Entefy AI Glossary: 237 Key terms for professionals, developers, and tech enthusiasts

The pace of advancement in artificial intelligence over the past few years has been nothing short of exponential. The field has seen significant adoption and, at many organizations, there is a growing focus on alignment, efficiency, and responsible deployment of AI.

Keeping up with the rapid evolution of AI and machine intelligence can be overwhelming. Gaining a solid grasp of the core terminology is essential for understanding how these technologies work and what they mean for the future. Whether for individual growth or organizational strategy, foundational AI education and training can offer a competitive advantage. To assist with your learning journey, Entefy has created this glossary to serve as a practical, accessible resource that breaks down key AI terms and concepts. It’s aimed at a wide audience, including industry professionals and tech enthusiasts looking to stay informed in this fast-evolving field.

We encourage you to bookmark this page for quick reference in the future.

A

Activation function. A mathematical function in a neural network that defines the output of a node given one or more inputs from the previous layer. Also see weight.

Algorithm. A procedure or formula, often mathematical, that defines a sequence of operations to solve a problem or class of problems.

Agent (also, software agent). A piece of software that can autonomously perform tasks for a user or other program(s) automatically.

Agent2Agent (A2A). An open, standardized protocol and communication framework designed to enable interoperability among diverse AI agents. It facilitates interaction, coordination, and collaboration across agents with diverse architectures, platforms, and underlying technologies, supporting scalable and distributed multi-agent systems.

Agentic AI. An intelligent system with sophisticated reasoning, independent decision-making, ability to adapt, and take autonomous actions to solve multi-step problems with minimal to no human supervision.

AI agent. A system or program that perceives its environment, analyzes inputs, and takes actions to achieve specific goals.

AI agent orchestrator. A system that manages and coordinates interactions among multiple AI agents to efficiently achieve complex tasks.

AI copilot. An AI-driven assistant that aids users in completing tasks by intelligently applying data, context, and computational power. Different types of copilots exist, each tailored to specific workflows or domains, offering enhanced productivity, guidance, and decision support.

AI ethics. The principles and guidelines that ensure AI systems are fair, transparent, accountable, and respect human rights throughout their development and use. Also see trustworthy AI.

AI governance. The framework of policies, procedures, and controls that guide the responsible development, deployment, and oversight of AI systems to ensure ethical, legal, and safe use.

AI guardrails. The rules, constraints, or safety measures built into AI systems to prevent harmful, biased, or unintended outputs and ensure responsible behavior. Also see guardrails.

AIOps. A set of practices and tools that use artificial intelligence capabilities to automate and improve IT operations tasks.

AI washing. The deceptive practice of exaggerating or misrepresenting the use of artificial intelligence in products or services to appear more advanced, innovative, or competitive than they actually are.

Annotation. In ML, the process of adding labels, descriptions, or other metadata information to raw data to make it more informative and useful for training machine learning models. Annotations can be performed manually or automatically. Also see labeling and pseudo-labeling.

Anomaly detection. The process of identifying instances of an observation that are unusual or deviate significantly from the general trend of data. Also see outlier detection.

Anthropomorphism. Attributing human-like traits such as emotions, consciousness, personality, or intentions to artificial intelligent systems. This can lead to unrealistic expectations, emotional attachment, accountability issues, miscommunication, and potential user manipulation.

Application programming interface (API). A defined set of rules and protocols that allows software components to communicate and interact. APIs enable applications to request and exchange data or functionality without needing to understand each other’s internal workings. They are commonly used for system integration, data access, and connecting to third-party services.

Artificial general intelligence (AGI) (also, strong AI). The term used to describe a machine’s intelligence functionality that matches human cognitive capabilities across multiple domains. Often characterized by self-improvement mechanisms and generalization rather than specific training to perform in narrow domains.

Artificial intelligence (AI). The umbrella term for computer systems that can interpret, analyze, and learn from data in ways similar to human cognition.

Artificial neural network (ANN) (also, neural network). A specific machine learning technique that is inspired by the neural connections of the human brain. The intelligence comes from the ability to analyze countless data inputs to discover context and meaning.

Artificial superintelligence (ASI). The term used to describe a machine’s intelligence that is well beyond human intelligence and ability, in virtually every aspect.

Attention mechanism. A mechanism simulating cognitive attention to allow a neural network to focus dynamically on specific parts of the input in order to improve performance.

Autoencoder. An unsupervised learning technique for artificial neural network, designed to learn a compressed representation (encoding) for a set of unlabeled data, typically for the purpose of dimensionality reduction.

AutoML. The process of automating certain machine learning steps within a pipeline such as model selection, training, and tuning.

B

Backpropagation. A method of optimizing multilayer neural networks whereby the output of each node is calculated and the partial derivative of the error with respect to each parameter is computed in a backward pass through the graph. Also see model training.

Bagging. In ML, an ensemble technique that utilizes multiple weak learners to improve the performance of a strong learner with focus on stability and accuracy.

Bias. In ML, the phenomenon that occurs when certain elements of a dataset are more heavily weighted than others so as to skew results and model performance in a given direction.

Bigram. An n-gram containing a sequence of 2 words. Also see n-gram.

Black box AI. A type of artificial intelligence system that is so complex that its decision-making or internal processes cannot be easily explained by humans, thus making it challenging to assess how the outputs were created. Also see explainable AI (XAI).

Boosting. In ML, an ensemble technique that utilizes multiple weak learners to improve the performance of a strong learner with focus on reducing bias and variance.

C

Cardinality. In mathematics, a measure of the number of elements present in a set.

Categorical variable. feature representing a discrete set of possible values, typically classes, groups, or nominal categories based on some qualitative property. Also see structured data.

Centroid model. A type of classifier that computes the center of mass of each class and uses a distance metric to assign samples to classes during inference.

Chain of thought (CoT). In ML, this term refers to a series of reasoning steps that guides an AI model’s thinking process when creating high quality, complex output. Chain of thought prompting is a way to help large language models solve complex problems by breaking them down into smaller steps, guiding the LLM through the reasoning process.

Chatbot. A computer program (often designed as an AI-powered virtual agent) that provides information or takes actions in response to the user’s voice or text commands or both. Current chatbots are often deployed to provide customer service or support functions.

Class. A category of data indicated by the label of a target attribute.

Class imbalance. The quality of having a non-uniform distribution of samples grouped by target class.

Classification. The process of using a classifier to categorize data into a predicted class.

Classifier. An instance of a machine learning model trained to predict a class.

Clustering. An unsupervised machine learning process for grouping related items into subsets where objects in the same subset are more similar to one another than to those in other subsets.

Cognitive computing. A term that describes advanced AI systems that mimic the functioning of the human brain to improve decisionmaking and perform complex tasks.

Computer vision (CV). An artificial intelligence field focused on classifying and contextualizing the content of digital video and images. 

Context engineering. The practice of providing AI models, especially large language models (LLMs), with comprehensive information and resources to effectively perform tasks, moving beyond just crafting prompts.

Context window. The maximum limit of text or tokens that can be processed (combined input and output) by a large language model (LLM) at once, determining how much recent information it can consider when generating responses.

Convergence. In ML, a state in which a model’s performance is unlikely to improve with further training. This can be measured by tracking the model’s loss function, which is a measure of the model’s performance on the training data.   

Conversational AI. A branch of artificial intelligence focused on creating systems that can engage in natural, human-like conversations with users. These systems use natural language processing (NLP), machine learning, and speech recognition to understand and respond to spoken or written inputs.

Convolutional neural network (CNN). A class of neural network that utilizes multilayer perceptron, where each neuron in a hidden layer is connected to all neurons in the next layer, in conjunction with hidden layers designed only to filter input data. CNNs are most commonly applied to computer vision. 

Corpus. A collection of text data used for linguistic research or other purposes, including training of language models or text mining.

Central processing unit (CPU). As the brain of a computer, the CPU is the essential processor responsible for interpreting and executing a majority of a computer’s instructions and data processing. Also see graphics processing unit (GPU).

Cross-validation. In ML, a technique for evaluating the generalizability of a machine learning model by testing the model against one or more validation datasets.

D

Data augmentation. A technique to artificially increase the size and diversity of a training dataset by creating new data points from existing data. This can be done by applying various transformations to the existing data.

Data cleaning. The process of improving the quality of dataset in preparation for analytical operations by correcting, replacing, or removing dirty data (inaccurate, incomplete, corrupt, or irrelevant data).

Data preprocessing. The process of transforming or encoding raw data in preparation for analytical operations, often through re-shaping, manipulating, or dropping data.

Data curation. The process of collecting and managing data, including verification, annotation, and transformation. Also see training and dataset.

Data mining. The process of targeted discovery of information, patterns, or context within one or more data repositories.

DataOps. Management, optimization, and monitoring of data retrieval, storage, transformation, and distribution throughout the data life cycle including preparation, pipelines, and reporting.

Deepfake. Fabricated media content (such as image, video, or recording) that has been convincingly manipulated or generated using deep learning to make it appear or sound as if someone is doing or saying something they never actually did.    

Deep learning. A subfield of machine learning that uses neural networks with two or more hidden layers to train a computer to process data, recognize patterns, and make predictions.

Deliberative agent. An AI agent that uses internal knowledge and reasoning to plan actions aimed at achieving specific goals. Also see reactive agent, hybrid agent, reflective agent, and learning agent.

Derived feature. A feature that is created and the value of which is set as a result of observations on a given dataset, generally as a result of classification, automated preprocessing, or sequenced model output.

Descriptive analytics. The process of examining historical data or content, typically for the purpose of reporting, explaining data, and generating new models for current or historical events. Also see predictive analytics and prescriptive analytics.

Differential privacy. A privacy-preserving technique to analyze and share data while protecting private individual information. It works by adding controlled random noise to results, ensuring that the inclusion or exclusion of any single individual’s data does not significantly affect the output. This enables useful insights at the group level without revealing details about individuals. Also see zero data retention.

Diffusion Model. A generative AI model that produces data (such as images, audio, or text) by starting with pure random noise and gradually refining it over many steps to form coherent outputs.

Dimensionality reduction. A data preprocessing technique to reduce the number of input features in a dataset by transforming high-dimensional data to a low-dimensional representation.

Digital worker. A software agent that autonomously performs complex, rule-based, or cognitive tasks within business processes. Digital workers are designed to simulate human actions to improve efficiency, accuracy, and collaboration with human employees. Also see downloadable employee and software bot.

Discriminative model. A class of models most often used for classification or regression that predict labels from a set of features. Synonymous with supervised learning. Also see generative model.

Double descent. In machine learning, a phenomenon in which a model’s performance initially improves with increasing data size, model complexity, and training time, then degrades before improving again.

Downloadable employee. An agent or a piece of software that can be rapidly deployed to perform specific tasks or automate workflows within an organization, enhancing operational efficiency without requiring physical presence. Also see digital worker and software bot.

E

Ensembling. A powerful technique whereby two or more algorithms, models, or neural networks are combined in order to generate more accurate predictions.

Embedding. In ML, a mathematical structure representing discrete categorical variables as a continuous vector. Also see vectorization.

Embedding space. An n-dimensional space where features from one higher-dimensional space are mapped to a lower dimensional space in order to simplify complex data into a structure that can be used for mathematical operations. Also see dimensionality reduction.

Emergence. In ML, the phenomenon where a model develops new abilities or behaviors that are not explicitly programmed into it. Emergence can occur when a model is trained on a large and complex dataset, and the model is able to learn patterns and relationships that the programmers did not anticipate.

Enterprise AI. An umbrella term referring to artificial intelligence technologies designed to improve business processes and outcomes, typically for large organizations.

Expert System. A computer program that uses a knowledge base and an inference engine to emulate the decision-making ability of a human expert in a specific domain.

Explainable AI (XAI). A set of tools and techniques that helps people understand and trust the output of machine learning algorithms.

Extreme Gradient Boosting (XGBoost). A popular machine learning library based on gradient boosting and parallelization to combine the predictions from multiple decision trees. XGBoost can be used for a variety of tasks, including classification, regression, and ranking.

F

F1 Score. A measure of a test’s accuracy calculated as the harmonic mean of precision and recall.

Feature. In ML, a specific variable or measurable value that is used as input to an algorithm.

Feature engineering. The process of designing, selecting, and transforming features extracted from raw input to improve the performance of machine learning models. 

Feature vector (also, vector). In ML, a one-dimensional array of numerical values mathematically representing data points, features, or attributes in various algorithms and models.

Federated learning. A machine learning technique where the training for a model is distributed amongst multiple decentralized servers or edge devices, without the need to share training data.

Few-shot learning. A machine learning technique that allows a model to perform a task after seeing only a few examples of that task. Also see one-shot learning and zero-shot learning.

Few-shot prompt. A prompt that provides a language model with a small number of examples of a task to help it generalize and generate appropriate responses for new inputs. Also see zero-shot prompt and one-shot prompt.

Fine-tuning. In ML, the process by which the hyperparameters of a model are adjusted to improve performance against a given dataset or target objective.

