You and your friends follow the news on the same news app but you get different headlines. What is this sorcery? How can this be? It’s like the app knows your preferences and selects the news accordingly. Well, it’s exactly like that! Due to the immersion of artificial intelligence in big data, applications can now identify your preferences based on various algorithms and deliver news, offers, and ads that may be of interest to you.
As you probably know, data is a vital business asset. Without data, there wouldn’t be any innovation, marketing campaigns, and predictive analytics. And these are vital for the global marketplace. Data enables companies to stay competitive, anticipate, and more importantly, capitalize on market trends. Now that big data has converged with AI, the data companies need to thrive are just a few codes and algorithms away.
What is the relationship between big data and AI?
The condition for artificial intelligence to work is to have access to data. And we mean colossal amounts of data! Big data – massive and complex datasets that evolve incredibly rapidly – are the fuel that helps machine learning applications learn and evolve. In other words, there would be no artificial intelligence without big data.
On the other hand, no human would ever be able to analyze, parse, and simply go through the big data the world has accumulated over time. The amount of stored information is incomprehensible, and the only thing that can analyze, identify, and find patterns is artificial intelligence. Now it’s when AI algorithms come to play, and big data gets sorted and mapped out.
AI would be useless without big data and vice versa. Thus, big data and AI have learned to nurture a synergistic relationship that allows valuable data to be brought to light and used for different purposes and machine learning applications to learn and acquire skills. Big data keeps AI algorithms going in their never-ending quest for developing features and pattern recognition capabilities.
How can businesses use AI and big data?
The uses that businesses have from AI and big data are infinite! AI tools allow companies to see and predict upcoming trends in numerous industries, such as technology, finance, entertainment, travel, commerce, etc. Big data is used for analytics and provides business insights with a higher level of precision. This facilitates clearer and better decisions that allow businesses to stay ahead of their competitors.
AI can analyze consumer behaviour and create automating customer segmentation. AI’s learning ability facilitates access to trend recognition. AI tools available to businesses can recognize data trends and, more importantly, can adapt to changes and fluctuations in trends. Basically, AI can identify valuable customer feedbacks and allow for a marketing strategy adjustment accordingly.
If in the past, companies had to rely on complex and difficult systems to get access to reports and data that often proved to be unreliable and rigid, machine learning has changed all that. Since the systems rely on big data and are analyzed and segmented using algorithms, businesses can now use predictive analysis to their advantage. Moreover, AI in big data allows for pattern management, context management, decision management, and even risk management. AI tools identify data types and connections among datasets and generate data models. They can detect and even resolve potential flaws in information and learn to observe the difference in context-specific nuances.
What business strategies rely on AI?
Artificial intelligence tools provide a 360-degree view of the customer based on their digital footprints. This means they can now use analytics tools to collect and synthesize data that allow them to get to know their customers and, more importantly, to find out what they want, need, search for, so they can be the first to answer their needs.
Creating and adapting marketing strategies according to what the customers expect from them is the fastest way for companies to improve customer acquisition and retention. Big data and AI provides access to information about how their products are being used and why customers have stopped purchasing from them. Having an insight into their behavioural patterns is the foundation for product improvement and increased conversion rates. Moreover, this allows firms to improve brand loyalty and, eventually, enjoy a high level of customer satisfaction.
AI is the fastest way to get to know what the customers like and want from your business. But, more importantly, it allows companies to personalize and optimize their digital marketing strategies and campaigns. Fueled by data collected from the customer’s digital footprints, marketing campaigns resonate now with the customer’s inquires, preferences, and behaviour.
In the past, companies usually based their current year’s sales on the data from the prior year. However, the traditional approaches weren’t reliable mostly because they couldn’t account for changing trends or other dynamic factors. Using AI algorithms allows for improved forecasting and price optimization because they base their work on noticing patterns and trends early. Having an insight into the trends opens the road to better preparation and improved future performance. Companies using big data and AI for forecasting can reduce errors in their strategies by as much as 50 per cent.