What Is Artificial Intelligence Analytics? (With Examples)

By Indeed Editorial Team

Updated January 25, 2023

Published January 3, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Companies produce and collect large amounts of data containing plenty of insights and patterns that aren't possible for humans to identify. To make better use of this data, companies can reference artificial intelligence (AI) analytics for help. Understanding artificial intelligence can help you learn how to derive important insights from your business data. In this article, we discuss what artificial intelligence analytics is, explain how artificial intelligence works, explore the different types, share the various benefits, and provide examples of artificial intelligence applications in use today.

What is artificial intelligence analytics?

Artificial intelligence is machine technology that simulates human intelligence. It's a collection of technologies with the ability to extract patterns and insights from large datasets. In artificial intelligence analytics, machines think, learn, and arrive at solutions just like people do. Here are various ways in which analytics is benefiting from artificial intelligence:

  • Data analysis: Using complex algorithms, artificial intelligence technology is analyzing data to reveal hidden patterns and insights that can then be essential in making better decisions.

  • Report generation: Using natural language generation (NLG), artificial intelligence technologies can generate reports that humans can understand.

  • Insights generation: Artificial intelligence identifies business insights from large troves of data, improving data literacy and finding answers to key questions.

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  • How to Become a Data Analyst (With Essential Skills)

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How does artificial intelligence work?

Artificial intelligence works by parsing large amounts of data and analyzing the data to reveal patterns. These patterns can then enable making predictions about the future. Artificial intelligence requires specialized software for writing machine learning algorithms using programming languages. It uses three cognitive processes to produce various analytics:

Cognitive skills

Artificial intelligence programming uses three cognitive skills or processes. These skills are:

  • Learning: Learning in artificial intelligence involves collecting data and developing rules of turning data into useable information. These rules, called algorithms, provide instructions on how to complete specific tasks.

  • Reasoning: Reasoning is the programming aspect that enables artificial intelligence technologies to take the correct action to achieve the desired outcome.

  • Self-correction: Self-correction mechanisms enable artificial intelligence systems to learn from the past to improve decision-making and achieve the best possible outcomes continuously.

Types of analytics

These cognitive skills enable artificial intelligence systems to achieve the following types of analytics:

  • Descriptive analytics: Artificial intelligence mines large quantities of data and aggregates data using tools such as reports, dashboards, and ratios. Descriptive analytics don't predict how variables affect each other.

  • Predictive analytics: Artificial intelligence predicts future trends based on current and past data. Predictive analytics uses historical data to make assumptions and inform decision-making.

  • Prescriptive analytics: This is the ability to develop recommendations based on predictive analysis. Decision-makers can use prescriptive analytics to take the best course of action in different scenarios.

Read more: 18 Data Analyst Skills for Success

Types of artificial intelligence

Here are the four types of artificial intelligence:

  • Reactive machines: Reactive artificial intelligence systems perform limited, specialized tasks. Reactive machines can't store memory and may lack the ability to apply past experiences to enable real-time decision-making.

  • Limited memory: Limited memory artificial intelligence systems have memory and can use past experiences in future decisions. Limited memory presents greater possibilities than reactive machines.

  • Theory of mind: Theory of mind artificial intelligence has the ability to understand emotions, infer intentions, and predict behaviour. The theory of mind-based systems relates to the psychological theory which states that living things have emotions that affect behaviour.

  • Self-awareness: This is the last step in the development of artificial intelligence systems. These systems have not yet been developed, but are projected to possess self-consciousness and the ability to perceive emotions.

Benefits of artificial intelligence

There are several benefits and endless opportunities that artificial intelligence provides, including:


Automation is one of the most important benefits of artificial intelligence. This technology has seen immense multiplier benefits in different industries, such as transportation, communication, service industry, and consumer products. These industries have benefited through an increase in productivity that allows efficient use of raw material, higher quality of products, and superior safety standards.

Better decision-making

Artificial intelligence is critical in helping business leaders make better decisions. By collating and analyzing large amounts of data, artificial intelligence enables decision-makers to analyze trends, develop forecasts, and quantify uncertainties in the business environment. One key attribute of artificial intelligence that makes it superior in decision-making is its unbiased nature and inability to imitate human emotions.

Enhanced customer experience

Artificial intelligence analytics can help a business make sense of customers' concerns. By identifying customer pain points, artificial intelligence can help businesses resolve them and enhance the customer experience. Artificial intelligence solutions such as chatbots can assist customer-facing staff to address customer grievances timely and in a personalized way.

