VISVESVARAYA TECHNOLOGICAL UNIVERSITY

Jnana Sangama, Belgavi-590018

Report On

“LITERATURE REVIEW ON AI IN Business”

Submitted in partial fulfilment of the requirements for the award of degree

of

BACHELOR OF ENGINEERING

In

ARTIFICIAL INTELLIGENCE AND DATA SCIENCE ENGINEERING

Submitted by

Md Azibul Hussain Chaudhury (1EP22AD035)

Hemanth (1EP22AD022)

Puneeth (1EP22AD046)
 Department of Artificial Intelligence and Data Science Engineering EAST
POINT COLLEGE OF ENGINEERING & TECHNOLOGY
Approved by AICTE New Delhi | Affiliated to VTU, Belagavi, Virgo Nagar, Bengaluru-

560049

CERTIFICATE

Certified that the “RESEARCH METHODOLOGY & IPR LITERATURE SURVEY ON AI IN

BUSINESS” report carried out by MD AZIBUL HUSSAIN CHAUDHURY(1EP22AD035),
HEMANTH(1EP22AD022), PUNEETH(1EP22AD046), a Bonafide student at East Point College
of Engineering & Technology in partial fulfilment for the degree of BACHELOR OF
ENGINEERING In ARTIFICIAL INTELLIGENCE AND DATA SCIENCE ENGINEERING (5th
semester) of the Visvesvaraya Technological University, Belgaum during the year 2024-
2025. It is certified that all corrections suggestions indicated for Internal Assessment have
been incorporated in the report deposited in the departmental library. The report has been
approved as it satisfies the academic requirements.
LITERATURE SURVEY ON “AI IN BUSINESS ”
Introduction
AI in business refers to the use of artificial intelligence
technologies to improve business processes, enhance
customer experiences, and drive innovation. By leveraging
machine learning, data analytics, and automation, AI helps
companies streamline operations, make data-driven
decisions, and optimize various functions such as marketing,
sales, customer service, and supply chain management. AI can
analyze vast amounts of data, uncover hidden insights, and
automate repetitive tasks, enabling businesses to improve
efficiency, reduce costs, and deliver personalized experiences.
As AI continues to advance, its integration into business
operations is becoming essential for staying competitive in a
rapidly evolving market.

