How Predictive AI Will Impact You

It seems that almost every item we purchase will come with a sensor to ensure that it is always online. Welcome to the world of the Internet of Things (IoT). However, many believe that AI will allow everyone to cut through the white noise and make sense of the sea of data that we are all unwittingly creating with our online devices.

Try to imagine rushing out of the house to pick up your kids from school on a cold, wet, and dreary Monday afternoon. Suddenly a digital assistant such as Siri or Amazon’s Alexa announces that you are running low on milk and vegetables. But the items are on sale at the small convenience store near to the school, so would you like to reserve and collect the items in 20 minutes? This kind of scenario is much closer than you probably realize.

A combination of artificial intelligence (AI), machine learning (ML), and predictive analytics will soon be able to analyze data from all your devices. This is just one example of how predictive AI will soon be able to step in and offer a timely reminder when food supplies are running low in your smart refrigerator.

In a digital world where everything is connected and capable of sharing data, we are now able to measure everything with advanced analytics tools and identify any patterns. For obvious reasons, predictive AI is seen as a game changer for the retail industry. Big data-driven analytics technology can analyze human behavior and help stores get a little closer to understanding their complex customers and what motivates them. Ultimately, it's about having the ability to provide a unique, personalized experience.

Other areas can often blur the lines between right and wrong. For example, predictive policing uses algorithms to determine where and when the next crime is likely to happen using data on previous criminal activity. On one side of the coin, this technology could save lives, by monitoring the moods of individuals online activity and sharing activity across social media. Predictive analysis will also have the ability to identify a bad actor much quicker than humans can currently do.

However, on the flip side, many will question, at what price? The thought of having virtual thought police monitoring our every mouse click or swipe of our smartphone screen will be equally as terrifying as an attack. Early iterations suggest that AI can also reinforce biases, such as racial or social, just like its human creators.

Make no mistake: Predictive AI is here to stay. In the not-too-distant future, it will probably be the reason for your acceptance of a loan, insurance, or job application. In some situations, it probably already is. When everything can be measured, and all information is crunched and analyzed, searching for a job could become even more intense. Imagine your language and choice of words on your application and social media posts, combined with facial expressions during an interview being measured to identify any reputational risks.

Although this will also feel like a step too far, recent studies show that humans are too uptight to judge subjectively, whereas machines analyze information objectively. But once again, we need to remember that computers cannot think for themselves, and any judgment call will ultimately be the result of the coding and parameters set by humans.

The Bank of America already uses predictive AI to anticipate customers’ spending habits and to better market services to them. There are also several startups trying to make a name for themselves by having correctly predicted the outcome of the Super Bowl, Oscars, or even first-, second-, third-, and fourth-place thoroughbred horses with 540-1 odds at the Kentucky Derby.

The scope is phenomenal, and companies that can leverage predictive AI to solve real-world problems, such as supply chain optimization, price-trend forecasting, and staff retention, could be onto something huge. Tech giants such as Google, Uber, and Apple are already utilizing predictive analytics, and we can expect other businesses to step up their efforts over the coming months.

A wealth of sensors and a smartphone in your pocket make it easy for any company to monitor your every step. The challenge is now on for businesses to transform billions of data points into something useful or even revolutionary. For consumers, it’s time to accept that predictive AI will play a significant role in every aspect of our lifestyle.