AI and Predictive Analytics in Different Industries
Predictive analytics is a function of artificial intelligence (AI) that is used to analyze historical data and real-time information to make informed decisions on a variety of topics. Predictive analytics can be applied across multiple industries, creating powerful insights to help drive businesses of all types.
As deep learning becomes more complex and innovative, predictive analytics are becoming increasingly common in all industries including healthcare, retail, and manufacturing to name a few, and the list is growing. So, let's take a look at how predictive analytics is being applied in different industries.
Healthcare
Predictive analytics are perfect for the healthcare industry because they can help doctors in many different ways, especially with diagnosis. Using historical patient data, doctors can develop better-personalized treatment plans for each patient. This creates a boon in preventative healthcare, keeping patients from coming back with more serious problems.
Predictive analytics can also be used to discover new drugs for medication. AI systems can analyze how different drugs interact, leading to new medications that are more specific to certain diseases. Models can then assess their success in clinical trials, identifying new therapies and use cases.
Retail and E-commerce
Predictive analytics are becoming the cornerstone of enhancing customer experiences. They can be used to assist with product recommendations, listening to different brands or similar products to previous purchases to help customers find items that they are most likely to want.
Likewise, these models can also assist businesses with maintaining stock for seasonal trends like Christmas or Halloween when certain items are expected to be more popular. This can help maintain availability so that every customer can be assured that they will be able to receive their purchases on time for the holidays.
Finance and Banking
Predictive analytics has many powerful applications in the world of finance, especially when it comes to fraud detection. Models can observe a user’s financial activity and determine if someone has breached their account and prevent funds from being used, shutting down cards or blocking transaction payments.
However, models can also be used for more risky purposes such as trading and investing, proposing various predictions on the price of certain stocks and commodities. While timing the market is impossible, algorithms can give safe risk assessments on certain strategies.
Manufacturing
The manufacturing industry has many uses for predictive analytics, specifically in maintenance where models can be used to detect equipment failure in machines and robotics before they happen. These algorithms can analyze different components of a machine like sensors and circuitry to determine when a machine might malfunction.
Supply chains also have a lot to benefit from these algorithms, using predictions to move products and supplies around more efficiently. At the same time, predictive analytics can also be used to enhance product quality, producing higher-quality goods at faster speeds.
Transportation and Logistics
Predictive analytics can optimize routes for shipping around the world, analyzing currents, trends, and traffic to help businesses find the fastest shipping lanes. Not only does this help with delivery speeds, but it also reduces fuel usage, making shipping cheaper in the long run.
Fleet management is another important factor for models to improve. With the rise of robotics, swarm intelligence, and self-automation, there is a growing demand for maintenance, however servicing a large fleet can be time-consuming without an algorithm that can help identify which vehicles need repair.
Energy and Utilities
Optimizing power grids is a major concern as energy usage continues to rise. Fortunately, predictive analytics are helping these grids manage power more efficiently, identifying key times of high and low usage to support communities without failure.
Moreover, with the fight against climate change going on, there is a strong need around the world to begin introducing renewable energy resources and predictive analytics are especially helpful at recognizing key times to collect valuable energy from natural resources like wind and solar power.
Education
Every teacher knows that no two students are alike and that every student learns at their own pace. By introducing predictive analytics to student evaluation, teachers can identify which students are falling behind more easily and use historical data to predict which subjects will be difficult for certain students.
This can lead to more personalized learning materials that help students engage with topics that they are struggling with without falling behind in class; and, on a larger scale, create more thorough curriculums for entire classes to follow.
Agriculture
Predictive analytics bring many major benefits to agriculture, analyzing crop conditions and weather forecasts to determine how abundant crop yields will be. These models can also help identify and locate crop diseases by analyzing which plants are producing crops and which ones are dying by location.
Climate change also plays a major role in agriculture and predictive analytics can offer farmers a more intricate understanding of how their biomes are changing, giving them ample time to replace certain crops with more resistant produce for planning.
Conclusion
Predictive analytics have a wide range of applications that can benefit nearly every industry in our economy. From education to manufacturing, the benefits of AI are clear. Machine learning algorithms offer tremendous insights into future outcomes by analyzing historical records that contain subtle patterns that most humans do not notice.
