Increasingly, our lives are powered by AI.
From generating content, to planning and executing tasks, a PwC analysis suggests AI has the potential to boost global economic output by up to 15 percentage points over the next decade.
Artificial intelligence is no longer an outlying business tool—it’s becoming the norm, and companies that don’t utilise it risk falling behind.
AI Consulting Group is a leader in AI consulting, helping businesses in Australia and around the world to unlock value from their data and take their business to the next level.
As with any development, AI is surrounded by buzzwords you may or may not have heard. One of these is ‘applied AI’ and, like many buzzwords, the definition is actually pretty straight forward.
Applied AI is simply artificial intelligence that’s used in the real world to solve real problems, not just studied in the lab or theory.
In fast-paced sectors, this is becoming the difference between success and failure; who is building and researching AI theory for the future, and who is applying AI right here, right now.
Applied AI definition refers to getting tangible results from AI rather than just researching what AI could do.
This might show up in smart assistants, predictive maintenance systems, recommendation engines, fraud detection tools, and speech or image recognition.
Applied AI focuses on more practical applications that create immediate value; helping businesses become more efficient, enhancing customer experiences, or streamlining operations, rather than developing AI for theoretical research alone.
| Aspect | Research AI | General AI (AGI) |
| Definition | Focuses on creating new algorithms, models and techniques, pushing the boundaries of what AI can understand and do in theory. | Refers to a theoretical form of AI that can understand, learn and perform any intellectual task that a human can. |
| Goal | To advance knowledge and innovation in AI — asking “how do we make better AI?” | To build an AI that is as capable as a human across all domains, not just specific tasks. |
| Scope | Often narrow or specialised, even when creating broad frameworks — it’s about discovering and proving concepts. | Broad and general by definition, able to adapt to many domains without needing retraining. |
| Application | May not be immediately practical — results often feed into applied AI systems later. | Still theoretical; not yet realised in real-world applications. |
| Outcome Focus | Producing new insights, papers, proofs of concept, or foundational technologies. | Aims for autonomy and general reasoning, much like human intelligence. |
| Typical Setting | Academic labs, R&D teams, research institutions. | A long-term goal in AI research and theory. |
| Relation to Applied AI | Research AI outcomes often become building blocks for Applied AI solutions. | If realised, AGI would transform applied AI by enabling universal AI systems. |
Applied AI is just that— applied. It can refer to any AI that is being actively utilised. What this might look like will depend on your needs and industry, but common use cases include;
One of the biggest barriers to effective deployment of applied AI is data issues.
Many organisations struggle with incomplete, low‑quality or inaccessible data, which makes it hard for AI models to learn and perform well.
High‑quality, well‑labelled datasets are essential for reliable AI, and building or acquiring them takes time and investment.
Another common challenge is the lack of specialised skills and expertise.
Many organisations simply don’t have enough trained AI engineers, data scientists or architects on staff to manage and integrate AI effectively, and this skills gap slows down implementation and increases dependency on external vendors.
There are also organisational and cultural hurdles — aligning AI projects with business strategy, redesigning workflows, and overcoming internal resistance to change all require careful planning and leadership buy‑in.
Companies often find that without clear governance, ethical safeguards and shared understanding of AI goals, projects remain stuck at the pilot stage rather than delivering real business outcomes.
These are just some of the challenges of applied AI, but the rewards shouldn’t be underestimated.
AI Consulting Group are experts in machine learning and predictive analysis, generative AI and LLMs, cloud and infrastructure consulting, AI governance and risk management, strategic management consulting, and more.
We’re known for our forward-thinking and front-of-the-line work, and we can help your business utilise applied AI to the best of your ability.
Applied AI is set to evolve rapidly. One of the biggest trends is the rise of agentic AI — autonomous systems capable of planning, decision‑making and executing tasks on their own rather than simply following instructions.
This could transform customer service, automation and operational decision‑making across industries, though it also brings new governance and oversight challenges.
Another major trend is scaling AI from pilot projects to broad operational use.
Many organisations now use AI in specific functions but are only beginning to embed it into core workflows, redesign processes around it, and measure its impact at enterprise scale.
Companies that succeed in this transition often restructure teams and invest in talent and data infrastructure.
We’re also likely to see greater investment in explainability and responsible AI frameworks, as businesses and regulators demand more transparent, fair and ethical AI outcomes.
Increasing public and regulatory focus on AI safety and accountability means that future applications will have to balance innovation with trust and risk‑management.
AI has become a daily part of many of our lives. You may be wondering whether or not it’s time to leverage this tool for your business.
But how do you know if it’s the right time?
There isn’t a one-size-fits-all approach to this question.
That’s why, at AI Consulting Group, our expert team work with you to assess your business and provide tailored applied AI consulting.
Based out of Sydney, Australia, our global consulting team has been proud to serve customers across Europe, the Americas and Australia (ANZ), from large global customers to mum & dad businesses.
Contact our passionate team at AI Consulting Service today.
