Today up to great extend businesses depends on big data analytics to maintain relevant mark in the competitive and dynamic markets. Companies are in the race of adopting AI practices.
But before the execution of AI strategy and before launching their product, the leaders are recruiting predictive analytics to have a deep study about customer behaviors, sales, and market projections. All forms of data analytics, such as customer intelligence, AI, and ML are slowly transforming the process of business activities and make market decisions.
Predictive analysis as the names suggests is the process of collecting historical data along with the current data and analyzing it to find a pattern and behaviors. According to Gartner, rather than classification, clustering, or description, predictive analytics is an approach to data mining with the traits emphasizing prediction. Predictive analysis can be done using both structured and unstructured data.
Predictive analytics is applicable to almost all business domains such as detecting insurance fraud, improving agronomic opportunities, weather forecasting, and many more. When we incorporate AI into predictive analytics, it gives the predictive analytics the potential to make more detailed and accurate results. The machine learning application of AI helps AI-driven predictions to continually adapt and learn, which in turn improves the predictions more accurate. Over time predictive analytics will gain the ability to empower brands to secure suitable markets, estimate costly IT downtime, to engage, and to identify their markets for their product and service.
AI-based predictive analytics will send intelligent alerts when fraud occurs. For example, if a customer has not renewed his membership say in amazon, the AI system will send an alert to the CRM who can prompt a text message or email them reminding about the renewal and also can pitch for sale. Apart from all this AI-driven predictive analytics also plays a major role in resource management and asset management decisions. In this way, AI-driven PA improved the speed of the market thus making an organization more adaptable and agile to compete. According to the forecast made by Forrester, there is a possibility of a 15 percent compound annual growth rate for predictive analytics in the market for the year 2021.