{"id":737952,"date":"2025-02-25T05:09:45","date_gmt":"2025-02-25T13:09:45","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=737952"},"modified":"2025-02-27T05:37:37","modified_gmt":"2025-02-27T13:37:37","slug":"the-ai-capability-business-leaders-may-be-overlooking","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/the-ai-capability-business-leaders-may-be-overlooking","title":{"rendered":"The AI Capability Business Leaders May Be Overlooking"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","castos_file_data":"","podmotor_file_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[200462,491682,441081],"department":[476792,476822],"wherenext-category":[],"industry":[],"class_list":["post-737952","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-business-strategy","tag-generative-ai","tag-geoai","department-cxo-priorities","department-data-and-ai"],"acf":{"short_description":"As they embrace the promise of generative AI, business executives must create a complementary strategy for analytical AI. ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"Executives might be overlooking some of AI\u2019s most valuable uses, according to a <a href=\"https:\/\/hbr.org\/2024\/12\/how-gen-ai-and-analytical-ai-differ-and-when-to-use-each?registration=success\">recent article<\/a> in <em>Harvard Business Review<\/em> (<em>HBR<\/em>)."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Snapshot:<\/strong> Business experts caution executives not to overlook the value of analytical AI as they hurry to embed game-changing generative AI in their organizations.","snippet":""},{"acf_fc_layout":"content","content":"While generative AI gets headlines for boosting productivity, analytical AI\u2014like machine learning and deep learning\u2014often delivers clearer business benefits, says <em>HBR<\/em>. It\u2019s particularly effective for forecasting outcomes from the structured data that drives key business decisions, from sales figures to asset values to inventory levels. Leaders rely on such data to make decisions with bottom-line impact in areas from risk management and market expansion to capital investments.\r\n\r\nWhat\u2019s more, many companies already have analytical AI in their existing systems. For example, geographic information system (GIS) software uses geospatial AI, or <a href=\"https:\/\/www.esri.com\/en-us\/capabilities\/geoai\/overview\">GeoAI<\/a>, to map and analyze business data about store locations, supply chains, and logistics.\r\n\r\nAs businesses increase AI spending, <em>HBR<\/em> recommends using the two types together: analytical AI to process data, and generative AI to make those insights accessible through natural conversation.\r\n<h3><strong>Analytical AI, Generative AI:<\/strong><strong> Getting the Best of Both <\/strong><\/h3>\r\n<em>HBR<\/em> describes how a major telecommunications company built a custom generative AI tool that answers questions about company data by automatically generating and running statistical analysis code.\r\n\r\nEnterprise systems like GIS could provide this capability without requiring custom solutions."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Join <em>WhereNext<\/em> as we explore <a href=\"https:\/\/www.esri.com\/en-us\/webinars\/publications\/wherenext-webcast-14-location-intelligence-in-unexpected-places\"><em>Location Intelligence in Unexpected Places<\/em><\/a> with <strong>Verizon<\/strong>, <strong>Walmart<\/strong>, and <strong>Steamboat Ski Resort<\/strong>.","snippet":""},{"acf_fc_layout":"content","content":"GIS has long excelled at harnessing GeoAI to answer critical business questions by examining large datasets, identifying trends, and modeling outcomes. For example, it can analyze historical climate data to predict weather patterns\u2014crucial for <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/geoai-risk-management\/\">understanding physical risk<\/a> in industries like insurance or utilities. Or, it can <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/think-tank-on-geoai-simulation\/\">produce sales forecasts<\/a> by interpreting data like storefront locations, customer transactions, and local demographics and psychographics.\r\n\r\nHistorically, running GeoAI analyses has required <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/wherenext-confidential-data-scientists\/\">GIS or data science expertise<\/a>. Visualizing the findings involved making maps\u2014a professional specialty of its own. Now, GIS <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-genai\/\">incorporates generative AI interfaces<\/a>, allowing nontechnical users to query data and make effective maps, freeing up GIS professionals for more strategic projects.\r\n\r\nGenerative AI, <em>HBR<\/em> points out, is particularly useful for enhancing productivity in creative tasks. Through generative AI, users can ask for analyses and interact with the output, adding or removing datasets and emphasizing key findings\u2014speeding up time to insight.\r\n<h3><strong>Generative AI Accelerates Adoption and Democratizes Data<\/strong><\/h3>\r\n&nbsp;"},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Related Read:<\/strong>\r\n\r\n\/\/ Understanding <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/artificial-intelligence-and-location-intelligence-for-business\/\">AI and LI<\/a> in business","snippet":""},{"acf_fc_layout":"content","content":"The <em>HBR<\/em> article notes that while analytical AI delivers measurable value, generative AI helps build support for it. Leaders interviewed by the authors said the attention on generative AI actually helped them gain backing for other AI projects, especially since nontechnical stakeholders now better understand AI\u2019s potential.\r\n\r\nUltimately, the two types of AI play complementary roles. Analytical AI works behind the scenes, while generative AI raises the technology\u2019s profile, powering interfaces that extend the value of AI analyses to more end users.\r\n\r\nWith both types of AI available in systems like <a href=\"https:\/\/www.esri.com\/en-us\/what-is-gis\/overview\">GIS<\/a>, employees at all levels of the business can be empowered to make more informed decisions, share insights, and drive innovation."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Analytical AI Gets a Second Look as Generative AI Shines<\/title>\n<meta name=\"description\" content=\"Generative AI drew the spotlight, but analytical AI\u2014embedded in technology like GIS\u2014has a first-mover advantage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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