Foundation model. A large, sophisticated deep learning model pre-trained on a massive dataset (typically unlabeled), capable of performing a number of diverse tasks. Instead of training a single model for a single task, which would be difficult to scale across countless tasks, a foundation model can be trained on a broad dataset once and then used as the “foundation” or basis for training with minimal fine-tuning to create multiple task-specific models. Also see large language model.

G

Guardrails. In AI, the rules, constraints, or safety measures built into AI systems to prevent harmful, biased, or unintended outputs and ensure responsible behavior.

Generative adversarial network (GAN). A class of AI algorithms whereby two neural networks compete against each other to improve capabilities and become stronger.

Generative AI (GenAI). A subset of machine learning with deep learning models that can create new, high-quality content, such as text, images, music, videos, and code. Generative AI models are trained on large datasets of existing content and learn to generate new content that is similar to the training data.

Generative model. A model capable of generating new data based on a given set of training data. Also see discriminative model.

Generative Engine Optimization (GEO). The process of refining content, prompts, or input formats to enhance the quality and relevance of outputs produced by generative models.

Generative Pre-trained Transformer (GPT). A special family of models based on the transformer architecture—a type of neural network that is well-suited for processing sequential data, such as text. GPT models are pre-trained on massive datasets of unlabeled text, allowing them to learn the statistical relationships between words and phrases, and to generate text that is similar to the training data.

Graphics processing unit (GPU). A specialized microprocessor that accelerates graphics rendering and other computationally intensive tasks, such as training and running complex, large deep learning models. Also see central processing unit (CPU).

Gradient boosting. An ML technique where an ensemble of weak prediction models, such as decision trees, are trained iteratively in order to improve or output a stronger prediction model. Also see Extreme Gradient Boosting (XGBoost).

Gradient descent. An optimization algorithm that iteratively adjusts the model’s parameters to minimize the loss function by following the negative gradient (slope) of the functions. Gradient descent keeps adjusting the model’s settings until the error is very small, which means that the model has learned to predict the training data accurately.

Ground truth. Information that is known (or considered) to be true, correct, real, or empirical, usually for the purpose of training models and evaluating model performance.

H

Hallucination. In AI, a phenomenon wherein a model generates inaccurate or nonsensical output that is not supported by the data it was trained on.

Hidden layer. A construct within a neural network between the input and output layers which perform a given function, such as an activation function, for model training. Also see deep learning.

Hybrid agent. An AI agent that combines different approaches, such as reactive, deliberative, and learning methods, to make decisions. By blending these strategies, a hybrid agent can respond quickly to changes while also planning ahead and improving over time. Also see reactive agent, deliberative agent, reflective agent, and learning agent.

Hyperparameter. In ML, a parameter whose value is set prior to the learning process as opposed to other values derived by virtue of training.

Hyperparameter Tuning. The process of optimizing a machine learning model’s performance by adjusting its hyperparameters.

Hyperplane. In ML, a decision boundary that helps classify data points from a single space into subspaces where each side of the boundary may be attributed to a different class, such as positive and negative classes. Also see support vector machine.

I

Inference. In ML, the process of applying a trained model to data in order to generate a model output such as a score, prediction, or classification. Also see training.

Input layer. The first layer in a neural network, acting as the beginning of a model workflow, responsible for receiving data and passing it to subsequent layers. Also see hidden layer and output layer.

Instruction tuning. A training technique where an AI model is fine-tuned on datasets that include human-written instructions and responses, enabling it to better follow user prompts and perform directed tasks.

Intelligent process automation (IPA). A collection of technologies, including robotic process automation (RPA) and AI, to help automate certain digital processes. Also see robotic process automation (RPA).

Interoperability. The capacity of AI systems, components, or tools to seamlessly communicate, exchange data, and function across different platforms, frameworks, or environments.

Interpretability. In AI and machine learning, interpretability refers to the degree to which a human can understand the internal mechanics or decision-making process of a model.

J

Jaccard index. A metric used to measure the similarity between two sets of data. It is defined as the size of the intersection of the two sets divided by the size of the union of the two sets. Jaccard index is also known as the Jaccard similarity coefficient.

Jacobian matrix. The first-order partial derivatives of a multivariable function represented as a matrix, providing critical information for optimization algorithms and sensitivity analysis.

Joins. In AI, methods to combine data from two or more data tables based on a common attribute or key. The most common types of joins include inner join, left join, right join, and full outer join.

K

K-means clustering. An unsupervised learning method used to cluster n observations into k clusters such that each of the n observations belongs to the nearest of the k clusters.

K-nearest neighbors (KNN). A supervised learning method for classification and regression used to estimate the likelihood that a data point is a member of a group, where the model input is defined as the k closest training examples in a data set and the output is either a class assignment (classification) or a property value (regression).

Knowledge distillation. In ML, a technique used to transfer the knowledge of a complex model, usually a deep neural network, to a simpler model with a smaller computational cost.

L

Labeling. In ML, the process of identifying and annotating raw data (images, text, audios, videos) with informative labels. Labels are the target variables that a supervised machine learning model is trying to predict. Also see annotation and pseudo-labeling.

Language model. An AI model which is trained to represent, understand, and generate or predict natural human language.

Large language model (LLM). A type of general-purpose language model pre-trained on massive datasets to learn the patterns of language. This training process often requires significant computational resources and optimization of billions of parameters. Once trained, LLMs can be used to perform a variety of tasks, such as generating text, translating languages, and answering questions.

Layer. In ML, a collection of neurons within a neural network which perform a specific computational function, such as an activation function, on a set of input features. Also see hidden layerinput layer, and output layer.

Learning agent. An AI agent that improves its performance over time by learning from its experiences and feedback, enabling it to adapt to new or changing environments without being explicitly programmed for every situation. Also see deliberative agent, reactive agent, reflective agent, and hybrid agent.

Living intelligence. An approach that blends artificial intelligence with biotechnology and advanced sensor networks to model the adaptive, context-aware, and experiential learning traits of biological organisms.

LLM grounding. The process of connecting large language model (LLM) responses to real-world data, sources, or systems to improve factual accuracy, reliability, and relevance of outputs.

Logistic regression. A type of classifier that measures the relationship between one variable and one or more variables using a logistic function.

Long short-term memory (LSTM). A recurrent neural network (RNN) that maintains history in an internal memory state, utilizing feedback connections (as opposed to standard feedforward connections) to analyze and learn from entire sequences of data, not only individual data points.

Loss function. A function that measures model performance on a given task, comparing a model’s predictions to the ground truth. The loss function is typically minimized during the training process, meaning that the goal is to find the values for the model’s parameters that produce accurate predictions as represented by the lowest possible value for the loss function.

M

Machine learning (ML). A subset of artificial intelligence that gives machines the ability to analyze a set of data, draw conclusions about the data, and then make predictions when presented with new data without being explicitly programmed to do so.

Memory poisoning. A security vulnerability where malicious or inaccurate data is inserted into an AI agent’s memory or training data to manipulate its future outputs or degrade performance.

Metadata. Information that describes or explains source data. Metadata can be used to organize, search, and manage data. Common examples include data type, format, description, name, source, size, or other automatically generated or manually entered labels. Also see annotation, labeling, and pseudo-labeling.

Meta-learning. A subfield of machine learning focused on models and methods designed to learn how to learn.

MIMI. The term used to refer to Entefy’s multimodal AI engine and technology. MIMI is an acronym: Massively Intelligent Message Interpreter.

Mixture of experts (MoE). A machine learning architecture that uses multiple specialized sub-models (“experts”), where only a subset is activated for a given input. This allows the model to scale efficiently, improving performance while reducing computation by routing different inputs to the most relevant experts.

MLOps. A set of practices to help streamline the process of managing, monitoring, deploying, and maintaining machine learning models.

Model Context Protocol (MCP). An open framework that standardizes the way AI models, particularly large language models (LLMs), integrate and share data with external tools, systems, and data sources, ensuring consistent reasoning and decision-making. 

Model training. The process of providing a dataset to a machine learning model for the purpose of improving the precision or effectiveness of the model. Also see supervised learning and unsupervised learning.

Multi-agent system (MAS). A system composed of multiple agents that interact within a shared environment to achieve individual or collective goals. Agents can cooperate, coordinate, or compete, and are capable of perception, decision-making, and communication. MAS is used in domains such as robotics, distributed AI, simulations, and smart systems.

Multi-head attention. A process whereby a neural network runs multiple attention mechanisms in parallel to capture different aspects of input data.

Multimodal AI. Machine learning models that analyze and relate data processed using multiple modes or formats of learning.

Multimodal sentiment analysis. A type of sentiment analysis that considers multiple modalities, such as text, audio, and video, to predict the sentiment of a piece of content. This is in contrast to traditional sentiment analysis which only considers text data. Also see visual sentiment analysis.

N

N-gram. A token, often a string, containing a contiguous sequence of n words from a given data sample.

N-gram model. In NLP, a model that counts the frequency of all contiguous sequences of [1, n] tokens. Also see tokenization.

Naive Bayes (Naïve Bayes). A probabilistic classifier based on applying Bayes Rule which makes simplistic (naive) assumptions about the independence of features.

Named entity recognition (NER). An NLP model that locates and classifies elements in text into pre-defined categories.

Natural language processing (NLP). A field of computer science and artificial intelligence focused on processing and analyzing natural human language or text data.

Natural language generation (NLG). A subfield of NLP focused on generating human language text.

Natural language understanding (NLU). A specialty area within NLP focused on advanced analysis of text to extract meaning and context. 

Neural network (NN) (also, artificial neural network). A specific machine learning technique that is inspired by the neural connections of the human brain. The intelligence comes from the ability to analyze countless data inputs to discover context and meaning.

Neurosymbolic AI. A type of artificial intelligence that combines the strengths of both neural and symbolic approaches to AI to create more powerful and versatile AI systems. Neurosymbolic AI systems are typically designed to work in two stages. In the first stage, a neural network is used to learn from data and extract features from the data. In the second stage, a symbolic AI system is used to reason about the features and make decisions.

O

Obfuscation. A technique that involves intentional obscuring of code or data to prevent reverse engineering, tampering, or violation of intellectual property. Also see privacy-preserving machine learning (PPML).

One-shot learning. A machine learning technique that allows a model to perform a task after seeing only one example of that task. Also see few-shot learning and zero-shot learning.

One-shot prompt. A prompt that includes one example to guide a language model in performing a task, enabling it to generalize to similar inputs based on that single demonstration. Also see zero-shot prompt and few-shot prompt.

Ontology. A data model that represents relationships between concepts, events, entities, or other categories. In the AI context, ontologies are often used by AI systems to analyze, share, or reuse knowledge.

Outlier detection. The process of detecting a datapoint that is unusually distant from the average expected norms within a dataset. Also see anomaly detection.

Output layer. The last layer in a neural network, acting as the end of a model workflow, responsible for delivering the final result or answer such as a score, class label, or prediction. Also see hidden layer and input layer.

Overfitting. In ML, a condition where a trained model over-conforms to training data and does not perform well on new, unseen data. Also see underfitting.

P

Parameter. In ML, parameters are the internal variables the model learns during the training process. In a neural network, the weights and biases are parameters. Once the model is trained, the parameters are fixed, and the model can then be used to make predictions on new data by using the parameters to compute the output of the model. The number of parameters in a machine learning model can vary depending on the type of model and the complexity of the problem being solved. For example, a simple linear regression model may only have a few parameters, while a complex deep learning model may have billions of parameters.

Parameter-Efficient Tuning Methods (PETM). Techniques used to improve the performance of a machine learning model by optimizing the hyperparameters (e.g. reducing the number of parameters required). PETM reduces computational cost, improves generalization, and improves interpretability.

Perceptron. One of the simplest artificial neurons in neural networks, acting as a binary classifier based on a linear threshold function.

Perplexity. In AI, a common metric used to evaluate language models, indicating how well the model predicts a given sample.

Precision. In ML, a measure of model accuracy computing the ratio of true positives against all true and false positives in a given class.

Predictive analytics. The process of learning from historical patterns and trends in data to generate predictions, insights, recommendations, or otherwise assess the likelihood of future outcomes. Also see descriptive analytics and prescriptive analytics.

Prescriptive analytics. The process of using data to determine potential actions or strategies based on predicted future outcomes. Also see descriptive analytics and predictive analytics.

Primary feature. A feature, the value of which is present in or derived from a dataset directly. 

Privacy-preserving machine learning (PPML). A collection of techniques that allow machine learning models to be trained and used without revealing the sensitive, private data that they were trained on. Also see obfuscation.

Prompt. A piece of text, code, or other input that is used to instruct or guide an AI model to perform a specific task, such as writing text, translating languages, generating creative content, or answering questions in informative ways. Also see large language model (LLM)generative AI, and foundation model.

Prompt design. The specialized practice of crafting optimal prompts to efficiently elicit the desired response from language models, especially LLMs.  Prompt design and prompt engineering are two closely related concepts in natural language processing (NLP).

Prompt driven development. A software development approach that uses carefully designed prompts to guide and improve AI model outputs, focusing on prompt refinement instead of traditional coding changes.

Prompt engineering. The broader process of developing and evaluating prompts that elicit the desired response from language models, especially LLMs. Prompt design and prompt engineering are two closely related concepts in natural language processing (NLP).

