Mathematical methods, models and information technologies in economy
MATHEMATICAL METHODS, MODELS AND
INFORMATION TECHNOLOGIES IN ECONOMY
UDC 005.3:[334.722:004.89 DOI: 10.26906/EiR.2023.4(91).3216
JEL Q360, Q380, М210
SYNERGY OF AI AND BUSINESS AS A FACTOR OF MANAGEMENT
EFFICIENCY IN THE CONTEXT OF TECHNOLOGY DEVELOPMENT
Volodymyr Hryshko*, Doctor of Economic Sciences, Full Professor
Ihor Zinchenko, Master Student
National University "Yuri Kondratyuk Poltava Polytechnic"
*ORCID 0000-0001-9183-4008
____________________
© Hryshko V., 2023
© Zinchenko I., 2023
Стаття отримана редакцією 22.11.2023 р.
The article was received by editorial board on 22.11.2023
Introduction. In the face of global challenges and current circumstances, artificial intelligence (AI) con-
tinues to evolve and adapt, providing new opportunities for technological advancement and contributing to
the transformation of various areas of life. For example, the recent release of ChatGPT-3.5 has significantly
increased public interest in AI. Thanks to its convenience and seemingly impressive awareness, this technolog-
ical tool has begun to penetrate everyday life.
In response to the information explosion, innovation-driven companies are actively seeking ways to use
AI as a catalyst for the development of innovative products based on this technology. In line with the trend
towards the development and proliferation of artificial intelligence, emphasis is placed on the need to conduct
a comprehensive study and analysis of the potential applications of AI in business. This technology holds great
promise in terms of analysing large volumes of business information, optimising processes, improving produc-
tivity and gaining competitive advantage.
It is advisable to delve into the greater issues and challenges associated with the implementation of this
technology in business. These include the limitations and requirements for companies intending to integrate ar-
tificial intelligence into their business processes, such as the scope of the company's activities, monitoring and
reporting of its own activities, availability of the necessary databases, availability of ready-made and effective
artificial intelligence tools on the market, complexity of implementation and support of these tools, as well as
the cost of implementation compared to the economic benefits.
Analysis of recent research and publications. Artificial intelligence technology and the possibilities of its
application in the socio-economic environment have long been studied by both domestic and foreign scientists,
many of whom predicted the rapid development of this industry.
For example, Galina Mashliy, Olga Mosiy and Mariana Pelcher noted that in recent years there has been
an extremely high rate of development of science, engineering and technologies aimed at developing and im-
plementing artificial intelligence in human practice [1]. M.G. Bortnikova and Y.L. Chyrkova examined how
human economic activity can be transformed by means of artificial intelligence [2].
In their study, Janusz Nesterak and Olga Malinowska concluded that in order to survive, modern companies
are forced to redesign and reorganise their activities and be flexible to innovation [3].
Yuriy Kovtunenko is another domestic scientist who has studied this issue. He identified the main reasons for the
necessity of introducing artificial intelligence into the management system of a modern enterprise [4]. The current
state and trends of artificial intelligence development in Ukraine were also analysed by Hryhorii Haina [5].
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Among foreign researchers, I would like to highlight a joint study by Ida Merete Enholm, Emmanuel Pa-
pagiannidis, Patrick Mikalef & John Krogstie, who conducted a fundamental analysis of the English-language
scientific literature in an attempt to determine the value of artificial intelligence for business [6]. An important
study on data analysis using artificial intelligence was carried out by Bahman Zohouri and Masoud M. [7].
Vijay Pereira, Elias Hadjielias, Michael Christofi, and Demetris Vrontis conducted a systematic review
that examines the relationship between artificial intelligence and workplace outcomes. This study is based on
60 articles published in 30 leading international journals [8].
There are conceptual challenges associated with the use of artificial intelligence (AI). In particular, it is neces-
sary to take into account the need for a significant amount of high-quality data on the basis of which AI can acquire
knowledge and perform certain tasks. In addition, it is important to emphasise that even with a large data set, the
guarantee of error-free operation of an AI system remains unattainable. This creates an additional challenge, namely
the cultivation of distrust and prejudice towards this technology among users. These aspects are of paramount im-
portance for understanding the nature of the challenges posed by AI and should be included in future research efforts.
