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AI Use Cases & Applications Across MAjor industries

AI use cases
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Even though Artificial Intelligence (AI) has been around as an academic and scientific discipline since the 1950s, AI technology has gained a lot of traction in the last few years. It’s needless to mention that the current surge in AI research, investment and real business applications is unprecedented. According to a report by Grand View Research, by 2030, the global AI market size is expected to reach $1,811.8 billion, up from $136.6 billion in 2022 with a 38.1% CAGR.

The impact of AI applications extends beyond improved business results, as they hold the power to significantly elevate and enrich the human experience as a whole.

In this article, we highlight 11 major industries that have reaped substantial benefits from AI and continue to hold immense potential for future growth. However, let’s begin by briefly discussing what artificial intelligence is.

What is Artificial Intelligence (AI)?

American computer scientist and cognitive scientist John McCarthy, who coined the term artificial intelligence in 1956, defines it as “the science and engineering of making intelligent machines.” According to the Science Daily journal, AI is “the study and design of intelligent agents where an intelligent agent is a system that perceives its environment and takes actions which maximize its chances of success.”

In simple terms, it refers to the ability of a computer or a computer-controlled robot to perform tasks commonly associated with intelligent beings, generally humans. As a result, it demonstrates powerful capabilities, such as the ability to reason, discover meaning, or learn from experience.

Now, let’s look at the use cases of AI in some major industries.

Here are some significant AI use cases impacting major industries

AI use cases

1. Healthcare

The contribution of technology giants like Microsoft, Google, Apple and IBM in the healthcare sector holds significant importance for the healthcare industry. AI is currently employed in a wide range of healthcare services, including data mining for identifying patterns and carrying out highly accurate diagnoses and treatment of medical conditions. In addition, it is used in medical imaging, medication management, drug discovery and robotic surgery.

For example, IBM Watson (an AI tool) can derive the meaning and context of structured and unstructured data that might be critical for selecting a treatment plan and then analyzing the patient’s medical record to identify potential treatment. In other words, IBM Watson functions like a human doctor.

Similarly, a platform called Artificial Intelligence for Drug Discovery (AIDD), developed by the biopharma company NuMedii leverages big data and AI to detect the link between diseases and drugs at the systems level.

2. Retail and e-commerce

Retail and e-commerce stand out as the industries where the application of AI is most readily apparent and observable, making its impact tangible to the majority of end-users. Because of stiff competition in the market, retail organizations always look out for techniques to find patterns in consumer behavior so they can align their business strategy with consumer needs to outsmart competitors.

AI has played a pivotal role in empowering these organizations to effectively meet and exceed their customers’ evolving needs and expectations. The product recommendations on your Amazon account are nothing but an application of complex AI algorithms to determine which products you are more likely to buy.

AI applications are also increasingly being used to enhance the customer experience. For example, most chatbots available on e-commerce websites are powered by AI and programmed to provide instant answers to a range of common customer queries.

3. Food tech

AI has numerous applications in the food industry. Have you ever wondered what it would be like if a robot could brew a cup of tea for you? Well, Hi Arya, a food-tech company, in collaboration with LeewayHertz, has built a robotic tea maker based on AI and IoT capabilities. The smart tea maker enables users to create their own recipe from a web interface, mobile app, and the machine itself.

Essentially, users command the robot to prepare tea using the web interface, machine, or mobile app. As soon as a user places their order, the machine starts preparing the tea, and the user can watch their tea being prepared.

AI development has touched the industrial food processing sector as well. For instance, a firm named Tomra Systems ASA has developed AI-based food sorting equipment targeting the french fries, peeled potatoes, and the diced and ground meat markets. Tomra’s food processors help food-processing companies automate food analysis tasks such as measuring the size, shape, and color of french fries or analyzing the fat content in meat.

In the agriculture space, a firm named Sentient is leveraging AI to analyze the effects of variables such as UV light, salinity, heat, and water on basil. Armed with the data, they are developing methods to raise the perfect crops.

AI applications have also been introduced into the farming sector, where we have seen a surge in the use of intelligent tractors and intelligent plucking machines.

4. Banking and financial services

The banking and financial services industry is undergoing a massive transformation due to the onset of AI applications. AI uses cases in this space are plenty. In many scenarios, human agents are being replaced by intelligent software robots for processing loan applications in fractions of a second. Similarly, robo-financial advisors can sift through multiple levels of data in seconds to recommend the right investment decisions for customers.

These robo-advisors can also analyze your social media activities, emails and other personal data to identify the sectors and companies aligned with your needs and long-term goals.