1. AI in Customer Service
AI’s influence on customer service is perhaps one of the most visible
and impactful. By providing instant, efficient, and personalized
service, AI is transforming how businesses interact with their
customers.
 • Chatbots and Virtual Assistants: AI chatbots, such as those
powered by Natural Language Processing (NLP), allow businesses
to automate customer service interactions. They can respond to
inquiries, resolve issues, and even complete transactions
autonomously. For example, many retail companies have
implemented chatbots to help customers find products, track
orders, or provide after-sales support. With machine learning,
these systems improve over time, understanding more complex
questions and delivering more accurate responses.
• Sentiment Analysis: Sentiment analysis powered by AI processes
feedback and communication to gauge the emotional tone of
customer responses. This allows businesses to proactively
engage with unhappy customers, address issues before they
escalate, and improve overall customer satisfaction. For
instance, AI tools can analyze social media comments and
customer reviews to identify customer sentiments and provide a
detailed report on what aspects of the product or service
customers like or dislike.
• Voice Assistants and IVR Systems: AI has also made an impact
on voice-based services. Interactive Voice Response
(IVR) systems enhanced by AI can now provide human-like
interactions, assisting with scheduling, billing, and troubleshooting.
For example, many airlines have implemented AI-driven voice
assistants that can not only answer general queries but also process
flight changes, cancellations, or even upgrades with a natural voice
experience.
These AI tools help businesses reduce wait times, lower service costs,
and create a more personalized, responsive service environment.
2. AI in Marketing and Sales
AI has transformed marketing by enabling businesses to deliver more
personalized and targeted campaigns while automating various tasks
to boost sales performance.
• Customer Segmentation and Targeting: By analyzing large
datasets, AI can identify specific customer segments based on
behavior, demographics, and buying patterns. This
segmentation allows businesses to craft highly targeted
marketing campaigns. For instance, an e-commerce platform
might use AI to target a particular group of customers with
product recommendations based on their browsing history,
leading to higher conversion rates.
• Predictive Analytics for Sales Forecasting: Predictive analytics
powered by AI uses historical sales data, market trends, and
other variables to predict future sales performance. This allows
businesses to optimize inventory levels, pricing strategies, and
promotional activities. AIpowered sales forecasting tools can
help businesses understand demand fluctuations and ensure
that resources are allocated more efficiently.
• Automated Campaigns and Content Generation: AI-driven
platforms enable businesses to automate the creation and
management of marketing campaigns. These systems can
analyze customer behavior in real time and adjust messaging, ad
placements, and promotions automatically to optimize
engagement. In some cases, AI can even generate content, such
as blog posts or product descriptions, based on keywords and
consumer interests, significantly reducing the workload for
marketers.
 • Sales Process Automation: AI is also streamlining the sales
process by automating lead qualification, follow-ups, and even
pricing. By using machine learning algorithms, sales teams can
automatically prioritize leads that are most likely to convert,
ensuring that their time and efforts are focused on high-value
prospects. AI tools can also predict which types of offers or
messages are most likely to convert based on past interactions
with similar customers.
These innovations allow businesses to target their marketing efforts
more precisely, personalize customer experiences, and improve sales
productivity.
3. AI in Data Analytics and Decision-Making
In today’s data-driven world, AI plays an essential role in transforming
raw data into meaningful insights that can guide business decisions.
• Real-Time Data Analysis: AI can process vast amounts of data in
real time, providing decision-makers with up-to-date insights.
This capability is especially valuable in fast-paced industries like
finance, retail, and logistics, where being able to react to new
information quickly can provide a competitive advantage. For
instance, AI tools can analyze market movements, consumer
sentiment, and sales data to predict trends or identify issues
immediately.
• Predictive Analytics for Business Strategy: By analyzing past
performance, AI tools can predict future outcomes, allowing
businesses to adjust their strategies accordingly. Whether it's
forecasting sales, market demand, or consumer preferences,
predictive analytics powered by AI helps companies make
proactive decisions that align with future trends, rather than
reacting to them after the fact.
• Data-Driven Decision-Making: AI’s ability to process large
datasets and uncover hidden patterns supports more informed
decision-making. For example, AI can analyze customer
feedback, market trends, and competitor activities to guide
strategic decisions, such as product launches or new marketing
initiatives. This takes the guesswork out of business decisions
and provides a more data-driven approach.
• Anomaly Detection: In complex data systems, AI is highly
effective at spotting anomalies that humans might miss.
 Whether it’s fraudulent financial activity or an operational
inefficiency, AI can alert businesses to unusual patterns, helping
mitigate risks and optimize processes.
AI-powered data analytics empowers businesses to make smarter,
faster decisions, ultimately improving performance, productivity, and
competitiveness.
4. AI in Operations and Automation
AI-driven automation is one of the most impactful ways businesses are
optimizing their operations. By reducing the need for human
intervention in routine tasks, AI can help organizations lower costs,
improve accuracy, and enhance efficiency.
• Robotic Process Automation (RPA): RPA utilizes AI to handle
repetitive, rule-based tasks across various departments, such as
finance (invoice processing), HR (payroll management), or supply
chain (inventory tracking). By automating these processes,
businesses can free up human employees for more strategic
activities, resulting in significant time and cost savings.
• Supply Chain Optimization: AI helps businesses optimize their
supply chain by forecasting demand, managing inventory, and
automating logistics. Machine learning algorithms can predict
future demand based on historical data, which helps companies
minimize stockouts or overstocking, ensuring that inventory
levels are balanced. AI tools can also recommend the most
efficient routes for delivery, helping reduce transportation costs.
