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Applied AI: A comprehensive guide to the use of versatile AI

Janina Horn

Applied AI enables companies to optimize their work through innovation and efficiency. 

From automated document processing to intelligent process optimization, Applied AI offers a wide range of applications that can give you a decisive competitive advantage. 

In this blog article, we not only look at which industries benefit from this application, but we also give you specific use cases and possible applications that make it easier to transfer it to your own company.

applied ai definition

Applied AI - Definition

Applied AI (Applied Artificial Intelligence) refers to the practical application of artificial intelligence (AI) in real-life scenarios and industries. It aims to solve specific problems and create value in various areas. 

In contrast to purely theoretical research, Applied AI focuses on integrating innovative AI technologies into existing systems and processes. This includes, for example, the automation of tasks, the improvement of decision-making processes and the optimization of workflows. 

Applied AI uses various techniques such as machine learning, neural networks and natural language processing to develop practical solutions. 

It plays a crucial role in areas such as healthcare, finance, production and transportation. Successful implementations of Applied AI lead to efficiency gains, cost reductions and better results. 

applied ai examples

Areas of application of Applied AI

Applied AI is used in many different areas, even across industries. 

Below you will find a selection of the complex application possibilities of Applied AI, including some examples:

Area of applicationExamples
Public healthDiagnostic support, patient monitoring,
personalized medicine, health data management
FinanceCredit assessment, fraud prevention, automated
Trading strategies, customer service
Production and manufacturingQuality control, predictive maintenance,
Production process optimization
Transportation and logisticsTraffic management, route optimization, fleet
management, supply chain optimization
Marketing and advertisingPersonalized advertising, customer analysis,
Marketing campaign automation
EducationPersonalized learning, adaptive teaching methods,
Automatic assessment of student performance
EnergySmart grids, energy efficiency, forecasting the
Energy demand, optimization of energy generation
Legal and ComplianceContract analysis, fraud prevention, compliance
Monitoring, data protection
AgricultureField monitoring, precision farming,
Harvest optimization, early detection of diseases
Social servicesPersonalized support for social programs,
Risk prediction for protection services

Further possible applications of Applied AI

Applied AI extends across numerous areas of life and opens up innovative possibilities, from the Supporting older people with care at home about the Creation of autonomous works of art up to the personalized fashion worldin which algorithms predict individual clothing styles. 

The other examples are assumptions as to how Applied AI could be used in other areas:

In the Space industry Applied AI enables complex data analysis for space missions i, while in the Sports area performance analyses and injury predictions to optimize the performance of athletes. 

It also contributes to the Environmental science develop precise models for climate change and support the protection of endangered species. In Tourism sector personalized travel suggestions and AI-based translation services improve the travel experience. 

Furthermore, Applied AI in the Music industry the possibility for automated compositions and individual listening experiences. 

With a wide range of applications from art to science, Applied AI shows that the boundaries of creativity and innovation can be pushed further through the intelligent use of technology.

Advantages and challenges of use

Thanks to its versatility, Applied AI offers a wide range of benefits that companies can take advantage of. 

However, to be able to work efficiently and successfully with AI in the long term, you should not only be aware of the benefits, but also be familiar with the challenges in order to deal with them appropriately.


  • Efficiency improvement: Applied AI automates and optimizes processes, which leads to a significant increase in efficiency in various industries.
  • Better decision making: By analyzing large amounts of data, Applied AI enables precise and data-driven decisions that lead to better results.
  • Cost savings: The automation of tasks and processes leads to considerable cost savings through reduced workload and optimized use of resources.
  • Personalization: Applied AI enables personalized products and services by better understanding the needs and preferences of individuals.
  • Promotion of innovation: The application of AI in various sectors promotes innovation and enables the development of new products, services and business models.
  • Faster analysis of large amounts of data: AI technologies analyze large amounts of data in real time, which often exceeds conventional methods.

Challenges in the application 

  • Privacy and ethics: The processing of sensitive data by AI systems can raise data protection concerns and ethical issues surrounding the use of AI must be considered.
  • Lack of transparency: Complex AI models can be difficult to understand, which makes it harder to make decisions transparent and explainable.
  • Lack of standardization: There are often no uniform standards for the use of AI, which can make interoperability and the exchange of information more difficult.
  • Technological complexity: The development and implementation of AI requires specialized knowledge, and the technology is often difficult for smaller companies to access.
  • Workplace changes: The use of AI can lead to changes in work processes and make certain jobs obsolete, which brings with it social and economic challenges.
  • Security risks: AI systems can be susceptible to attacks and manipulation, which entails security risks, especially if they are used in safety-critical areas.

To summarize: The successful application of Applied AI requires a balanced understanding of these benefits and challenges to ensure that the technology is used responsibly and sustainably.

applied ai technologies

Applied AI technologies and methods

Below you will find an overview of the various technologies and methods that form the basis of Applied AI solutions in different areas. 

The choice of which technology is best suited to your individual case depends on the specific problem and the available data.