Access to health care

The health care sector is an important beneficiary of artificial intelligence solutions. For instance, artificial intelligence has made it possible for patients to get diagnoses and prescriptions without visiting the hospital. Health care professionals can also collaborate from any location, improving patient outcomes while reducing the cost of health care. Artificial intelligence is also helping the health care industry monitor spread of contagious diseases and predict future effects of diseases.

Predict natural disasters

Artificial intelligence may not have the power to prevent disasters but can forecast where these disasters can be most severe. For instance, artificial intelligence tools can provide a significantly accurate location of earthquakes, tornadoes, hurricanes, and floods. Accurately predicting the occurrence of natural disasters allows better preparedness, such as moving people to safer areas, saving lives and property.

Improve education outcomes

Students have different ways of learning, and teachers may not always meet learners' expectations in the classroom. Artificial intelligence can help students learn more efficiently by developing highly personalized lessons and facilitating one-on-one tutoring. Artificial intelligence can also help learners to access quality education anywhere in the world, improving education outcomes.

Research data analysis

Artificial intelligence helps researchers process data more efficiently. Artificial intelligence can help researchers deduce research findings from large datasets and understand outcomes of various trends and scenarios. Processing large data with artificial intelligence analytics sets takes lesser time, enabling entities such as governments and businesses to attain research and development goals faster.

Related: How to Become a Data Scientist in Five Essential Steps

Solving complex problems

Artificial intelligence solutions such as machine learning and deep learning enable different industries to solve complex issues efficiently and more adequately. For instance, artificial intelligence is helping banks detect fraud through the use of face recognition technologies and other biometrics. Artificial intelligence systems are also important in forecasting weather patterns, which are essential in agriculture and aviation. Security agencies such as the police are using facial detection to identify criminals and avert violent crimes.

Risk management

Artificial intelligence is helping businesses manage risks more adequately. This is because artificial intelligence relies on big data to produce actionable information. Abilities such as forecasting help businesses make critical decisions that mitigate internal and external risks to business continuity. Artificial intelligence tools also help companies respond proactively to emerging scenarios and recover faster from disasters.

Performing repetitive tasks

Performing repetitive tasks is time-consuming and can drastically reduce employees' productivity. Artificial intelligence technologies can help a company automate repetitive processes, which allows employees to work on more important tasks. Artificial intelligence can also integrate different digital systems in different departments, such as marketing and human resource without requiring manual intervention.

Minimize human errors

Another potential benefit of artificial intelligence is the ability to reduce or eliminate human errors in performing regular tasks. For instance, artificial intelligence can help in accurate data capture, minimizing the likelihood of entering erroneous information. This is important in processes where human error can cause huge or irreversible damage.

Improved business efficiency

Artificial intelligence tools, unlike humans, can work for 24 hours without requiring a break. This means artificial intelligence technologies can complement human efforts during and after business hours, increasing efficiency. Artificial intelligence can also help in reducing the strain on employees by taking over some tasks and reassigning other tasks to employees.

Environmental conservation

Artificial intelligence can help government and businesses preserve the environment, such as in combating climate change effects and improving recycling systems. Artificial intelligence such as robotics can help in sorting recyclable materials and reduce the dumping of these materials into the environment. On climate change, artificial intelligence technologies help manage renewable energy, predict energy demands, and make agriculture more eco-friendly.

Read more: Everything You Need to Know About Data Science as a Career

Examples of artificial intelligence application

Here are a few examples of artificial intelligence applications today:

  • Robotics: Robots can perform various tasks, such as sorting garbage, working on factory assembly lines, and moving heavy objects. Robots are also valuable in health care roles, such as performing temperature tests or offering hand sanitation at building entrances.

  • Spam detection: Natural language processing can detect spam emails, conduct sentiment analysis, translate texts, and recognize speech.

  • Self-driving cars: Using a combination of deep learning, machine vision, and image recognition, it's possible to develop driverless cars.

  • Finance: Artificial intelligence technologies are helpful to financial institutions that collect customer data and provide tailored financial advice. Some applications can trade in the stock market or in cryptocurrency exchange.

  • Chatbots: Companies are using chatbots to engage customers visiting their websites. Chatbots are providing answers to customer queries and making it possible for businesses to operate all the time.

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