As 2024 winds down, artificial intelligence (AI) has definitely been one of the years biggest game-changers in business. 65% of companies are already using gen AI, and its evolving almost every day. But as exciting as this technology is, theres one critical question that many businesses still need to answer: What does AI actually mean for us?For tech experts, the answer may be obvious. But the truth is, AI means different things to different people. What one person says in the tech department could be completely different to somebody in marketing or HR. Even the person sitting next to you could give you a completely different answer. And if your organisation doesnt have a clear, shared understanding of AI, your business wont be able to unlock its full potential.AI offers the essential building blocks to help businesses evolve, but first, as business leaders, you need to figure out what it really means for your organisation.AI is everywhere, but defining it in a single sentence? Nearly impossible. Thats because AI isnt one thing its a whole range of technologies, from machine learning and natural language processing to computer vision and robotics. Its a tool that can automate mundane tasks, enhance decision-making, and boost efficiency. However, the ways AI can be used differ dramatically from one organisation to the next.For some companies, like Natwest, AI might be a virtual assistant handling customer queries. For others, such as Rolls Royce, it could be predictive maintenance to help predict when parts will fail to reduce downtime. There are endless possibilities, but without a clear understanding of how AI applies to your specific business, it wont become a reality.Without a shared definition of AI, different teams might be pulling in different directions. Your IT team could be thinking about AIs technical potential, while Marketing sees it as a tool for customer insights. Thats like two people heading off on a journey one is driving to Switzerland, and the other is on a sleigh to the North Pole. Youll never get to the same place if you dont agree on where youre going.This is why defining AI and having a clear AI strategy for your organisation is crucialit brings everyone together with a common understanding, ensuring youre all working towards the same goal.So, how do you go about defining AI in a way that will actually drive transformation? First things first: stop assuming everyone in the business already understands it.CommunicationCommunication is the key to getting this right. Start by talking to everyone in the organisation, not just the tech teams. Ask people in every department, marketing, operations, and HR, what they think AI is and how they believe it could help them. And dont stop there. Speak to your customers, too. Their perspective is vital because understanding what AI means for them will help you shape your strategy.Ensuring a shared understanding helps to highlight where knowledge gaps exist so you can fill them. Second, it surfaces where people really see AIs value both internally and externally. Maybe your employees are excited about using AI to automate tedious tasks, while your customers are eager for more personalised experiences. This insight can guide how you define the use of AI in your business.VisionRemember, defining AI isnt just about the technology its about the vision. Ask yourself, What do we want to achieve with AI?. Do you want to be a leader in AI-powered customer service? Or is your goal to use AI to make smarter business decisions? The clearer your definition, the more aligned your teams will be, and the more focused your AI strategy will become.StrategyWith everyone aligned on what AI means and what its capable of, youll be able to create targeted solutions that drive real transformation. No more guesswork. AI becomes a strategic tool that empowers your teams and delivers measurable value. And with tools like Microsofts Copilot, AI is becoming more accessible to non-technical teams, allowing anyone in the business to build apps and automate workflows.Using AI strategically, with a clear purpose will set businesses apart in 2025. The companies that thrive will be the ones that have taken the time to define AI clearly, ensuring that everyone, from the c-suite to customer service, knows exactly how it fits into the business.The 12 Days of AIOn the first day of AI, we explore how AI is being used in marketing, the benefits and key use cases, as well as concerns and how marketers can best take advantage of the technology.As we approach 2025, the best gift your business can give itself is a clear, actionable definition of AI. Its not enough to dabble in AI technologiesyou need to take the time to define what AI means for your organisation, your employees, and your customers.AI has the power to transform how you work, how you serve your customers, and how you grow your business. But that transformation can only happen if everyone in the organisation understands AI and how it fits into the bigger picture.So, let 2025 be the year your business moves from AI hype to AI strategy. By defining AI clearly and aligning your teams around that definition, youll be positioned to lead in the age of digital transformation.Janet Robb is director of customer enablement at ANS, a digital transformation provider and Microsofts UK Services Partner of the Year 2024. Headquartered in Manchester, it offers public and private cloud, security, business applications, low code, and data services to thousands of customers, from enterprise to SMB and public sector organisations.