ARTIFICIAL INTELLIGENCE AND DIGITAL BUSINESS TRANSFORMATION – OPPORTUNITIES AND CHALLENGES

Faculty of business economics Bijeljina, University of East Sarajevo, Republic of Srpska, BiH
Bosnia and Herzegovina


Abstract

Artificial intelligence is a technology that has experienced significant growth and development in recent years and is applied in numerous fields. This technology encompasses machine learning and deep learning and refers to the development of systems designed to mimic human intelligence, with the goal of performing various tasks. Machine learning is the ability of computers to learn from patterns in data, with the aim of predicting future events and making better business decisions. Deep learning is a type of machine learning that uses neural networks, or complex algorithms, to recognize specific patterns in data. Digital business transformation refers to the integration of digital technologies into all aspects of business, which contributes to changing the way companies operate, all with the goal of increasing efficiency and the quality of goods and services. Numerous digital technologies support the process of business transformation, including Big Data, cloud computing, the Internet of Things, artificial intelligence, and many others. Artificial intelligence in the context of digital business transformation aims to enable companies to automate business processes, perform predictive analytics, improve customer experience, optimize business models, and innovate products and services. If a company decides to incorporate artificial intelligence into its digital transformation process, the opportunities presented include: increased productivity, better decision-making, reduced costs, and the ability to respond to market demands. In addition to these opportunities, there are numerous challenges companies may face when applying artificial intelligence, with the most significant being: data security and privacy, implementation complexity, ethical issues, and dependence on technology.

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