How Organizations are using AI in Data analytics to Boost Sales
What is Artificial Intelligence (AI)
Artificial intelligence sounds like a new word. Half of us wonder what it is. But all of us use artificial intelligence in our daily lives in some way or the other. When we wake to the alarm put by google assistant, we start our day with AI. When you use the Google search engine to search for a nearby restaurant, again you use AI. Thus we don’t know what AI is, but we use it.
Let us understand what AI is. AI is the branch of science that makes machines think like human beings. With the help of AI, machines can perform functions that human beings like speaking. AI gives machines the ability to think. Some of the examples of AI are Siri, google assistant, Boomerang, etc.
How does AI work?
AI uses machine learning to work. A machine understands how to react to specific actions. Then it builds algorithms to create propensity models. These propensity models then start predicting the responses.
What is Data Analytics
Data Analytics in that branch of science that analyses huge chunks of data observes the trends and draws conclusions. It studies data and churns it into insights.
Role of Data Analytics
Data Analytics is the combination of three primary disciplines; they are information technology, statistics and business. It increases efficiency and performance by understanding the data patterns. A data analyst works on data in many ways. The steps in data analytics are data mining, data management, statistical analysis and data presentation.
A data analyst performs these steps and gives meaningful insights. This is why companies prefer using AI in analytics. The sky is the limit for the applications of Artificial Intelligence in analytics.
Data Analytics and Artificial Intelligence
Can AI make a difference in the field of Data Analytics? Organizations collect huge amounts of data and store them in systems. Data Scientists scan this data, make analysis and predict what will happen next. No matter how hard data scientists work, there could be insights that they miss. The human brain has limitations, after all. AI takes data analytics to even newer heights. They bring out conclusions that get missed by human brains.
The data is ever-increasing, and thus analyzing this data is becoming more and more difficult.
The data is collected, stored and used for making business decisions. With AI, organizations make informed business decisions. With AI, decisions are predicted with better accuracy.
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Let us understand the role of AI in data analytics with an example.
For example, you have a large amount of data regarding your customer choices. If you analyze this data without the help of AI, you will see some complicated rows and columns which won’t take you anywhere. Say there are three products A, B and C. Out of all 75% of the consumers buy the product A, B and C. The remaining 25% buy only products A and B. With the help of AI, you can suggest the 25 % who didn’t take product c to buy product C. This application of AI is used by Amazon. Amazon lists the products frequently bought together and boost their sales. This is one application of AI in Data Analytics.
Thus we see that Amazon uses AI-powered Analytics to boost its sales. Just like Amazon, many other firms use AI predictive Analytics.
With Data Analytics, data is studied and organized to understand customer preferences. With AI, you go one step further, you use the analyzed data and make informed decisions. The market for Artificial Intelligence is increasing at a swift phase. More and more organizations are using AI in analytics.