Artificial intelligence and big data work in synergy, quickly and reliably producing information that businesses can use. As an example, retail organisations gain detailed insight into customer buying habits that help them develop accurate customer profiles.
This alone can transform service levels and overall business success. Big data analysis enables businesses to narrowly target and personalise their marketing campaigns,gaining customer trust via a deeper understanding of their needs and purchasing habits.
Retail is just one sector that’s been transformed by the use of big data with AI. This complementary pairing has also changed manufacturing and other industries, and has the potential to make a huge impact on healthcare using patient information and clinical research data.
How is big data processed?
Big data is processed through analytical and reporting systems. Machine learning systems identify patterns and trends within data sets and can adapt over time with out the need for programming.
The amount of data available through outlets such as social media platforms, online shopping, and loyalty apps, is immense. The more data there is available for artificial intelligence to work on, the better-developed AI algorithms become,producing ever more reliable and valuable results.
Businesses in general are now becoming more analytical and strategic in how they operate thanks to AI, so what commercial advantages can be gained from using artificial intelligence alongside big data?
What are the benefits of using big data with AI?
Speed of data processing
Artificial intelligence relies on large volumes of data to arrive at meaningful analyses and is evolving all the time. The larger the data set the more AI can learn,resulting in increasingly reliable decision-making by businesses.
The sheer speed of data processing by artificial intelligence can be instrumental in improving business results, whether in relation to marketing, recruitment, or other vital business functions.
Automation of analysis
Given the volume of data being collected and processed by businesses, speed of analysis is crucial to gain a commercial advantage. Human analysis of these volumes would be too slow and time-consuming to be a viable option, but AI quickly produces usable information from the processed data.
Visual representations of data, such as graphs, infographics, and charts, can be generated using AI. These visualisations typically allow businesses to more easily absorb and understand the relevance of key findings.
Clear,easily understandable analysis results mean that trends and patterns can be noted and acted upon quickly. Decision-making becomes more fluid using AI-generated pie charts, for example, or heat maps that display behavioural patterns based on location.
Reducing human bias
Conscious and unconscious human bias influences how we make decisions and can unwittingly result in poor decision-making. Artificial intelligence and big data remove this type of bias and allow us to make business decisions more objectively.
A straight forward example is at the point of sale where a customer’s previous purchases are used to generate recommended products. This is good for business as it improves the user experience by conveying a personalised approach and understanding of customers as individuals.
Lowering the risk of cyber crime and fraud
Artificial intelligence can analyse big data to identify potentially fraudulent behaviour where patterns emerge. This early warning of possible fraud protects business assets, but using big data with AI also proactively bolsters cybersecurity.
It protects sensitive data and helps businesses to address the issue of constantly emerging threats to data security. The ability to predict future cyber threats puts businesses‘on the front foot’ rather than always being reactive in the face of an attack.
What is the future of big data and AI?
AI and big data work in synergy. They’ve revolutionized some industries, such as manufacturing and retail, and have the potential to reshape others in the same way in the future.
The predictions and recommendations emerging from big data analytics and reporting will only improve alongside ever-advancing technology and clearer understanding of the information that’s now available to us.
Jonathan Munnery is a seasoned insolvency expert of over 15 years with a history of working with businesses in financial distress. Skilled in Debt Management, Business Advisory, Bankruptcy, Liquidation, and Company Restructuring, he is a partner at liquidation specialists UK Liquidators.