Furthermore, AI-based chatbots are being deployed in the Insurance sector to improve the customer experience and create insurance plans and products based on customers’ data. AI-based software has also significantly reduced the claim processing time, thus helping insurance companies and customers.

Another important application of AI in the finance sector is fraud detection. For instance, Mastercard uses AI-based decision Intelligence technology to detect fraudulent transactions by analyzing various data points.

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5. Logistics and transportation

The logistics and transportation industry has also benefitted significantly from AI-powered solutions. The use of machine learning has already transformed supply chain management, making it a seamless process. Many warehouses use AI-powered robots for sorting and packaging products in warehouses. Furthermore, AI algorithms are also increasingly used to find the quickest shipment route and support last-mile delivery.

In the transportation industry, self-driving vehicles will undoubtedly be the next big thing. Although they are still in the research and trial stage in many countries, AI-based self-driving will potentially replace manual driving and make driving on roads safer. Tesla, Uber, Volvo and Volkswagen are at the forefront of this innovation.

Research is also underway to leverage AI algorithms to optimize public transport for scheduling and routing, and even traffic light management.

6. Travel

The travel industry derives significant benefits from the widespread use of AI-enabled chatbots. Chatbots are a proven means for improving customer service and engagement mainly because of their 24*7 presence and the ability to ensure instant resolution of queries.

Advanced AI algorithms are empowering chatbots with increased efficiencies, enabling them to provide highly accurate responses to customer queries. Many large travel organizations are turning to AI companies to build their own AI-based mobile apps and chatbots to improve the customer experience.

Furthermore, machine learning and predictive analytics help travel companies increase their conversion rates by identifying customer behavior and purchasing patterns.

7. Real estate

The application of AI in the real estate industry is opening up new opportunities for agents, brokers and clients alike. While agents are becoming more efficient and effective, brokers are becoming more strategic in their approach, and consumers feel more empowered than ever. AI-powered bots help brokers and agents efficiently cater to the needs of people looking to buy, rent or sell their properties.

AI can be employed in the real estate industry in the following ways.

  • Real estate professionals can use artificial intelligence to analyze market conditions, property prices, and other factors to determine property values, trends, and investment opportunities.
  • Using artificial intelligence, real estate documents, such as lease agreements, mortgages, and title deeds, can be managed and processed automatically.
  • The predictive modeling component of AI can be used to predict rental income, property prices, and other aspects affecting the real estate market.
  • Smart home technology, such as thermostats and security systems, can be integrated with AI to increase energy efficiency and security.
  • Also, AI-based chatbots can operate 24*7 and help real estate website visitors find answers to their queries, even during odd hours.

8. Entertainment and gaming

From OTT platforms recommending personalized shows to viewers to video games enhancing their visuals and improving the gameplay experience for players, AI empowers entertainment businesses with intelligent capabilities.

In the film industry, AI is used to enhance digital effects in movies and perform diverse other tasks to save costs and speed up the pre and post-production process. For instance, Natural Language Processing (NLP) can be used to create movie scripts.

In the music industry, large companies like Apple and Spotify implement AI to understand users’ engagement patterns and recommend music to users based on their tastes. In music production, the AI-driven computer accompaniment technology enables a machine to compose real-time music in response to the performance of a live musician.

The gaming industry was one of the early adopters of AI, and its impact on the user experience has been profound. This means that within the gaming industry, AI is employed to govern the behaviors and actions of Non-player Characters (NPCs) who contribute to progressing the game’s narrative in a predetermined direction. AI-driven behavior modeling of such characters greatly enhances the gamer’s experience in the overall storyline.

9. Manufacturing

It is beyond doubt that the manufacturing industry is leading the way in the application and adoption of AI technology. In manufacturing, AI is employed across several lines and layers of operations, from workforce planning to product design, thus improving efficiency, product quality and employee safety.

In factories, machine learning and artificial neural networks are employed to support the predictive maintenance of critical industrial equipment, which can accurately predict asset malfunction. It helps the management take timely measures to restore the equipment and prevent costly unplanned downtime.

Robots are an integral part of the production process. The majority of industrial robots are often stationary yet in danger of crashing into nearby objects. The use of AI in robotics has heralded the concept of collaborative robots or “cobots” that can take instructions from humans and work productively alongside them.

In quality control, AI algorithms are used to notify manufacturing units of potential production faults that can lead to product quality issues. Faults can include deviations from processes, subtle anomalies in machine behavior, change in raw materials, and so on.

