Artificial intelligence is reshaping how businesses use data, make decisions, and organize work. In this program, UC San Diego Rady School of Management’s Thomas Beyer traces that shift through several stages of business analytics, from the early push to digitize and collect as much data as possible to today’s growing interest in more proactive AI systems.

Beyer explains that companies were once urged to transform into software companies and treat data as “the new oil.” But he notes that simply collecting data is not enough. The real value comes from what organizations can get out of the data they already have. Without that focus, Beyer says, companies risk creating a “data swamp” rather than a useful resource.

Beyer examines predictive analytics, generative AI, and the rise of tools like ChatGPT, which he says helped democratize access to AI. He points to the challenges that come with this shift, including hallucinations, questions of ethics and bias, and the difficulty of showing a clear return on investment. For businesses, the promise of AI is not just in saving time, but in finding practical ways to use it across enterprise systems and workflows.

Beyer describes the next stage as the era of agentic AI, where systems move beyond reacting to prompts and begin operating more proactively.

“With agentic AI, we’re really moving from a tool to a teammate,” he says.

These systems can sense changes in a business environment, work across tools such as ERP and CRM systems, and support end-to-end automation with human oversight. With examples from enterprise systems and healthcare, Beyer offers a practical look at how AI is evolving from a productivity tool into a more capable business partner.

Watch: The Impact of AI on Business