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The Contemporary Marketing Management Glossary

Artificial Intelligence (AI)

Short Definition

The simulation of human intelligence in machines designed to think, learn, and act autonomously through algorithms, data processing, and adaptive models.

Context

The origins of Artificial Intelligence (AI) trace back to the 1950s, when Alan Turing posed the question “Can machines think?” and proposed the Turing Test. The term was coined by John McCarthy in 1956 during the Dartmouth Conference. Over time, AI evolved from symbolic reasoning (Herbert Simon, Marvin Minsky) to machine learning and deep learning (Geoffrey Hinton, Yoshua Bengio, Yann LeCun). In management and marketing, AI underpins automation, personalization, and predictive analytics, linking closely to digital transformation and decision science.

Extended Definition

Artificial Intelligence refers to systems capable of performing tasks that typically require human intelligence — such as reasoning, learning, problem-solving, perception, and language understanding. AI operates through several subfields, including machine learning (data-driven model training), natural language processing (understanding human language), computer vision, and reinforcement learning.

In contemporary management, AI acts as both a tool and a partner in decision-making. It amplifies human capabilities, supports strategic foresight, and drives innovation in marketing, HR, finance, and operations. The current phase, known as Generative AI, creates new content and knowledge, redefining how organizations communicate, design, and compete. Ethical implications—such as bias, transparency, and accountability—are central to its responsible use.

Contemporary Example

Generative AI tools like ChatGPT, Gemini, and Claude assist marketing teams in content creation, trend analysis, and customer interaction. In management, AI-driven dashboards predict market shifts, while algorithms guide sustainability reporting and resource optimization in line with ESG goals.

See also

Part of chapter: Glossary