9 key benefits of AI for business

1. More accurate decisions and outcomes

Organizations can expect a reduction in errors and stronger adherence to established standards when they incorporate certain AI technologies into their processes.

Businesses increasingly use AI to gain insights into their data -- or, in the business lingo of today, to make data-driven decisions. Data insights lead to more accurate decisions rather than ones based on instincts that can be tainted by personal biases and preferences.

Retailers, for example, are using AI for inventory management to assess current inventory and future needs, said Oak McCoy, an assistant professor of economics at the University of New England's College of Business. He explained that AI enables executives to "see further back in the supply chain," so they can ensure their orders and deliveries match expected demand, which is often identified from AI-enabled customer behavior prediction capabilities.

The use of AI in financial reconciliation can often deliver error-free results, said Seth Earley, author of The AI-Powered Enterprise and CEO of Earley Information Science. That same financial reconciliation is prone to more mistakes when handled by human workers.

2. Productivity and profitability

Efficiency and productivity gains are two significant benefits that businesses derive from using AI, said Adnan Masood, chief AI architect at digital transformation company UST. Whether using AI for search, data analysis, software code creation or business process execution, AI enables organizations to handle tasks at a volume and velocity that's simply not possible for humans to match, he said.

AI also relieves workers of time-consuming manual tasks, Masood added, so they can perform higher-level tasks that only humans can do. He pointed to AI in software development, highlighting how AI can generate wide-ranging and varied test data to check and validate code, thereby freeing up developers to focus on more complex work.

Businesses therefore can minimize the costs associated with performing mundane, repeatable tasks that can be automated and maximize the skills of their human capital.

Improved productivity leads to reduced costs, higher efficiency and possibly new growth opportunities. Taken together, the business-savvy use of AI can deliver high profitability, McCoy said.

"The value of using AI comes down to reducing costs and increasing revenue, generating returns on the investments made into AI and realizing the economic benefits from adopting the technology," he said. "Companies are asking, 'Are we able to increase our profit margins by using AI?' That's what it really comes down to."

3. Faster business processes and product development

As fast as business moves in the digital age, AI helps it move even faster, Earley said. "It's all about speeding up the clock of the enterprise," he said. AI enables shorter cycles and cuts the time it takes to move from one stage to the next, delivering measurable ROI.

Earley pointed to a recent AI implementation by a financial services firm that works in automotive financing. The firm began using AI to determine trade-in values and lease buyouts, which require complex calculations involving multiple factors. It had been a "cumbersome, labor-intensive process," Earley said, but the pricing bot significantly reduced the time required for calculations and expedited providing answers to dealers and their clients seeking financing options.

AI also brings speed to all kinds of product development -- from software code to drug discovery -- by automating and augmenting design, testing and production as well as market analysis and other related business processes. AI, for example, speeds up code production -- 37% of engineers save four to six hours per week with AI, per the Agoda AI Developer Report 2025.

4. Business model expansion and innovation

Executives can use AI for business model expansion, experts said, noting that organizations are seeing new opportunities as they deploy data, analytics and intelligence in the enterprise. Autonomous vehicle companies, for instance, could use reams of collected data to identify new revenue streams related to insurance.

Business model expansion often goes hand in hand with innovation. As workers at all levels become more comfortable with AI, experts said they're starting to use AI tools to help them be more creative and innovative. Some bars and restaurants, for example, use AI to craft unique cocktails based on customers' moods, personalities and food choices, with the tool concocting the recipe and then sending it to a human bartender to mix and serve. Other industries use AI to support R&D activities, such as in healthcare for drug discovery and the consumer product goods sector for product creation.

[AI] will surface insights you didn't know to see.

AI's ability to process data significantly faster than humans is at work here, said Brad Wheeler, professor of information systems at Indiana University's Kelley School of Business. AI can uncover hidden patterns in data to produce insights that would otherwise remain undiscovered. "[AI] will surface insights you didn't know to see," he said.

5. Personalized customer services and experiences

AI analyzes and learns from data to create highly personalized and customized experiences and services, said Brian Jackson, principal research director at Info-Tech Research Group.

The most visible examples of this come from the consumer world, Jackson said. Streaming services and retailers use intelligent systems to study buying patterns, individual consumer data and large data sets to determine customer preferences and tailor products and services to suit their personal style, interests and needs.