• Fraud Detection: AI-based systems can scan and analyze
financial transactions to detect fraudulent activities in realtime.
By identifying unusual spending patterns or activities, these
systems can flag potential fraud before it occurs, helping
businesses mitigate losses and protect their customers.
• Predictive Maintenance: In industries such as manufacturing or
transportation, AI-powered predictive maintenance tools can
analyze sensor data from machines
 or vehicles to predict when maintenance is required. This can
help prevent costly downtime and extend the life of equipment
by addressing maintenance issues before they result in failure.
By using AI for automation, businesses can reduce costs, enhance
productivity, and maintain higher levels of service quality.
5. AI in Human Resources (HR)
AI is reshaping HR practices by enhancing recruitment, improving
employee engagement, and offering valuable insights into workforce
management.
• Talent Acquisition and Recruitment: AI-based systems can
review resumes, assess candidate qualifications, and rank
applicants based on their suitability for a role. These AI tools use
algorithms that scan for keywords, skills, experience, and other
relevant criteria to quickly identify the most promising
candidates. Some systems even use AI to conduct initial
interviews, evaluating candidates’ responses and predicting
their fit for the company culture.
• Employee Engagement and Retention: AI tools can help HR
teams measure employee satisfaction by analyzing survey data,
feedback, and other indicators. By identifying signs of
disengagement early, HR teams can take proactive measures to
improve morale, provide support, and reduce turnover.
• Personalized Learning and Development: AI-powered learning
platforms provide personalized training recommendations for
employees, helping them acquire new skills based on their
career aspirations and performance gaps. This customization
enhances employee growth and supports the organization’s
long-term talent development strategy.
• Workforce Optimization: AI helps HR departments analyze
workforce data to optimize staffing, reduce absenteeism, and
align employee skills with organizational needs. By identifying
skill gaps or scheduling inefficiencies, AI enables HR
 professionals to make more informed decisions about hiring,
promotions, and training initiatives.
By leveraging AI in HR, businesses can streamline talent acquisition,
enhance employee engagement, and create a more agile workforce.
6. AI in Product Development and Innovation
AI is revolutionizing the way businesses develop products and
innovate, enabling them to respond more quickly to market demands
and customer needs.
• Accelerating Research and Development (R&D): AI helps
companies streamline the R&D process by analyzing vast
amounts of scientific literature, market research, and customer
feedback to identify potential innovations. By using AI to
generate ideas and simulate designs, companies can speed up
product development cycles and reduce costs associated with
traditional R&D.
• Product Prototyping: AI can simulate and test product
prototypes in a virtual environment, allowing businesses to
identify issues and make improvements before investing in
physical prototypes. For example, AI can simulate how a new
product design will function under different conditions,
optimizing the design process and reducing the risk of costly
errors.
• Consumer-Centric Innovation: By analyzing customer data from
social media, reviews, and surveys, AI can provide insights into
unmet needs or gaps in the market. This enables businesses to
design and create products that better align with consumer
preferences and market trends, fostering innovation.
• Agile Product Development: AI can also assist in agile
development by providing real-time feedback and suggesting
product iterations based on performance metrics, user
experience, and market feedback.
Through AI-driven product development, businesses can innovate
faster, reduce time to market, and meet customer needs more
effectively.
7. AI in Finance
The financial sector is one of the early adopters of AI, using it to
improve decision-making, reduce risks, and enhance customer
experiences.
• Algorithmic Trading: AI algorithms can analyze vast datasets of
financial information to identify patterns, trends, and anomalies
in the market. These algorithms execute trades automatically at
high speeds, capitalizing on market movements before human
traders can react. AI can also be used for high-frequency trading
(HFT), enabling investors to make microsecond decisions that
maximize profits.
• Risk Assessment and Management: AI is used to assess and
predict financial risks by analyzing market conditions, economic
indicators, and historical data. By providing realtime risk
analysis, AI tools help financial institutions make more informed
investment decisions and manage their portfolios effectively.
• Personalized Banking Services: AI is also transforming retail
banking by offering personalized services, such as customized
investment advice or personalized savings plans. AI can analyze
a customer’s financial behavior, goals, and preferences to
provide recommendations tailored to their needs.
• Fraud Prevention: AI-powered fraud detection systems
continuously monitor transactions for unusual patterns or
discrepancies. When these systems detect potential fraud, they
can flag transactions for investigation, preventing financial losses
for both businesses and customers.
In finance, AI enhances profitability, reduces risks, and improves
customer satisfaction through personalized services and enhanced
security.
8. Challenges of AI in Business
While AI offers vast opportunities, its adoption comes with
challenges that businesses must address to fully realize its potential.
• Ethical Concerns: AI systems can perpetuate bias, especially if
the data used to train these systems reflects existing societal
biases. It's crucial for businesses to address these issues by
ensuring transparency in AI decision-making processes and
taking steps to mitigate bias.
• Job Displacement: The automation of routine tasks could lead to
job displacement, particularly for roles that involve manual or
repetitive tasks. While AI may create new opportunities,
businesses must invest in reskilling their workforce to ensure
that employees are equipped for the evolving job market.
• Data Privacy: AI systems rely on vast amounts of data to function
effectively, raising concerns about data privacy and security.
Businesses must ensure compliance with data protection
regulations and implement robust cybersecurity measures to
safeguard sensitive information.
• High Costs and Integration Challenges: AI adoption often
requires significant investment in technology and talent.
Moreover, integrating AI into existing legacy systems can be
complex and costly, especially for businesses that have not yet
embraced digital transformation.
9.AI for Enhanced Business Intelligence (BI)