Prompt injection attack. A type of cyberattack targeting large language models (LLMs), where malicious inputs are crafted to manipulate the model’s behavior. Attackers disguise harmful instructions as part of legitimate prompts, potentially causing the LLM to leak sensitive information, ignore safety controls, or generate misleading content.

Prompt tuning. An efficient technique to improve the output of a pre-trained foundation model or large language model by programmatically adjusting the prompts to perform specific tasks, without the need to retrain the model or update its parameters.

Pseudo-labeling. A semi-supervised learning technique that uses model-generated labeled data to improve the performance of a machine learning model. It works by training a model on a small set of labeled data, and then using the trained model to predict labels for the unlabeled data. The predicted labels are then used to train the model again, and this process is repeated until the model converges. Also see annotation and labeling.

Q

Q-learning. A model-free approach to reinforcement learning that enables a model to iteratively learn and improve over time by taking the correct action. It does this by iteratively updating a Q-table (the “Q” stands for quality), which is a map of states and actions to rewards.

Quantization. A model compression technique that reduces an AI model’s memory and computation needs by converting its parameters from high-precision formats (e.g., 32-bit floats) to lower-precision formats (e.g., 8-bit integers). This technique enables efficient deployment of AI models on devices with limited memory and compute power.

R

Random forest. An ensemble machine learning method that blends the output of multiple decision trees in order to produce improved results.

Reactive agent. An AI agent that operates by instantly responding to its surroundings or inputs, using fixed rules and without referencing past information or building internal models. Also see deliberative agent, hybrid agent, reflective agent, and learning agent.

Recall. In ML, a measure of model accuracy computing the ratio of true positives guessed against all actual positives in a given class.

Recurrent neural network (RNN). A class of neural networks that is popularly used to analyze temporal data such as time series, video and speech data.

Reflective agent. An AI agent that can observe, analyze, and reason about its own behavior, decisions, and internal processes. It uses this self-evaluation to adapt, improve, or revise its strategies over time. Also see reactive agent, deliberative agent, hybrid agent, and learning agent.

Regression. In AI, a mathematical technique to estimate the relationship between one variable and one or more other variables. Also see classification.

Regularization. In ML, a technique used to prevent overfitting in models. Regularization works by adding a penalty to the loss function of the model, which discourages the model from learning overly complex patterns, thereby making it more likely to generalize to new data.

Reinforcement learning (RL). A machine learning technique where an agent learns independently the rules of a system via trial-and-error sequences.

Reinforcement learning from human feedback (RLHF). A technique used to fine-tune AI models, particularly large language models (LLMs), using human preferences to improve the quality, safety, and alignment of their outputs.

Retrieval-Augmented Generation (RAG). An approach that enhances large language models (LLMs) by combining their generative capabilities with an information retrieval system, allowing the model to fetch relevant data from a knowledge base to generate more accurate and contextually informed responses.

Robotic process automation (RPA). Business process automation that uses virtual software robots (not physical) to observe the user’s low-level or monotonous tasks performed using an application’s user interface in order to automate those tasks. Also see intelligent process automation (IPA).

S

Self-attention. A mechanism in machine learning that allows models to evaluate and prioritize the significance of each word or token in a sequence. It’s a core component of transformer models widely used in natural language processing (NLP) tasks.

Self-supervised learning. Autonomous Supervised Learning, whereby a system identifies and extracts naturally-available signal from unlabeled data through processes of self-selection.

Semi-supervised learning. A machine learning technique that fits between supervised learning (in which data used for training is labeled) and unsupervised learning (in which data used for training is unlabeled).

Sentiment analysis. In NLP, the process of identifying and extracting human opinions and attitudes from text. The same can be applied to images using visual sentiment analysis. Also see multimodal sentiment analysis.

Singularity. In AI, technological singularity is a hypothetical point in time when artificial intelligence surpasses human intelligence, leading to the rapid but uncontrollable increase in technological development.

Software agent (also, agent). A piece of software that can autonomously perform tasks for a user or other software program(s).

Software bot. An automated program that performs repetitive, rule-based tasks across digital systems to improve efficiency and reduce manual work. Also see digital worker and downloadable employee.

Speech recognition. The technology that converts spoken language into written text, enabling machines to understand and process human speech. While traditional speech recognition relies on rule-based or statistical methods, modern AI-powered speech recognition uses neural networks or deep learning to better understand context and natural speech.

Stop sequence. A pre-defined token or string of characters that signals AI models, primarily in large language models (LLMs), to immediately stop generating output.

Strong AI. The term used to describe artificial general intelligence or a machine’s intelligence functionality that matches human cognitive capabilities across multiple domains. Often characterized by self-improvement mechanisms and generalization rather than specific training to perform in narrow domains. Also see weak AI.

Structured data. Data that has been organized using a predetermined model, often in the form of a table with values and linked relationships. Also see unstructured data.

Supervised learning. A machine learning technique that infers from training performed on labeled data. Also see unsupervised learning.

Support vector machine (SVM). A type of supervised learning model that separates data into one of two classes using various hyperplanes. 

Symbolic AI. A branch of artificial intelligence that focuses on the use of explicit symbols and rules to represent knowledge and perform reasoning. In symbolic AI, also known as Good Old-Fashioned AI (GOFAI), problems are broken down into discrete, logical components, and algorithms are designed to manipulate these symbols to solve problems. Also see neurosymbolic AI.

Synthetic data. Artificially generated data that is designed to resemble real-world data. It can be used to train machine learning models, test software, or protect privacy. Also see data augmentation.

T

Taxonomy. A hierarchal structured list of terms to illustrate the relationship between those terms. Also see ontology. 

Teacher-student model. A type of machine learning model where a teacher model is used to generate labels for a student model. The student model then tries to learn from these labels and improve its performance. This type of model is often used in semi-supervised learning, where a large amount of unlabeled data is available but labeling it is expensive.

Temperature. In AI, a parameter that controls the randomness of an AI model’s output during text generation. Lower temperatures make outputs more predictable and focused, while higher temperatures increase creativity and variability.

Text-to-3D model. A machine learning model that can generate 3D models from text input.

Text-to-image model. A machine learning model that can generate images from text input.

Text-to-task model. A machine learning model that can convert natural language descriptions of tasks into executable instructions, such as automating workflows, generating code, or organizing data.

Text-to-text model. A machine learning model that can generate text output from text input.

Text-to-video model. A machine learning model that can generate videos from text input.

Time series. A set of data structured in spaced units of time.

TinyML. A branch of machine learning that deals with creating models that can run on very limited resources, such as embedded IoT devices.

Token. A piece of text, such as a word, part of a word, or symbol, that an AI model processes as a single unit.

Tokenization. In ML, a method of separating a piece of text into smaller units called tokens, representing words, characters, or subwords, also known as n-grams.

Tool calling. The capability of an AI model to invoke and interact with external tools, application programming interfaces (APIs), or systems in order to extend or enhance its functionality beyond native capabilities. A tool calling agent can autonomously identify when external tools are needed and invokes them to support more complex or dynamic interactions.

Training data. The set of data (often labeled) used to train a machine learning model.

Transfer learning. A machine learning technique where the knowledge derived from solving one problem is applied to a different (typically related) problem.

Transformer. In ML, a type of deep learning model for handling sequential data, such as natural language text, without needing to process the data in sequential order.

Trustworthy AI. Intelligent systems that are designed, developed, and deployed in a lawful, ethical, and technically robust manner. Trustworthy AI aims to align with human values and promote societal well-being while minimizing bias, safety risks, and unintended harm. Also see AI ethics.

Tuning. The process of optimizing the hyperparameters of an AI algorithm to improve its precision or effectiveness. Also see algorithm.

Turing test. A test introduced by Alan Turing in his 1950 paper “Computing Machinery and Intelligence,” to determine whether a machine’s ability to think and communicate can match that of a human’s. The Turing test was originally named The Imitation Game.  

U

Underfitting. In ML, a condition where a trained model is too simple to learn the underlying structure of a more complex dataset. Also see overfitting.

Unstructured data. Data that has not been organized with a predetermined order or structure, often making it difficult for computer systems to process and analyze.

Unsupervised learning. A machine learning technique that infers from training performed on unlabeled data. Also see supervised learning.

V

Validation. In ML, the process by which the performance of a trained model is evaluated against a specific testing dataset which contains samples that were not included in the training dataset. Also see training.

Vector (also, feature vector). In ML, a one-dimensional array of numerical values mathematically representing data points, features, or attributes in various algorithms and models.

Vector database. A type of database that stores information as vectors or embeddings for efficient search and retrieval.

Vectorization. The process of transforming data into vectors.

Vibe coding. A modern approach to programming where users describe their ideas in natural language and AI converts those descriptions or instructions into functional code.

Visual sentiment analysis. Analysis algorithms that typically use a combination of image-extracted features to predict the sentiment of a visual content. Also see multimodal sentiment analysis and sentiment analysis.

W

Watermarking. In AI, the practice of embedding hidden, identifiable signals into AI-generated content (such as text, images, or audio) that act as digital signatures that can be detected algorithmically in order to trace the content’s origin and verify its authenticity.

Weak AI. The term used to describe a narrow AI built and trained for a specific task. Also see strong AI.

Weight. In ML, a learnable parameter in nodes of a neural network, representing the importance value of a given feature, where input data is transformed (through multiplication) and the resulting value is either passed to the next layer or used as the model output.

Word Embedding. In NLP, the vectorization of words and phrases, typically for the purpose of representing language in a low-dimensional space.

X

XAI (explainable AI). A set of tools and techniques that helps people understand and trust the output of machine learning algorithms.

XGBoost (Extreme Gradient Boosting). A popular machine learning library based on gradient boosting and parallelization to combine the predictions from multiple decision trees. XGBoost can be used for a variety of tasks, including classification, regression, and ranking.

X-risk. In AI, a hypothetical existential threat to humanity posed by highly advanced artificial intelligence such as artificial general intelligence or artificial superintelligence.

Y

Yield. In AI, the output or result generated by a model. Yield is often used to evaluate the efficiency and accuracy of algorithms.

YOLO (You Only Look Once). A real-time object detection algorithm that uses a single forward pass in a neural network to detect and localize objects in images.

Z

Z-score. A statistical measure that quantifies how many standard deviations a data point is from the population mean, with a positive z-score indicating a value above the mean and a negative z-score indicating a value below it.

Zero data retention. A data privacy-preserving technique in which user inputs and interactions with an AI system are not stored, logged, or retained after the session ends. This ensures that no personal or usage data is kept for training, analysis, or future reference. Also see differential privacy.

Zero-shot learning. A machine learning technique that allows a model to perform a task without being explicitly trained on a dataset for that task. Also see few-shot learning and one-shot learning.

Zero-shot prompt. A type of prompt in which a language model is asked to perform a task without being given any task-specific examples. With zero-shot prompts, the language model relies entirely on its pre-trained knowledge to interpret and respond to the request. Also see one-shot prompt and few-shot prompt.

ABOUT ENTEFY

Entefy is an enterprise AI software company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

Upcoming: Entefy co-founder to speak on AI in pharma manufacturing

AI has become more than a buzzword in the pharmaceutical industry. It’s an active driver of innovation, efficiency, and regulatory evolution. Yet, as AI capabilities grow more powerful, pharma manufacturers face increasingly complex questions: Where can AI provide the most immediate value in pharmaceutical manufacturing? What does the FDA expect? Where are the real opportunities and risks for AI deployments? What are the key challenges in integrating AI tools with legacy systems?

To discuss the important topics driving innovation at the intersection of AI and pharmaceutical manufacturing, BioMaP-Consortium is hosting a live member-only webinar that brings together three industry leaders at the forefront of this transformation. In just one hour, you’ll get a deep look into how AI is reshaping pharmaceutical manufacturing and how regulatory agencies such as the FDA are responding.

Why this conversation matters now

Pharmaceutical development and manufacturing teams are facing mounting demands: accelerated timelines, increasingly stringent regulatory expectations, complex global supply chains, and persistent cost pressures. In this high-stakes environment, AI is emerging as a practical enabler, powering everything from advanced process monitoring to anomaly detection, closed-loop control strategies, intelligent knowledge management, quality control, and improved compliance. Yet, implementing these technologies within regulated, validated environments presents significant technical and compliance challenges. This upcoming webinar addresses those realities head-on, offering a focused discussion on the proven applications, regulatory considerations, and strategic implementation of AI in pharma.

Meet the experts behind the mic

This upcoming webinar features three leading experts who sit at the intersection of science, technology, and regulation. The expert panel includes:

Webinar details

  • When: September 10, 2025, at 1pm ET
  • Duration: 60 Minutes
  • Registration: Online. This is a member-only event.

ABOUT ENTEFY

Entefy is an enterprise AI software company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

The fast evolving AI technologies that are reshaping business

Artificial intelligence is no longer a single discipline advancing in isolation. It is rapidly evolving into a connected ecosystem. As Analytical AI, Generative AI, Hyperautomation, and Agentic AI continue to grow, their convergence is producing compounding effects that go beyond incremental innovation. Together, these capabilities are forming adaptive systems that are not just enhancing existing workflows but also fundamentally redefining how entire industries operate.

