Organizations that have recently discovered generative AI are at risk of overlooking an older and better-established form of AI, which the authors call “analytical AI.” This form of AI is by no means obsolete and is still an important resource for the great majority of companies. While a few applications of AI employ both analytical and generative AI, the two AI approaches are largely separate. To make decisions about the relative importance and value of generative AI and analytical AI, organizations must first understand the differences between the two technologies, and the different benefits and risks associated with each. They can then make decisions about which to prioritize under what circumstances based on their strategies, business models, risk tolerance, and other situations. Without an understanding of their differences, however, organizations risk under-utilizing one or both types to transform their businesses.
