Denis Grankin Head of Sales Department

Types of Artificial Intelligence that Can Drive Your Business Growth

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Types of Artificial Intelligence

In today's highly competitive environment, being successful means utilizing the power of Artificial Intelligence. However, AI is not a one-size-fits-all solution; it exists in many different forms. In our guide, you'll find information on how different types of Artificial Intelligence can unlock the potential of your business. Whether you're an AI expert or a novice, understanding these forms of AI can drive innovation, efficiency and profits.

We will cover some AI technologies such as AI in HR (ATS), advanced data analytics, machine learning, and neural networks. From AI-powered applications to data-driven decisions, these insights will help you succeed. Learn what types of AI can drive your business forward in today's dynamic marketplace.

What Is Artificial Intelligence?

Picture this: boosting your business, gaining customer loyalty, expanding your operations, and increasing your profits - all thanks to one powerful tool: Artificial Intelligence, or simply AI.

AI isn't just technical jargon, it's the secret sauce for unlocking incredible opportunities in today's business world. Simply put, AI makes machines as smart as humans, yet super-powerful. It can process massive amounts of data, spot trends, and predict outcomes - all in the blink of an eye.

Adopting some type of AI is like having a smart assistant at your side to personalize your marketing, reduce costs through supply chain optimization, or help customers immediately with chatbots. AI isn't just a game-changer, it's a game-winner.

It's not about keeping up with the times, it's about staying ahead of the curve. Here's the proof: Businesses leveraging AI often report higher efficiency, cost savings, and happier customers. Chatbots alone are expected to generate $11 billion in cost savings in industries such as retail, finance, and healthcare.

Understanding the different types of Artificial Intelligence is a must if we want to reap the benefits of AI technology, isn't it? Furthermore, the market is booming. The generative AI market is projected to reach $1.3 trillion by 2032.

different types of ai

Meanwhile, we should keep in mind that each type of AI has its specific capabilities. These capabilities of different types of AI are your tools to drive growth, make customers smile, enter new markets, and ensure a bright future for your business.

The potential impact of AI on public and personal life is beyond imagination. Because even in its current, intermediate state, AI types are already revolutionizing the world. So what lies ahead? Let's take one step at a time.

What Are the Types of AI?

Why do we need to define AI types at all? AI types exist because AI technologies differ in their capabilities and operating principles. For example, there are Machine learning techniques, Neural network algorithms, and Natural language processing systems, and each such technology serves a different purpose.

Through categorization, we can better interpret and categorize AI systems to serve different business purposes and applications. That is, we can see what type of AI can be more or less useful for us now or in the future. So, let's get to the point. Artificial Intelligence can be categorized into different types based on different criteria.

AI with its immense capabilities has the potential to revolutionize various industries, and understanding the different types of AI as well as AI trends and developments is the key to harnessing its potential.

To effectively navigate this evolving landscape, we need a roadmap. A classification of Artificial Intelligence applications based on certain principles can serve as such a roadmap.

Let's explore these principles together to shed light on how innovations in NLP or robotics technology can be applied to serve your business:

1. Capabilities. AI can be categorized by the tasks it solves, such as data mining, natural language processing, speech recognition, etc. Knowing which type of AI focuses on tasks relevant to your business allows you to optimize your work and increase efficiency. For example, you can use Artificial Intelligence in recruiting to get AI-powered ATS or make the most of GPT-3 and GPT-4 when providing software development services.

2. Functionality. AI types vary in their functionality, from robotics and automation to virtual assistants and predictive analytics tools. Being aware of the functions that each type of AI can perform enables you to build the right Artificial Intelligence software.

3. Learning Approaches. Knowing the learning methods behind AI, such as supervised learning, unsupervised learning, reinforcement learning, and deep learning, can help you develop AI-driven web-based or mobile solutions that best fit your business needs.

4. Human Interaction. Some types of AI are designed primarily for human interaction, such as chatbots and NLP-driven virtual assistants. Using AI to deliver a better customer experience or user experience can be vital to your business.

5. Capability for Creativity. While AI is great at automating tasks, some types of AI can also be creative and problem-solving, which can be invaluable in innovation-driven industries. That's where the future of cognitive computing lies.

Let's take a look at the most common types of AI based on capabilities and functionality.

what are the different types of ai

3 Main AI Types by Capabilities

The key capability-based AI types can be categorized as follows:

1. Narrow AI (Weak AI)

Imagine a narrow AI as a subject matter expert. It performs a specific task perfectly, like a highly skilled employee in a specific role.

