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1C Việt Nam
(12.03.2025)

What is AI technology? Classification and effective application of AI

What is AI technology? AI has been changing the way people work, communicate and solve problems, from virtual assistants, self-driving cars to smart healthcare. This article will help businesses understand the important aspects of AI, including concepts, how it works, classification, practical applications and future AI trends. Let's explore to grasp the opportunities and challenges that AI technology brings in the digital age!

1. What is AI technology?

Artificial Intelligence (AI) is the ability of a computer or computer-controlled robot to perform tasks that normally require human intelligence. The term was first proposed by computer scientist John McCarthy in 1956 at the Dartmouth Conference, marking the formal birth of the field of AI research.

In everyday life, AI has become so familiar to people that they don't even realize it: from Siri on the iPhone suggesting nearby restaurants, to Netflix recommending movies based on the user's preferences, to mapping apps calculating the optimal route. AI has quickly gone from a science fiction concept to an essential technology, reshaping the way people work, communicate, and solve complex problems in the digital age.

What is AI technology?
AI technology has become familiar in everyday life.

2. How does AI technology work?

To understand how AI works, it is necessary to grasp the basic principles and components that make up modern artificial intelligence systems.

2.1. Basic operating principle

AI works by processing data through complex algorithms. Unlike traditional software that is programmed to perform specific tasks, AI has the ability to “learn” from data and improve its performance over time. This process includes:

  • Collect and process input data
  • Data analysis based on trained models
  • Make predictions or decisions based on analysis
  • Improve the model based on results and feedback

2.2. Core components

  • Machine Learning:The foundation of modern AI, allowing computers to learn from data without being explicitly programmed. For example, Netflix's recommendation system analyzes users' viewing history to suggest relevant content, and it continually refines recommendations based on user responses.
  • Deep Learning:An advanced machine learning method that uses multi-layered artificial neural networks to process complex data. Facial recognition technology on smartphones and social networks is a typical example of deep learning in practice.
  • Natural Language Processing (NLP):Allows computers to understand, interpret, and generate human language. ChatGPT, Google Assistant, or customer service chatbots all use NLP to interact with users naturally.
  • Computer Vision:Helps computers "see" and understand images/videos like humans. This technology is applied in self-driving vehicles, security surveillance systems, and smart photo editing applications.
What is AI technology?
AI collects and stores information into a comprehensive data warehouse.

3. Classification of AI technology

Depending on the level of complexity and capabilities, AI technology is classified into four main groups:

  • Reactive Machines:The most basic form of AI, they do not have the ability to store memories or use past experiences to make future decisions. They only react to the current situation. A typical example is Deep Blue, the supercomputer that defeated chess master Garry Kasparov, which only reacted to the current board without remembering previous moves.
  • Limited Memory:Ability to learn from past data to improve future decisions. Most current AI applications fall into this category, including self-driving cars, recommendation systems, and intelligent chatbots. They use historical data combined with current data to make decisions.
  • Theory of User Intelligence:Is the concept of AI that is capable of understanding human emotions, beliefs, and intentions. This type of AI is still in the research and development stage, aiming to create machines that can interact socially like humans.
  • Self-Aware Technology:Represents the highest level of AI, where machines are not only aware of other people's emotions but also have a sense of themselves and their internal state. This type of AI currently exists only in theory and science fiction.
What is AI technology?
Types of AI technologies and their applications in different fields.

4. Practical applications of AI technology

AI technology has been widely applied in many fields, bringing significant changes in the way people live and work.

4.1. In daily life

  • Smart home:Devices like Google Nest or Amazon Echo use AI to learn user habits, automatically adjusting temperature, lighting, and security.
  • Virtual assistants:Siri, Google Assistant, and Alexa go beyond simple commands and are getting smarter, understanding context, and providing personalized experiences.

4.2. In production and industry

According to a McKinsey report, factories that use AI have reduced unplanned downtime by 50% and increased productivity by 20%. Robotic automation combined with AI analyzes real-time data to optimize production processes, predict maintenance, and reduce waste.

4.3. In medicine

AI is revolutionizing healthcare with its ability to diagnose diseases quickly and accurately. IBM Watson Health can analyze thousands of medical reports in seconds to help doctors determine the best cancer treatment. Research at Stanford University shows that AI can detect skin cancer with the same accuracy as dermatologists.

