In recent years, artificial intelligence (AI) has been rapidly developing and becoming widely used in various fields, making it an accessible tool even for the smallest businesses. Businesses are now utilizing AI in numerous functions. This study aims to examine the effects of AI on businesses. A qualitative research method was employed, and a literature review technique was used to compile information from previous national and international academic sources on the subject. In addition to discussing the importance and historical development of AI, the study provides information on its areas of application, its positive and negative effects on businesses and the economy, and concerns arising in businesses due to AI. The research findings indicate that AI accelerates decision-making processes in businesses, increases efficiency, and reduces costs. However, it also leads to transformations in the labor market and raises ethical concerns. Specifically, AI-powered automation reshapes business processes and provides a competitive advantage. However, issues such as data security, privacy, and the potential of AI-based systems to replace the human workforce are among the key discussion topics for businesses. The study concludes that AI is a strategic tool for businesses and emphasizes the need for managers and employees to improve their AI literacy to use this technology effectively. Additionally, it highlights the necessity of establishing an ethical framework and implementing legal regulations. In this regard, it is recommended that businesses adopt AI technologies consciously and sustainably.