Organizations that have recently embraced generative AI might neglect an older, well-established form known as "analytical AI. " This type of AI is far from outdated and remains a key resource for most companies. Although some AI applications use both analytical and generative AI, these approaches are generally distinct. To assess the significance and value of generative versus analytical AI, organizations need to understand their differences, along with the unique benefits and risks each presents.

With this understanding, they can decide which AI to prioritize based on their strategies, business models, risk tolerance, and various situations. Without this knowledge, they risk failing to fully leverage either type to transform their businesses.