Objectives of the article. The purpose of the study is to summarise information on the general and invest-
ment development of artificial intelligence in the business sphere and to formulate ways to use AI in the pro-
cess of activity and functioning of enterprises.
The main material of the study. Artificial intelligence research has been going on for decades, leading to nu-
merous definitions and interpretations of this concept. In the early stages, the perception of AI was associated
exclusively with software code and mathematical algorithms. Over time, the scope of artificial intelligence has
expanded, and researchers in the field have explored and formulated their own interpretations of the concept.
Given the diversity of interpretations and the recent success of AI-based language models, a view of this
concept has evolved. In particular, artificial intelligence is defined as a complex computer program that can
assist humans and perform tasks by using huge amounts of data and advanced language models. This approach
takes advantage of general development and offers unlimited scalability.
Since this article is dedicated to the study of artificial intelligence from the perspective of economics and
business, this article deliberately refrains from delving into the extensive history of this technology within the
computer sciences. However, to lay the groundwork for this study, an important indicator is proposed to be
considered: the amount of investment in the world's top 100 AI startups.
According to other studies in the field, the dynamics of investment in the world's top 100 AI startups can
be observed since 2011, when the total investment amounted to only 25.88 million USD. Over the next six
years, this figure demonstrated a significant growth, reaching 1866.6 million USD by the end of 2016 [9]. The
dynamics of investments in the world's top 100 AI startups is shown in Figure 1 below. This phenomenon in-
dicates a growing interest in investing in promising AI projects, outlining new trends in financing and creating
opportunities for innovative development of the sector.
Total investment in 100 AI startups, million USD
3000
2500
1866,6
2000
1500
1000 869,42
736,06
500 285,05
25,88 113,16
0
2011 2012 2013 2014 2015 2016
Figure 1. Investment dynamics in the world's top 100 AI startups
Source: compiled by the authors based on [9; 10]
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Mathematical methods, models and information technologies in economy
To further analyse the level of investment in AI, this paper will refer to a study conducted by CB Insights
[10], an analytical company specialising in collecting and analysing data on startups, innovative companies,
technology trends and other aspects of the business ecosystem. According to their findings, investments in arti-
ficial intelligence totalled 0.6 billion USD in 2017 and will increase to 7.3 billion USD in 2021. It is important
to note that these figures differ slightly from the previous study due to differences in calculations. CB Insights
specifically analysed the value of the largest investment deals rather than the total value of AI startups. For
clarity, these results are visually presented in Figures 2 and 3.
AI 100 venture funding
8,00
6,00
4,00 7,30 Funding, billion
2,00 4,20 USD
2,60
0,60 1,30
0,00
2017 2018 2019 2020 2021
Figure 2. AI 100 venture funding
Source: compiled by the authors based on [10]
Figure 3. AI 100 number of deals
Source: compiled by the authors based on [10]
Therefore, to determine the current level of investment in the industry, it is suggested to analyse data from
Statist, an online platform that provides statistics and graphs for various industries such as business, technology,
consumer goods, media and others. It is one of the largest resources of statistics and data in the world. According
to the data obtained from this resource, the total investment in AI startups as of the fourth quarter of 2020 was
10.9 billion USD, which helps to estimate the share of investments in the top 100 AI startups compared to the
total investment in this industry. There was also a significant increase in investment in 2021 to 18.9 billion USD,
a decrease in investment in 2022, and now this figure has stabilised at around 10 billion USD [11].
Thus, having analysed several scientific and statistical sources, it can be seen that since 2011, the volume of
investments in the world's top 100 AI startups has tended to double annually. In the 10 years since the begin-
ning of this observation, investments have increased from 25.88 million USD to 7.3 billion USD in 2021, and
the total investment in AI startups in 2021 reached a record 18.9 billion USD.
Having studied AI as a business area, it is proposed to determine how ordinary companies can use this tool.
For example, Forbes Advisor surveyed 600 business owners who use or plan to implement artificial intelli-
gence in their businesses. The survey showed the following:
– Every fourth business owner is concerned about the impact of AI on website traffic;
– almost all (97%) business owners believe that ChatGPT will help their business;
– one in three businesses plan to use ChatGPT to write content for websites, and 44% plan to use ChatGPT
to write content in other languages;
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– more than half of business owners use artificial intelligence for cybersecurity and fraud prevention;
– over 40% are concerned about over-reliance on technology due to the use of artificial intelligence;
– almost half of business owners use AI to create internal communications;
– nearly two-thirds (64%) of business owners believe that artificial intelligence will improve customer
relations [12].
