ECONOMIC ADVANTAGES OF USING ARTIFICIAL INTELLIGENCE IN BUSINESS MANAGEMENT

Abstract

The article analyzes the growing market for generative artificial intelligence (AI) and its impact on the business environment. According to PitchBook, US AI investment will reach $56 billion in the first half of 2024, a 57% year-over-year increase. A Deloitte survey revealed that 70% of businesses were utilizing AI technologies by 2020, with 85% experimenting with AI by 2024. This trend suggests a growing reliance on AI for operational efficiency and cost reduction. The main goal of the article is to research the costs of companies implementing AI in business processes and estimate the financial benefits that can be obtained from this implementation. The authors identify four key resources: finances, time, human and material resources that affect business performance. Based on it the effectiveness of the implementation of AI is overlooked to ensure the reduction of technical tasks costs and the direction of the accumulated funds for further development was considered. The article examines the benefits of optimization, cost reduction and productivity improvement with AI. It aims to analyze the financial implications of AI integration into business processes, focusing on the potential benefits versus the investments required. Key findings indicate that the main uses of AI in business include data processing and content analysis. The examples of IBM, NetPeak, in sectors like healthcare and defense and others show how the application of AI leads to significant financial benefits and changes in the structure of the workforce, and how the result creates new opportunities for business development. Also AI can significantly reduce labor costs. IBM is forecast to cut up to 30% of jobs thanks to AI integration, which could save about $278.5 million. In the case of the Ukrainian IT company NetPeak, the developed AI program allows saving more than 100 thousand dollars per year. Ultimately, the paper highlights that while the adoption of AI comes with risks to the labor market, the benefits of its use in business management outweigh the potential for growth and development. It this necessary for businesses to adopt AI technologies to stay competitive. Companies that strategically implement AI stand to gain not only in terms of efficiency but also through new revenue streams, illustrating the necessity of integrating AI into modern business practices.