In today’s digital age almost every company would be eager to take the advantage of data and key question here is ‘analytics’ and successful implementation of AI. Anyone who works in the analytics business knows that progression to artificial intelligence from analytics is a natural one.
Data analytics normally follow a sequence, from descriptive to prescriptive. Businesses apply BI technique to do descriptive analytics this helps to conjure all their data together to get a swift examination of the overall organizational function. There are several diagnostic analysis available, these include data mining, data discovery, drill down and correlations. On the other hand, predictive analysis is more valuable because data is used to train for machine learning.
Analytics foundation needs to be built to use AI effectively
There is a tendency among the organizations to skip the traditional analytics and move directly into AI. According to Professor Tom Davenport, an expert in analytics mentioned that those businesses who do not use analytics showing interest in AI. Some of them even want analytics to make decisions.
This is however important to understand that without the insight brought by analytics it will not be possible to assess the actual outcome of any artificial intelligence system. Analytics helps keep AI clear, responsible and at times help to increase the efficiency of AI systems.
There is a need to capture the appropriate data to enable AI technology to be reliable. Artificial intelligence may have the ability to purify the quality of data but it cannot cover the gaps in the data.
Data privacy system needs to be improved as well because AI systems can unintentionally abuse client’s private data in a way that may endanger their privacy and ruin businesses goodwill. The upstream and downstream framework of an analytics can also be affected by AI.
The business organization needs to build a culture driven by data where workers can use information from analytics tools. Effective use of analytics and AI will generate transparency in the organization and everyone should be able to take advantage of it.
Benefits of AI analytics
At times the business organization has to bear the burden of unnecessary operational cost due to unproductive information control. Here AI analytics can assist to calculate potential cost savings and obtain a report to maintain congruence with the main ROI metrics for better decision making.
Data analytics could be used for cleaning, modeling and transforming data set with an aim to extract powerful information.
How big companies are benefited from efficient use of AI and analytics
The American Express company employs big data to understand and forecast clients’ behavior. They execute around 100 variables and chronological proceedings to switch from intelligence-based recollection analysis.
National accounting and audit firm BDO also apply data analytics to diagnose risk. At earlier times it would take hours of labor and huge resource just to find out any disparity. There is no doubt that big data has accelerated the entire process.
Capital One applies AI to furnish the success of their client’s recommendations. They use data analytics efficiently to identify best times to convey various offers to the potential clients to increase the conversion rates.