Many scientists who have studied the use of artificial intelligence in business often assume that this tech-
nology can be useful. However, this formulation is rather generalised. Therefore, the main ways in which
businesses can use AI for their own purposes have been identified and presented in Figure 4 below.
Ways to apply AI in business
improvement of the decision-making process reduction of response time
personalised advertising customer service content production
supply chain operations recruitment
text message optimisation digital personal assistants
process automation сybersecurity and anti-fraud
idea generation inventory management accounting
optimisation of internal communications, plans, presentations and reports
coding and copying websites
Figure 4. Ways to apply AI in the business environment
Source: compiled by the authors based on [12]
Despite the potential benefits of artificial intelligence, its implementation poses several challenges
for businesses. One of the most important issues is data privacy and security. As companies collect
and analyse more data, the risk of cyber-attacks increases. In addition, the use of AI can raise ethical
considerations, particularly with regard to the use of artificial intelligence in decision-making. There
is a risk that artificial intelligence will increase bias and discrimination if it is not carefully designed
and implemented [13].
The use of artificial intelligence in business increases convenience and profitability, but also raises concerns
about algorithmic social and information bias, privacy, and data protection [14].
This technology may also affect the quality of education of future employees, as students may use it unfairly.
In general, the development of Artificial Intelligence in Education (AIED) has the potential to transform
the educational landscape and influence the role of all stakeholders involved. In recent years, the use of AIEDs
has been gradually introduced to improve understanding of student performance and to enhance learning and
experience. However, the introduction of AIED has led to increased ethical risks and concerns about several
aspects, such as personal data and learner autonomy [15].
Importantly, government authorities are also aware of the threats that AI may pose, as the Concept for the
Development of Artificial Intelligence in Ukraine, approved by the CMU, states that the introduction of in-
formation technologies, including artificial intelligence technologies, is an integral part of the development of
socio-economic, scientific, technical, defence, legal and other activities in areas of national importance. The
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absence of a conceptual framework for state policy in the field of artificial intelligence does not allow the cre-
ation and development of a competitive environment in these areas of activity [16].
The Ministry of Digital Transformation of Ukraine is working to overcome these problems, where it pre-
sented the Roadmap for the Regulation of Artificial Intelligence in Ukraine [17].
Its main idea is to create a transitional phase for 2-3 years, which will allow businesses to prepare for the
transition to European legislation in this area and the implementation of the AI Act [18].
According to the authors, this approach to AI regulation by state authorities is optimal, since European
legislation is one of the best in the world, and the leading institutions in this field were involved in the devel-
opment of the document (AI Act). In addition, the fastest possible orientation towards these laws may facilitate
Ukraine's accession to the European Union.
Conclusions. The research and analysis of numerous scientific papers and statistical publications resulted
in a summary of more than 10 years of artificial intelligence development in the business sector.
In general, it was determined that artificial intelligence is constantly evolving, a conclusion that is sup-
ported not only by subjective impressions but also by significant investments in the field. Among the leaders
contributing significantly to the overall development of this technology are giants such as Microsoft-owned
OpenAI and their main competitor Google.
However, the business environment is seeing a greater diversification of companies and startups specialis-
ing in solving more specific problems. This requires businesses to put more effort into analysing the market for
AI-based tools, but may prove to be more beneficial for companies that are more open to innovation. To make
it easier for businesses to identify specific applications of AI, certain areas of AI use in the business environ-
ment have been outlined and presented in a convenient diagram.
It should be emphasised that AI poses certain threats to both business and society, which underscores the
need for effective state regulation of this industry.
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32. Xinyue Z., Zhilin Y., Michael R. H., Gang L., Ziaul H. M. Impact of artificial intelligence on business strategy in
emerging markets: a conceptual framework and future research directions. International Journal of Emerging Markets.
