Definition of utility

The word "utility" originated in the 18th century from the Latin word "uti," which means "to use." In its earliest usage, it was commonly used as a noun to refer to "usefulness" or "the quality of being useful." The meaning of the term expanded in the 19th century, particularly in the context of economics, where it was used to describe commodities that were not luxuries but rather necessary for daily life. This concept, known as "utility theory," became an important part of economic thinking, particularly in the development of marginal utility, which posits that the usefulness, or utility, of a good or service is determined by the amount consumed. In the years since, the concept of utility has been applied beyond economic theory, to describe a variety of things. For example, utility companies provide electricity, gas, and water services to homes and businesses; utilityAI is a type of artificial intelligence used to analyze and optimize data; and utility vehicles, such as compact trucks or delivery vans, are vehicles designed for "utility" purposes, such as carrying cargo or passengers. In each of these contexts, the underlying meaning of "utility" remains the same: Something that is useful, practical, and serves a purpose.