. It can forecast trends, detect unusual activity or support decisions. ML systems usually provide recommendations or alerts, rather than acting on their own.

Automation with AI features

Automation tools are built into existing business software. They’re used to reduce manual data entry, with staff still responsible for reviewing the results.

Agentic AI

Refers to systems that work towards a goal rather than a single task or prompt. It doesn’t wait for instructions and can act on your behalf. Agentic AI can act independently, using other software tools or systems, and can complete multi-step tasks.

Computer vision AI

Analyses images or video. It can scan documents, track inventory and inspect product quality through cameras and sensors.

Natural language processing

Allows systems to understand and analyse written or spoken language. This includes summarising documents, analysing customer feedback or translating text.

AI is increasingly used in everyday business tools, but there are still many misunderstandings about what it can and can’t do.

Some people think AI will replace staff or is only for large organisations. But in practice, AI is usually used to support people with tasks – not replace them. Many everyday tools already include AI features, so organisations of any size can use AI.

AI can make mistakes and has practical limitations. For example:

• AI responses can sometimes be wrong or misleading
• outputs may reflect bias in training data
• AI can’t apply judgement or context the way people do.

To use AI more safely and effectively, understand the myths and limitations.