Application of Artificial Intelligence in Business Processes: from Practical Usage Towards Defining the Concept and Functions of Artificial Intelligence

The effective development of the digital economy largely depends on the integration of artificial intelligence (AI) technologies into company business processes. The use of AI significantly increases labor productivity, optimizes internal operations, and creates sustainable competitive advantages in the market. However, the implementation of AI involves high financial costs, lack of guarantees of investment returns, and is accompanied by uncertainty in evaluating its actual effectiveness. A particularly pressing issue is the lack of understanding within the business community regarding the essence and functional capabilities of AI. The academic and business environments still lack a unified and established definition of AI, and the term is often inaccurately applied to algorithmic tools. This reflects the complexity, multilayered nature, and interdisciplinary character of the field. This article aims to systematize key concepts, functions, methods, and application areas of AI in business. Successful cases of AI implementation in management are analyzed, and critical success factors are identified. The empirical base includes secondary data and expert interviews with practitioners implementing AI projects in companies across various industries and levels of maturity. Special attention is given to analyzing the barriers and risks associated with integrating AI into existing business models and organizational structures. Internal and external types of AI influence on business are substantiated - from analytical transformation to improvements in operational, financial, market, and environmental performance. Promising directions for AI development are also discussed in the context of sustainable growth, digitalization, innovation management, and strategic planning amid digital transformation.