There’s no getting around it: AI (artificial intelligence) is here to stay. This is good news for businesses looking for new ways to improve productivity and efficiency. However, with the introduction of a new tool comes plenty of questions. For example, what is predictive AI, and how can it help your business? Understanding predictive AI and its uses enables your business to take advantage of the many benefits that it can provide.
What Is Predictive AI?
In a nutshell, predictive AI concentrates on forecasting trends, patterns, and events. Using machine learning techniques, predictive AI can adapt to industry and market changes. The tool relies on small amounts of data to anticipate and predict future events. Predictive AI can even help improve a customer’s experience and this is always beneficial for businesses. So, predictive AI helps businesses make targeted decisions based on data. If you’re familiar with generative AI, you’ve got a head start on understanding predictive AI.
The Potential Advantages of Predictive AI
Predictive AI can provide businesses with some unique advantages. For example, the tool takes care of the data analysis necessary for making operational decisions. Instead of tying up your staff, predictive AI handles this step so your employees can focus on their other duties. To help bolster your understanding, here’s a look at some of the other advantages businesses often see with predictive AI.
Identify Future Consumer Buying Patterns
Businesses can struggle trying to find the sweet spot for their inventory. You don’t want to overstock but you also don’t want to run out of stock. Predictive AI can analyze consumers’ buying habits and predict trends so you know what to stock when the items are needed, and how many you need to keep on the shelves.
Optimizing Scheduling
Employee scheduling can be a hassle. You don’t want to overschedule but you also want to have enough personnel on the floor. Predictive AI can look at past events and give you a ballpark idea of what your schedule should look like. You can have the right number of people without going over your employee budget.
The Potential Downsides of Predictive AI
Predictive AI can have a couple of potential downsides but this shouldn’t dissuade you from taking advantage of the benefits. Remember, it is only a predictive tool and this means it’s only providing guesses rooted in data. Sometimes, predictive AI can get things wrong. You may end up overscheduling for an event or run out of a top-selling item.However, if you remember predictive AI is only a forecasting tool, this potential downside shouldn’t be a huge concern.Something else to consider is the tool requires access to a lot of data. If your data is limited in size or scope, predictive AI may have issues providing reasonably accurate forecasts. Patterns may be misidentified and this can create challenges. Another issue that can affect the tool’s accuracy is the age of your data. If the tool is relying on outdated data, its forecasts aren’t going to be as accurate as you need.While there are a few potential downsides, overall, predictive AI is a tool that can help businesses run more efficiently.
