Exercise 1: Machine Learning and Deep Learning in
Business Domains
Karl Benedict P. Soriano
Department of Computer Science and Engineering (CSE)
Jose Rizal University
Philippines, Metro Manila, Mandaluyong City
karlbenedict.soriano@my.jru.edu
Abstract —In this study, the prospective uses of
artificial intelligence (AI) and deep learning in
several business fields are investigated. Deep
learning techniques have become formidable
tools with significant promise in a variety of
commercial areas as a result of advances in
processing capacity. Utilizing corporate data has
already produced unanticipated revenues and
optimized operating expenses with surprising
results. Deep learning's essential concepts are
clarified, including both its broad applications
and, in particular, its applicability to commercial
situations. Along with an examination of several
neural network types, such as feed-forward and
recurrent designs, mathematical foundations for
deep learning are introduced. With the support
of compelling factual data and instructive
situations, real-world examples demonstrate
how deep learning can be integrated into tasks
like risk management, customer service, sales,
marketing, and routine operations. This study
also explores the importance of machine
learning (ML) and AI in businesses. Artificial
intelligence (AI) is distinguished as a developing
trend that provides a number of benefits,
including cost savings and the simplicity of
making informed decisions. Notably, chatbots
powered by AI stand out as tools for continuous
consumer connection that may solve problems.
Keywords—Deep learning, Artificial
intelligence, Neural network, Machine learning
I. INTRODUCTION
In the dynamic realm of technology,
profound attention is directed towards both deep
learning and artificial intelligence (AI) due to
their potential to reshape diverse domains. Deep
learning, a subset of machine learning, was
introduced in 1986 by Rina Dechter and
empowers computers to comprehend intricate
patterns through hierarchical concept
organization. While it harbors certain limitations,
its exceptional capacity to address intricate
tasks, often unfeasible through conventional
means, remains a standout attribute. However,
this prowess is counterbalanced by the demand
for extensive datasets and advanced
computational resources. Yet, as technology
advances, these constraints can potentially be
alleviated, enabling the virtues of deep learning
to yield exceptional outcomes. Its applications
span intricate domains like image recognition,
autonomous driving, and natural language
comprehension, showcasing its adaptability and
potency.
In contrast, Machine Learning (ML), a
component of AI, harnesses data and trained
models to tackle intricate business challenges.
These models, rooted in disciplines such as
linear algebra and probability theory, operate
within the computer language paradigm. While
ML's power lies in data analysis and pattern
recognition, it might struggle with more intricate
problems. The convergence of AI and ML holds
the potential to redefine business management,
providing insights into intricate data structures
and fostering efficient problem-solving models.
Amid the ever-evolving landscape, the
amalgamation of these technologies holds the
potential to address pressing challenges. Deep
learning's ability to unveil valuable insights from
extensive and irregular data aligns with the
contemporary business landscape's demands.
Simultaneously, AI and ML offer streamlined
decision-making and automation, cementing
their position as prerequisites for growth in the
digital era. This study undertakes the exploration
of AI and ML's pivotal role in shaping business
management, delving into their impacts in an
age characterized by digital transformation. The
escalating demand for AI and ML-infused
devices underscores the imperative for these
technologies to empower customers with remote
operational capabilities. Businesses' use of
these technologies emerges as a key
component for ensuring competitive advantage
and supporting long-term success as they
traverse the complexities of the digital era.
II. RESEARCH ON ML AND DL IN
BUSINESS
A. Key advantages of ML in Business
Contemporary company operations may
benefit from a wide range of compelling
advantages when artificial intelligence (AI) and
machine learning (ML) are integrated,
profoundly altering the dynamics of trade and
industry. Rooted in data-driven insights and
automation, these technologies offer a diverse
range of benefits that substantively enhance
operational efficiency, decision-making
processes, and customer interactions.
Advanced analytical capabilities
introduced by AI and ML expedite the
examination of extensive datasets, empowering
decision-makers with comprehensive insights for
informed decision-making. These technologies
excel in identifying intricate patterns and trends
that might elude human perception, thereby
facilitating well-informed strategies and yielding
more favorable outcomes.
Another distinctive advantage lies in the
potential for automation, which is a hallmark of
AI and ML integration. This capability relieves
human resources from mundane tasks, leading
to a surge in efficiency that mitigates the risk of
errors. As a result, skilled personnel can be
allocated to tasks demanding higher cognitive
capabilities, nurturing innovation and propelling
growth.