Business Application

Consider customer service chatbots. They are a prime example of a narrow type of AI in action. Such chatbots (like conversational AI platforms) handle routine customer inquiries, freeing up staff for more complex tasks. Chatbots, as they should, provide quick and consistent answers, thus increasing customer satisfaction.

Another AI application area is recommendation systems, which are widely used in e-commerce. These types of AI analyze customer behavior and preferences to suggest products or content to them. This AI-driven personalization and automation increases sales and customer engagement.

In manufacturing, narrow AI is utilized for quality control. AI-powered cameras inspect products for defects, ensuring consistent quality and reducing errors.

Benefits for Business Owners

The benefit of narrow AI is to reduce operational costs through automation. For example, chatbots provide 24/7 customer support, increasing customer satisfaction while reducing labor costs. In addition, quality control in manufacturing leads to fewer product defects, saving time and money.

2. General AI (Strong AI)

On the other hand, general AI is like a versatile employee who can adapt to different roles and master new skills as fast as possible.

Business Application

Take a look at supply chain management. General AI can optimize truck routes in real-time, based on factors such as weather, road conditions, and inventory. This leads to improved logistics efficiency and lower costs.

In pharma, General AI speeds up drug discovery by modeling complex molecular interactions. Through advanced machine learning, it analyzes huge data sets and identifies potential drug candidates faster than humans can.

It is also used in financial analysis. It enables accurate market forecasts, portfolio optimization, and risk assessment, helping investors make informed decisions.

Benefits for Business Owners

General AI is driving innovation, catalyzing progress, and solving complex problems across industries. With enhanced decision-making capabilities, business owners can expect more accurate and data-driven decisions.

3. Artificial Superintelligence (ASI)

ASI is at the peak of AI development, just as if you had an unparalleled expert capable of solving the most complex problems and yielding unprecedented results.

Business Application

Let's imagine ASI in scientific research. The application of cutting-edge neural networks could lead to revolutionary discoveries, such as solving long-standing problems in physics or climate science. In healthcare, ASI could personalize medicine at an unprecedented level, revamping diagnosis and treatment.

ASI could also play a critical role in addressing global challenges such as climate change. By optimizing renewable energy and carbon capture technologies, it could offer innovative alternatives.

Benefits for Business Owners

For business owners, ASI opens up opportunities for innovation that can transform entire industries. It offers advanced data mining capabilities, solving complex global problems and gaining unprecedented insights. However, it is worth noting that ASI is still a theoretical concept and has not yet been put into practice.


  • Narrow AI type specializes in specific tasks;
  • General AI type adapts to different domains;
  • ASI represents the ultimate potential for transformational progress.

Each Artificial Intelligence type offers unique applications and benefits, contributing to business growth and problem-solving.

4 Main AI Types by Functionality

Let's move on to the next classification of AI types - by functionality or similarity to the human mind and the ability to think (and sometimes feel!).

According to this categorization, there are four types of AI or AI-based systems.

AI Types by Functionality

1. Reactive Machines

Imagine chess grandmasters. They are great at chess, but can't master other games like poker or bridge as well. It's like jet machines in the world of artificial intelligence (AI). They are experts in one area, following precise rules and patterns. They can be compared to artisans who create beautiful glassware but can't learn how to compose music.

Reactive machines as types of AI rely on pre-defined algorithms and data. They fail to learn from new information or adapt to unforeseen circumstances, which distinguishes them from other types of AI.

Real-world examples of reactive machines are chess programs like Deep Blue, which carefully calculate moves according to set rules. In manufacturing, robots that assemble products in a precise, repetitive sequence are powered by reactive AI. For businesses, this type of AI is fundamental to automation, ensuring accuracy and consistency in repetitive tasks, resulting in increased efficiency, cost savings, and improved product quality.

2. Theory of Mind AI

Now, let's leap ahead in AI sophistication. Imagine an AI that understands human emotions, beliefs, and intentions; AI with empathy. Theory of Mind AI enters this realm, navigating the intricate world of human interaction.

This type of AI exists as an unfinished development or even as a concept that has yet to be put into practice. Researchers are still only working on the Theory of Mind type of AI. This type of AI is expected to understand and recognize the moods, emotions, needs, beliefs, and thought processes associated with the objects it interacts with. The difficulty in developing Theory of Mind type AI is that these machines must learn to think virtually like a human, taking into account many factors, and this involves the development of other areas of AI as well.