10. Automotive

From self-driving cars to driver assistance systems and traffic prediction to improve safety and reduce traffic congestion, AI has several potential practical applications in the automotive industry. It can be used to power self-driving cars, helping them to make smart decisions, navigate roads and avoid obstacles. Driver assistance systems, such as adaptive cruise control, lane departure warning, and automatic emergency braking, can be enhanced with the help of artificial intelligence. Using cameras, radar, and other sensors, these systems detect and accommodate traffic conditions, contributing to safer and more efficient driving.

Using artificial intelligence, traffic signals, signs, and other infrastructure can be adjusted to respond to changes in traffic conditions to optimize traffic flow and reduce congestion on roads. By analyzing data from vehicles, AI can determine when maintenance will be needed, including when a component will fail. By scheduling maintenance before a problem occurs, automakers and fleet operators can reduce downtime and costs.

11. Media

AI has significantly impacted the media industry, offering various applications and use cases. It can enhance the media industry in the following ways:

  • Content recommendation: AI algorithms can analyze user preferences and behavior to provide personalized content recommendations, enhancing user experience and engagement.
  • Natural Language Processing: AI-powered language processing can be used to analyze and understand user-generated content, automate content moderation, and improve search functionality.
  • Video and image analysis: AI can be used for video and image analysis, such as object recognition, sentiment analysis, and facial recognition, enabling better content organization and targeting.
  • Fraud detection: AI algorithms can detect fraudulent activities, such as fake user accounts or click fraud, helping to maintain a safe and secure platform.
  • Predictive analytics: AI can analyze large volumes of data to predict user behavior, market trends, and audience preferences, assisting in strategic decision-making and content planning.

12. Education

AI in the education industry has transformed the way we learn, offering a multitude of use cases that have positively impacted the landscape. Some of these use cases are:

  • Personalized learning: AI can personalize educational content and adaptive learning paths based on individual student needs, improving engagement and learning outcomes.
  • Intelligent tutoring: AI-powered tutoring systems can provide personalized guidance, feedback, and assistance to students, enhancing their learning experience.
  • Automated grading: AI algorithms can automate the grading process for assignments, quizzes, and exams, saving time for educators and providing quick feedback to students.
  • Learning analytics: AI can analyze student performance data to discover patterns, trends, and areas of improvement, enabling data-driven interventions and personalized support.
  • Virtual assistants: AI-powered virtual assistants can answer student queries, provide educational resources, and assist in administrative tasks, enhancing the learning environment.

13. Fashion

AI has found compelling applications in the fashion industry, impacting various aspects of the value chain. One key area is trend analysis and forecasting. AI algorithms can identify emerging trends, consumer preferences, and fashion influencers by analyzing vast amounts of data from social media, fashion blogs, and online platforms.

AI-powered recommendation systems can analyze customer data, including purchase history, browsing behavior, and style preferences, to provide personalized product recommendations. This enhances the customer experience and increases sales and customer loyalty.

By leveraging machine learning algorithms, AI can accurately forecast demand by analyzing historical sales data, market trends, and external factors like weather patterns. This helps fashion brands, and retailers optimize inventory management, production planning, and logistics, reducing costs and minimizing wastage.

AI algorithms can analyze images and identify specific patterns, colors, or designs, enabling automated product categorization, tagging, and cataloging. This streamlines inventory management and improves searchability on e-commerce platforms. AI can also assist in detecting counterfeit products by comparing images and identifying discrepancies.

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14. Private equity and principal investment

AI is transforming the landscape of private equity and principal investment, presenting new opportunities and reshaping traditional practices.

  • Deal sourcing: AI can analyze large volumes of data to identify potential investment opportunities, providing valuable insights for private equity firms.
  • Due diligence: AI algorithms can automate the analysis of financial statements, legal documents, and market data, facilitating efficient due diligence processes.
  • Risk assessment: AI can assess the risk profiles of investment opportunities by analyzing historical data, market trends, and financial indicators, aiding in decision-making.
  • Portfolio optimization: AI can help optimize investment portfolios by analyzing asset performance, market data, and risk factors, providing data-driven recommendations for asset allocation.
  • Predictive analytics: AI algorithms can predict market trends, identify potential market disruptions, and evaluate investment scenarios, assisting in strategic investment planning.

AI is reorganizing the legal industry, offering various applications that enhance efficiency, accuracy, and productivity.

  • Contract analysis: AI-powered contract analysis can automate the review and extraction of key clauses, reducing manual effort and increasing efficiency.
  • Legal research: AI can assist in legal research by analyzing vast amounts of legal texts, case law, and precedents, providing valuable insights and speeding up the research process.
  • E-discovery: AI algorithms can analyze and categorize large volumes of electronic documents, emails, and other digital evidence, facilitating e-discovery in legal proceedings.
  • Risk assessment and compliance: AI can help identify and assess legal risks, monitor regulatory compliance, and provide recommendations for risk mitigation.
  • Chatbots and virtual assistants: AI can be utilized to develop chatbots and virtual assistants that respond instantly to common legal queries, assist with legal procedures, and improve client communication and engagement.
  • Document automation: AI-powered document automation tools can streamline the creation and generation of legal documents, reducing errors, saving time, and improving document consistency.