BI traditionally involves collecting, analyzing, and reporting

data to support decision-making processes. AI enhances this
by integrating machine learning (ML), natural language
processing (NLP), and advanced analytics to automate data
interpretation and generate predictive insights

Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence

for the real world. Harvard Business Review.

Sharda, R., Delen, D., & Turban, E. (2020). Business

Intelligence and Analytics: Systems for Decision Support.

AI-powered tools can handle unstructured data, such as text,

images, and videos, in addition to structured datasets.
Techniques like predictive modeling, clustering, and anomaly
detection are widely discussed.

Example Studies:

Kose, U., & Sert, S. (2019). Discuss the use of AI in automating

BI processes through machine learning algorithms.

Bertsimas, D., & Dunn, J. (2019). Study predictive and

prescriptive analytics using AI.
10.AI in Retail Analytics: A Literature Review

Artificial Intelligence (AI) has revolutionized retail analytics by

enabling businesses to derive actionable insights from vast
and complex datasets, improving decision-making and
customer experience. AI-driven tools facilitate personalized
recommendations, dynamic pricing strategies, inventory
optimization, and enhanced demand forecasting. For
instance, studies by Davenport and Ronanki (2018) highlight
how retailers use AI to personalize shopping experiences
through recommendation engines, significantly improving
customer satisfaction and sales. Similarly, Choi et al. (2018)
demonstrate the effectiveness of machine learning models in
demand forecasting, enabling retailers to reduce stockouts
and overstock scenarios. Advanced AI technologies, such as
computer vision and natural language processing (NLP), are
increasingly employed to analyze in-store behavior and
customer feedback, as discussed by Gandomi and Haider
(2015). However, challenges like data privacy concerns and
the integration of AI with legacy systems remain prevalent, as
noted by Mittelstadt et al. (2016). Overall, the literature
underscores that while AI offers transformative potential in
retail analytics, successful implementation requires
addressing ethical, technological, and organizational barriers.
11.AI in Small and Medium Enterprises (SMEs):

Artificial Intelligence (AI) is increasingly recognized as a game-changer

for Small and Medium Enterprises (SMEs), enabling them to compete
with larger organizations by improving efficiency, decision-making,
and customer engagement. Unlike large corporations, SMEs often
face resource constraints, but AI technologies provide cost-effective
solutions to streamline operations and drive innovation. Research by
Wamba et al. (2017) highlights that AI-powered tools like chatbots
and customer relationship management (CRM) systems enhance
customer service, enabling SMEs to build strong client relationships
without significant investments in manpower.

