4 Ways Big Data and AI Reshape the Digital Landscape
The use of artificial intelligence has already revolutionized the tech world with ever-increasing requirements of automation in a vast array of applications. With expected annual market growth of 35.6% CAGR for the 2021-2026 period, the global AI market will reach up to 299.64 billion dollars.
The analysis and processing of tons of data have become one of the basic requirements of the digital era. The large chunks of data processed simultaneously using machine learning algorithms further increase the volume of data being produced. Big data isn’t a new concept, but recently emerged as a model for processing and storing large amounts of complex data.
The Rise of AI & Big Data
For IT professionals, the job of analysing and parsing data to make it machine-readable and then applying techniques to improve business processes was becoming quite a hectic task. Obviously, the human brain has its limits, but that isn’t the case with artificial intelligence.
AI algorithms are designed to carry out extensive tasks on complex data and accomplish the intended goals specific to the industry where it’s being applied. Additionally, AI provides security to online banking platforms and the applications of financial institutions and insurance companies that face risks of fraud and money laundering.
The sophisticated use of technology in criminal activities has made it difficult for companies to keep fraudsters out of their systems. AI and big data allow the analysis of large chunks of data with incredible speeds and accuracy, monitoring and tracking transactions to prevent financial crimes. The use of AI in fraud detection solutions has helped the financial sector in identifying real customers and eliminating crime.
Improved Data Analysis Techniques
It’s already known that machine learning algorithms help provide insights to customer data, but with big data, there is a variety of information and many types of data. This data is constantly being generated and the question is how to process it.
AI has created new ways for big data analysis, which means structured and unstructured data, images and forms are all interpreted and understood to predict outcomes.
Processing Speed & Data Quality
The speed of data analysis is greatly increased when big data and AI help humans in the process. Using traditional data extraction methods such as SQL queries, the quality of data is not always satisfactory. Low-quality data is of negligible value, and that’s where machine learning algorithms help. With AI, the data is cleaned and prepared before processing, filtering out the unwanted bits.
The main reason why AI is so powerful is its ability to learn from the data it processes. Due to this ability, AI algorithms can detect patterns and fluctuations in trends. This proves useful in customer analysis as AI can figure out the difference between various types of customer information, their background and their feedback.
The simultaneous use of big data and AI has optimized business analytics by employing machine learning and deep learning algorithms to analyze customer inputs and generate business templates accordingly.
The two concepts help in business analytics by providing real-time insight on customer data, as well as developing AI models for efficient supply chain operations, strategies and management.
The need for business analytics arises because prior to the processing of data using machine learning algorithms, there must be proper implementation of data structures and data mining methods.
The melding of AI and big data can automate the majority of data collection and processing tasks. Automation increases the efficiency of the system by optimizing the workflow with constant data analysis.
It benefits both the business and its customers by eliminating the need for manually filling in purchase orders and creating schedules, etc. The use of predictive analytics and smart sensors have allowed many industries to streamline their processes and achieve peak performance.
Financial institutions, as well as retail and the healthcare sector, are implementing automated systems that often work 24/7. All the data being generated and processed is actively analyzed by algorithms to improve the system for the future.
Increased Profits & Reduced Costs
With predictions based on data from the previous weeks, months and years, big data and AI can help companies reduce their working costs. AI also provides businesses with the tools to identify the right customers and use better strategies to get more profits.
At the same time, analysis of big data helps generate leads and grow customers, as well as helping in making smart business decisions. The customer behaviour can be analysed to make future strategies accordingly.
Reduced Manual Effort
The management and analysis of data isn’t a very time-consuming and labour-intensive task anymore. Although humans still play their part, the use of AI has helped in reducing manual effort as well as human error. Instead of motions and opinions, AI and big data use a vast variety of information to make decisions without any sort of bias.
Since computers are capable of working round the clock unlike humans, productivity increases by a large percentage. AI also improves processing like a diagnosis in the healthcare sector, as well as handling customer information in businesses.
To sum it up, the digital landscape has been fortified with big data before the term even became popular. Big data requires the use of artificial intelligence for optimum business values, and the massive volume of information that is processed contributes to the learning process, thereby allowing the system to improve.