16. Information technology

AI has profoundly influenced the field of information technology (IT) with its diverse applications and use cases. One prominent use case is in IT operations and infrastructure management. AI-powered systems can monitor and analyze vast amounts of data from IT infrastructure, identify anomalies, and predict potential issues before they occur. This proactive approach enables efficient troubleshooting, enhances system performance, and reduces downtime.

AI algorithms can detect and respond to security threats in real time by analyzing network traffic, identifying malicious activities, and implementing proactive security measures. AI-powered cybersecurity systems can continuously learn and adapt to evolving threats, providing robust protection against cyber attacks.

Automated testing and quality assurance tools powered by AI can detect bugs, vulnerabilities, and errors in code, improving software reliability and reducing manual testing efforts. AI algorithms can also optimize software development workflows, enhance code generation, and assist in code refactoring.

In the realm of data analytics, AI plays a crucial role in extracting insights and making data-driven decisions. AI-powered analytics tools can process and analyze large datasets, identify patterns, and uncover valuable business insights. This empowers organizations to make informed decisions, optimize processes, and drive innovation.

17. Hospitality

AI benefits hospitality businesses in the following ways:

  • Personalized recommendations: AI algorithms can analyze customer preferences, past bookings, and browsing behavior to provide personalized recommendations for accommodations, dining options, and activities, enhancing the overall guest experience.
  • Revenue management: AI can analyze market trends, historical data, and demand patterns to optimize pricing strategies, maximize room occupancy rates, and increase revenue for hotels and resorts.
  • Guest sentiment analysis: AI algorithms can analyze customer reviews, social media mentions, and feedback to extract sentiment and identify areas for improvement, allowing businesses to enhance guest satisfaction and address any concerns promptly.
  • Fraud detection: AI can assist in identifying fraudulent activities, such as credit card fraud or identity theft, by analyzing transaction patterns, user behavior, and historical data, ensuring the security and trustworthiness of online bookings and transactions.
  • Smart room automation: AI-enabled technologies can automate various aspects of room management, including lighting, temperature control, entertainment systems, and personalized guest preferences, providing a seamless and customized experience.
  • Language translation: AI-powered language translation services can bridge communication gaps between guests and staff who speak different languages, facilitating smoother interactions and ensuring clear communication.
  • Energy efficiency: AI algorithms can optimize hotel energy consumption by analyzing occupancy patterns, adjusting heating and cooling systems, and controlling energy usage in unoccupied areas, resulting in cost savings and environmental sustainability.

AI applications across industries

Common applications of AI across major industries include:

  • Automation: AI technologies automate repetitive tasks, improving industry efficiency and productivity.
  • Data analysis and insights: AI algorithms analyze large volumes of data, extract patterns, and provide valuable insights for informed decision-making.
  • Predictive analytics: Generative AI models use historical data to make predictions and forecasts, aiding industries in planning and resource optimization.
  • Personalization: AI enables personalized experiences and recommendations based on user preferences and behavior, enhancing customer satisfaction and engagement.
  • Natural Language Processing (NLP): NLP applications, including chatbots, voice assistants, and other tools meant for language translation, sentiment analysis, text summarization, and language generation, all play a crucial role in helping businesses enhance communication, automate tasks, gather insights, and improve overall efficiency.
  • Image and video analysis: AI algorithms, specifically generative AI, analyze visual data and enable applications such as object recognition, image classification, and video surveillance that find use across industries.
  • Risk assessment and fraud detection: AI algorithms detect anomalies, identify patterns, and provide early warnings for risk mitigation and fraud prevention.
  • Optimization and resource management: AI optimizes resource allocation, including personnel, equipment, and energy, leading to cost savings and improved efficiency.
  • Decision support systems: AI helps businesses make informed decisions by analyzing complex data, generating insights, and presenting alternative scenarios.
  • Process improvement: AI identifies bottlenecks, inefficiencies, and areas for improvement within business processes, streamlining operations.
  • Customer service and engagement: AI-powered chatbots and virtual assistants provide instant support, answer queries, and improve customer experience.
  • Quality control: AI systems automate quality control processes, ensuring product consistency and reducing defects in manufacturing.
  • Research and development: AI assists in scientific research, data analysis, and simulation modeling, accelerating innovation across industries.
  • Marketing and advertising: AI analyzes customer data, behavior, and trends to optimize marketing campaigns, targeting the right audience with relevant messages.

