What Is AI Analytics and How Does It Work?

New AI analytics technology can put your business over the top, but how does it work and what steps do you need to take to ensure its success?

Photo courtesy of Boitumelo Phetla

AI has been a topic of recent discussion for many people recently. There are a lot of controversies about how AI technology should be used. Although some may be against AI technology, we must acknowledge that this type of technology is here to stay. What does this mean for businesses and websites? This article will discuss how AI analytics works and the best practices to get the most out of it. 

What is the basic idea of AI technology? 

AI or artificial intelligence technology is a valuable tool that allows many companies and individuals alike. AI technology is a technological theory and development of computer programs that are able to do tasks and problem-solve at much quicker speeds. There are different aspects that AI technology addresses are visual perception, speed recognition, decision-making, and word translations. There’s a lot more that AI can offer you, and the benefit is that you can program this new technology to do a specific task for you. 

During the summer of 1965 in June, a group of scientists and mathematicians conjugated at Dartmouth University to discuss the possible future of AI technology. Of course, at the time, this wasn’t something that was studied or even widely known. Many average Americans considered this type of technology science fiction and something that was out of touch with reality. There were ups and downs during the early years of artificial intelligence, especially with the few resources these groups of researchers had. During recent years, we have seen a surge in understanding and learning what AI can really add to humanity. 

AI is very different from traditional software that we are used to interacting with every day. While most of us work and enjoy using computers and smartphones, the software inside of them isn’t considered AI technology. Recently many companies have implemented a form of AI within their software. AI technology can asses it’s progress and learn from it in order to improve, of course, this is aided by the help of human work but it’s still astonishing to see this new type of technology flourish within our everyday lives. 

Business and AI

This new technology has had an impact on almost every discipline and industry out there, but a much more underrated use of it is in business practices. While the mainstream media has mostly focused on the use of AI in art, music, writing, and other creative disciplines, it has greatly impacted the business industry. How do business and AI work together? Many organizations, big and small, are turning to this type of technology to help their businesses become more efficient than it has ever been before. One of the most popular uses of AI in business is analytics. This term has been coined as business analytics and AI. 

Business analytics is the process of evaluating data in order to properly gauge business performance. Business analytics aims to directly look at the performance of your business and what factors are helping and which factors are hindering your business. 

Business analytics and AI have been popular in the business industry and can serve many purposes for your business. Photo courtesy of Olena Sergienko.

The differences between traditional analytics and AI analytics

Analytics has been in use in business for a long time and the introduction of AI has been the latest improvement of traditional analytics. In order for us to understand how AI works in business analytics, we have to look at key differences between traditional analytics and AI analytics. 

Traditional analytics

This type of analytics is better known as data-driven analytics and usually is done between a team of people. According to Tibco, “Business analytics combines processes, skills, and technologies to collect, analyze and present historical performance of the business, based on data, with the goal of driving business planning. Business analytics essentially uses large amounts of historical business data for the purpose of providing insights to evaluate a business.” In order or your business to grow along with your user and customer base, analytics is absolutely necessary to understand what direction your business is going. 

Business analytics allows your business to: 

  • Create useful information out of large quantities of data
  • Building models and projections from data
  • Pitching tailored ideas to your business
  • Advise management personnel 
  • Influence business decisions and outcomes

AI analytics

AI analytics perform many of the same functions as traditional analytics do but at a larger scale and faster pace. According to Insight, “AI analytics uses Artificial Intelligence (AI) tools like machine learning and natural language understanding to identify trends, provide insights and predict outcomes. AI analytics is a way to automate data analysis tasks and avoid long lead times and inaccuracies.” While many businesses have already implemented some traditional analytical outcomes, there is an opportunity to include AI analytics to speed up the process. 

AI analytics allows businesses to: 

  • Create accurate correlations between user and business

This aspect of AI technology within analytics is great because it allows you to address certain correlations faster than it would with a human analyst. While the accuracy of these correlations depends on the AI’s design, most of the time this will offer a quick and errorless analysis of data. 

  • Identify activities such as drops in revenue in real-time

This aspect of AI technology is one of the most popular and sought aspects of AI analytics because it creates an opportunity to fix problems quicker. Many AI analytics programs include technology that helps the AI identify the root cause of the issue. 

  • Predict and market different outcomes 

There is so much room for improvement when it comes to owning a business, so having this type of technology implemented within the AI analytics program will make it easier to predict future trends and improvements as well as market those different outcomes. Speed is one of the most appealing aspects when talking about AI technology.

  • Bias free and avoids human errors

Unfortunately, there is always room for errors when it comes to traditionally conducting analytical results in order to boost revenue, for example. When using this AI analytical technology completely removes human biases and errors or perhaps limits those aspects. 

  • Frees up employees to be creative

When these types of analytical jobs are able to become automated, it creates freedom for many employees to use their time on more creative projects. They can focus on other duties that are perhaps more important to them than dealing with analytical data.

There are many ways you can conduct analytical decisions, but many businesses are turning to AI technology because of the speed, accuracy, and bias-free data. Photo courtesy of Gabriel Beaudry

How will this impact your business?

If you’ve read through this article, and presumably done more extensive research on this topic, what do you prefer? Many businesses are choosing the AI analytics route, but there are many businesses that prefer a traditional approach to analytics. If you choose the latter, there is still a chance that your business will run into some sort of AI technology. This type of technology has become so popular, it is here to stay and will impact you either directly or indirectly. 

Feel free to let us know what your pro and cons are regarding AI analytics! 

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