People have relied on machines for assistance with analysis even before the invention of AI, an example being the usage of the abacus. As humans evolved, so did technology and the complexity of the data that they consumed. These sets of huge and complex data came to be known as Big Data, and to deal with this, businesses had to stop relying on traditional data processing systems and move forward with an advanced system. The advanced system in question is the one that’s powered by AI and can easily handle and analyze complicated data of all sizes. Through this blogpost, we will be taking a look at how AI has simplified the process of data analysis and delivers valuable insights for businesses
How is AI used for Data Analysis?
Let us begin by discussing how AI-powered systems are different from traditional data processing ones. While traditional software relies on constant human input, AI software requires human input only initially. This is called training data. Some of the ways by which AI is used for data analysis are:
- Bots: Automated bots would play a significant role in data analysis by generating quick responses using NLP(Natural Language Processing). AI bots are known to perform analyses at a faster speed as working with compounded stored data allows them to respond with relevant information and perform better than humans.
- Text Analysis: NLP, a subfield of AI/ML, enables machines to understand human language and communication. Using NLP, text analysis breaks down the available data that is in the form of texts and helps uncover insights.
- Prediction of Outcomes: Using AI, businesses can tackle qualitative data for diagnostic, prescriptive, and predictive analyses. Using multiple data analysis techniques simultaneously through ML, businesses can predict outcomes.
Now let us take a look at the industries wherein AI could be applied for efficient data analysis. Most businesses rely on data, and hence data analysis is a crucial part of the business. It finds its application in various industries, and leveraging AI could drive business growth and profitability. Some of the industries that could use AI-powered data analysis systems are:
- Banking Industry: In this industry, AI could be used to monitor financial market activities. Trading data analytics can be obtained to perform decision-based trading, predictive analysis, and risk management. In addition to this, they could be used for the analysis of audit trails, early fraud detection, reporting enterprise credit, and the like.
- Healthcare: The healthcare industry deals with huge amounts of complex data, and using AI, they can simplify the process of analyzing this data. They use data collected using several mobile phones and sensors to use evidence-based medicine. They also leverage AI to analyze data and identify and track the spread of chronic diseases.
- Education: In this industry, AI could be used to track and analyze when a student logs into the school’s system. It could also be used to track the performance of teachers and thus measure their effectiveness.
- Manufacturing: The manufacturing industry leverages AI for seamless inventory and production management and also to simplify supply chain analysis. When they rely on AI instead of human effort, they save time and also can leverage the data to enable improved quality of products, ensure energy efficiency and increase the profit margins.
- Government: Every government across the globe has access to data that needs to be stored and analyzed with accuracy. AI is used for this purpose for applications such as vehicle recognition for traffic management, public facial recognition, population demographics, infrastructure management, criminal investigations, and so on.
Some of the other industries wherein AI is used to analyze complicated data are Retail, Insurance, Energy and Utilities, Media and Entertainment, and Transportation.
AI: The Future of Data Analysis
As we had mentioned earlier, businesses produce and deal with massive amounts of data, and this will only keep increasing as years go by. Thus it becomes imperative to have an advanced system in place to track and analyze it. Using artificial intelligence, businesses can easily sift through complicated data and produce results that would not be possible otherwise. Data analysis tools that are available through AI can detect, analyze and visualize data without any human interference. Studies suggest that Google has experienced major cost savings in running their data centers by using deep learning. The predictive power of AI, along with its ability to detect data and turn raw data into useful insights, shows that it definitely is the future of data analysis.