AI applications in SMEs are diverse, ranging from predictive analytics

for market trends to inventory management and process automation.
Studies by Jones et al. (2019) demonstrate how SMEs leverage AI to
optimize supply chain processes, reduce operational costs, and
enhance productivity. Similarly, Sharma et al. (2020) emphasize the
role of machine learning algorithms in improving sales forecasting
and demand planning, which are critical for SMEs operating with
limited capital. AI also enables SMEs to personalize marketing
strategies by analyzing consumer behavior and preferences, as
discussed in the work of Davenport and Ronanki (2018).

Despite these benefits, several barriers hinder AI adoption in SMEs.

According to Mariani and Fosso Wamba (2020), challenges include
the lack of technical expertise, high implementation costs, and data
management issues. Furthermore, ethical concerns related to data
privacy and algorithmic bias pose additional risks for SMEs relying on
customer-centric AI applications. Addressing these challenges
requires government support, training programs, and affordable AI
solutions tailored to the needs of smaller businesses.
12.AI in Fraud Detection and Prevention:

Artificial Intelligence (AI) has become a pivotal tool in fraud detection

and prevention, enabling businesses to combat fraudulent activities
more efficiently and accurately. Traditional fraud detection methods,
which relied heavily on manual audits and rule-based systems, are
increasingly being replaced by AI-driven approaches. AI leverages
machine learning (ML), deep learning, and natural language
processing (NLP) to analyze vast amounts of transactional data,
detect anomalies, and identify suspicious patterns. According to
Abbasi et al. (2015), AI systems excel in uncovering subtle
irregularities that might go unnoticed by human auditors or
conventional systems.

Machine learning models, such as supervised and unsupervised

learning, are widely used for fraud detection. Supervised learning
algorithms, trained on historical fraud data, can classify transactions
as legitimate or fraudulent. Meanwhile, unsupervised models, as
discussed by Phua et al. (2010), are effective in identifying previously
unknown fraud patterns, especially in dynamic and evolving
environments like e-commerce and banking. AI-driven fraud
prevention systems.
13.AI in Human Resource Management:

Artificial Intelligence (AI) is reshaping Human Resource Management

(HRM) by automating routine tasks, enhancing decision-making, and
improving employee engagement. AI technologies, including machine
learning, natural language processing (NLP), and predictive analytics,
are increasingly integrated into HR functions such as recruitment,
performance evaluation, and employee retention. According to
Upadhyay and Khandelwal (2018), AI-driven recruitment tools
streamline the hiring process by analyzing resumes, matching
candidates to job requirements, and reducing unconscious bias in
candidate selection.

AI also plays a crucial role in talent management by leveraging

predictive analytics to forecast employee turnover and identify high-
potential talent. Research by Tambe et al. (2019) highlights that AI-
powered tools can provide real-time insights into employee
performance, enabling data-driven decisions that improve
productivity and job satisfaction. Furthermore, AI chatbots and virtual
assistants, as discussed by Jatobá et al. (2020), enhance employee
engagement by providing instant responses to HR-related queries
and automating administrative tasks, such as leave management and
payroll processing.
14. Artificial Intelligence is revolutionizing process
automation:

Artificial Intelligence (AI) is revolutionizing process automation by

enabling the execution of complex tasks with minimal human
intervention, thereby enhancing operational efficiency and accuracy.
The integration of AI with Robotic Process Automation (RPA) has led
to the emergence of Intelligent Process Automation (IPA), which
combines the rule-based capabilities of RPA with AI's cognitive
functions. This synergy allows organizations to automate not only
routine tasks but also those requiring decision-making and
adaptability. For instance, AI algorithms can process unstructured
data, recognize patterns, and make informed decisions, extending
automation's reach beyond structured environments.

