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Artificial intelligence

Estimated reading time: 13 minutes

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Author: Dr. Kyrill Schmid
Author: Dr. Kyrill Schmid

Artificial intelligence – a technology that thinks and acts like a human being. Or is that promising too much? Is it just another buzzword? Or is it a revolution that has already reached our everyday lives?

AI is neither magic nor science fiction – but that is precisely what makes it so exciting. In this guide, you will learn what artificial intelligence really is and why it is currently receiving so much attention. Curious? Then let's get started!

What is AI?

ChatGPT, Siri, Jasper.ai, Fireflies and many more – the list of AI tools currently in circulation seems endless. And yet all these AI programmes have been developed for completely different areas of application. This raises the question: What exactly is artificial intelligence (AI)?

Basically, AI can be defined as follows: Artificial intelligence (AI) is a technology that aims to simulate human-like thinking and decision-making processes.

But what does that mean in detail?

AI systems are programmed to perform tasks that typically require human intelligence. These include skills such as:

  • Learning: AI can recognise patterns in data and use this knowledge to improve future decisions.
  • Thinking and planning: AI analyses complex situations, makes predictions and develops strategies to achieve a specific goal.
  • Problem solving: AI uses insights to overcome challenges. These range from simple optimisation problems to highly complex analyses.
  • Perception and interaction: AI can understand language, analyse images and respond to environmental stimuli – comparable to human senses.

Recommended reading: Thanks to its human-like thought and decision-making processes, artificial intelligence can offer many advantages – but it also brings challenges. If you would like to learn more about the opportunities and risks of AI, take a look at our guide to the advantages of artificial intelligence!

Different types of artificial intelligence: weak and strong AI

Intelligent computer programmes that simulate human thinking – many people will shudder at the thought. For example, are you wondering whether you would take the red or blue pill if we were to find ourselves in the Matrix one day? What have we gotten ourselves into?

But first, let's give the all-clear: the scenario just described is strong AI, and it does not yet exist outside of science fiction films. The AI we work with today is what is known as weak AI. But what exactly is the difference between these two types of artificial intelligence?

The diagram shows strong and weak AI, symbolising different types of AI in development.

Weak AI: The Specialist

Weak AI, also known as narrow AI, is designed to perform a clearly defined task—and do it really well. It's the reason your search engine delivers relevant results, voice assistants understand your commands, and streaming services know exactly what film you want to watch next.

Some characteristics of weak AI:

  • It specialises in one task. So a chatbot will never suddenly be able to drive a car.
  • Its intelligence is limited to patterns and data that have been fed to it through human training.
  • It doesn't really understand what it's doing – it follows the algorithms that trained it.

Examples include ChatGPT, Alexa, facial recognition and self-driving cars.

Strong AI: The universal thinker

Strong AI, or Artificial General Intelligence (AGI), is still only a theoretical concept. Strong AI would have the ability not only to solve specific tasks, but also to think, learn and act like a human being – regardless of its original programming.

Strong AI could:

  • independently solve complex problems in a wide variety of fields,
  • learn new tasks and even
  • develop creative solutions.

It would be capable of mastering everything from medical diagnosis to poetry. Sounds impressive? Yes. Realistic? Not yet. For the time being, strong AI remains a topic for films and novels, and we humans will continue to remain in control.

What distinguishes AI from a conventional computer programme?

Now that it is clear that the intelligence of AI remains limited to patterns and data, the question arises: What distinguishes it from normal computer programmes?

The answer lies primarily in the way they work:

  • Classic programmes work in a strictly deterministic manner, which means that the same input always leads to the same output.
  • Artificial intelligence, on the other hand, is probabilistic, which means that the output can vary for the same input.

Let's take a closer look.

A classic computer program works like a fixed function: it takes an input and always delivers the same, predictable output. This makes classic programs extremely reliable. AI is different. Artificial intelligence works probabilistically, which means that its output is subject to probabilities and is not always the same. If you give a language model such as ChatGPT the same prompt multiple times, you will get slightly different answers each time – whether in length, wording or detail.

