Blog AI and BI: How Do They Work Together?

AI and BI: How Do They Work Together?

AI vs BI how do they work together

In the world of data analytics, the synergy between Artificial Intelligence (AI) and Business Intelligence (BI) is changing the way businesses operate and make decisions. As Michael F. Gorman, professor of operations management and decision science at the University of Dayton in Ohio, aptly said in an article published by CIO Magazine, “[Business Intelligence] doesn’t tell you what to do; it tells you what was and what is.” This distinction highlights the foundational role of BI in providing a clear picture of historical and current data, but not necessarily the roadmap for future actions.

The Distinct Roles of AI and BI

BI tools are designed to sift through vast amounts of data, turning noise into coherent insights about past performance. These insights are crucial for understanding trends, identifying patterns, and making informed decisions. BI tools help you:

Identify trends: BI helps you spot emerging trends in customer behavior, market shifts, and operational processes.

Benchmark performance: Compare your company’s performance against industry standards or internal goals.

Make data-driven decisions: With clear insights on what’s working and what’s not, you can make informed decisions about resource allocation, marketing strategies, and product development.

However, BI alone stops short of prescribing specific actions or predicting future outcomes.

This is where AI steps in. AI encompasses computer intelligence that can analyze BI-generated data to predict future trends, identify new opportunities, and recommend strategic actions. While BI paints a detailed picture of what has happened and what is happening, AI projects what could happen and suggests how to respond.

Deepening the Connection: Synergy and Integration

The integration of AI and BI creates a powerful synergy, providing businesses with a comprehensive view of both past and future scenarios. This integration allows for more informed decision-making, access to insights that were previously unimaginable. Here are several ways AI and BI complement each other:

Predictive Analytics

AI augments BI’s capabilities by leveraging historical data to forecast future trends. This allows businesses to anticipate market shifts, customer behaviors, and potential risks, shifting the decision-making process from reactive to proactive. For example, a retail company can use AI to predict which products will be in high demand during the next holiday season, allowing them to adjust inventory and marketing strategies accordingly.

Automated Insights

AI can automate the analysis of massive datasets, uncovering insights that might be missed by human analysts. This capability allows businesses to quickly identify patterns, anomalies, and trends, leading to faster and more accurate data-driven decisions. For instance, in finance, AI can detect unusual transactions that might indicate fraudulent activity, enabling quicker responses to potential threats.

Personalized Experiences

By combining AI and BI, businesses can deliver personalized experiences and products tailored to individual customer preferences. This customization enhances customer satisfaction and loyalty, which is particularly valuable in customer-centric industries like retail and hospitality. For example, streaming services use AI to recommend content based on viewing history, creating a more engaging user experience.

Operational Efficiency

AI can optimize business operations by identifying inefficiencies and suggesting improvements based on BI’s comprehensive data analysis. This collaboration leads to streamlined processes, cost savings, and improved productivity. For instance, in manufacturing, AI can analyze production data to recommend adjustments that reduce waste and increase efficiency.


The collaboration between AI and BI represents a powerful advancement in data analytics. While BI provides the critical foundation of understanding past and present data, AI builds on this foundation to predict and guide future actions. Together, they empower businesses to make smarter, more strategic decisions, driving innovation and competitive advantage.

Don’t Get Left Behind: AI and BI are no longer optional for businesses that want to stay competitive. Leveraging their combined power is the key to navigating today’s complex data landscape and achieving sustained growth.

About Knowi

Knowi is the AI-powered analytics platform that unifies and analyzes data from SQL, NoSQL, APIs, and the cloud and allows you to receive instant insights through AI-generated dashboards and summaries and ask questions in plain English. With advanced NLG and NLP capabilities, Knowi makes data-driven decision-making faster and easier.Interested in knowing more about how you can leverage AI for data analytics? Book a demo today with us and start your AI analytics journey.

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