4.4. In education

Learning platforms like Duolingo use AI to analyze learners' strengths and weaknesses and tailor content accordingly. According to Duolingo data, this method helps learners progress 2.5 times faster than traditional methods.

4.5. In communication and marketing

AI tools analyze customer behavior from big data to create personalized marketing campaigns. According to a Salesforce report, 84% of marketers using AI have seen a significant increase in ROI from their marketing campaigns. Netflix estimates that it saves $1 billion a year thanks to its AI-powered recommendation system.

What is AI technology?
AI is becoming more and more flexible, providing effective support in daily life and work.

5. Impact of AI technology on society and economy

The rapid development of AI brings both opportunities and challenges to society and the global economy.

5.1. Benefits

  • Increased efficiency and productivity:Automating repetitive tasks reduces production costs and increases productivity. According to a PwC report, AI could add $15.7 trillion to the global economy by 2030.
  • Creating new jobs:While AI will automate some jobs, it will also create demand for new positions such as AI engineers, data scientists, and AI ethicists. According to the World Economic Forum, AI could create 97 million new jobs by 2025.
  • Improving quality of life:From personalized healthcare to smart transportation, AI helps solve many social challenges and improve quality of life.

5.2. Challenges

  • Job loss and inequality:Automation could lead to job losses in some traditional industries. According to Oxford Economics, about 20 million manufacturing jobs could be replaced by robots by 2030.
  • Ethics and privacy issues:The massive collection and use of personal data raises privacy concerns. According to a Pew Research survey, 79% of Americans are concerned about how personal data is collected and used.
  • With the rapid development of AI, lawmakers are struggling to establish an appropriate legal framework. Issues of intellectual property rights over AI-generated content, liability when AI causes harm, and data privacy remain unanswered.
What is AI technology?
The development of AI creates opportunities and challenges.

6. Future trends of AI technology

AI technology is developing at a dizzying pace, opening up many exciting possibilities in the near future.

6.1. Autonomous vehicles

Companies like Tesla, Waymo, and Baidu are leading the race to develop fully autonomous vehicles. By 2035, about 25% of vehicles worldwide will be autonomous, creating a $77 billion market, according to the Boston Consulting Group.

6.2. Creative AI

Tools like DALL-E, Midjourney, and ChatGPT have demonstrated their ability to generate creative content, from images to music and text. This opens up a new era of content creation, where AI becomes a powerful tool for creators.

6.3. Personalized medical AI

AI is being developed to create personalized treatment plans based on an individual's genes, lifestyle, and medical history. According to Grauser View Research, the AI market in healthcare is expected to reach $67.4 billion by 2027.

What is AI technology?
AI technology is developing rapidly with great potential.

7. Frequently asked questions about AI technology

To learn more aboutWhat is AI Technology, 1C Vietnam will answer frequently asked questions about AI.

1. Is AI really as smart as humans?

Currently, AI only exhibits “narrow intelligence,” meaning it is good at specific tasks but lacks the general thinking abilities of humans. AI does not have consciousness, emotions, or intuition — important elements of human intelligence.

2. How to protect privacy when using AI applications?

Read privacy policies carefully, limit the data users share, use privacy-enhancing tools like VPNs, and regularly update privacy settings on users' apps and devices.

7.3. Can AI completely replace humans at work?
AI has the potential to automate many tasks, but it is unlikely to completely replace humans in jobs that require creativity, emotional intelligence, ethics, and complex decision-making. Instead of replacing humans, AI is more likely to complement human capabilities, creating a hybrid work model.

7.4. How do I start learning about AI if I don't have a technical background?
There are many free online courses for beginners from platforms like Coursera, edX, and Khan Academy. Users can also read books that introduce AI to non-specialists, or follow YouTube channels that explain AI in an easy-to-understand way.

7.5. What will the future of AI look like in the next 10 years?
While it’s hard to predict exactly, in the next 10 years we could see AI becoming more ubiquitous in everyday devices, self-driving cars becoming more common, personalized healthcare technology taking off, and global AI regulations evolving. However, general AI (AGI) — systems with full human-like intelligence — could still be decades away from becoming a reality.

Thus, the article has provided complete information aboutwhat AI technology isas well as how it works, classifies and applies this technology in many fields. Although there are still many challenges to overcome, the potential of AI in solving complex human problems is undeniable. If you have any questions about AI technology, please contact 1C Vietnam for advice.

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