Comparison of classical and probabilistic processing, symbolising progress through artificial intelligence.
In short

AI is characterised by a certain unpredictability. But that is precisely what makes it “intelligent” – the ability to respond to the same input in different ways, much like a human being would.

AI technologies: How does artificial intelligence work?

Now that we have clarified what artificial intelligence is not and cannot do, it is time to turn the tables: What exactly can AI do – and, above all, how does it all work?

The AI technology that forms the basis of artificial intelligence is a process called machine learning. This follows a clear structure and can be described as follows:

Graphic shows functions, symbolises learning processes and improvement through artificial intelligence.

1. Collecting data - the foundation

As the saying goes: "Nothing comes from nothing!" This also applies to artificial intelligence. In order to learn something, it needs a solid foundation: data - and lots of it. Images, texts, videos, numbers - all of this forms the foundation of an AI system.

Example: Imagine we want to teach an AI to distinguish cats from dogs. To do this, we collect thousands of photos of cats and dogs and label them accordingly ("cat", "dog").

2. Pre-processing data - bringing order to chaos

3. Machine learning - recognising patterns

4. Deep learning - when things get complicated

5. Neural networks - the brain replacement

6. Training - the optimisation process

7. Independent learning - AI is getting better and better

Of course, this is a highly simplified explanation of how artificial intelligence works. If you would like to learn more, you will find a detailed explanation in our guide, ‘How does artificial intelligence work?’

What does ‘intelligent’ actually mean?

We constantly throw around the word ‘intelligence’ as if we know exactly what it means. And then we say things like, ‘AI? It'll never be as smart as a human being!’ But how can we be so sure? And more importantly, what does it actually mean to be intelligent?

Intelligence: Definition

Basically, intelligence is the ability to take in information, understand it and use it to make meaningful decisions or take action.

That's why intelligence shows up mainly in:

  • creative thinking,
  • adaptability and
  • learning from experience.

In humans, we also talk about emotional, social or logical intelligence – different ways in which we perceive, analyse and respond to our environment. But what does this have to do with artificial intelligence?

AI attempts to mimic precisely these abilities – but without consciousness or emotions. Instead, it works with algorithms that are trained to recognise patterns, process data and make decisions.

With these abilities, AI can solve problems, develop creative approaches and even learn from its experiences. And if it does this really well, why shouldn't we allow it to be intelligent?

Fortunately, it's not quite as simple as that.

The intelligence test

‘Can machines think?’ – Alan Turing posed this question in 1950, sparking a debate that continues to this day. In response to his own question, the ‘father of computer science’ developed a test that became famous as the ‘Turing test’: a human being has to determine whether they are talking to a computer or another human being based on text responses. For a long time, this test was considered the benchmark for machine intelligence.

Then ChatGPT came along – and since then, the Turing test has been considered practically solved. But does that mean ChatGPT is actually ‘intelligent’ in the human sense?

Not necessarily. Even before ChatGPT, the Turing test was controversial because it reduces intelligence to the ability to deceive. Critics say it tests human gullibility rather than true artificial intelligence.

As a result, there is still no universal system for measuring AI intelligence. Instead, there are many specialised benchmarks that test different aspects of intelligence. For example, computer games such as Minecraft are used to test how flexible and resourceful an AI is.

Ultimately, the question of what intelligence really is remains unanswered for the time being. But one thing is certain: anyone who spends some time with ChatGPT and similar chatbots will quickly realise that they are still a long way from being as intelligent and adaptable as humans.

The history of artificial intelligence

Yes, you read that correctly: we just seriously mentioned the year 1950 and AI in the same sentence – no typo, it was entirely intentional. Because the history of artificial intelligence began long before ChatGPT crept into our collective consciousness.

So, how about a little trip back in time? Let's take a look at how old the topic of AI really is:

1950 - Alan Turing asks the question: "Can machines think?"

Alan Turing publishes his famous article "Computing Machinery and Intelligence" and develops the concept of the Turing test, which is intended to test whether a machine can simulate human intelligence.

