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The AI factory is an AI-centred decision-making engine employed by some modern firms. It optimizes day-to-day operations by relegating smaller‑scale decisions to machine learning algorithms. The factory is structured around 4 core elements: the data pipeline, algorithm development, the experimentation platform, and the software infrastructure.[1] By design, the AI factory can run in a virtuous cycle: the more data it receives, the better its algorithms become, improving its output, and attracting more users, which generates even more data.
Examples of firms using AI factories include: Uber (digital dispatching and dynamic pricing), Google (search engine experience optimization), or Netflix (movie recommendations).[2]
- ^ Iansiti, Marco; Lakhani, Karim R. (2020). Competing in the age of AI: strategy and leadership when algorithms and networks run the world. Boston, Massachusetts: Harvard Business Review Press. ISBN 978-1-63369-762-1.
- ^ Karim, Ramin; Galar, Diego; Kumar, Uday (2023). AI factory: theories, applications and case studies. ICT in asset management. Boca Raton London New York: CRC Press, Taylor & Francis Group. ISBN 978-1-003-20868-6.