These common applications of AI highlight its versatility and impact across industries, enabling automation, data-driven decision-making, enhanced customer experiences, and operational efficiencies.


As AI evolves to the next level, it increasingly takes the lead as the most significant driving force for technology transformation. From healthcare to retail, banking to logistics, and entertainment to manufacturing, AI drives efficiency, empowering decision-making and enhancing customer experiences for businesses. We are part of an era where machines are starting to understand and anticipate what people want or are likely to do in the future. AI has enabled endless possibilities, and what we have seen to date or could speculate for the future comprises a minuscule part of its broader capabilities.

No matter the industry, AI can be a game-changer for your business. To harness the maximum potential of AI, collaborate with our AI development experts, who offer smart digital solutions to optimize internal operations and enhance customer-facing systems.

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Author’s Bio

Akash Takyar

Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO at LeewayHertz. The experience of building over 100+ platforms for startups and enterprises allows Akash to rapidly architect and design solutions that are scalable and beautiful.
Akash's ability to build enterprise-grade technology solutions has attracted over 30 Fortune 500 companies, including Siemens, 3M, P&G and Hershey’s.
Akash is an early adopter of new technology, a passionate technology enthusiast, and an investor in AI and IoT startups.

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What is Artificial Intelligence (AI)?

Artificial Intelligence (AI) is defined as the science and engineering of making intelligent machines. It refers to the ability of a computer or a computer-controlled robot to perform tasks commonly associated with intelligent beings, generally humans.

What is the expected global AI market size by 2030?

According to a report by Grand View Research, by 2030, the global AI market size is expected to reach $1,811.8 billion, up from $136.6 billion in 2022 with a 38.1% CAGR.

How is AI being applied in the healthcare sector?

AI is currently being applied for a wide range of healthcare services, including data mining for identifying patterns and then carrying out the more accurate diagnosis and treatment of medical conditions, medical imaging, medication management, drug discovery, and robotic surgery.

How is AI being applied in the retail and e-commerce industry?

AI has found a sweet spot in the retail and e-commerce industry. It is being used to find patterns in consumer behavior and align their strategy to outsmart their competitors. AI algorithms are being used to determine which products a consumer is more likely to buy. Chatbots powered by AI are also being used to provide instant answers to customer queries.

How is AI being applied in the food tech industry?

AI has found applications in the food industry, such as a robotic tea maker based on AI and IoT capabilities, AI-based food sorting equipment in the industrial food processing sector, and the use of AI in the agriculture sector to analyze the effects of variables such as UV light, salinity, heat, and water on crops.

How is AI being applied in the banking and financial services industry?

The Banking and Financial Services industry is undergoing a massive transformation due to AI applications. Human agents are being replaced by intelligent software robots for processing loan applications, Robo-financial advisors are being used to recommend investment decisions, AI-based chatbots are being deployed in the insurance sector to improve the customer experience, and AI is being used for fraud detection and prevention.

How is AI transforming the logistics and transportation industry?

AI is revolutionizing the logistics and transportation industry by improving supply chain management through the use of machine learning and predictive analytics. This has made the process more seamless and efficient. Additionally, AI-powered robots are being used in warehouses for sorting and packaging products, and AI algorithms are being used to find the quickest shipment routes and support last-mile delivery.

How is AI being used in the travel industry to improve customer service?

AI is being used in the travel industry to improve customer service through the widespread use of AI-enabled chatbots. Chatbots are available 24/7 and can provide instant resolution of customer queries, making them a popular means of improving customer engagement. AI algorithms are also helping travel companies increase their conversion rates by identifying customer behavior and purchasing patterns.

How is AI being used in the real estate industry?

AI is being used in the real estate industry to analyze market conditions, property prices, and other factors to determine property values, trends, and investment opportunities. It can also be used to manage and process real estate documents, such as lease agreements, mortgages, and title deeds. Additionally, AI can be used to predict rental income, property prices, and other aspects affecting the real estate market, and to integrate with smart home technology for increased energy efficiency and security. AI-based chatbots can also be used to assist website visitors with their queries.

How is AI being used in the entertainment industry?

AI is being used in the entertainment industry to identify which shows or programs to recommend to individual users, to enhance digital effects in movies, to recommend music to users, and to control the actions of non-player characters in gaming.

How is AI being used in the manufacturing industry?

AI is being used in the manufacturing industry across several lines and layers of operations, from workforce planning to product design, to improve efficiency, product quality, and employee safety. It is also used for predictive maintenance of industrial equipment, to support robotics, and for quality control.

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