1956 - The birth of artificial intelligence

1966 - ELIZA: The first chatbot

1970 - The "AI winter"

1980s - Upswing through expert systems

1997 - Deep Blue beats the world chess champion

2011 - Watson wins "Jeopardy!"

2012 - Breakthrough through deep learning

2016 - AlphaGo defeats Go world champion

2018 - BERT revolutionises language processing

2022 - ChatGPT inspires the world

2023 - Generative AI in practice

The future of artificial intelligence

Artificial intelligence has changed all our lives forever – whether we actively use it or not. From personalised recommendations to more efficient work processes, AI is becoming visible and tangible in more and more areas.

But the future of AI will be less about hype and more about realism. According to the Gartner Hype Cycle, generative AI is facing a ‘downhill ride’ – in other words, exaggerated expectations are slowly being replaced by realistic assessments. The focus will be on developing, evaluating and prioritising real use cases.

These use cases will then determine what infrastructure is really necessary to use AI efficiently and sustainably. It is therefore less about blindly following every trend and more about using AI where it creates real added value – whether in automation, data analysis or process optimisation.

Areas of application for artificial intelligence

Artificial intelligence is now an integral part of our lives. It is everywhere – often without us even noticing. From the workplace to our homes, AI demonstrates its strength in a wide variety of areas.

The diagram shows areas of application, symbolising the diverse applications of artificial intelligence.

Possible areas of application include:

  • Medicine: Early detection of diseases, personalised therapies and more efficient diagnoses
  • Mobility: Autonomous driving, traffic management and route optimisation
  • Finance: Fraud detection, risk assessment and automated investment strategies
  • Industry: Predictive maintenance, process automation and quality assurance
  • E-commerce: Personalised product recommendations, chatbots and dynamic pricing
  • Creative industries: Generating text, images and music or supporting design processes

The list is long, and developments are progressing rapidly. Whether AI is used in research, AI in business or in everyday life, AI is constantly opening up new possibilities.

Artificial intelligence has countless applications – the examples mentioned here are just a small selection. If you would like to learn more about how AI can be used specifically, read our guide: How can artificial intelligence be used?

Using AI technologies – shaping progress

What's so exciting about artificial intelligence? We're only just getting started. The technology is developing rapidly and constantly creating new possibilities. Whether in industry, production or completely different areas, the opportunities offered by AI are virtually limitless.

Are you wondering how you can bring AI into your business to benefit from these opportunities? No problem – that's exactly what we're here for! At MaibornWolff, we help you find the right use cases, develop tailor-made solutions and successfully integrate AI into your business. Let's shape the future together!

 Man working on a laptop, symbolising modern working methods through artificial intelligence.

Bring artificial intelligence into your company now.

And benefit from endless possibilities.

Frequently asked questions about artificial intelligence

  • What are the legal regulations for artificial intelligence in the EU?

    The EU AI Act divides AI applications into three risk categories:

    • prohibited applications (e.g. social scoring),
    • high-risk applications (e.g. CV scanning) with strict requirements, and
    • largely unregulated systems.

    The aim is transparency, safety and ethics. The law is intended to become a global standard for AI use.

  • What ethical challenges does AI pose?

    AI can reinforce biases, discriminate or make unfair decisions if it is based on incorrect or incomplete data. There is also a risk of misuse, for example for surveillance purposes. Responsible use and ethical guidelines are crucial to minimise such risks.

  • How does machine learning differ from deep learning?

    Machine learning is a branch of AI based on algorithms that learn from data. Deep learning is a specialised method of machine learning that uses artificial neural networks to solve more complex tasks such as image or speech recognition. Deep learning usually requires more data and computing power.

Author: Dr. Kyrill Schmid
Author: Dr. Kyrill Schmid

Kyrill Schmid is Lead AI Engineer in the Data and AI division at MaibornWolff. The machine learning expert, who holds a doctorate, specialises in identifying, developing and harnessing the potential of artificial intelligence at the enterprise level. He guides and supports organisations in developing innovative AI solutions such as agent applications and RAG systems.

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