Expert article

Artificial intelligence: technologies, uses and challenges – a guide for the leadership of a mid-sized company

This article is for owners, CEOs and directors who want to understand artificial intelligence well enough to discuss it with suppliers and their own team. We explain without jargon what AI is, which technologies lie behind it, where it really helps in a mid-sized company and where it falls short. At the end we bring together the regulations that already apply.

Author: Kacper Włodarczyk, CEO of ALGORCOMPPublished: May 09, 2026Reading time: 11 min readArtificial intelligenceFor: Universal
Team analyzing business applications of artificial intelligence

What artificial intelligence is – a jargon-free explanation

An ordinary program works according to rules someone has written down: if an invoice amount exceeds PLN 10,000, send it to the director. An AI-based program is given thousands of examples instead of rules and finds the patterns in them by itself. For example, you show it three years of sales history, and it forecasts demand for the coming months.

This difference explains both the strength and the weakness of AI. A program that learns from examples can handle situations nobody foresaw in the rules, such as an email written in an unusual way. But its output is probable rather than certain – and it is sometimes wrong, even when it sounds convincing.

There is one more thing that matters for the management board. AI is not a single product but a family of technologies. When a supplier says “we have AI”, it is worth asking which technology it is, what data it learns from and who checks its output.

The key AI technologies in one place

A dozen or so terms come up in conversations about AI, but most of them describe a handful of technologies that often work together. The table below brings them together in one place, with an example from the everyday life of a mid-sized company.

Older methods, such as rule-based expert systems or fuzzy logic, which allows intermediate values instead of “yes or no”, still run in many devices and programs. Today, however, new projects rarely start with them.

AI technologies – what they do and where you will find them in a company
TechnologyWhat it doesExample in a company
Machine learningFinds patterns in numerical data and uses them to predict or classifySales forecasts, detecting unusual transactions, assessing the risk of late payment
Neural networks and deep learningMulti-layered models loosely modelled on the brain, good with images, sound and languageThe engine behind most of the modern applications in this overview
Natural language processingUnderstands and organises written or spoken textRecognising the type of matter in a customer email, turning a call recording into text
Computer visionRecognises objects and reads data from imagesQuality control on a production line, reading data from a scanned document
Generative modelsCreate new text, images or sound based on an instructionA draft quote, a contract summary, an answer to a question about company procedures
AI agentsCarry out several steps on their own, using company systemsAn agent that takes an order from an email, checks stock levels and prepares a confirmation
Strategic workshop on AI implementation

How generative AI works: ChatGPT, Claude and Copilot

The most attention today goes to large language models, which power ChatGPT (OpenAI), Claude (Anthropic), Gemini (Google) and Mistral’s models. In Microsoft 365 they are used through the Microsoft Copilot assistant. Put simply, such a model predicts which words should come next, based on the huge amount of text it was trained on.

That explains its strengths: it writes fluently, summarises, translates, organises notes and answers questions about documents. It also explains a weakness known as hallucinations. The model can cite a regulation or a figure that does not exist, because it “sounds plausible”, not because it has checked it.

Connecting the model to company documents, so that it answers on their basis and cites the source, reduces the risk of hallucinations. It does not eliminate it, though. That is why a person must have the final say on documents for customers, public authorities and the accounts.

Where AI really helps in a mid-sized company

Take a hypothetical distribution company with 120 employees. AI has the best chance of making a difference where people write, read and retype every day: in quotes, customer emails, contracts and reports. Less obvious, but also valuable, are forecasts based on data the company already collects.

Below are the areas where mid-sized companies most often start. We describe detailed examples from ten industries in a separate guide.

  • Office work: summaries of emails and meetings, drafts of letters and quotes, searching company documents.
  • Customer service: recognising the type of matter in an email and routing it to the right person, a chatbot that answers recurring questions.
  • Finance: reading data from documents outside KSeF, Poland’s National e-Invoicing System, such as foreign invoices, and spotting unusual amounts.
  • Sales: preparing a quote based on the enquiry and the customer’s history, summarising sales calls.
  • Manufacturing and logistics: quality control using camera images, demand forecasting, predicting machine failures from sensor data.
The management board of a mid-sized company discussing a list of processes where artificial intelligence could be used

AI creates value for a company not when it impresses at a demo, but when it shortens specific work for specific people every day.

How many companies already use AI – and what that means

According to Eurostat, in 2025 about 20% of enterprises in the European Union with at least 10 employees used AI technologies. In Poland the figure was about 8%, one of the lowest in the EU. The data covers companies that themselves report using AI, so it does not include employees using personal tools without the company’s knowledge.

For a mid-sized company the conclusion is calm rather than alarming. Most Polish competitors are only at the beginning, so there is no need to catch up in a hurry. Even so, it is worth testing one or two processes now, because the experience gained on a small project will help with the next ones.

