1. Describe any three key business function.

Key Business Functions

1.Marketing and Sales:

o Market Research: Conducted via surveys and interviews. Example: Dabur

used market research for Ayurvedic products.
o Advertising: Relied on print, TV, and radio. Example: Amul used iconic print
ads for brand building.
2. Operations Management:
o Supply Chain Management: Manual tracking of inventory and shipments.
Example: Blue Dart used physical documentation for logistics.
o Quality Control: Manual inspections. Example: Tata Steel employed staff for
product quality checks.
3. Finance and Accounting:
o Bookkeeping: Manual ledger entries. Example: Reliance Industries
maintained financial records with manpower.
o Auditing: Conducted manually by in-house teams or external auditors. Large
firms had dedicated auditing teams.
4. Human Resources:
o Recruitment: Used newspaper ads and walk-in interviews. Example: Infosys
conducted campus placement drives.
o Employee Management: Manual record-keeping. Example: Indian Railways
maintained employee data on paper.
5. Customer Service:
o Support: Provided through call centers and in-person interactions. Example:
BSNL managed customer support via call centers.
o Feedback: Collected through suggestion boxes and forms. Example: Shoppers
Stop used in-store feedback forms.

2. Describe any three challenges in traditional business.

Challenges in Traditional Business

1. Data Management:
o Manual Data Entry: Prone to errors and inefficiencies; banks struggled with
accurate data entry, affecting customer accounts.
o Limited Data Analysis: Difficulty in extracting insights from large data
volumes; manufacturing companies faced challenges in optimizing processes.
2. Operational Efficiency:
o High Labor Costs: Reliance on manual labor increased costs; textile
companies needed large workforces for production and quality control.
o Time-Consuming Processes: Manual methods led to delays; logistics sectors
experienced significant shipment tracking and inventory management delays.
3. Customer Engagement:
o Limited Reach: Traditional marketing channels lacked the reach of digital
platforms; local businesses struggled to expand beyond their geographic
areas.
 o Personalization: Difficulty in tailoring customer experiences; retail stores
found it challenging to meet individual preferences.
4. Innovation and Adaptation:
o Slow Adaptation: Difficulty in responding to market changes; traditional
bookstores struggled to compete with e-commerce.
o Limited R&D: Resource constraints hindered extensive research and
development; SMEs often lacked financial and technical resources for
innovation.
5. Scalability:
o Resource Constraints: Expansion required significant investments; for
example, increasing manufacturing capacity involved high capital costs and
lengthy planning.
o Operational Complexity: Scaling operations complicated management;
multinational companies like Tata Group had to manage diverse operations
across regions manually.

3. Describe any three key concepts of AI.

Key Concepts of AI

1. Machine Learning (ML):

o A subset of AI that enables computers to learn from data and make
predictions.
o Types:
▪ Supervised Learning: Uses labeled data (e.g., predicting house prices).
▪ Unsupervised Learning: Analyzes unlabeled data to find patterns
(e.g., customer segmentation).
▪ Reinforcement Learning: Learns through interaction and feedback
(e.g., training a robot to navigate a maze).
2. Neural Networks:
o Models inspired by the human brain with interconnected units (neurons) that
process information in layers.
o Deep Learning: A complex type of neural network with multiple layers,
effective for large datasets (e.g., image recognition using CNNs).
3. Natural Language Processing (NLP):
o Focuses on human-computer interaction through language.
o Applications: Includes translation, sentiment analysis, chatbots, and speech
recognition (e.g., OpenAI's GPT-3).
4. Computer Vision:
o Enables machines to understand visual information.
o Techniques: Image classification, object detection, and segmentation (e.g.,
facial recognition systems).
5. Robotics:
o Involves the design and use of robots.
o Applications: Manufacturing robots, autonomous vehicles, drones, and
surgical robots.
6. Expert Systems:
o Mimic human decision-making abilities.
o Components: Knowledge base and inference engine (e.g., MYCIN for
diagnosing infections).
 7. Reinforcement Learning:
o A type of ML where an agent learns by receiving rewards or penalties (e.g., AI
playing games like Chess or Go).
8. Transfer Learning:
o Reuses a pre-trained model for a new task.
o Applications: Effective in tasks like image classification and NLP (e.g., using
pre-trained CNNs for new image tasks).

4. Explain how AI help us to take core business decision.

1. Enhanced Decision-Making

• Data Analysis: AI can analyze massive amounts of data quickly, identifying trends
and patterns.
• Predictive Insights: It can forecast outcomes based on historical data, enabling
businesses to make informed, data-driven decisions that are likely to succeed.

2. Automated Operations

• Task Automation: AI automates repetitive tasks (like data entry), allowing human
employees to focus on more strategic and creative work.
• Efficiency Gains: This streamlining improves operational efficiency and reduces costs
by minimizing human error and speeding up processes.

3. Improved Customer Experience

• 24/7 Support: AI-powered chatbots provide round-the-clock customer support,

quickly answering questions and resolving issues.
• Personalization: AI personalizes marketing campaigns and product
recommendations, enhancing customer satisfaction and loyalty by catering to
individual preferences.

4. Product and Service Innovation

• Market Analysis: AI analyzes customer data and market trends to identify

opportunities for new products and services.
• Optimization: It helps in optimizing product designs and features, leading to better
performance and increased market competitiveness.

5. Supply Chain Optimization

• Demand Prediction: AI can accurately predict customer demand, helping businesses

manage inventory more effectively.
• Logistics Streamlining: It optimizes logistics processes, leading to a more efficient
and cost-effective supply chain, reducing delays and operational costs.
5. Explain any three challenges to adopt AI in business.
three challenges to adopting AI in business:

1. Data Quality and Availability

AI systems depend on high-quality data to function effectively. Businesses often face

difficulties with data silos, where information is not centralized, leading to challenges in
gathering comprehensive datasets.