Yet, despite the difficulties of realizing this type of AI, we can already observe some real-world examples of its application - for example, the Sophia robot, which is a social humanoid robot from Hanson Robotics.

She has cameras in her eyes that, with the help of computer algorithms and visual data interpretation, allow her to see the world as if she were seeing it. Moreover, she can maintain eye contact, follow the facial expressions of the interlocutor, and recognize people.

In addition, advanced customer service chatbots based on language understanding models and sentiment analysis are expected to be introduced. They are supposed to recognize customers' moods and adjust their responses, thus creating a more personalized and meaningful experience.

Theory of Mind AI, as one of the major AI trends and developments, is set to change customer service by recognizing and responding to human emotions. This will lead to more meaningful interactions with users.

3. Self-Aware AI

Now let's move on to Self-Aware AI. This concept is deeply intriguing because it is an AI system that, like a human, has consciousness and self-awareness.

Essentially, a Self-Aware AI is going to be able to understand and comprehend its actions, thoughts, and emotions, just like a human being. However, it should be noted that at this stage, Self-Aware AI is still theoretical, and there are no real-world examples, even among advanced machine learning models.

From a business perspective, the implications of this phenomenon are significant: it has the potential to redefine the interaction between AI and humans and its role in solving complex problems. While this issue remains speculative, its potential is enormous and it is part of the future of cognitive computing.

4. Limited Memory AI

Imagine a type of artificial intelligence system that can adapt to changing conditions. AI with limited memory is just such a system. Such systems make decisions based on experience and accumulated data, which allows them to function in dynamic environments. This adaptability is what it is all about.

In the real world, self-driving cars are a prime example. They rely on Limited Memory AI to navigate, which draws on sensor data and experience to make real-time driving decisions. On streaming platforms such as Netflix, content recommendation algorithms analyze your watching history to suggest movies or shows based on your preferences, demonstrating advances in data mining.

For enterprises, Limited Memory AI is invaluable in applications that require adaptability. It is being used in autonomous vehicles, personalized marketing, and predictive maintenance, boosting efficiency and customer satisfaction, in line with AI-based automation trends.

4 Main AI Types Based on Learning Approaches

So, what about learning approaches? Let's see what types of AI can be identified based on how they learn.

AI Types Based on Learning Approaches

1. Supervised Learning

This type of AI involves taking labeled examples to train machines to spot patterns and make predictions. For instance, if you train an AI using images of Ferrari cars, it learns to recognize a Ferrari in new images based on the patterns it learned during training.

Business benefits

Supervised learning is a game-changer for businesses. By teaching AI using labeled data, companies can automate tasks such as sorting customers into groups, predicting future sales, and catching fraudsters. This AI predicts what customers like, making personalized marketing easier. It can also organize emails and documents faster by sorting them based on specific rules, saving time and effort.

2. Unsupervised Learning

In this scenario, AI operates without labeled examples and autonomously delves into the data to uncover concealed connections and patterns among them. Since the AI isn't told what to look for, it clusters data based on its similarities, relying on inherent characteristics to group it together.

Business benefits

Businesses can benefit from unsupervised learning AI in various ways. It helps them understand their customers better by sorting them based on their buying habits. This can help personalize services and products. It also helps identify and prevent fraudulent activity by detecting unusual patterns in financial transactions.

3. Reinforcement Learning

This learning is like how humans learn from trying things out and seeing what works. The AI does something, and if it's good, it gets a reward; if it's bad, it gets a punishment. With time, it learns to do things that bring rewards, just like people learn from their experiences. That's why it's called reinforcement learning - because AI gets better through rewards or punishments.

Business benefits

Wondering how reinforcement learning can help your business? Let's see. It can fine-tune pricing strategies using real-time market data, streamline production for maximum efficiency, and offer personalized recommendations to users based on their platform interactions.

4. Deep Learning

This is a type of machine learning that relies on neural networks with lots of layers - that's why it's called "deep." It's really good at handling big, complicated data like images, text, and sound. Deep learning breaks down these data sets into layers, which makes it easier for AI to understand them. This way, AI can spot tricky patterns and make decisions that seem more human-like.