AI delivers personalization in numerous other areas, too, such as in healthcare, where it customizes treatments, and in work environments to support employees' individual needs.

AI also supports customer experiences in real-life scenarios, such as call centers, by analyzing data to guide human agents through their interactions with customers. AI can quickly provide agents with the information a customer is seeking to create a positive experience or defuse tense interactions.

These capabilities can boost customer satisfaction and loyalty. Gartner reported that the most valuable AI use cases for customer service and support include human agent enablement, low-effort self-service, automating operations support and agentic AI.

"Organizations that prioritize these high-impact use cases will be best positioned to achieve operational excellence, deliver superior customer experiences, and stay ahead in the rapidly evolving AI landscape," said Gartner analyst Keith McIntosh.

6. Predictive maintenance

Businesses are increasingly using AI to deliver more accurate and enhanced service to their customers, said Patrick Anderson, managing director of technology solutions at consultancy Protiviti.

Anderson pointed to the use of AI for predictive maintenance by a manufacturer of industrial washers and dryers. The business introduced AI into its services division, using the technology to analyze data coming from sensors embedded in its product as part of an IoT environment. AI enabled the company to more accurately predict when equipment required servicing and proactively address problems, leading to more satisfied customers, lower service costs through better scheduling and improved revenue.

7. Monitoring capabilities and risk management

AI's capacity to take in and process massive amounts of data in real time helps businesses implement near-instantaneous monitoring capabilities to alert them to issues, recommend actions, and in some cases, initiate a response.

AI, for example, can improve quality control in manufacturing as well as use information gathered by devices on factory equipment to identify problems and predict needed maintenance.

A benefit closely tied to monitoring is better risk management. Because AI is particularly adept at detecting anomalies in large data sets, it can be used in cybersecurity to locate threats, financial services to detect fraud and compliance to meet regulatory requirements. Such applications make businesses more effective in reducing risks, McCoy said.

According to a survey of over 400 governance, risk and compliance professionals by AuditBoard, in partnership with Panterra Research, 72% of the most mature businesses use AI to track risk proactively, compared to 52% at the lowest maturity level.

The survey also revealed that more than half of mature businesses use AI for predictive risk modeling, shaping risk posture and strategic planning. Additionally, 44% of the most mature organizations plan to invest further in AI-driven risk management in the next 12 months.

8. Workforce management

Businesses are using AI to improve talent management, from streamlining the hiring and onboarding processes to rooting out bias in corporate communications. Moreover, AI-enabled processes not only save businesses hiring costs but also improve workforce productivity by successfully sourcing, screening and identifying top-tier candidates.

As natural language processing tools improve, businesses are using chatbots to provide job candidates with a personalized experience and train employees. Additionally, AI tools can gauge employee sentiment, identify and retain top performers and determine equitable pay.

Workers can also use AI to upskill and reskill, Wheeler said, pointing to the use of generative AI to write computer code. He acknowledged, however, that AI in the workplace will disrupt the employment landscape, as the technology replaces some job roles even though it can create new job opportunities.

We see organizations using AI to make information easier to retrieve, more findable and more understandable.

9. Information democratization

AI democratizes information by finding, in real time, the data relevant to a user's query and  translating that data into readable text or actionable recommendations. Service technicians, for example, can use AI to pinpoint the instructions they need, which might be buried in an 800-page service manual or stored in corporate digital files.

"AI is getting information to more people," Earley said. "We see organizations using AI to make information easier to retrieve, more findable and more understandable."

Outlook of AI in business: Looking ahead

Most studies say that AI's value for businesses is still in its nascent stages. Earley noted that the challenges associated with integrating AI into business processes have often hindered the realization of higher returns.

As businesses find ways to use AI for competitive advantage, they're also grappling with challenges. Concerns include AI bias, government regulation of AI, talent shortages and managing the data required for machine learning projects. Additionally, financial gains can be elusive if the necessary talent and infrastructure for implementing AI aren't in place.

Still, businesses are becoming more disciplined in their use of AI technologies. They're getting better at identifying where to deploy AI to ensure solid ROI and developing uses that will transform their sector or differentiate them from their competitors.

Thomson Reuters' Future of Professionals Report 2025 quantified the high expectations placed on AI, finding that 80% of respondents believe that over the next five years, AI will have a high to transformative effect on business.

Mary K. Pratt is an award-winning freelance journalist with a focus on covering enterprise IT and cybersecurity management.