Agentic AI refers to a new class of artificial intelligence systems that act more like agents than tools. Unlike traditional AI, which typically responds to specific inputs with predefined outputs, Agentic AI systems are designed to operate autonomously toward achieving a set of goals. They can make decisions, plan sequences of actions, adapt to changing circumstances, and often continue working overtime with virtually no direct human oversight. This development opens up powerful new possibilities, allowing AI to take on more complex, multi-step tasks. As we move toward increasingly agentic forms of AI, the line between tools and collaborators begins to blur, compelling us to rethink how we design, use, and govern these systems.

Analytical AI is a discipline within artificial intelligence dedicated to deriving actionable insights from data. Rather than creating new content like Generative AI, Analytical AI excels at extracting meaning from complex, high-volume datasets using statistical models, machine learning, and optimization techniques. Analytical AI helps uncover patterns, predict outcomes, and inform decision-making. It powers critical applications such as risk modeling, fraud detection, predictive maintenance, and customer analytics across a variety of sectors such as finance, healthcare, and supply chain management.

Generative AI is a branch of artificial intelligence focused on creating original content such as text, images, code, and music. Unlike Analytical AI, which extracts insights from existing data, Generative AI synthesizes new material, enabling machines to contribute creatively across a wide range of domains. A key enabler of this shift is the rise of Large Language Models (LLMs), which use deep learning to generate coherent, contextually relevant language and serve as the backbone for many generative applications. Generative AI powers use cases in marketing, software development, drug discovery, and entertainment, helping organizations scale content creation, accelerate innovation, and explore entirely new solution spaces. Increasingly capable of working across multiple formats and modalities, Generative AI is not just interpreting data, it is expanding the possibilities for how we build, design, and imagine the future.

Hyperautomation helps organizations systematically identify and automate business and IT processes by expanding the depth and breadth of the traditional, narrowly focused automation. Hyperautomation relies on orchestration and intelligent automation of multiple technologies and tools with the goal of optimizing operational efficiency, agility, and ultimately, achieve significant business outcomes. Hyperautomation is becoming increasingly sophisticated, capable of handling complex decision-making and even adapting to changing circumstances.

The infographic below highlights the unique characteristics of and key differences between of Agentic AI, Analytical AI, Generative AI, and Hyperautomation, including focus, purpose, and best practices for each.

In an enterprise, the transformative potential of these technologies is unlocked when they are applied thoughtfully. The combination of these evolving AI technologies can redefine how organizations operate, regardless of size. As these AI domains grow more advanced, we’re likely to witness a shift in how work gets done. Routine cognitive tasks will become increasingly automated, user experiences will feel more tailored than ever, and industries across the board can expect significant leaps in both productivity and operational speed.

As these technologies become more capable and deeply integrated into everyday operations, they also introduce new challenges and risks, from potential job displacement and data privacy concerns to unintended biases and loss of human oversight. Harnessing AI’s full potential will require not just technical excellence, but also a thoughtful approach to ethics, transparency, and long-term societal impact.

To learn more, begin your enterprise AI journey here and read our previous blog about the inescapable impact of AI across industries and how legacy IT systems fail businesses.

ABOUT ENTEFY

Entefy is an enterprise AI software company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

AI and the future of dynamic pricing

Imagine being able to set the perfect price, instantly, for every customer, every product, and every market condition. With artificial intelligence (AI), that vision is rapidly becoming reality. Dynamic pricing powered by advanced AI is allowing companies to boost revenue and stay ahead of competition.

Today’s retail landscape is more unpredictable than ever. With rising costs, unstable supply chains, ever [constantly] evolving consumer preferences, and relentless pricing pressure from competitors, traditional pricing methods are reaching their limits. The old playbook, based on rigid rules and static models, simply can’t keep up.

To remain competitive, retailers are shifting to AI-powered pricing systems that thrive on complexity. These modern solutions analyze real-time data across countless variables, allowing businesses to react instantly and intelligently to changing market conditions. Instead of being overwhelmed by volatility, retailers can now use it to their advantage. The companies which have made the leap are already seeing tangible benefits including improved revenue performance and gross profit increases of 5% to 10%.

AI-powered dynamic pricing is ushering in a new era of precision-led revenue strategy, where profitability, personalization, and timing are aligned to market realities.

Understanding dynamic pricing

Dynamic pricing is a strategy where the price of a product or service is constantly adjusted in response to real-time changes to market conditions, demand, competitor pricing, and customer behavior. Rather than keeping prices fixed, businesses using dynamic pricing rely on algorithms and data analysis to make informed decisions, reflecting the changing environment. This approach allows companies to tailor prices to specific customer segments, or even individual buyers, considering factors such as time of day, location, seasonality, and product availability.

Industries such as retail (including e-commerce), hospitality, transportation, logistics, and entertainment, use dynamic pricing. By adopting this strategy, businesses can maximize revenue, improve profit margins, and respond more effectively to market fluctuations. Advanced machine intelligence plays a key role in making dynamic pricing a powerful tool for companies aiming to stay competitive and agile in rapidly changing markets. “The speed, sophistication, and scale of AI-based tools can boost EBITDA by 2 to 5 percentage points when B2B and B2C companies use them to improve aspects of pricing that have the greatest leverage within their organizations.”

What once required weeks of analysis and executive debate can now be executed in milliseconds. Each industry brings its own complexities, but all share the common need to move faster, personalize more deeply, and compete more intelligently.

Evolution from static to intelligent pricing

For decades, many businesses have relied on static pricing models which in essence set prices based on historical data, fixed rules, or gut feelings. While this approach was often sufficient in slower-moving markets, it falls short in today’s volatile and increasingly competitive environment. Traditional static pricing lacks flexibility and fails to account for the many changes that occur inside or outside of a company. As a result, businesses miss opportunities to optimize revenue and risk alienating customers with prices that don’t reflect current market realities. In highly competitive domains such as retail and travel, these outdated methods can lead to lost sales, decreased margins, and diminished market share. Thus, the need for intelligent, dynamic pricing.

Dynamic pricing leverages AI and machine learning to continuously analyze vast amounts of data, from customer behavior and inventory levels to competitor prices and broader market trends. Unlike static models, AI-driven systems can optimize for various business goals. These technologies sift through patterns and signals invisible to humans, enabling businesses to make data-backed pricing decisions instantly. Real-time analytics mixed with predictive modeling means pricing can be adjusted reactively or proactively.

Key advantages of the dynamic pricing approach

Aligning profitability with market realities. One of the most compelling advantages of AI-powered pricing is the ability to enhance profitability while staying grounded in market conditions. By accurately assessing demand elasticity and competitor pricing, AI models recommend prices that capture the maximum willingness to pay without deterring customers. Industries such as airlines have long used dynamic pricing to boost revenue by adjusting fares based on booking windows and seat availability. Similarly, e-commerce platforms dynamically alter prices throughout the day in response to competitors and inventory levels, capturing additional sales and margin. These examples underscore how AI transforms pricing from a guesswork exercise into a precise, market-aligned revenue lever.

Personalization and tailoring prices to customers. Beyond maximizing revenue, AI-powered pricing opens the door to personalized pricing strategies that cater to individual customer preferences and behaviors. By analyzing purchase history, browsing patterns, and demographic data, businesses can offer prices or discounts that resonate specifically with different customer segments. This personalization not only drives sales but also enhances the customer experience by making offers feel relevant and fair. However, it is crucial for companies to balance personalization with transparency to maintain trust and avoid perceptions of unfairness. Ethical considerations, such as ensuring data privacy and equitable pricing, are important as personalized pricing becomes more widespread. By offering competitive and fair pricing based on demand, businesses can attract new customers and build trust. Personalized pricing strategies, tailored to individual customer preferences, can also enhance brand perception and loyalty, leading to repeat purchases and positive word-of-mouth.

Real-Time price optimizations. In dynamic markets, timing can make or break a sale. AI-driven pricing models continuously monitor signals, from inventory changes to competitor moves, and adjust prices instantly. This responsiveness allows businesses to capitalize on short-lived demand surges or strategically discount excess stock before it loses value. For example, ride-sharing services use surge pricing algorithms to increase fares during peak demand, balancing supply and demand efficiently. Retailers can similarly implement flash sales triggered by data-driven insights. The ability to optimize pricing in real time ensures companies stay competitive, agile, and profitable regardless of market volatility.

Enhanced competitiveness. Dynamic pricing acts as a crucial lever for companies seeking to sharpen their competitive edge. This paradigm is about more than just fluctuating prices; it’s a strategic approach that empowers businesses to outperform competitors by staying agile and responsive. This agility is particularly valuable in fast-paced markets where conditions can shift rapidly. Instead of being tied to static pricing that can quickly become outdated, companies employing dynamic pricing can proactively adjust their prices to remain appealing to customers and outmaneuver rivals. For example, an e-commerce retailer utilizing dynamic pricing can leverage software to match or even beat competitor prices, ensuring they remain competitive in a crowded marketplace. They can also use dynamic pricing to capitalize on fluctuations in demand, such as increasing prices during peak seasons or when competitors are experiencing inventory shortages. This allows them to maximize revenue and attract customers who are willing to pay a premium for immediate availability.

Risk Mitigation. By adjusting prices to reflect immediate market conditions, businesses can reduce the risk of losing money on products that become obsolete or outdated. For instance, companies dealing with perishable goods and services can use dynamic pricing to lower prices on items nearing their expiration date, reducing waste and maximizing revenue. By incorporating robust data analysis and algorithms, businesses can make more informed decisions, minimizing the potential for pricing errors and unintended financial consequences.

Examples of AI-driven pricing strategies

Dynamic pricing is not a one-size-fits-all solution. Its application varies widely depending on industry and individual business needs. Below are several industry-specific examples showing how impactful intelligent pricing is being deployed.

1. Retail

In the retail world, a host of contextual variables including shopper behavior, historical sales data, competitor moves, inventory levels, and even weather forecasts, can be fed to algorithms that recommend or autonomously enact price changes with greater precision than antiquated manual methods.

A promising advancement in this space is the application of reinforcement learning, specifically Q-learning, which adapts continuously based on instant feedback. This method outperformed traditional pricing strategies by learning to optimize price points that maximize long-term revenue rather than short-term margins. Reinforcement learning’s key advantage is its ability to evolve without needing predefined pricing rules. This is a critical capability in retail’s fast-changing markets.

Physical retailers approach in-store dynamic pricing by replacing rigid, manual processes with localized, and algorithmically optimized pricing strategies. Implementations typically begin with integrating AI models into the retailer’s POS, ERP, and pricing systems to enable real-time visibility across the store network. Machine learning models process both internal and external data to forecast demand, identify pricing opportunities, and generate optimized recommendations down to the SKU and store levels. Retailers then execute these recommendations through systems such as electronic shelf labels (ESLs) or centralized price management platforms, allowing for seamless updates without manual intervention.

To ensure strategic control within AI systems, retailers can also set business rules and constraints including margin floors, brand pricing limits, and category-level pricing architecture. Some even layer in loyalty and behavioral data to enable customer-segment-specific promotions or tailored pricing responses. Ultimately, the impact can be measured by increased margin, faster inventory turnover, reduced overstock and markdown dependency, as well as improved pricing agility and customer satisfaction levels across the physical store footprint.

2. Real Estate

Dynamic pricing is increasingly becoming a strategic tool in the real estate industry, particularly in the rental segments, where demand can fluctuate regularly and revenue optimization is a priority. Traditionally, property owners and managers set rental rates based on static factors—comparable listings, historical performance, seasonal assumptions. However, with the integration of machine learning and automation, the industry is shifting toward more responsive, dynamic pricing models that reflect market conditions with far greater precision.

Short-term rentals. Managers of rental properties or hosts of vacation homes use AI to automatically adjust nightly rates based on demand signals. These systems factor in variables such as local events, seasonality, day-of-week trends, booking windows, and competitive listings in the area. The goal is to maximize occupancy during low-demand periods and capitalize on revenue during peak times. This strategy often results in significantly higher annual revenue compared to manually set rates.

Long-term and multifamily rentals. Property owners and real estate management firms can optimize lease rates and improve portfolio performance using dynamic pricing. These entities can monitor leasing velocity, unit-specific demand, local competition, and market saturation to inform instant rent adjustments. Dynamic pricing helps strike a balance between occupancy and revenue, playing a role in renewal pricing, ensuring that lease extensions are competitively priced based on both market trends and individual tenant profiles.

Commercial real estate. Select areas of commercial real estate, particularly coworking spaces and flexible office providers, are experimenting with usage-based models. Companies in these fields use dynamic pricing to adjust desk and private office rates based on availability, location desirability, and seasonal demand. In some retail leasing arrangements, landlords are exploring variable pricing models that tie rent to performance metrics such as foot traffic or sales volume, creating more flexible and incentive-aligned agreements.

Overall, dynamic pricing is ushering in a more intelligent and responsive era in real estate management. As AI and data integration become more widespread, these pricing strategies are expected to expand across asset classes within the real estate sector, thereby transforming rent setting from a periodic task into a dynamic lever for growth and operational efficiency.

