Predictive Analytics
Category: Industry Applications
Category: Industry Applications
Definition
Predictive analytics uses AI to forecast future events based on historical data patterns.
How It Works
AI analyzes past data to find patterns that predict outcomes. A retailer might predict which products will sell well based on weather, season, and previous sales data.
The system identifies variables that influence outcomes and uses them to make forecasts about new situations.
Why It Matters
Predictive analytics helps businesses plan inventory, prevent equipment failures, and identify high-risk customers before problems occur.
It turns historical data into actionable insights about the future.
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