AI and Machine Learning in Predictive Analytics

• Predictive Analytics uses AI & Machine Learning

What is AI?

• AI is any technique that enables computers to mimic human behaviour
• This includes learning, vision, and speech
• "Machine learning" is the most popular term, followed by "artificial intelligence"
• Other terms are: "cognitive computing," and "cognitive technology"
• AI mimics aspects of human intelligence
• These include predictive analytics, machine learning, natural language processing, expert systems, planning and optimization, image recognition, vision, and robotics

How AI impacts everyday life

• AI is used in digital assistants like Apple's Siri, Google Assistant, Amazon's Alexa, and Microsoft's Cortana to perform various tasks
• Google Predictive Searches use AI to make recommendations to users, based on search terms being typed
• Smart Replies in Gmail offers response suggestions, such as "Yes, I'm working on it” or “No I have not."
• Email Filters in Gmail employs AI to ensure that nearly all of the email landing in user's inbox is authentic
• Deep learning helps Facebook draw value from unstructured datasets on the Torch framework
• Facebook uses deep text, translation, and Deep Face
• Chatbots use AI to recognize words and phrases to deliver helpful content to customers
• Instagram harnesses big data and AI to target advertising, fight cyberbullying, and delete offensive comments
• Generative AI examples are ChatGPT, DALL-E, and AWS DeepComposer
• AI is not new, it has been around since the 1950's
• AI enables computers to learn without being specifically programmed to do so

AI Applications

• AI in healthcare helps eliminate medication errors via outlier analysis and anomaly detection
• AI in healthcare extracts insights and anomalies from X-rays, CAT scans, and MRIs for early and fast disease diagnoses
• AI in banking uses voice biometrics to verify customer identity for a frictionless authentication experience
• AI in banking flags unusual transactions and behaviours that might indicate fraud attempts
• AI in banking assesses credit risk
• AI is about prediction, but not all automations are AI-based

Machine Learning

• Machine Learning is a subset of AI
• Arthur Samuel defined it in 1959 as giving computers the ability to learn without being specifically programmed
• Machine learning outputs a model that then does prediction
• Many previous example data create a model that detects new frauds (or cancers)

Example of a table of data (dataset)

• The size of house and number of bedrooms can be used predict the price

Machine learning terminology

• Training data set
• Testing dataset
• Feature AKA independent variable
• Label/ Target AKA dependent variable
• Age, Education, Occupation and Gender are features that predicts income

Why is Machine learning so popular?

• More computing power
• More data
• Broad investment from universities, governments, startups and tech giants

Understanding Data Types

• Cross-Sectional Data: Data collected at a single point in time
• Time Series Data: Data collected at multiple points in time, focusing on one entity
• Panel Data: Combines cross-sectional and time series data
• Panel Data is data collected from multiple entities across multiple periods

Cross-Sectional Data

• Captures a snapshot of multiple subjects at a single point in time
• Useful for comparing differences or analyzing relationships among variables at one time
• A survey conducted on 1,000 people in 2024 asking about their internet usage habits, is an example

Time Series Data

• Involves collecting data points for a single subject over time
• Useful for analyzing trends, forecasting, and observing changes over time
• Monthly sales revenue for a company from January 2019 to December 2023, is an example

Panel Data

• Combines aspects of both cross-sectional and time series data by tracking multiple subjects over multiple time periods
• Useful for analyzing changes within subjects over time while also comparing differences between subjects
• Annual income data for 100 households collected from 2015 to 2023, is an example

Explore how AI and machine learning drive predictive analytics. AI empowers computers to emulate human behavior through learning, vision, and speech. Discover AI's impact on daily life, from digital assistants and predictive searches to smart replies and email filters.