3. Travel and Hospitality

By analyzing booking trends, competitor pricing, customer behavior, and even local events or weather patterns, AI helps travel companies predict demand and adjust prices accordingly, optimizing revenue during peak periods or luring customers with compelling offers during slower times to maximize occupancy and capacity utilization. Airlines and hotels that have adopted this technology have reported revenue increases and improved occupancy rates, suggesting that AI-driven dynamic pricing is not just a passing trend. Further, AI systems can analyze specific individual customer data, such as browsing history and past bookings, to offer tailored discounts or bundled packages which in turn increases customer satisfaction and loyalty. It also streamlines operations by automating pricing adjustments, freeing up staff to focus on customer service or other strategic initiatives.

4. Logistics and freight

For the logistics and freight industry, where margins are slim and demand can be volatile, AI-powered pricing technology offers a data-centric approach to improving both profitability and operational performance. AI tools enable instant pricing adjustments based on a number of factors including cargo type, delivery deadlines, route efficiency, fuel costs, and fleet capacity.

Generative AI is expected to support 25% of logistics KPI reporting by 2028, enhancing not just the speed of decision-making but also the accuracy of pricing and capacity planning. This capability will allow logistics companies to price services based on supply-demand levels, ultimately helping them improve both load profitability and customer service levels. Moreover, high-performing supply chain organizations are deploying AI-powered solutions at more than twice the rate of their lower-performing counterparts. This cements the industry trend toward algorithmic decision-making, where agile insights enable logistics firms to price shipments based on fluctuating costs, delays, and inventory needs. The result is better load balancing, reduced underutilization, and higher yield per mile or container.

5. Manufacturing

In manufacturing, creating products often involve complex configurations, long lead times, and fluctuating input costs for raw materials, energy, etc. Buyers frequently demand custom quotes based on volume, service levels, and payment terms. In this environment, machine intelligence helps manufacturers manage complexity through algorithmic pricing.

AI-powered tools are being integrated with enterprise systems such as CRM and ERP platforms to analyze historical transactions, forecast commodity price shifts, and segment customers by behavior and projected profitability. These tools can also support dynamic bundling, where pricing for products and services is packaged based on total cost-to-serve rather than simple traditional list pricing. For example, a car parts manufacturer can use AI to monitor steel prices, adjusting the price of affected products within hours to maintain profit margins when costs fluctuate. This immediate responsiveness allows manufacturers to adapt quickly to supply chain disruptions or changes to the availability of materials and components, ensuring that pricing strategies remain profitable and aligned with production capabilities. The outcome is greater pricing control, better resource use, and improved alignment between sales and operational strategies.

6. Wholesale and distribution

Traditionally, pricing in distribution and wholesale domains has been managed through manual processes and legacy software, requiring significant time and personnel investment. These conventional methods often lack adaptability in fast-changing markets. By analyzing historical sales data and market trends, AI can forecast future demand, allowing distributors to proactively adjust their pricing strategies and optimize inventory levels. This not only helps avoid costly stockouts or overstock situations but also ensures that resources are allocated efficiently.

Modern intelligent pricing systems offer a more responsive and scalable approach, enabling businesses to optimize prices in real time and uncover new paths to growth and profitability. For example, “a global B2B petrochemical company captured around $100 million in additional earnings across six business units with a machine-learning-enabled dynamic pricing model. To drive dynamic pricing recommendations, the technology clustered customers into microsegments based on more than 100 characteristics.”

Optimizing offers and incentives

For businesses, AI isn’t just helping set the right price at the right time. It’s also identifying the most effective combination of incentives, discounts, and value-added perks to drive customer action. This shift reflects a growing recognition that customers respond to a range of motivations beyond mere dollars, including incentives such as convenience, perceived value, exclusivity, and timing. Here are a few examples:

In real estate, property managers are using AI models to test whether prospects are more likely to sign a lease when offered reduced monthly rent or an upfront incentive similar to “first month free,” free parking, or waived deposit fees. These systems analyze renter profiles (income, credit, household size), market conditions (vacancy rates, seasonality), and even location-specific competition to determine which offer optimizes both occupancy and revenue.

In the gaming industry, physical casinos and online platforms are leveraging AI to deploy personalized incentives based on real-time engagement data. For instance, during slow periods or when player activity drops, AI models can trigger time-sensitive offers (bonus spins, elevated odds, or loyalty points multipliers). The aim isn’t just to retain players but to increase dwell time and lifetime value by aligning incentives with player habits and preferences.

Businesses serving airline and hospitality industries are experimenting with flexible, AI-generated packages (bundling upgrades, lounge access, or late checkouts with time-limited dynamic pricing). Those booking last-minute travel may receive a different bundle than those booking well in advance, even if the base fare is similar. This form of offer engineering goes beyond pricing strategy and begins to resemble behavioral science in action, identifying psychological cues that increase conversion.

Ultimately, the more holistic approach of combining dynamic pricing with smart offer bundling gives businesses the opportunity to move from simply asking “What price will this customer pay?” to “What experience, offer, or message will prompt action?” The result is a more nuanced, profitable, and personalized engagement model that benefits both the business and the consumer, ultimately increasing customer retention and loyalty as well as near-term profits.

Conclusion

The future of pricing policy will be more than dynamic, it will be intelligent, predictive, and deeply customer centric. Industries that adopt intelligent pricing models will gain the critical edge of understanding customer demand, adjusting to market volatility, and unlocking new revenue possibilities, that traditional methods cannot.

At Entefy, we are passionate about breakthrough technologies that save people time so they can live and work better. The 24/7 demand for products, services, and personalized experiences is compelling businesses to optimize and, in many cases, reinvent the way organizations operate to ensure resiliency and persistent growth.

Learn more about the inevitable impact of AI on businesses, the three phases of the enterprise AI journey, and the need for ethical AI.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

Reinventing the supply chain one link at a time

From the extraction of raw materials to manufacturing, warehousing, distribution, and retail, supply chains form the backbone of the global economy. That said, in recent times, geopolitical instability, natural disasters, cyberattacks, and labor disruptions have exposed the fragility of legacy supply chains and highlighted the need for smarter, more adaptive systems to ensure resiliency and the global flow of goods. Businesses can no longer afford to rely on outdated systems and planning processes to stay competitive. The most effective way to navigate today’s unpredictable and increasingly intricate global trade landscape is by embracing smarter strategies over sheer effort. And that’s exactly where artificial intelligence and automation prove their value.

What is a supply chain?

A supply chain is the comprehensive, interconnected network of individuals, organizations, and resources involved in the creation and delivery of a product. At its core, it is a dynamic ecosystem that begins with the extraction or cultivation of raw materials and flows through various stages including manufacturing, logistics, distribution, and retail, culminating in the final product reaching the hands of the customer.

For organizations engaged in manufacturing or selling products, the supply chain is more than just a series of logistics. It is a strategic engine for value creation, efficiency, and risk mitigation. Every stage, from sourcing to delivery, presents an opportunity to streamline operations, enhance resilience, and strengthen competitive positioning.

The problems with traditional supply chains

Despite their critical role in the global economy, today’s supply chains are still struggling under the weight of systemic vulnerabilities, logistical inefficiencies, and mounting external factors. These supply networks, traditionally optimized for cost-efficiency rather than resilience, are increasingly challenged by geopolitical, environmental, and technological disruptions.

The COVID-19 pandemic, for instance, exposed the fragility of interdependent supply chain systems. What began as a health crisis rapidly spawned into a logistics nightmare, as lockdowns triggered labor shortages, shutdowns of key ports, and global freight havoc. Once an occasional nuisance, port congestions became chronic, with vessels stuck for days instead of hours, spiking shipping rates and causing inventory shortages. Five years later, even as the pandemic fades, many of the scars and trauma remain.

Today, a new set of disruptions are facing manufacturing and trade. The resurgence of protectionist trade policies, including the recently enacted global set of tariffs have roiled markets, created friction in the world’s economy, and increased the probabilities of a recession.

For instance, a 25% duty on foreign-made cars and components have forced global automakers to rethink manufacturing footprints and supplier relationships. According to World Trade Organization, such economic nationalism could fracture global trade systems and reduce global GDP by nearly 7% if geopolitical bifurcation intensifies.

A sudden tariff hike on raw materials or components sourced from a specific country can force manufacturers to either absorb the additional cost or pass it on to consumers. In both cases, businesses must make rapid decisions to mitigate the impact—decisions that require real-time access to data across their entire supply chain. Without this visibility, they risk making decisions based on incomplete or outdated information, leading to misaligned priorities and missed opportunities.

The problem with tariffs doesn’t end with cost increases; they often trigger a cascade of effects across the supply chain. For instance, a tariff could lead to delays at ports, cause shortages of critical components, or force companies to rethink their production schedules. As these disruptions compound, businesses face the added challenge of managing a more complex and unpredictable environment.

Another challenge is cargo theft and fraud which are increasingly disrupting supply chains at critical junctures, with cargo theft projected to rise by 22% this year alone. Southern California has emerged as a major hotspot, accounting for nearly half of all reported incidents nationwide. A particularly vulnerable segment is the so-called “Red Zone” (the first 200 miles of a shipment’s route) which sees 36% of these thefts. Today’s criminal networks are not only more organized but are also more technologically adept, leveraging digital vulnerabilities and targeting physical weak points such as ports, distribution centers, and parking facilities. Tactics range from document forgery and load board scams to impersonation of legitimate carriers.

Beyond headline disruptions, supply chains are also weighed down by structural challenges that quietly erode resilience. One of the most pressing is the overreliance on single-source suppliers, which leaves entire production lines vulnerable to localized disruptions. From factory shutdowns to geopolitical flare-ups, these typically can ripple globally. This vulnerability is compounded by limited end-to-end visibility, where companies often lack real-time insight into their suppliers’ operations, inventory levels, or transit conditions, making it difficult to detect risks early or respond swiftly. At the same time, many logistics systems still depend on outdated infrastructure, legacy analog documentation processes, and aging transportation networks. Combined, such systems are ill-equipped to manage the complexity, speed, and scale of modern global trade. These weaknesses elevate both operational and strategic risks, reinforcing the need for smarter, AI-driven supply chain models.

The problems with traditional planning systems

In addition to geopolitical or macroeconomic pressures, most businesses have to grapple with internal, legacy systems that lack the flexibility to handle today’s rapid shifts in market dynamics. A significant number of supply chains remain hampered by internal data fragmentation, with critical information dispersed across enterprise resource planning (ERP) systems, customer relationship management (CRM) platforms, demand forecasting applications, and other disparate tools. This lack of integration undermines end-to-end visibility across the value chain, making it difficult for decision-makers to coordinate effectively or respond with speed and accuracy when conditions change.

Without a consolidated operational view, businesses struggle to forecast with confidence or make timely, informed decisions. What should be a straightforward inquiry, such as whether projected inventory can meet upcoming demand, often turns into a time-consuming reconciliation exercise across incompatible systems. The absence of real-time, unified data creates uncertainty, delays, and missed opportunities.

Traditional planning frameworks exacerbate the problem. Most rely on static, linear models that fail to reflect the dynamic nature of global supply networks. These models typically do not account for key externalities, such as geopolitical shifts, supplier volatility, or sudden demand spikes, nor do they realistically model the complex interdependencies that define modern supply chains. As a result, organizations are forced into reactive mode, addressing disruptions after the fact rather than anticipating them.

The need for a new approach

Resiliency in business and supply chain comes on the backs of three important capabilities: unification of relevant data, advanced scenario forecasting, and responsive, real-time operational agility. These capabilities form the backbone of a robust supply chain, enabling organizations to not only withstand disruptions but capitalize on them. For enterprise executives navigating today’s complexity, this is not just a competitive advantage, it’s a strategic imperative.

Advanced AI and hyperautomation are transforming global supply chains by improving efficiency and reducing costs while actively addressing the systemic vulnerabilities that have historically made these supply networks fragile and opaque. Increasingly, agentic AI is proving valuable in dynamic, complex environments such as supply chains, cybersecurity, and financial operations. Agentic AI refers to artificial intelligent systems equipped with sophisticated reasoning, independent decision-making, and the ability to take autonomous actions to solve multi-step problems, with minimal human supervision. In a supply chain context, agentic AI might monitor real-time inventory data, detect risks, forecast the downstream impact, simulate logistical alternatives, manage costs, and automatically trigger mitigation actions. Agentic AI is most valuable where decisions need to be fast, context-aware, and continuously optimized. It’s a foundational concept for the next generation of enterprise AI—moving from predictive analytics to adaptive, autonomous operations.

Examples of AI implementations to optimize supply chain operations:

Intelligent demand forecasting and inventory management. AI is reshaping demand forecasting by replacing reactive models with predictive, context-aware systems. Instead of relying solely on historical sales data, AI can incorporate real-time economic indicators, consumer behavior, supply constraints, and even geopolitical disruptions. By integrating AI into day-to-day operations, distributors can unlock and streamline efficiencies. Think “reductions of 20 to 30 percent in inventory, 5 to 20 percent in logistics costs, and 5 to 15 percent in procurement spend.”