Predictive analytics is a field in which AI
and ML models excel, helping organizations
anticipate future patterns based on previous
data. By enabling proactive modifications to
plans and operations, this anticipatory acumen
equips firms to foresee client preferences,
market shifts, and demand oscillations.
Businesses may study specific client behaviors
and preferences using AI-powered algorithms,
allowing the development of specialized goods,
services, and marketing initiatives. This fine-
grained understanding promotes a better
customer experience, which boosts brand
affinity, sales, and customer loyalty.
Virtual assistants and chatbots powered
by AI are essential for integrating AI and
machine learning and providing constant client
involvement. Due to the disregard for time
zones, this guarantees prompt response to
questions and issue solutions, improving the
entire customer experience. These technologies
also perform exceptionally well at identifying
unusual patterns in transactions and behaviors,
which makes them important for jobs like risk
management and fraud detection. These
solutions improve security protocols and reduce
financial losses by rapidly alerting firms to
possible fraudulent actions.
Through automation, AI and ML
significantly diminish the need for labor-intensive
processes, leading to substantial cost savings
over time. The ensuing operational efficiency
gains, coupled with the minimization of human
error, contribute to overall financial advantages.
On top of that, companies can quickly
adapt to shifting market dynamics and shifting
customer preferences thanks to AI and ML,
which is a critical competence in sectors with
fast change where staying ahead of trends is
essential for sustainable competitiveness.
Embracing these technologies early on gives
firms a competitive edge, enabling them to foster
innovation and skillfully address the pressures of
the market that are always changing. This
proactive approach puts them as industry
leaders prepared for long-term success in a
world that is rapidly going digital.
B. Potential benefits associated DL in
business activities?
In the context of contemporary business
landscape, the integration of deep learning
technologies emerges as a pivotal catalyst for
gaining a competitive edge. The provided data
highlights that a significant 84% of global
companies recognize the pivotal role of artificial
intelligence (AI) in conferring them a competitive
advantage. This attests to the transformative
potential of deep learning, a subset of AI, which
empowers businesses to extract insights,
streamline processes, and foster innovation
through intricate training of neural networks on
extensive datasets. Furthermore, approximately
three-quarters of organizations (75%) employ AI,
particularly deep learning, to facilitate entry into
new markets or enhance their standing in
established domains.
This strategic adoption aligns with the
ability of deep learning models to identify market
trends, customize products for diverse customer
segments, and expedite successful market
penetration. Moreover, the widespread utilization
of AI-driven technologies by 69% of competitors
underscores the significance of deep learning in
assessing rivals' activities, foreseeing market
shifts, and recalibrating strategies
correspondingly. A parallel finding indicates that
59% of enterprises attribute effective cost
reduction to AI-powered operational
enhancement, a hallmark of deep learning's
capacity to automate routine tasks, heighten
overall efficiency, and optimally allocate
resources.
The research methodology
encompasses a dual-pronged approach,
incorporating both primary and secondary data
collection methods, with a fusion of quantitative
and qualitative data from credible sources like
Cellstrat and scholarly publications. This entails
harnessing Google Scholar to amass post-2017
materials, accentuating authors, publication
years, journal titles, specific topics, and page
references. In synthesis, this study underscores
the manifold benefits of embedding deep
learning within business frameworks,
highlighting its potential to confer competitive
advantages, facilitate market entry, gauge
competition, and cultivate cost-effective
operations.
III. REAL WORLD EXAMPLES OF
BUSINESSES THAT SUCCESSFULLY
IMPLEMENTED DEEP LEARNING
Technology developments are sometimes
difficult to integrate into commercial
organizations, which results in a disconnect
between the technology's potential usefulness
and its practical implementation. The gap
between technological innovation and real
success has grown increasingly important under
fierce global competition. The writers of the
essay addressed these issues and clarified the
major challenges that managers face while
deploying new technologies. These difficulties
include the multiple roles that managers must
play, the variety of internal markets to be
serviced, justifiable opposition to change, the
right degree of promotion, the choice of the
implementation location, and the critical
requirement for a designated person to
supervise the procedure.
A case in a communication and computer
company that highlights the significance of
infrastructure and resource allocation within user
organizations serves as an example of how user
involvement during the technology's design
phase significantly improves user satisfaction.
While strategies for integration and preparation
vary in scope, they all highlight the importance
of readiness. Managers require a defined
framework to collect insights from all impacted
groups, matching the technique of marketing
research, and highlighting the implementation
manager's responsibility in coordinating this
continuing data gathering in order to give
direction across the iterative implementation. In
conclusion, the paper highlights the complex
issues faced by organizations in bridging the
divide between technical promise and
successful implementation, relying on a variety
of perspectives to emphasize the significance of
user interaction.