2. Talent Shortage

There is a notable shortage of skilled professionals in the AI field, making it difficult for
organizations to recruit qualified data scientists, machine learning engineers, and AI
specialists necessary for effective implementation.

3. Integration with Existing Systems

Integrating AI technologies into legacy systems and existing business processes can be
complex and resource-intensive. This can create disruptions in operations and necessitate
significant investments, which may deter organizations from fully adopting AI solutions.

4. Data Security and Privacy

Ensuring the security and privacy of customer data is critical when implementing AI
systems. Businesses must adopt stringent measures to protect sensitive information from
breaches and unauthorized access.

5.. Ethical Considerations

AI algorithms can exhibit bias, leading to unfair outcomes for certain groups. It's essential
for organizations to focus on the careful design and ongoing monitoring of AI systems to
minimize bias and ensure equitable treatment.

6. Job Displacement

The automation facilitated by AI may result in job losses in specific sectors. Organizations
must proactively plan for workforce reskilling and retraining to help employees transition to
new roles and reduce the impact of automation on employment.

6. Explain how AI adaption increase the processing power of any

business.
1. Big Data and Storage

• Advancement: Cloud computing has revolutionized data storage by offering scalable

and secure solutions.
• Significance: Businesses can now store and manage vast amounts of data efficiently,
enabling AI to analyze customer information and uncover valuable insights.
2. Processing Power

• Advancement: The development of multi-core processors and distributed

computing technologies has dramatically increased data processing capabilities.
• Significance: This allows real-time data analysis, which is crucial for predictive
maintenance and optimizing operational efficiency in various industries.

3. Machine Learning Algorithms

• Advancement: Enhanced machine learning algorithms can process large datasets to

identify patterns and make accurate predictions.
• Significance: This capability enables businesses to create personalized marketing
strategies and improve decision-making based on data-driven insights.

These advancements are essential for organizations looking to harness the power of AI,
enhancing their efficiency, innovation, and competitiveness.

7. Explain any two use cases where you find AI foot print.
Notable use cases where AI is significantly impacting various industries:

1. Healthcare Diagnostics

AI is revolutionizing the healthcare industry by enhancing diagnostic accuracy and

efficiency. For instance, AI algorithms can analyze medical images (like X-rays, MRIs, and CT
scans) to detect anomalies such as tumors or fractures. These algorithms are trained on
vast datasets, allowing them to recognize patterns that may be difficult for human
radiologists to identify. This leads to:

• Faster diagnoses: Reducing the time taken to identify conditions.

• Improved accuracy: Minimizing the chances of human error and providing a second
opinion.

2. Personalized Marketing

AI is widely used in marketing to create personalized experiences for consumers. By

analyzing customer data, including purchase history, browsing behavior, and preferences,
AI can segment customers and deliver targeted advertisements. For example:

• Recommendation systems: Platforms like Netflix and Amazon use AI to suggest

content or products based on user behavior, enhancing customer engagement.
• Dynamic pricing: AI can analyze market trends and customer demand in real-time
to adjust prices accordingly, optimizing sales and inventory management.
8. Short note on AI in
1. Healthcare

AI is transforming the healthcare industry by improving diagnostics, treatment, and patient

care. For example, Practo uses AI to provide personalized health recommendations by
analyzing patient data.

• Data Collection: Patient health records, lab reports, and online consultations.
• Data Processing: Cleaning and ensuring accuracy.
• Training AI Models: Identifying patterns in symptoms, diagnoses, and treatments.
• Making Predictions: Providing personalized health recommendations.
• Continuous Improvement: Retraining models with new patient data for better
accuracy.

2. Retail

AI enhances customer experiences, optimizes supply chains, and improves inventory

management in the retail industry. For instance, Myntra provides personalized product
recommendations through AI.

• Data Collection: Customer interactions, purchase history, and browsing behavior.

• Data Processing: Removing duplicates and transforming data.
• Training AI Models: Learning customer preferences and behavior patterns.
• Making Predictions: Offering personalized product recommendations.
• Continuous Improvement: Retraining models with new customer data for relevance.

3. Finance

In the finance sector, AI improves fraud detection, risk management, and customer
service. For example, HDFC Bank uses AI to analyze transaction data for fraud prevention.

• Data Collection: Transactions, customer interactions, and financial records.

• Data Processing: Ensuring data accuracy and consistency.
• Training AI Models: Identifying patterns indicative of fraud.
• Making Predictions: Detecting and preventing fraud in real-time.
• Continuous Improvement: Retraining models as transaction data increases.

4. Manufacturing

AI optimizes production processes, enhances quality control, and reduces downtime in

manufacturing. For example, Tata Steel uses AI to predict equipment failures and improve
product quality.

• Data Collection: Production equipment, sensors, and quality control data.

• Data Processing: Ensuring data accuracy by removing noise.
• Training AI Models: Learning patterns to predict equipment failures.
• Making Predictions: Preventing failures and optimizing maintenance schedules.
• Continuous Improvement: Enhancing accuracy as more production data is collected.
5. Agriculture

AI is revolutionizing agriculture by improving crop management and yield prediction. For

example, CropIn Technology helps farmers make data-driven decisions.

• Data Collection: Satellite images, weather reports, and soil sensors.

• Data Processing: Ensuring data accuracy.
• Training AI Models: Learning patterns between environmental factors and crop
health.
• Making Predictions: Providing insights on crop health and pest control.
• Continuous Improvement: Retraining models as more data is collected.