AI- and automation-powered warehousing and logistics. With the proliferation of labor shortages and rising wages, especially in warehousing and logistics, AI is giving companies the ability to decouple (or partially decouple) operations from labor-related constraints. Consider autonomous mobile robots (AMRs) that leverage a variety of sensors as well as LIDAR and computer vision technologies to perform material handling, transportation, and inspection tasks. This includes robotic picking arms trained to identify and handle thousands of SKUs with variable shapes and packaging. Modern intelligent warehouses are outfitted with self-navigating AMRs to reduce the need for manual labor, minimize errors, and ensure operational continuity even during labor strikes or pandemics.

AI routing tools such as UPS’ ORION optimize delivery paths in real-time, factoring in weather, fuel costs, port delays, and even political tensions. These tools allow logistics managers to reroute shipments instantly to safer, faster alternatives without derailing downstream schedules. Autonomous delivery technologies, including drones and self-driving vehicles, are also becoming practical solutions in high-risk or restricted-access regions, such as areas affected by natural disasters or civil unrest. By minimizing human presence, these systems reduce risk while ensuring continuity of last-mile operations, a capability that proved critical during the COVID-19 crisis and is now being deployed in climate emergency zones and conflict-prone areas.

Supply chain visibility and optimization. Traditionally fragmented and siloed, supply chains today benefit from AI’s ability to integrate data from multiple sources (IoT devices, ERP systems, logistics platforms, external sources) into a unified, dynamic view. This enhanced visibility allows companies to detect disruptions early, respond proactively, and better manage supplier performance. AI-powered control towers and digital twins enable autonomous decision-making, scenario simulation, and network-wide orchestration to improve service levels and reduce costs. There is growing interest in AI-driven supply chain management tools, with particular focus on enhancing demand planning. According to a recent survey, two-thirds of respondents indicated that they are moving forward with the rollout of advanced planning and scheduling (APS) systems. These systems are a vital part of today’s digital supply chain transformation. They help businesses enhance planning precision, react more quickly to disruptions, and strengthen resilience by analyzing various potential supply chain outcomes.     

Risk management and mitigation. AI is emerging as a strategic force multiplier, transforming risk management from a reactive, backward-looking function into a proactive, predictive capability embedded across the supply chain. Organizations are increasingly leveraging AI to continuously monitor internal and external risk signals in real time. By aggregating and analyzing vast datasets, including weather forecasts, political developments, financial filings, shipment telemetry, and supplier communications, AI systems can detect emerging risks earlier and with greater accuracy than conventional methods. Natural language processing (NLP) and machine learning models can be used to parse unstructured data and flag early-warning indicators such as market sentiment, factory shutdowns, labor disruptions, or supplier insolvency.

For senior leaders, the implications are clear: embedding AI in risk management not only reduces exposure to supply chain shocks but also enhances resilience, responsiveness, and strategic foresight. As AI continues to evolve, its ability to model systemic risk and guide real-time decision-making will become a defining feature of the most adaptive and competitive supply chains.

Supplier selection and relationship management. By integrating data from ERP systems, quality management tools, third-party databases, and real-time operational data, AI is improving supplier selection and relationship management. This gives organizations comprehensive supplier evaluations based on key metrics such as on-time delivery, defect rates, ESG (Environmental, Social, and Governance) compliance, and financial stability. Enhancing multi-criteria decision analysis (MCDA) with advanced AI can support prioritization of suppliers based on key performance indicators (KPIs). And specialty machine learning models can predict performance trends to flag potential issues including non-compliance or distress before they arise. These insights feed into dynamic supplier scorecards, optimizing sourcing strategies and fostering stronger supplier relationships.

Energy management and efficiency. As global efforts intensify to reduce carbon emissions and accelerate the shift toward sustainable energy, a less visible yet profound transformation is underway—one driven by advanced algorithms rather than conventional clean technologies like solar or wind. Artificial intelligence is rapidly becoming a foundational technology in the energy sector, reshaping the way energy is generated, distributed, and consumed. From anticipating fluctuations in demand to dynamically managing the flow of renewables through complex grids, AI is not merely improving efficiency, it is enabling a fundamental reimagining of the system itself. By 2030, AI-powered advancements are projected to generate up to $1.3 trillion in economic impact and could reduce global greenhouse gas emissions by as much as 10%, a figure on par with the total annual emissions of the European Union.

Over the recent years, the role of machine intelligence in energy management and cost reduction has been expanding. The impact of AI in the energy sector is felt across multiple domains including smart grids that distribute energy more efficiently, predictive maintenance systems designed to forecast equipment failures before they occur, and battery performance optimization solutions that not only improve performance but also enhance energy conservation.

Hyper-personalization. A majority of consumers (71%) now expect tailored interactions when engaging with brands, and 78% said personalized content made them more likely to repurchase from a brand. Personalization isn’t just a nice-to-have; it is a key driver of business success. “Personalization drives performance and better customer outcomes. Companies that grow faster drive 40 percent more of their revenue from personalization than their slower-growing counterparts.”

AI brings personalization to a new level—hyper-personalization, an advanced strategy that leverages real-time data, artificial intelligence, and machine learning to deliver highly tailored experiences, content, and offers to individual customers. By analyzing a wide range of inputs, such as behavior, preferences, context, and past interactions, brands can anticipate customer needs and respond with relative precision across preferred channels. This level of relevance creates more meaningful engagements, strengthens emotional connections, and builds long-term loyalty. As a result, brands see increased conversion rates, improved customer retention, and higher lifetime value. By focusing marketing efforts on audiences most likely to respond, hyper-personalization drives greater efficiency and return on investment (ROI), making it a powerful tool for optimizing both customer experience and marketing performance.

Highly personalized offerings often influence the types of products customers buy and how they expect them to be delivered. AI helps manage this complexity by optimizing everything from order routing to last-mile logistics. This ensures that the supply chain can flex in real time to meet individual expectations. In industries with rapidly changing trends such as fashion, consumer electronics, or media, true personalization can even support agile manufacturing models, where products are produced on demand in response to individualized customer inputs. AI doesn’t just power hyper-personalization; it ensures the entire operational ecosystem, including the supply chain, is aligned to support it efficiently. This integration delivers a double advantage, a superior customer experience and a leaner, more intelligent supply chain.

Decision support systems. AI-powered decisions are giving supply chain management a boost by fusing real-time data streams, advanced analytics, and simulation modeling to accelerate and elevate decision-making. Modern digital control towers embed intelligent agents that continuously monitor KPIs, flag deviations through statistical process control, and prescribe targeted interventions using causal inference and machine learning.

Leading-edge prescriptive analytics platforms leverage stochastic scenario-based modeling to produce dynamic trade-off analyses across cost, risk, and service dimensions. This empowers supply chain leaders to execute “what-if” simulations with near-real-time precision and strategic clarity.

Supporting better decision-making across the supply chain ecosystem does more than drive operational efficiency, it cultivates the resilience, foresight, and adaptability needed to thrive amid regulatory volatility, supply disruptions, and shifting customer expectations. By embedding predictive and self-correcting capabilities, AI transforms supply chains from reactive infrastructures into agile, data-driven ecosystems capable of continuous optimization and strategic alignment.

So, what’s next for AI and supply chains

The future of supply chains will be shaped by autonomy, sustainability, and proactive intelligence. Agentic AI systems will soon be capable of executing procurement decisions, adjusting distribution strategies, and managing logistics with minimal human supervision. Digital twins will model entire supply networks (including factories, warehouses, transportation routes, and inventory levels) to continuously mirror real-world operations using live data feeds from IoT sensors, ERP systems, or external sources like weather and traffic. Hyperconnected, real-time data ecosystems will enable unprecedented visibility and traceability. 

At the same time, regulations around AI will create clearer frameworks that support the safe and ethical use of advanced technologies. While AI becomes embedded throughout the value chain, those who treat the supply chain as a strategic lever, not just a cost center, will set the pace for innovation, resilience, and growth. Enterprises that invest in intelligent, data-driven, and adaptive supply chain systems will be best positioned to compete in an era of constant disruption, customer volatility, and climate-driven risk.

At Entefy, we are passionate about the next phase of human-AI collaboration and breakthrough technologies that save people time so they can live and work better. Learn more about the inescapable impact of AI across industries. Or understand the phases of the AI journey continuum. And make sure your legacy system isn’t holding you back.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

Board-level guidelines for navigating AI opportunities and threats

In a recent SVDX (Silicon Valley Director’s Exchange) webinar, Entefy co-founder, Brienne Ghafourifar, joined a panel of experts to discuss how corporate boards can effectively manage the adoption and implementation of artificial intelligence. As AI transformation continues to capture the attention of organizations globally, boards of directors need to consider taking on a more active role to ensure AI is not only strategically aligned with business goals, but also governed through a clear-eyed assessment of risks and long-term impact.

The discussion was moderated by Daniel Siciliano, Chaiman of Federal Home Loan Bank of San Francisco and Fellow at Stanford Law School (CodeX). In this webinar, in addition to Brienne, the panel of experts included Peter Cohan and Barbara Nelson. Peter serves as an Associate Professor of Management Practice at Babson College and a Senior Contributor to Forbes. Barbara is the Chair of Oneview Healthcare in Dublin, Ireland, a board member at Omniscient Neurotechnology in Sydney, Australia, and a board member at Backblaze in the San Francisco Bay Area.

The webinar began with a strategic perspective on the various ways boards can ensure AI project success at their organization. The panel’s guidance focused on linking AI initiatives with broader organizational objectives rather than isolating them purely to IT. Risk management emerged as a recurring subject in the conversation. The panelists emphasized the significance of establishing strong oversight procedures that enable directors to evaluate known and unknown risks, such as algorithmic accountability, data integrity, and model bias. See Entefy’s previous blog outlining the impact of machine intelligence when implemented without proper oversight, and the principles organizations must adopt to ensure responsible development and deployment of AI systems.

All panelists agreed that boards of directors need to be sufficiently knowledgeable about modern AI systems to ask the right questions and challenge assumptions. The need for AI literacy (and digital literacy more broadly), however, should not be limited to the boardroom. The panelists encouraged workforce-wide upskilling programs, as organizations grow and create competitive differentiation using advanced AI and automation.

For more information on machine intelligence and how it can future proof your organization, be sure to read our previous blogs including the impact of AI on businesses, the three phases of the enterprise AI journey, and the 18 essential skills needed to successfully launch your AI applications.

Reliable AI built on transparency and ethics

In real-world settings, from flawed predictive policing to biased lending practices, artificial intelligence systems have been shown to reflect and amplify systemic inequalities. These challenges often stem from deploying AI without sufficient safeguards. To mitigate harm and build responsible technologies, organizations need to establish a clear framework of actionable principles before implementation. Doing so will help ensure ethical standards are embedded throughout the AI development lifecycle.

At Entefy, we are driven by a commitment to breakthrough technologies that help people save time and improve how they live and work. As 24/7 demand for products, services, and personalized experiences grows, businesses are optimizing and, in some cases, reinventing their operations to remain resilient and grow.

This shift toward rapid digital and AI transformation brings both opportunities and ethical challenges. The infographic below outlines the impact of machine intelligence when implemented without proper oversight, and the principles organizations must adopt to ensure responsible development and deployment of AI systems.

To begin your enterprise AI journey click here and be sure to read our previous articles on key AI terms and how to build a winning AI strategy with the 5 Vs of data.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

How bots are making watts smarter and greener

As the world races to decarbonize and transition to cleaner energy sources, a quiet revolution is unfolding behind the scenes — one powered not by solar panels or wind turbines, but by algorithms. Artificial intelligence (AI) is rapidly emerging as a critical force in reshaping how we produce, distribute, and consume energy. From predicting demand spikes to optimizing renewable energy flows in real time, AI isn’t just enhancing the energy sector, it’s redefining its very foundation.  By 2030, innovations driven by AI are expected to contribute as much as $1.3 trillion in economic value with the potential to cut global greenhouse gas emissions by up to 10%. This reduction is comparable to the European Union’s total annual emissions. As machine intelligence evolves, it’s bringing new transformative solutions to the energy sector and solving some of our planet’s most pressing environmental challenges.

AI-powered predictive maintenance

One of the most transformative applications in the energy sector today is AI-powered predictive maintenance. Traditional energy infrastructure, such as wind turbines, solar panels, and drilling rigs, suffers from wear and tear that can lead to costly failures, repairs, and downtime. By applying AI to the massive data collected via IoT (Internet of Things) sensors, energy companies can monitor the health of their equipment in real-time, predicting failures before they occur or quickly deploying alternative solutions, without  the need for on-site operators. IoT refers to an interconnected network of physical devices, sensors, appliances, and machines that communicate and exchange data over the Internet, often autonomously and with minimal human intervention.

This is the strategy used at solar and wind energy installations where early detection and identification of potential equipment issues minimize the risk of costly failures and reputational damage from unexpected interruptions to operations. AI-driven predictive maintenance has been shown to reduce unplanned downtime by 35%, significantly enhancing operational efficiency and lowering maintenance costs. Additionally, companies implementing AI in their maintenance protocols have achieved up to a 30% reduction in maintenance expenses. By proactively monitoring equipment, AI not only improves the reliability of renewable energy systems but also contributes to more consistent and cost-effective energy production.

