Success in business is all about being proactive – being able to anticipate what will happen in the future, and then using this information to your advantage.
This same practice continued to develop in the 1960s, thanks to the growing popularity of computers. Fast forward to 2022, when predictive AI recorded a market size of $12.49 billion, and it’s evident just how much of a global phenomenon it’s become. What’s more, it’s showing no signs of slowing down. Reports predict it will reach $38 billion by 2028.
This means that if your business isn’t using predictive analytics yet, it risks getting left behind.
What Is Predictive AI?
Before we explore the marketing potential of AI-powered predictive analytics, it’s helpful to understand what it actually is.
As the name suggests, it’s the use of artificial intelligence and machine learning to predict outcomes.
By analyzing historical data from your business using advanced algorithms, predictive AI can allow you to make more informed, data-driven decisions.
It’ll also help you identify trends, forecast behavior, predict any impending challenges, and devise solutions for them too.
It’s here that AI systems and AI research can be a valuable tool for your business – analyzing complex data in minutes to help improve effectiveness and boost return on investment (ROI).
You’ll have the insights you need to move your business forward and deliver an enhanced customer experience, all through the power of AI.
Predictive AI Vs. Generative AI
So far, so good, but where do AI models like Midjourney and ChatGPT come in?
If predictive AI is about using historical data to predict patterns, trends, and behavior, then generative AI is about creation.
And that means generating realistic images, content, music, and more, all with the help of machine learning.
Both rely on artificial intelligence, but where one focuses on prediction, the other focuses on generation, as the names of these AI models suggest.
The applications of each differ as well. Generative AI models are best suited to creative industries like film, writing, fashion, and art.
Predictive AI models are ideal for industries that rely on data analysis, like healthcare, finance, and marketing.
Both have their place, and both are seeing an increase in usage across various fields, with an expected annual growth rate of 37.3% projected between 2023 and 2030.
And it’s this surge in popularity that makes your understanding of predictive AI so vital.
Because if you’re not already leveraging its potential, you can be sure that your competitors are.
The Benefits Of Predictive AI
Before you commit to using AI technology, it’s helpful to explore its benefits a little further.
While the benefits of generative AI are obvious (saving time and money on image generation and content creation, for one), the advantages of predictive AI are more varied:
1. Future Planning
Staying ahead of the game is all about having a competitive advantage, and this is exactly what AI tools like predictive AI can give you.
Using historical data to forecast trends and outcomes allows you to plan ahead and be proactive in your business approach.
2. Improved Efficiency
The better your predictive data and the more accurate your forecasting, the more you’ll be able to avoid repetitive tasks and errors, helping you streamline your business processes.
3. Faster Decision-making
In marketing, decisions are all about data. The more accurate your data, the more informed your decisions will be.
That’s the advantage of predictive AI – giving you the data you need, when you need it, to make faster, more effective decisions.
4. Pattern Identifying
Have you ever wondered how to use your own data to look for patterns in order to identify opportunities, challenges, and solutions?
That’s what predictive analysis does for you, using machine learning to recognize patterns and guide your decision-making accordingly.
5. Trend Forecasting
Your data contains a wealth of knowledge, and that’s exactly what predictive AI has been designed to draw from.
By using mathematical algorithms, machine learning, data mining, and more, predictive analytics can use your data to predict customer behavior, events, and trends.
Meaning you’ll be getting the valuable business information you need ahead of time.