A. Business Use Case - Tencent
The Chinese social media juggernaut
Tencent has carefully incorporated artificial
intelligence (AI) into its business practices to
maintain its position as a trailblazing online
company. Tencent, which provides an active
audience of 1 billion on its WeChat app, has
passionately absorbed AI across industries like
gaming, digital assistants, mobile payments,
cloud storage, live streaming, education, self-
driving cars, and more, in line with its motto of
"AI in all." Nevertheless, the project has not
been lacking its challenges. As it gathers and
utilizes massive troves of user information, the
corporation struggles to maintain data privacy
and security, mandating stringent adherence to
data protection regulations and safeguarding
procedures. Another challenge is reducing
algorithmic bias, which necessitates careful
training and supervision of AI systems to prevent
unintentional amplifying of biases. ethical
difficulties
However, Tencent has benefited greatly
from its investment in AI. Tencent improves user
experiences by incorporating AI into its design
and increasing engagement across all of its
multiple services through customized
suggestions, predictive analytics, and
customised content delivery. Strategic business
choices and tailored marketing strategies are
made possible by the union of AI and data
collecting, which produces actionable insights
into user behavior, preferences, and trends. It is
evident that AI integration has sped up
innovation as Tencent makes tremendous
strides in fields like self-driving vehicle
technology and WeChat upgrades. As AI
automates jobs like fraud detection and
customer support contacts, it improves
workflows and reduces the need for manual
intervention, increasing operational savings.
Beyond internal improvements, Tencent
achieves its goal of becoming a reputable
company while gaining a competitive edge in the
fast-paced digital market.
B. Business Use Case - JD
Under Richard Liu's vision, JD.com,
sometimes referred to as the "Chinese Amazon,"
is paving the way toward total automation. With
its warehouse operations completely automated
and drone deliveries in use for the past four
years, the firm has already made outstanding
strides. The combination of AI, big data
analytics, and robots is a key component of
JD.com's strategy as it builds the essential
foundation for the fourth industrial revolution to
begin. However, there are roadblocks in the path
of this project. To maintain smooth operations,
the complex fusion of these many technologies
necessitates rigorous coordination. Additionally,
as JD.com moves toward a completely
automated environment, worries about the loss
of the labor force loom, demanding plans for
reskilling and adaptability. The complexity of
managing automated systems on a
technological level
The advantages of JD.com's automation
push are strong. By attaining full automation, the
business increases operational effectiveness
through robotic warehouse management's
accuracy and speed as well as supply chain
logistics optimization. Over time, significant cost
reductions are predicted as a result of
decreased labor costs and enhanced inventory
control. JD.com is able to react quickly to
changes in the market because to the scalability
of automated systems, which eliminates the
need for labor-intensive reconfigurations. With
the speedy drone delivery and the enhancement
of consumer experiences through AI-driven
personalisation and predictive analytics, there
will be no comparison in terms of comfort and
happiness.
Beyond short-term benefits, JD.com's
innovative integration of AI, big data, and robots
pushes it to the forefront of innovation and might Kraus, S., Durst, S., Ferreira, J. J., Veiga, P.,
establish standards for the sector. Furthermore,
the company's automation projects and drone Kailer, N., & Weinmann, A. (2022). Digital
deliveries help to reduce carbon emissions and
transformation in business and management
leave a smaller environmental imprint, thus this
trend fits with environmental concern. research: An overview of the current status

quo. International Journal of Information

IV. CONCLUSIONS
Management, 63(102466), 102466.
This research investigates how deep learning
https://doi.org/10.1016/j.ijinfomgt.2021.10246
and artificial intelligence (AI) are altering
contemporary enterprises. Businesses like 6
Tencent and JD.com are strategically utilizing AI
to boost productivity, innovate, and improve user
experiences. The advantages of AI and deep Turner, S., & Endres, A. (2017). Strategies for
learning are obvious, providing better decision-
enhancing small business owners’ success rates.
making, automation, and innovation across
sectors, despite issues like data privacy and International Journal of Applied Management
prejudice. In order to effectively use AI and
automation for business gains, the research and Technology, 16(1).
underlines the necessity for a balanced strategy
that takes into account technology, ethics, and https://doi.org/10.5590/ijamt.2017.16.1.03
flexibility.
Top 8 business benefits of Machine Learning -
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