Lowering product prices, reorganizing space, introducing new products, entering new markets – do you think companies make these decisions at random?
Not really. Most businesses take decisions after collecting and analyzing valuable information from their data. This is the reason why business analytics is an important concept, as it helps companies analyze historical data with the use of statistical methods to make informed decisions.
What created the need for AI in business analytics?
Today more than ever, companies collect a large amount of data. IoT devices, GPS networks, security tools, call logs, website analytics – these are just part of the tools that collect valuable data for businesses to analyze and find important information.
The problem is that big data is getting bigger and harder for standard business analytics software to process.
Imagine the amount of information that industry giants like Amazon are collecting. It is impossible to depend on traditional business analytics tools to extract valuable information and create strategies from such an immense amount of data.
That’s why companies combine business analytics with the power of artificial intelligence to democratize data and improve adoption.
Artificial intelligence in business analytics
We know that artificial intelligence is a field that builds intelligent machines that are capable of solving problems and performing tasks that would require human intelligence.
For artificial intelligence systems to learn and function as intended, they need data. That’s why AI in business analytics is a perfect use case, as business analytics is all about data and that’s exactly what AI needs.
Implementing AI solutions in business intelligence means processing this massive amount of data in a matter of seconds. In this way, managers can easily analyze data and export valuable information that can be used to improve decision-making and strategy building.
Artificial intelligence systems can connect data from several different sources and provide real-time analytics as well as notifications. This way companies can immediately act on the insights as soon as the data enters their system.
This helps managers not only in long-term decision-making but short-term day-to-day strategies as well.
However, in addition to the fact that AI helps transform raw data into an understandable form in real-time, another great benefit is its prediction capabilities. This is also known as predictive analytics.
Predictive analytics predicts future events and outcomes with the use of real-time/historical data, as well as machine learning techniques and statistical algorithms.
AI-powered business analytics can provide companies with reliable predictions on future trends such as price changes, customer responses, and more. This is a powerful tool that helps companies be proactive, ahead of competition and less likely to be caught off guard.
What benefits does this bring?
- Cost-effective – AI automates the time-consuming process and frees people from manual work. The system sends alerts that require human attention only in case of real need, thus reducing the cost related to human personnel.
- Greater efficiency – Implementing AI in business analytics means classifying raw data instantly and sorting it faster. This process reduces the steps that were previously necessary, therefore, provides greater efficiency to companies.
- Greater precision – Artificial intelligence technology not only automates certain processes but also eliminates cases of human error. As we said, handling large amounts of data is exhausting and time-consuming, increasing the chances of errors and mistakes. However, replacing this process with AI improves accuracy and quality.
Business analytics helps companies increase their market share, drive profitability and revenue. It is an essential tool for understanding how different processes work and what can be done to improve the overall business performance.
However, today’s competitive environment, as well as the vast amounts of data available, pushed companies to think outside of the box and proactively lead the market. That’s why implementing AI in business analytics today is not a “nice to have” feature, but a requirement to keep up with the competition.
If you want to leverage your data, improve operational accuracy, efficiency, and reach your goals faster, schedule a free consultation call with our artificial intelligence experts today and let’s start building something great together.