The transition from traditional RPA to IPA presents several

challenges, including organizational, technological, and human-
centered factors. A literature review by Siderska and Jadaan (2023)
identifies these challenges and emphasizes the need for a
comprehensive approach to successfully implement IPA.

In the context of Industry 4.0, the convergence of AI and RPA is

particularly significant. A study by Aguirre and Rodriguez (2017)
explores how this integration contributes to the improvement of
organizational processes, enhancing efficiency and adaptability in
industrial settings.

Despite the advantages, the adoption of AI-driven process

automation requires careful consideration of human factors. A
literature review by Siderska and Jadaan (2023) highlights the
importance of addressing human-centered challenges to ensure
successful implementation and acceptance of AI in business
processes.

In summary, AI is significantly enhancing process automation by

enabling the automation of complex tasks and facilitating the
transition to Intelligent Process Automation. However, successful
implementation necessitates addressing various challenges, including
organizational, technological, and human-centered factors.
Conclusion
AI has immense potential to transform the business landscape,
offering companies innovative ways to increase productivity,
streamline operations, and deliver superior customer experiences.
However, the successful implementation of AI requires careful
planning, investment in talent and technology, and an ethical
approach to ensure that AI benefits both businesses and their
stakeholders. As AI continues to evolve, businesses that embrace
these technologies will be better equipped to thrive in an
increasingly competitive and data-driven world.
 Bibliography

Books:
1. Russell, Stuart, and Peter Norvig. Artificial Intelligence: A
Modern Approach. 4th ed., Pearson, 2020. o A comprehensive
textbook on AI, covering the theory and practical applications of
AI in various fields, including business.
2. Brynjolfsson, Erik, and Andrew McAfee. The Second Machine
Age: Work, Progress, and Prosperity in a Time of Brilliant
Technologies. W. W. Norton & Company, 2014. o This book
discusses how digital technologies, including AI, are transforming
industries and creating new opportunities for businesses.
3. Chui, Michael, et al. Artificial Intelligence in Business:
Understanding AI's Impact on the Future of Business. McKinsey
& Company, 2018. o Provides insights into how AI is reshaping
business practices and strategies in various sectors.
Articles:
4. Davenport, Thomas H., and Rajeev Ronanki. "Artificial
Intelligence for the Real World." Harvard Business Review,
January-February 2018. o This article examines how companies
can adopt AI in practical ways to achieve business
transformation and efficiency.
5. West, Darrell M. "The Future of Work: Robots, AI, and
Automation." Brookings Institution Report, 2018. o Explores how
AI and automation technologies are reshaping the workforce,
business processes, and organizational structures.
 6. Binns, Abigail. "How AI Is Transforming the Business World."
Business News Daily, 2019. o Discusses the growing role of AI in
business and how companies across industries are implementing
AI to gain competitive advantages.
Reports and White Papers:
7. McKinsey Global Institute. The Future of Work in America:
People and Places, Today and Tomorrow. McKinsey & Company,
2017. o Offers insights into how AI and automation technologies
are expected to impact jobs and the economy, providing
business leaders with strategies for adapting to change.
8. Accenture. Artificial Intelligence: The New Digital Frontier.
Accenture, 2019. o A report that highlights the current
and future applications of AI in business, from
improving customer experience to optimizing supply
chains.
9. Gartner. "AI in Business: The Hype, the Hope, and the Reality."
Gartner Research, 2020.
o This report discusses the real-world implementation of
AI in business and addresses the challenges and potential
of AI across various sectors.