2022. Vol. 17. Is. 4. URL: https://www.emerald.com/insight/content/doi/10.1108/IJOEM-04-2022-995/full/html
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society/20230601STO93804/eu-ai-act-first-regulation-on-artificial-intelligence
228 # 29 Economics and Region № 4 (91) – 2023 – Yuri Kondratyuk National University
Mathematical methods, models and information technologies in economy
UDC 005.3:[334.722:004.89
JEL Q360, Q380, М210
Volodymyr Hryshko, Doctor of Economic Sciences, Full Professor. Ihor Zinchenko, Master Student,
National University "Yuri Kondratyuk Poltava Polytechnic". Synergy of AI and business as a factor of
management efficiency in the context of technology development.
The article summarises the more than 10-year history of artificial intelligence in business. Based on the data on
investments in the world's 100 largest AI startups, the authors identifies the dynamics of investment growth over the
past decade. It is noted that innovation-related businesses are looking for ways to implement artificial intelligence
to optimise processes and gain competitive advantages. A list of business processes and tasks that companies can
already improve with the help of AI is compiled and graphically depicted. However, alongside the potential benefits,
the article also identifies possible challenges, such as data privacy, ethical considerations and the impact on educa-
tion. The article concludes with the need for effective state regulation and orientation towards the European Union's
legislation in the field of AI to ensure sustainable development and minimise risks.
Key words: artificial intelligence, management, economic environment, benefits and threats, government regulation.
УДК 005.3:[334.722:004.89
JEL Q360, Q380, М210
Гришко Володимир Васильович, доктор економічних наук, професор. Зінченко Ігор Русланович,
магістр, Національний університет «Полтавська політехніка імені Юрія Кондратюка». Синергія ШІ та
бізнесу, як фактор ефективності управління в умовах розвитку технологій.
Ця наукова стаття присвячена комплексному вивченню впливу штучного інтелекту (ШІ) на різні аспекти
бізнес середовища. Узагальнена більш сучасна історія розвиту штучного інтелекту в сфері бізнесу, засвід-
чуючи його зростаючу роль у якості технологічної інновації. Особлива увага приділена динаміці змін та
тенденціям інвестицій протягом останніх десяти років, що вказує на стійкий розвиток цієї галузі. Виділено
концептуальні проблеми штучного інтелекту, а саме необхідність великої кількості якісних даних, на основі
яких ШІ буде навчатися та потім працювати, однак навіть наявність цих даних не гарантує відсутності по-
милок у роботі ШІ, що провокує іншу проблему, а саме недовіру та упереджене ставлення до даної технології
з боку людей. Сформовано основні переваги та виклики впровадження ШІ в бізнесові процеси, звертаючи
увагу на загальні та специфічні, аспекти даного питання. Визначаючи велику користь, яку підприємства
можуть одержати від використання штучного інтелекту, в даній статті було сформовано конкретний перелік
бізнес процесів та задач, в яких компанії можуть використовувати штучний інтелект. До них належить: об-
слуговування клієнтів, персоналізована реклама, зменшення часу відгуку, покращення процесу прийняття
рішень, генерації ідей, оптимізації внутрішніх комунікацій, планів, презентацій та звітів, підбору персоналу
та пошуку талантів, цифрові персональні помічники, кібербезпека та управління шахрайством, операції у
ланцюжку поставок, управління запасами, написання коду та копіювання веб-сайтів. Згодом в статті роз-
глядаються потенційні загрози, пов'язані з використанням штучного інтелекту в бізнесі. Серед цих загроз
особливу увагу приділяється аспектам впливу штучного інтелекту на сферу освіти та якість знань та добро-
чесність молодих спеціалістів. Також розглядаються питання конфіденційності та захисту даних, що є важ-
ливими аспектами в контексті використання штучного інтелекту у бізнесі. Стаття закінчується роздумами
щодо ролі державного регулювання в сфері ШІ. Презентовано концепцію Дорожньої карти з регулювання
штучного інтелекту в Україні, яка наголошує необхідність вчасної орієнтації на європейське законодавство
для забезпечення стійкого розвитку галузі в країні.
Ключові слова: штучний інтелект, управління, економічне середовище, переваги та загрози, державне
регулювання.
Економіка і регіон № 4 (91) – 2023 – Національний університет ім. Юрія Кондратюка # 29 229
