What is Predictive AI? How does it work?

You may have heard of Generative AI, but what about Predictive AI? They may sound similar but there are some key differences, along with countless ways you can use them!

What is Predictive AI and how does it work?

Predictive AI uses information from past events to make predictions about what might happen in the future. To be used successfully, it requires access to high-quality data and subject matter expertise from humans to accurately identify trends.

These algorithms collect data from multiple points of information. For example, to measure a sports team's performance over an entire season, Predictive AI can gather information from essential success metrics such as chances created, challenges faced and previous form. certain teams.

Once Predictive AI models have gathered the information they need, users can make decisions and conduct further research if needed.

Example of Predictive AI

Predictive AI is already being used in many industries, and you may have even experienced the technology yourself. For example, companies use Predictive AI to detect potential data breaches, and smartphone vendors can help users type more accurately.

Here are some of the best examples of Predictive AI in action.

1. Text prediction

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Text prediction is one of the best examples of Predictive AI in action. Based on analysis of the language you're typing and past behavior, the feature predicts what you'll type next. Text prediction can also help fix common errors, and Apple in particular has made great strides in this. In fact, inline text is one of the iOS 17 features that requires an iPhone 12 or later.

Besides analyzing past typing habits, text prediction can also use the context of a conversation or document to provide better typing and spelling suggestions. Inline predictive text can be turned off on a Mac if you own an Apple computer, and predictive text suggestions can also be turned on on Android.

2. Identify potential security threats

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Cybersecurity is one of the most important areas where Predictive AI comes to prominence, and predictive analytics can help tackle cybercrime in many ways. One example where you may have experienced Predictive AI in the security space is when logging into an account or trying to use a bank card in an unfamiliar location.

You'll regularly receive email or text messages alerting you to unusual login attempts and prompting you to take action if needed. Password change requests may also result in such notifications. To ensure you don't become a victim of security breaches, you should learn more about and how to prevent these threats.

3. App and content recommendations

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Smartphones and apps are getting much better at making recommendations, largely thanks to Predictive AI. For example, if you use Google Drive, you might see the message "You often open around this time" on the main document, or "Based on past activity" or "You've opened frequently".

If you use a smartphone, you'll often see suggestions to open apps and other actions that change based on your habits and time of day. The app also uses consumer behavior to make better recommendations; for example, Spotify uses AI to recommend (and create) playlists.

4. Economic forecast

Predictive AI is also prominent in the world of finance, and it can help economists look at how financial markets change over time. For example, based on historical data and current global issues, Predictive AI can determine whether a given exchange rate will increase or decrease. Since Predictive AI is also very good at identifying consumer behavior, it can be used to determine how industry trends will change. This technology can also predict stock market movements and cryptocurrency price changes.

5. Weather forecast

Weather forecasting has always been a difficult job, but meteorologists will likely rely on AI for more assistance in the future. Although the tool is relatively new to the field, Google's AI research program director, Abdoulaye Diack, suggests that GraphCast can predict the weather up to 10 days in advance better than standard methods .

Predictive AI can measure more weather data in less time. This is good on a personal level, because it tells you exactly what to wear when you go out. But if you look at the bigger picture, Predictive AI can also be a valuable tool to help innovate climate change initiatives and predict major storms.

6. Business decisions

Companies use Predictive AI to make better decisions and predictions for the year ahead. Because Predictive AI is so good at measuring consumer behavior, businesses can accurately determine the success of current products and services within 6 - 12 months. To fill gaps in the market, they can also use the information collected to launch and test new products.

With Predictive AI, businesses can also decide what content to include in advertising campaigns. Furthermore, businesses can determine where they should allocate their budget more effectively.

How is Predictive AI different from Generative AI?

Predictive AI and Generative AI both use Machine Learning, but Generative AI analyzes available information to create new content instead of drawing conclusions.

Generative AI and Predictive AI can work together. For example, an economist could use Predictive AI to identify an upcoming recession or market crash. Meanwhile, they can use Generative AI to help create research papers or other content about what to do if it happens (or how to make the most of it).

Predictive AI is more present in our lives than we initially thought, and usage will increase as it becomes more accurate.