Business benefits

Deep learning helps businesses create advanced tools. For example, they can make smart assistants that instantly understand and respond to human speech. It also improves medical analysis by making diagnoses more accurate through better image analysis. Additionally, deep learning can understand emotions from complex text data, which helps in decision-making processes.

2 Main AI Types Based on Human Interactions

When we talk about AI for human interaction, we often mean chatbots and virtual assistants.

1. Chatbots

Chatbots are designed to interact with users like real people. They use AI to understand what users are saying and respond in a meaningful way. For example, they can answer questions, help track orders, or guide someone through a website. This makes customer service faster and more efficient. What's more, they can learn from these conversations, so they get better at helping over time.

There are 2 key types of chatbots: AI-based and rules-based. AI-based chatbots are smarter because they use advanced technology to understand and respond quickly to users. Rule-based chatbots follow specific rules programmed by humans. They're good at handling simple questions, but may struggle with more complex ones.

Overall, chatbots are great for businesses because they make it easier to help customers and gather useful information about what they need.

2. Virtual Assistants

These are smart, AI-based software applications that can understand and respond to voice commands in the same way as a human. Google Assistant or Apple's Siri are examples of such assistants.

Virtual assistants are flexible and can adjust to each user's preferences over time. They learn from interactions, getting better at understanding and fulfilling requests.

In the business world, virtual assistants are increasingly being used to increase productivity, help employees with tasks, and improve customer service. They can be seamlessly integrated into different systems, such as customer support bots or virtual agents, to improve business processes both internally and externally.

3 Main AI Types Based on Capability for Creativity

Creativity-based AI means systems that create new things, such as paintings, music, or even innovative ideas. Here are the main types of AI focused on creativity that business owners should know about:

1. Systems for Creative Problem Solving

Some AI systems are designed to solve creative problems, such as designing new products, optimizing processes, or even suggesting new ideas. They use a mix of machine learning, optimization algorithms, and specific knowledge to come up with solutions that humans might not have thought of.

2. Generative AI

Generative AI algorithms create brand-new content by relying on examples from already existing data. They can generate marketing ideas, design concepts, or even user-friendly applications. By learning from large datasets, they produce original and diverse results.

3. Creative Adversarial Networks (CAN)

CAN is a type of AI model where two neural networks interact with each other through competition: one generates content, and the other checks its quality. This process produces high-quality and realistic results in various fields, such as art or design.

So, what should I do with this information? - you might ask. And with good reason.

Now that you know what types of AI exist, you can choose which one to apply to your business needs. What could it be? How to implement robotics and automation? How to combine progressive deep learning and advanced machine learning? What AI trends and developments should you consider when utilizing AI types? The best way to get a handle on all of this is with expert support.

How to Build Any Type of Artificial Intelligence System to Drive Your Business

You can delegate all your AI-related needs, whether it's applying various AI types or building AI-powered solutions, to the DDI Development team. Our team specializes in building Artificial Intelligence software tools, end-to-end platforms, and full-fledged AI systems tailored to your requirements. Whether you are in need of AI-powered CRM, SAAS, ATS, ERP systems, or any other type of AI-powered application, we are ready to meet your needs.

Our IT outsourcing services include a wide range of software development solutions, including both web development and mobile development services. To ensure your project is executed as planned, we adhere to Agile Project Management, offer a staff augmentation collaboration model, and assist you in the process while the development team goes through the onboarding phase.

Whether you are looking to start with an MVP (minimum viable product) or a full-fledged web-based or mobile platform, our team can meticulously estimate software development time and provide the right expertise to bring your vision to life.

If you need to utilize the capabilities of GPT-3 or GPT-4 language models, we are equipped to handle that task as well. Just let us know what your software development goal is.

Bottom Line

Getting a handle on the different types of Artificial Intelligence is the first step to making it work for your business. Whether it's reactive machines or artificial intelligence that can understand human emotions (Theory of Mind AI), each type of AI has its own set of features and real-world applications. Now you can go for the right AI system type.

To turn your AI ideas into reality, think about teaming up with us at DDI Development. We are proficient in building AI-based software, platforms and systems that are tailored to fit your business perfectly. Whether you want to build an AI-driven recruiting system, a snazzy SAAS application, or fine-tune your CRM or ERP, we've got the know-how.

In this age where AI types are turbocharging businesses, choosing the right AI solution can be a game-changer. So, what's next? Get in touch with us to get one step closer to putting the right types of AI in place for your business needs.

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