Revolutionizing smart grids and energy distribution

AI is playing a pivotal role in modernizing smart grids, significantly enhancing their efficiency and resilience. By analyzing vast amounts of real-time data, machine learning supports proactive automated grid management, allowing for the anticipation of electricity consumption trends as well as the streamlining of energy distribution process. This approach minimizes waste and reduces the likelihood of outages. AI also improves traditional grids by analyzing real-time data to balance supply and demand, buffering renewable energy into existing grids, making them smarter, more reliable, and robust.

According to the U.S. Department of Energy, machine learning is being used to support modernization of the grid. AI is being employed to forecast and mitigate grid disruptions caused by extreme weather events or cyberattacks, thereby ensuring a consistent power supply. Additional benefits of this approach are “cost-effectiveness and minimizing the impact of variability in renewable energy generation. This includes using AI to improve load forecasting and state estimation, even with limited or missing data.” 

In a significant industry collaboration, tech giants have partnered with major energy firms to form the Open Power AI Consortium, which aims to develop AI models and datasets tailored for the energy sector. The objective is to advance grid reliability, improve asset performance, and reduce operational costs, thereby advancing overall proficiency of electricity grids.

Optimizing battery performance

One of the challenges in renewable energy is source inconsistency—solar panels do not generate power at night, and wind turbines are ineffective without wind. Advanced AI is being leveraged to address these limitations by optimizing rechargeable batteries and guaranteeing a stable power supply. 

Electric vehicle manufacturers have integrated AI into their battery management strategies to improve battery performance and longevity—battery health predictions, maximizing charging cycles, extending the overall battery lifespan. Stanford University researchers have demonstrated the potential of AI models to predict lithium-ion battery lifespan with remarkable accuracy (up to 95%), “a feat previously impossible.”

By learning how batteries are typically used, AI systems can allocate energy more efficiently, thereby extending battery life for frequently used apps or systems and conserving power elsewhere. This adaptive approach not only improves performance but also enhances energy efficiency over time.

AI is proving essential in overcoming key challenges in battery performance, such as degradation from excessive charging, exposure to extreme temperatures, aging, and inconsistent usage patterns. By analyzing how these factors interact—along with environmental influences like ambient temperature, storage conditions, and operational load—AI can predict their effects on battery health and make dynamic adjustments to optimize performance.

Through processing large volumes of data, AI uncovers insights that are difficult to detect manually, enabling real-time control over variables such as charging speed, temperature, and energy distribution. This not only boosts reliability and efficiency but also extends battery life. Ultimately, the use of AI in battery management represents a major leap forward in making energy systems smarter, more cost-effective, and more environmentally sustainable.

Broadening the use of renewable energy

The financial commitment required to drive the global energy transition is immense. According to the International Energy Agency, meeting the net-zero emissions requirements by 2050 would require the annual investment in technology and infrastructure to reach $4 trillion by 2030. This investment is to be directed toward modernizing existing energy delivery systems, such as upgrading transmission and distribution grids, while also accelerating the adoption of renewable energy sources and advanced storage solutions. Fortunately, funding momentum is building—for instance, “the US Infrastructure Investment and Jobs Act (IIJA) and the cumulative $130 trillion commitment through the Glasgow Financial Alliance for Net Zero (GFANZ).”

The expansion of renewable energy sources over the past two decades has had a major financial impact, with 2023 alone seeing an estimated savings of over $400 billion in electricity sector fuel costs. This substantial reduction underscores how investing in clean energy not only supports environmental goals but also strengthens the resilience and stability of energy systems.

In addition to cost savings, AI is facilitating the rapid deployment of renewable energy projects by streamlining complex processes. AI tools are being developed to improve the way energy projects are sited and permitted, addressing challenges such as grid limitations, energy demand, and environmental impact assessments. These advancements enable quicker decision-making and proficient project execution, contributing to the accelerated adoption of clean energy solutions, bringing our society closer to a carbon-neutral future.

Trading and market dynamics

Energy markets are volatile, influenced by geopolitical instability, climate variability, and supply chain disruptions. In response to this volatility, energy trading firms are increasingly leveraging machine learning to improve decision-making and competitiveness.

Machine learning is transforming how energy position trades are executed by qualifying real-time analysis of massive and complex datasets—ranging from weather patterns and energy grid data to geopolitical events and commodity prices. These systems can identify patterns or anomalies faster and at a scale far beyond any manual human processes. As a result, energy companies are increasingly turning to AI and automation to make trading decisions, from forecasting short-term electricity prices to evaluating trading positions across multiple markets in milliseconds. The current evolution of algorithmic trading in power markets is evident in the European Energy Exchange (EEX), one of the leading platforms for energy trading in Europe. The exchange anticipates significant expansion in trading activity throughout 2025, driven by increased involvement from entities seeking to manage renewable energy risks and utilize its clearing services. In January, trading volumes for its main European power futures product surged by 37% compared to the same month last year, following a 63% rise in 2024.

By applying AI and intelligent process automation to energy trades, firms can respond quickly to shifting supply-demand balances and regulatory changes. The obvious results are not only faster and more accurate trades but also reduced risk exposure and higher profits. As energy systems become increasingly digitized and decentralized, smart trading agents are reshaping global energy markets.

The carbon footprint dilemma

While AI is driving sustainability gains across various sectors (including the energy sector), its own energy demands pose new challenges.

The unfolding narrative of generative AI comes at a price and the price is vast amounts of electricity consumed by growing compute resources and data centers. Powering AI queries, often requires significantly more energy than traditional digital tasks. This in turn can place significant stress on energy grids and derail the sustainability targets of major technology firms. “The global building boom of data centers — needed to meet the demand for generative AI — will likely emit the equivalent of 2.5 billion metric tons of carbon dioxide between now and the end of the decade. That total is comparable to 40 percent of annual U.S. emissions and will increase pressure on Silicon Valley to ramp up support for carbon-cutting technologies.”

This dual reality, AI as both a solution to and a driver of energy consumption, highlights the need for a strategic approach. To ensure AI remains a net-positive force for sustainability, businesses and policymakers must prioritize energy-efficient hardware, algorithmic optimization, and the integration of renewable energy sources in AI operations. Compared to conventional approaches, intelligent manufacturing systems have demonstrated the ability to decrease energy consumption, material waste, and CO₂ emissions by 30% to 50%, compared to legacy production methods. These efficiencies are achieved through advanced data analysis that pinpoints operational bottlenecks and optimizes real-time decision-making on and off of the factory floor.

If managed responsibly, AI has the potential not just to offset its own footprint but to serve as a catalyst for a more sustainable, greener global economy.

Conclusion

The role of AI in the energy sector is unquestionably poised to grow. With continual advancements in machine learning, automation, and predictive analytics, AI will create new standards and redefine how we generate, store, and consume energy.

As industries and governments invest in AI-powered innovations, we move closer to a world where energy is abundant, sustainable, and intelligently managed. This AI-driven energy revolution is not just a technological shift—it is the key to a smarter, more resilient, and greener future.

At Entefy, we are passionate about breakthrough technologies that save people time so they can live and work better. The 24/7 demand for products, services, and personalized experiences is compelling businesses to optimize and, in many cases, reinvent the way they operate to ensure growth.

To learn more, be sure to read our previous blogs about the inevitable impact of AI on businesses, the three phases of the enterprise AI journey, and the 18 essential skills needed to bring your AI applications to life.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

Guiding your enterprise AI journey for optimal impact

Machine learning (ML) and artificial intelligence (AI) continue to transform business operations worldwide—everything from intelligent automation to unlocking hidden insights for better decision-making. A recent study positions the long-term annual impact of AI between $2.6 trillion to $4.4 trillion across a series of corporate use cases. That said, for enterprises, implementing AI is neither easy nor simple. It requires proficiency in essential business, technology, and design skills to bring enterprise applications to life, from ideation to production implementation. Understanding where to begin, or more important, determining the right next steps in the AI journey is critical for success.

To kickstart AI transformations, leaders must first consider which phase on the AI journey continuum best describes their department or organization. The enterprise AI journey phases can be categorized as follows:

Early Phase: Learning, discovery, and AI readiness 

This stage is highly analytical, focused on assessing AI fit and laying the groundwork for modernization. At this point, it is important to educate the C-suite and other key stakeholders on AI as well as its strengths and limitations, resourcing needs, potential risks and rewards, plus practical, high-value use cases. This early phase includes the following, setting the foundation for informed decision-making and strategic alignment:

  • Market discovery
  • General team education
  • Risk/reward sensing
  • AI readiness
  • Problem statements
  • Solutioning options
  • Data assessment
  • Model evaluation

Mid Phase: AI/ML experiments, prototypes, and evaluation

Companies in this middle stage have moved beyond early exploration and are actively engaged in proof-of-concept (PoC) and prototype development as part of their initial AI/ML implementation. Here, an organization would engage a series of experiments and conduct evaluations to identify operational challenges, address stakeholder concerns, and perform early ROI assessments. Successfully navigating this phase requires mitigation of risks, refining AI models, and ensuring alignment with long-term business objectives. This mid phase includes:

  • AI/ML feasibility considerations
  • Exposing known unknowns
  • Risk mitigation
  • Early ROI assessment
  • Limited adoption testing

Mature Phase: Production implementation and continual refinement

At this stage, AI is typically fully deployed, integrated into operations, and delivering tangible ROI. Organizations in this phase focus on continual optimization, fine-tuning AI-driven processes and automation, and ongoing innovation to establish competitive advantages. The goal is not just to simply maintain AI capabilities but to refine and expand them in order to improve operations as AI evolves. The mature phase of the AI journey includes:

  • Productivity building
  • Continual de-risking
  • ROI optimization
  • Technical differentiation
  • Maintenance
  • Perpetual refinements

After identifying the right phase, innovation and modernization will take center stage. It will take a collective effort within the organization to seize viable opportunities with AI. Below are three strategic ways to take advantage of those opportunities and utilize AI to drive optimizations across your enterprise.

1. Improved decision-making and insights

In virtually all organizations, making the right decision is fundamental for managers and business leaders. And now, more than ever, the need to make the right decisions is putting additional pressure on decision makers. “85% of business leaders have experienced decision stress, and three-quarters have seen the daily volume of decisions they need to make increase tenfold” over the recent years.

For enterprises, poor decision-making can hinder an organization’s growth, stability, and success. It can cause damage to a company’s reputation, lower employee morale, undermine strategic objectives, and result in financial losses. “Poor decision making is estimated to cost firms on average at least 3% of profits.” Many organizations struggle to extract meaningful value from their data using traditional analytics.

Advanced AI, on the other hand, gives employees the ability to make impactful data-driven decisions. AI can unearth hidden insights, which can help with:

  • Cost reductions
  • Enhanced customer experience and engagement
  • Decreased customer attrition
  • Fraud detection

2. Intelligent process and workflow automation

Deploying intelligent automation to gain time and resources has become a priority on enterprises on their AI journey. Employees often engage in repetitive tasks that, while necessary, can create bottlenecks and are prone to human error. By automating such processes, teams can redirect their focus toward higher-value initiatives which drive business growth.

Technologies such as robotic process automation (RPA) can handle tasks such as invoicing and payment processing with increased efficiency and accuracy. The recent surge in AI adoption and intelligent process automation (IPA) however, has further amplified the capabilities of process automation, enabling more complex and adaptive workflows.

Recently, the rise of Agentic AI represents a shift from traditional automation to AI systems capable of autonomous decision-making. Unlike other AI-powered systems, which tend to follow certain rules or heavily rely on human input and oversight, Agentic AI operates autonomously with minimal human supervision. Agentic AI relies on a proactive machine intelligence approach to iterative problem solving (from perception to reasoning), performing tasks, and continuous self-learning. Agentic AI systems come with sophisticated reasoning, independent decision-making, and the ability to adapt and take self-directed actions to solve multi-step problems. 

For enterprises, this means AI can go beyond simple task automation to proactively manage workflows and adapt dynamically to new conditions. For instance, in IT security, AI-driven security agents can detect and neutralize threats without human intervention, reducing response times and minimizing risks. For retailers, AI agents can be predict supply chain disruptions and autonomously adjust procurement and logistics strategies. In banking, AI-powered financial agents analyze risk factors, and detect fraud without manual human oversight.  

3. Team collaboration and communication

In today’s fast-paced business environment, optimizing team collaboration and communication is essential for enhancing productivity. As organizations continue to generate vast amounts of data, efficient management and access to this information becomes a critical driver of success. Next-generation communication tools and sophisticated knowledge management systems are central to improving how teams collaborate and share information.

For modern enterprises, information has become a powerful asset, often described as the new gold. The ability to make this information easily accessible, searchable, and shareable within an organization is fundamental to improving team performance. Companies often rely on complex knowledge management systems that house vast amounts of diverse data—structured, unstructured, or semi-structured data. These systems support collaboration by allowing employees to retrieve essential information quickly, fostering smoother communication and collaboration across teams. However, without the proper tools to navigate this wealth of information, teams struggle to find what they need, when they need it.