Machine Learning (ML)

  • Supervised learning: Machine Learning Models are trained with labeled training data to recognize patterns.
  • Unsupervised learning: Models analyze data without predefined labels to identify patterns and structures.
  • Reinforcement learning: Models learn through interaction with their environment and receive feedback in the form of rewards or punishments.

Neural networks

  • Artificial neurons: Modeling of connections between artificial neurons, inspired by biological neural networks.
  • Deep neural networks: Multi-layered structures for complex tasks such as image and speech processing.

Natural Language Processing (NLP)

Computer Vision

  • Image recognition: Identification and classification of objects in images using computer vision.
  • Face recognition: Identification of faces in images or videos.

Reinforcement Learning

  • Agents and surroundings: An agent learns to act in an environment by receiving rewards for good actions.
  • Applications: Game strategies, robot control, autonomous driving.

Generative models

  • Generative Adversarial Networks (GANs): Two neural networks that compete with each other to generate realistic data.
  • Applications: Generation of images, videos or music.

Automated decision-making systems

  • Decision trees: Tree-structured models for decision making.
  • Applications: Credit evaluation, medical diagnosis.

Cluster analysis

  • K-Means clustering: Grouping of data points into categories based on similarities.
  • Applications: Market research, customer segmentation.

Recommender Systems

  • Collaborative filtering: Recommendations based on the behavior of other users with similar preferences.
  • Content-based filtering: Recommendations based on the properties of the products themselves.

Ensemble learning

  • Random Forests: Combination of several decision trees for more robust models.
  • Boosting: Improving forecast accuracy by gradually adjusting weak models.
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Use Cases

Use Case 1 - Automated document processing in the financial sector with Konfuzio


Financial companies are faced with the challenge of manually processing large volumes of documents such as invoices, salary statements and insurance policies. This process is time-consuming, error-prone and requires considerable resources.


Konfuzio offers a solution for automated document processing with AI-based OCR. Using intelligent character recognition (ICR), machine learning algorithms and natural language processing (NLP), companies can digitize and classify documents and extract relevant information.


A financial company uses Konfuzio to automatically process invoices, salary statements and insurance policies. The AI recognizes the different document types, extracts relevant data such as amounts, names and dates and enables fast and precise document processing. This results in considerable time and cost savings as well as improved data quality.

Use Case 2 - Automated customer support tickets


In many companies, a large number of customer support tickets pile up every day, leading to delays, human error and inefficient use of resources. Manual processing is time-consuming and has a negative impact on customer satisfaction.


Applied AI offers a solution here by introducing automated customer support. To do this, companies use a machine learning model to analyze and categorize incoming support tickets and automatically forward them to the appropriate teams. NLP helps to better understand the context of the requests and automatically generate answers or suggested solutions.


An e-commerce company integrates an Applied AI system into its customer support process. The system analyzes incoming emails and tickets, automatically identifies the reason for the request (e.g. product problems, delivery status) and forwards them to the relevant departments. Customers receive answers faster and the support team can focus on more complex requests.

Use case 3 - Predictive maintenance in production


In production, unplanned machine breakdowns lead to significant production interruptions and high repair costs. The conventional maintenance model is often based on fixed schedules and does not recognize potential problems in advance.


Applied AI enables predictive maintenance by analyzing sensor data from machines to predict anomalies or imminent failures. Machine learning algorithms recognize patterns and suggest preventive maintenance work before critical problems occur.


A company in the manufacturing industry integrates sensors into its production machines. An Applied AI model continuously analyzes the sensor data and identifies deviations from normal operating conditions. The system notifies the maintenance team in good time to take preventive action, resulting in less downtime and lower maintenance costs.

Use Case 4 - Personalized marketing campaigns


Traditional marketing campaigns are often ineffective as they do not sufficiently address the individual preferences and needs of customers. One-size-fits-all advertising does not appeal to every customer.


Applied AI enables personalized marketing campaigns by analysing customer behaviour and preferences. Companies use machine learning models to create individual customer profiles in order to generate tailored product suggestions, discounts or content.


An online retailer uses Applied AI to analyze the click behavior, purchase history and interests of its customers. The system predicts the likely preferences of each customer and sends personalized offers by email or advertises them on the website. This leads to higher customer loyalty and improved conversion rates.

Conclusion - Entering the digital future with Applied AI

Overall, it is clear that applied AI is not only a promising technology, but is already having a transformative effect in a wide range of areas. 

From automated document processing and personalized marketing campaigns to predictive maintenance in production, Applied AI opens up new horizons for companies. 

The areas of application are diverse and the benefits range from increased efficiency and cost savings to innovative products and services. 

Despite these successes, however, challenges such as ethical concerns and the careful handling of data must also be taken into account.

It is important to take advantage of the opportunities that Applied AI offers, not only to optimize processes, but also to promote innovation and growth. 

Want to learn more about how Applied AI can revolutionize your business processes? Contact us now and an expert from Konfuzio will get back to you right away to discuss how we can meet your specific requirements with innovative AI solutions.

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