Why is AI Data Analytics Important?
Applying AI techniques in data analytics makes discovering insights in extensive data sets easier than using traditional statistical data analysis methods alone.
AI data analytics uses artificial intelligence or machine learning (ML) to improve tasks, including data preparation, insight discovery, pattern recognition, and prediction.
Examples of AI-Driven Analytics
Recommendation Engines
After multiple quarters of declining viewership, in Q1 2023, Netflix saw strong growth partly attributable to a new AI-powered recommendation engine that increased engagement levels.
Personalization
Marriott International developed an AI-powered chatbot that improved responsiveness to guest requests faster due to improved natural language processing.
Sentiment Analysis
Coca-Cola proactively analyzes more than 120,000 social media posts to market different products based on regional or demographic preferences.
Forecasting
Businesses make better data-based decisions thanks to improvements in predictive outcomes thanks to the application of AI and ML models to analyze larger data sets. Decisions are made faster as less time is required to understand the results of an analysis. AI tools can explain insights using natural language.
Application Interaction Tracking
Banks and retailers use AI and ML to analyze web interaction logs to find partially complete transactions and determine the failure’s root cause. The reasons can range from poor user interface design to bugs in the processing logic. Failures are grouped to perform problem management, resulting in the generation of recommendations to help mitigate such transaction failures or cart abandonment events.
Anticipation Buyer Behavior
In a marketing context, determining the most appropriate next step in a buyer’s journey can be helped by AI and ML techniques that analyze past activity, compare it to similar prospects and make recommendations based on the probability of success. The following interaction might be further nurturing with targeted ads, an offer of a trial or a call from a salesperson.
Benefits of Using AI Data Analytics
The benefits of applying AI and ML to data analytics vary based on the problem space. Below are some potential benefits based on the application:
- Reduced Risk: Decision-making is improved by applying AI and ML for data analytics as more data can be processed to provide better predictions about outcomes. Fraud detection is a significant use case for AI, as hidden insights and correlations are easier to detect.
- Increased Security: AI helps protect from cybercrime by analyzing network traffic in real-time to thwart attacks before they have severe consequences for the business.
- Higher Customer Satisfaction: Chatbots can be enhanced to have a more meaningful dialog with customers while they await a live advisor. An AI can gather diagnostics and research the problem database to make helpful suggestions.
- Greater Personalization: AI can read cookies related to website visitors and offer dynamic links that meet their past areas of interest, accelerating conversion.
- Higher Developer Productivity: As AI-based systems become more sophisticated, the need to manually write code is reduced. Developers can use generative AI to code webpages, JavaScript, and Python code, which is less error-prone than handwritten code and requires less maintenance. Forth-generation programming languages are less procedural than their predecessors, and AI code assistants are becoming the way to create efficient code.
- More Efficient Meetings: Video conference tools use AI technology to transcribe calls and understand the conversation to create a summary for the participants and those who missed the calls. Reading a summary takes far less time than reading through a meeting recording.
Tools for AI Data Analytics
Machine learning and AI algorithms work together to improve the accuracy of predictions based on accumulated data without being explicitly programmed. More data points typically lead to better predictions. Data quality is essential, so filtering out irrelevant data, filling gaps, and trimming outliers improves quality.
Tools such as Accord.net provide ML libraries for audio and image processing. Apache Spark MLlib includes algorithms for regression, clustering, filters, and decision trees. IBM Watson is great for analyzing natural language interactions such as social media feeds.
Rapid Miner provides tools for data mining applications to mine data and deploy and operate ML models.
TensorFlow is a free, open-source framework that uses both ML and neural network models for natural language processing (NLP) and image processing.
Actian and AI Data Analytics
The Actian Data Platform is a highly scalable data analytics platform with extensive features for ingesting, organizing, analyzing, and publishing data. The built-in data integration capabilities make gathering data as streams and batches easy. Data transformation functions elevate data quality. User Defined Functions can be used to deploy ML models. The Actian Data Platform helps ML engineers and data scientists by automating data pipelines, connecting to operational data sources using predefined connectors and transforming data for ML use cases.
You can get started with the Actian Data Platform with a free trial by signing up here.