Advanced AI can help streamline access to diverse data types stored across various platforms, creating a unified search experience that spans everything from PDFs to spreadsheets, images, audio files, and even videos. This means that no matter where information resides within an organization, employees can quickly find relevant data and insights.

Natural language processing (NLP), a branch of AI focused on the interaction between computers and human language, aims to enable machines to read, understand, interpret, and generate text in a way that is meaningful. Today, the popularity of LLMs (large language models) are transforming the way machines interact with language. An LLM (a key technology used within the field of NLP), is a type of general-purpose language model pre-trained on massive datasets to learn the patterns of language. This training process often requires significant computational resources and optimization of billions of parameters. Once trained, LLMs can be used to perform a variety of tasks, such as generating text, translating languages, and answering questions. LLMs can also be used to improve written communication by summarizing documents, refining grammar, and enhancing tone. These functions boost clarity and help ensure that communication within teams is precise and professional, reducing misunderstandings and promoting more effective collaboration.

Furthermore, AI’s ability to analyze sentiments and emotions in digital communication plays a crucial role in enhancing team dynamics and external customer relations. By using sentiment analysis, AI tools can detect emotional cues in conversations, such as frustration, dissatisfaction, or enthusiasm. This is particularly useful for identifying and addressing potential issues within teams or with customers before they escalate. For example, AI can flag conversations where negative sentiment is high, allowing managers to intervene and de-escalate tense situations. Similarly, by understanding emotional triggers, organizations can tailor their communication strategies to boost employee morale, strengthen brand loyalty, and improve customer satisfaction.

Strategic considerations for AI implementations

After identifying key areas where AI can add value, consider the following questions:

  • Which use cases can quickly provide value?
  • Is there sufficient managerial or executive support for the intended use case(s)?
  • Are ROI expectations realistic among stakeholders?
  • Are changes required to the compute infrastructure for this purpose? This involves hardware and IT capacity planning.
  • Do we have access to the right data for the intended use case(s)? In the exploration phase, consider how the 5 Vs of data can accelerate discovery and unlock hidden value.
  • What are common missteps to avoid in implementing AI?
  • Do we have the required skills internally or externally via vendors to make this a reality? It takes 18 separate skills to bring an AI solution to life from ideation to production level implementation.

Continuous learning and expert collaboration

AI is a vast and ever-evolving field. Familiarizing yourself with key AI terms and concepts is essential. Understanding the distinctions between traditional data analytics and the latest in AI including agentic AI, analytical AI, generative AI, and hyperautomation can prove highly valuable in assessing potential opportunities along your AI journey.

Embarking on this new path requires a strategic approach, focusing on specific business challenges and leveraging AI’s transformative potential to drive innovation and efficiency within your organization. On this journey, you may benefit by partnering with specialized AI firms and experts to accelerate the overall learning process for your team. These professionals can provide support in uncovering the narratives within your business, its data, and processes, and help you avoid common missteps.

It’s also important to ensure that any implementation of AI is compliant with ethical standards and the rapidly-evolving regulatory landscape. AI promises to reshape our experiences in ways both subtle and profound. Ideally, AI is developed and deployed responsibly, ethically, and in a manner that benefits humanity. Building trustworthy AI involves addressing various concerns such as algorithmic biases, data privacy, transparency, accountability, and the potential societal impacts of AI. At present, multiple corporate and governmental initiatives are underway to create ethical guidelines, codes of conduct, and regulatory frameworks that promote fairness, accountability, and transparency in AI implementations. 

For additional information, read our recent guide related to creating an effective corporate AI policy and our blog about the costly problems caused by legacy IT systems.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.

The inescapable impact of AI across industries

The coming years will be defined by intelligent innovation driven by artificial intelligence (AI). As AI continues to advance, it will revolutionize how businesses operate, offering an unparalleled opportunity for organizations to enhance their decision-making, operations, and customer experiences. AI isn’t just a trend—it’s a transformative technology that has already begun reshaping entire industries. In this post, we explore how AI is redefining the future of business and why it’s critical for the C-suite to embrace the shift.

AI’s Inescapable Impact Across Sectors and Industries

In recent years, artificial intelligence has undergone a remarkable transformation, evolving from a niche technology largely confined to research labs and specific industries, to a business critical tool. Organizations worldwide, from small startups to large enterprises, are now leveraging AI to enhance their products and services, streamline operations, optimize supply chains, and automate routine processes and workflows. The ability of AI to process vast amounts of data and identify patterns that would be nearly impossible for humans to detect has made it indispensable in a number of areas including predictive analytics, decision-making, and customer personalization. As a result, companies are increasingly investing in AI-driven solutions to not only reduce operational costs or grow revenue but also gain a competitive edge, build resiliency, and enable data-driven innovation. 

AI is becoming integral to transforming traditional business models. For example, industries such as health care are utilizing AI to enhance diagnostic capabilities, streamline administrative processes, and even develop personalized treatment plans. Similarly, in financial services, AI-powered tools are being used to strengthen fraud detection, algorithmic trading, and risk management. In the retail industry is embracing AI for inventory optimization, demand forecasting, and personalized marketing strategies. These broad and diverse applications highlight the pervasive influence of AI in modern business operations. 

The global AI market, currently valued at nearly $300 billion, is expected to grow at an exponential rate—$1.8 trillion by 2030. This rapid growth underscores the growing importance of AI as a strategic investment for businesses seeking to stay competitive in an increasingly digital and data-driven world. As AI continues to mature and its capabilities expand, organizations will be required to navigate a complex landscape of ethical considerations, regulatory frameworks, and technological advancements. Nevertheless, the undeniable trajectory of AI’s integration into business operations signifies its status as an essential tool for future success. For example:

AI in Finance is already making waves with its ability to predict market trends and identify financial risks. Companies like Goldman Sachs and JPMorgan Chase have deployed AI systems to enhance trading strategies, automate trading decisions, and improve risk management. AI-driven predictive analytics tools enable financial institutions to gain valuable insights into consumer behavior, fraud detection, and investment strategies. 91% of financial firms have already implemented AI or have concrete plans to do so, highlighting the industry’s rapid embrace of intelligent automation and data-driven decision-making.

AI-powered predictive analytics tools are providing financial institutions with deeper insights into consumer behavior, enabling them to refine customer experiences and develop personalized offerings. AI models are also enhancing investment strategies by analyzing historical data, market sentiment, and macroeconomic indicators to predict future market movements, helping financial firms make smarter, data-driven investment decisions.

AI in Health Care is also taking off. In the U.S., health care is a massive, consequential sector encompassing two major industry groups: (i) health care equipment and services, and (ii) pharmaceuticals, biotechnology, and related life sciences. According to the Congressional Budget Office, “from 2024 to 2033, the CBO forecasts federal subsidies for health care will total $25 trillion, or 8.3% of GDP.” AI is revolutionizing health care by assisting physicians in diagnosing diseases, predicting patient outcomes, personalizing treatments, drug discovery and development, and much more.

A notable advancement in this field is the application of AI in medical image analysis. AI models can swiftly and accurately interpret complex imaging data, aiding in the early detection of conditions such as cancer and cardiovascular diseases. For instance, AI has been utilized to predict heart attacks with up to 90% accuracy, enabling timely interventions.

Moreover, AI-powered wearables are transforming patient monitoring by continuously tracking vital signs and alerting healthcare providers to potential health issues before they become critical. This proactive approach not only enhances patient outcomes but also alleviates the burden on healthcare systems.

These developments underscore AI’s pivotal role in modernizing healthcare, offering tools for more precise diagnoses, personalized treatments, and efficient patient monitoring.

AI in Retail is about adopting AI and intelligent automation to not only enhance personalization but also to create smarter, more efficient operational processes. AI-driven recommendation engines are transforming how brands predict customer preferences and tailor shopping experiences in real time. This level of personalization helps build deeper connections with consumers, driving loyalty and increasing conversion rates. AI is also playing a crucial role in inventory optimization, cost reductions, and demand forecasting, helping retailers minimize out of stock and overstock problems.

The retail industry and the consumer discretionary sector overall are moving toward intelligent automation. A report surveying over 400 retail industry professionals found that over 80% of retailers are actively integrating AI, with a strong focus on enhancing operational efficiency and personalization. Similarly, Fortune 500 retail executives revealed that 90% have initiated generative AI experiments, with 64% conducting pilots and 26% scaling solutions to optimize supply chains and customer interactions. Meanwhile, a 2025 US Retail Industry Outlook report states that AI-powered chatbots increased Black Friday conversion rates by 15%, while 60% of retail buyers credited AI tools with improving demand forecasting and inventory management in 2024. These developments underscore AI’s pivotal role in driving growth, efficiency, and competitive advantage in retail. 

AI in Energy is helping optimize grid management, improve renewable energy efficiency, and enhancing energy storage. AI-powered forecasting helps utilities forecast demand, prevent outages, and improve grid reliability. The Electric Power Research Institute (EPRI), alongside Nvidia and Microsoft, recently launched the Open Power AI Consortium to develop AI models that enhance energy management.

In a recent report, the U.S. Depart of Energy (DOE) has outlined “how AI can accelerate the development of a 100% clean electricity system.” This includes the overall improvement to grid planning with the use of generative AI on high-resolution climate data from the National Renewable Energy Laboratory. Another opportunity is the enhancement of grid resilience by using AI to help with diagnosis and response to disruptions. Additionally, there is the opportunity for discovery of new materials pertaining to clean energy technologies.

AI in the energy market is expected to grow from $19 billion last year to $23 billion this year. The size of this market is projected to grow to $51 billion by 2029,  at a 20.6% CAGR.

Why AI Has Become a Strategic Priority for C-Level Executives

As AI continues to transform industries across the globe, the question for businesses is no longer if they should adopt AI, but how effectively they can leverage it to stay competitive and relevant. 98% of CEOs say there would be some immediate business benefit from implementing AI and ML. Half of them acknowledge their organization is unprepared to adopt AI/ML due to lack of some or all of the tools, skills, and knowledge necessary to embrace these technologies.

AI’s transformative potential is far-reaching, reshaping operations by driving efficiency, automating complex tasks, and enabling data-driven decision-making at an unprecedented scale. In a recent survey, “78 percent of respondents say their organizations use AI in at least one business function, up from 72 percent in early 2024 and 55 percent a year earlier.” This widespread adoption is being further accelerated by the rapid rise of generative AI, with 71 percent of respondents now stating that their organizations utilize generative AI (in at least one business function). This figure is up from 65 percent earlier in 2024.

For C-suite executives, AI represents a fundamental shift in how businesses operate and compete. 64% of CEOs consider AI a top investment priority, and 76% of them do not envision AI fundamentally impacting job numbers. Leaders who fail to embrace AI run the risk of being outpaced by competitors who harness the power of AI to optimize workflows, enhance customer experiences, improve product development, and drive revenue growth. Organizations are making significant structural changes to harness the full potential of AI, with larger companies often leading the charge. In this rapidly evolving environment, the C-level executives must not only recognize the strategic importance of AI but also take an active role in its implementation.

In a recent cloud and AI business survey, 12% of those surveyed were highlighted as “Top Performers.” These businesses are already ahead of the curve, benefiting from their AI and cloud investments, and defining success. To take better advantage of AI, and generative AI more specifically, 63% of Top Performers are expanding their cloud budgets. The 88% of the companies participating in the survey (those not categorized as Top Performers) are seeing early returns too on their new AI investments. For instance, “41% say they’ve already seen improved customer experience through GenAI while 40% say they’ve already achieved increased productivity. Across each of the 10 categories we asked about, many companies say they’ve already achieved value — but Top Performers stand out because they’re 2X more likely than other companies to have done so.”

Preparing for the AI-Driven Future

Looking forward, AI will become more integrated in every aspect of business operations. AI, machine learning, and automation, including the fast evolving domains of Generative AI and Agentic AI, will continue to expand, creating new opportunities and challenges for executives. The companies that successfully implement AI will unlock new revenue streams, improve operational efficiency, and drive innovation.

The next decade will be defined by intelligent innovation driven by AI. The window of early AI adoption in business is closing fast and many organizations are feeling the competitive squeeze to include AI transformation on their roadmaps. Those who hesitate may find themselves outpaced by competitors who act early.

At Entefy, we are passionate about breakthrough technologies that save people time so they can live and work better. The 24/7 demand for products, services, and personalized experiences is compelling businesses to optimize and, in many cases, reinvent the way they operate to ensure resiliency and growth.

Begin your enterprise AI journey here and be sure to read our previous articles on key AI terms and the 18 skills needed to bring AI applications to life.

ABOUT ENTEFY

Entefy is an enterprise AI software and hyperautomation company. Entefy’s patented, multisensory AI technology delivers on the promise of the intelligent enterprise, at unprecedented speed and scale.

Entefy products and services help organizations transform their legacy systems and business processes—everything from knowledge management to workflows, supply chain logistics, cybersecurity, data privacy, customer engagement, quality assurance, forecasting, and more. Entefy’s customers vary in size from SMEs to large global public companies across multiple industries including financial services, healthcare, retail, and manufacturing.

To leap ahead and future proof your business with Entefy’s breakthrough AI technologies, visit www.entefy.com or contact us at contact@entefy.com.