What Role Does AI Play in Business?

Artificial intelligence has moved well beyond the realm of tech companies and research labs. Today, AI is embedded in business operations across virtually every industry, from healthcare and finance to retail and manufacturing. For business students and professionals, understanding how AI works and what it means for their careers is no longer optional. It's essential.

What Is AI in a Business Context?

At its core, AI in business refers to the use of technologies like machine learning, natural language processing and computer vision to optimize business functions, boost productivity and drive better outcomes. McKinsey’s 2025 Global Survey reveals 88% of organizations report regular use of AI in at least one business function, up from 78% the year before. Not only that, but according to an IBM survey, business leaders expect investments in AI to increase about 150% between 2025 and 2030. These projected investments suggest that AI literacy will become increasingly important for business professionals across functional areas.

AI systems are used to automate repetitive tasks, process large volumes of data quickly, extract insights, and predict future outcomes based on data analysis. The goal isn't to replace human workers but allow them to focus on higher-level, more strategic work.

Key Ways AI Is Being Used in Business

AI applications span a wide range of business functions. Here are some examples:

• Marketing and sales: AI tools help businesses analyze customer data to identify spending patterns, forecast trends, and tailor campaigns to specific audiences through marketing segmentation.
• Customer service: AI-powered chatbots handle routine inquiries around the clock, allowing human agents to focus on more complex customer needs.
• Cybersecurity: Deep learning models can scan large volumes of network traffic data to detect anomalies and flag potential security threats before they compromise sensitive data.
• Supply chain management: Predictive analytics help businesses forecast shipping costs, material pricing and inventory needs, which reduces bottlenecks and waste.
• Business intelligence: AI helps companies collect, analyze and visualize data more efficiently, leading to far more informed decision-making process.
• Healthcare: AI is already transforming healthcare through tools that support early disease detection, personalized medicine, wearable health technology and data security.

Will AI Replace Business Professionals?

This is one of the most common concerns among students entering the workforce today, and the short answer is no. AI is being used more as a tool to streamline tasks, not replace human ingenuity.

According to Harvard Business School, the benefits of AI in business center on augmenting human capability rather than eliminating it. McKinsey research cited by HBS suggests AI has the potential to automate work activities that currently absorb 60 to 70 percent of employees' time, which would allow them to redirect their time toward more strategic initiatives.

The same is true across technical fields. As we noted in our article on AI's impact on computer science, the future of work is collaborative. AI handles speed and repetition; humans bring creativity, critical thinking, ethical judgment, and the ability to understand nuanced business needs. The professionals who thrive will be those who learn to work alongside AI tools rather than around them.

What This Means for Business Students

Understanding AI isn't just relevant for tech majors. Business students across disciplines stand to benefit from understanding how AI-driven tools support data-driven decision-making, automation processes, and operational efficiency.

At Herzing, AI concepts are incorporated into select graduate-level business programs, including those focused on business analytics. Students may develop the analytical and strategic thinking skills needed to interpret data, identify trends, evaluate AI-supported insights, and apply those insights in real-world business settings. This preparation will help students understand not only how AI tools can improve business performance, but also how to use them responsibly and ethically.

The Bottom Line

AI is reshaping how businesses operate, compete with others, and serve their customers. For business students and graduates, it’s not about fearing the shift, but about getting ahead of it. Developing a working understanding of business automation, predictive analytics and data-driven decision-making positions you to be a more effective and versatile professional in any industry you choose.