Challenge 9: Artificial Intelligence and International Business

Artificial intelligence (AI)

a field of computer science that builds systems capable of simulating human intelligence to perform tasks like learning, reasoning, and problem-solving

Generative AI

a subset of AI, creates realistic content—such as text or images—based on patterns learned from data.

Prompt

a user instruction that guides AI responses

Prompt Engineering

involves crafting these inputs to achieve specific, effective outcomes.

The country with the most highly valued and influential AI companies is

the United States

____ is a major player with significant investments and several large AI companies

China

The European Union, United Kingdom, and Japan are increasing their investments in AI.

True or False?

True

Why AI matter in International Business

AI transforms how firms explore and enter new markets.

• Analyzes data and predicts consumer behavior.

• Supports decision-making and innovation.

• When used ethically, AI boosts creativity and efficiency.

AI Governance

a system of rules, practices, and processes employed to ensure an organization's use of AI technologies aligns with its strategies, objectives, and values, including legal requirements, ethical principles, and stakeholder needs

Responsible AI

refers to the design, implementation, and use of artificial intelligence systems that are ethical, transparent, accountable, fair, and aligned with human values, aiming to reduce biases, promote fairness, ensure explainability, and protect societal well-being.

What is the Data, Information, Knowledge,Wisdom (DIKW) Pyramid?

1. (Bottom of pyramid) - Data

2. (Lower middle of pyramid) - Information

3. (Upper middle of pyramid) - Knowledge

4. (Top of pyramid) - Wisdom

Algorithm

AI is a set of step-by-step instructions a machine follows to solve problems or complete tasks

Large Language Models (LLMs)

powerful AI systems trained on massive text datasets to understand and generate human language.

Natural Language Processing (NLP)

enables computers to interpret and produce human language in text or speech

Neural networks

inspired by the human brain, are models that learn patterns from data to perform tasks like prediction and classification

Artificial General Intelligence (AGI)

AI systems with human-like flexibility, capable of learning and performing a wide range of tasks across various environments

Agentic AI

describes highly autonomous systems that can independently pursue goals and adapt in complex, changing settings.

Chatbot

an AI program that uses natural language processing to simulate conversations with users, typically via apps or websites

Machine Learning

enables systems to learn from data and improve without explicit programming

Deep learning

a subset of machine learning, uses neural networks to learn complex patterns from large datasets. There are three main learning types

AI Risks

1. Malicious use

2. Loss of control

3. Discrimination & Toxicity

4. Privacy & Security

5. Misinformation

6. Systemic Risks

7. Workplace and societal risks

What is the primary goal of artificial intelligence as a field of computer science?

To simulate and extend human intelligence in machines

What is the main focus of responsible AI?

Designing AI systems that are ethical, transparent, accountable, and aligned with human values

What does machine learning enable systems to do?

Learn from problem-specific training data and automate analytical model building

How do machine learning and deep learning relate to AI?

They are core components of AI, providing methods and advanced techniques for intelligent behavior

What is the primary role of data in AI?

To serve as raw information used to train, validate, and test AI models

What is training data in the context of supervised learning?

Labeled data with known outputs used to build models