Limitations and risks you need to know about before deciding

An honest conversation about AI starts with its limitations. None of them rules out an implementation, but each requires a specific answer in the project. Before you decide, go through the list below together with your supplier:

  • Errors delivered with complete confidence. Any output that goes to a customer, a public authority or the accounting system must be checked by someone.
  • The black box. With many models it is hard to explain why they produced a given result, which matters for decisions about people.
  • Bias from the data. A model trained on recruitment history can repeat past inequalities, for example by scoring candidates from certain groups lower.
  • Company data. Employees who paste documents into personal AI tools take them outside the company’s control.
  • Maintenance costs. A model has to be monitored and corrected when the process or the data changes – it is not a one-off purchase.
  • Dependence on the supplier. It is worth knowing whether data, prompts and settings can be transferred if the company changes tools.

What the law says: the AI Act and the Polish Act

The AI Act, the EU regulation on artificial intelligence, is coming into force in stages. Some obligations already apply; others were postponed by the Digital Omnibus package of amendments in 2026. We have collected the key dates for a mid-sized company below, and describe the full timeline in our article on rules for using AI.

The penalties are high: up to EUR 35 million or 7% of worldwide turnover for prohibited practices, and up to EUR 15 million or 3% for other infringements. For small and medium-sized enterprises, the lower of the two amounts applies. In Poland the rules are enforced by KRiBSI under the Act on Artificial Intelligence Systems of 3 July 2026.

  • From 2 February 2025: prohibited practices, including recognising employees’ emotions (Article 5), and the AI literacy obligation (Article 4). From 27 July 2026 the Digital Omnibus relaxed it: companies must take steps to support their staff’s AI literacy.
  • From 2 August 2026: telling people that they are talking to AI, and labelling AI-generated content (Article 50).
  • From 2 December 2027: obligations for high-risk systems, e.g. AI used in recruitment, employee assessment or creditworthiness assessment.
  • From 2 August 2028: obligations for AI built into regulated products, e.g. medical devices or toys.
  • The AI Act does not require every company to have a separate “AI policy” or a register of AI systems. Written rules and training are, however, the simplest way to show that the company is taking steps to support its staff’s AI literacy.

Where to start if you want to try AI in your company

The best start is not a technology programme but a list of processes in which people lose the most time or make the most mistakes. From it you choose one, measure what it costs today and test AI within a limited scope. If the company works on Microsoft 365, the first tool is often Microsoft Copilot, because it works in the programs people already use.

At the same time, set some simple rules: which tools may be used, what data must never be pasted into them and who checks the output. We describe costs, a plan for the first few weeks and questions to ask suppliers in detail in the separate guides linked below.

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FAQ

Artificial intelligence – frequently asked questions

The questions management boards ask most often in their first conversation about AI.

What is the Turing test, and does it matter for a company?
In 1950 Alan Turing proposed a test in which a person holds a text conversation with a machine and with another human and tries to tell which is which. Today’s language models often imitate a human convincingly in conversation, but that does not mean they understand the world or that they do not make mistakes. For a company, what matters more than the Turing test is whether the tool performs a specific task correctly.
Will AI replace employees?
In most mid-sized companies AI takes over some tasks rather than whole jobs: a draft quote, a summary, retyping data. What changes is the scope of the work rather than the number of people. Companies that use it well usually handle more work without hiring, rather than laying people off.
Does a company have to build its own AI model?
Almost never. Mid-sized companies use ready-made models from large providers and connect them to their own documents and systems. A custom model only makes sense with very specific data, such as images from a particular production line, and even then you usually start by adapting an existing model.
Is data entered into Copilot used to train models?
According to Microsoft’s documentation, prompts, responses and company documents in Microsoft Copilot are not used to train models. Things can be different with personal accounts in AI tools, where the user’s settings decide whether data is used for training. So when working with company data, use the business versions and sign in with your work account.
How does AI differ from ordinary automation?
Ordinary automation, such as an RPA robot, carries out exactly the steps written down for it and cannot cope with situations outside its instructions. AI recognises content that cannot be described by a rigid rule and proposes a decision. In practice, they work best together: AI understands the document, and the automation enters the result into the system.

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About the author

Kacper Włodarczyk — CEO of ALGORCOMP

Kacper Włodarczyk

CEO of ALGORCOMP

Kacper specializes in implementing Microsoft 365 Copilot, Copilot Studio, Power Platform (Power Automate, Power Apps, SharePoint) and AI agents for mid-sized B2B companies in Poland. He leads dozens of projects covering AI strategy, Power Platform governance, document workflow automation and sales processes. In his writing he focuses on the practical side of AI adoption in organizations — from the first proof of concept to company-wide rollout — with particular attention to data security, compliance (GDPR, NIS2, the AI Act) and return on investment.

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