Transforming Businesses with AI- Generative vs. Predictive AI
April 19, 2024
Artificial intelligence has come a long way in transforming the way businesses work and meeting their goals effectively. Thanks to the evolution of conversational AI like ChatGPT and various other tools that are enabling brands to increasingly make use of AI to enhance day-to-day tasks. A report from Grandview Research says that AI is getting more popular with companies and people in several sectors like research, development and other fields and it is estimated that it will grow around 37.3% annually from 2023 to 2030.
Today, we will be talking about two common types of AI i.e. Predictive AI and Generative AI along with their differences to help your business figure out the advantages of using Artificial Intelligence Business Solutions.
Understanding Predictive AI and Generative AI
Predictive AI makes use of statistical algorithms and machine learning to study data and make predictions about future events or behaviours. This AI works like a fortune teller and looks at past data to spot patterns and predict what might happen next. It is used in different sectors like finance to help predict how the stock market might go, healthcare to predict if someone is about to fall sick and marketing to figure out what customers might like.
If you are wondering how Predictive AI works, here is the step-by-step guide that shows the complete flowchart-
i. Collect & Organize Data that is relevant and that has to be analysed.
ii. Pre-process Raw Data to ensure only accurate data without errors is used.
iii. Select the Right Algorithm for accurate predictions of specific features within the data
iv. Train the Model using historical data where algorithms learn from patterns.
v. Evaluate the Model by comparing its predictions to known outcomes in historical data
vi. Make Predictions about future events and stay aware of possible outcomes.
Generative AI is a type of AI that generates creative new content like text, art, music, etc. by making use of AI models like GANs and language models like GPT-3. This AI type undergoes a series of dataset feeding and analyses with the help of both machine learning and deep-learning algorithms.
Rather than looking at data and making predictions, Generative AI makes use of what it knows to make new things. It follows a process which includes
- Data collection & preparation,
- Model architecture selection and initialization,
- Model training
- Evaluation and deployment
Generative AI relies on two different types of learning – unsupervised learning and semi-supervised learning with little guidance to train themselves. Some of the main algorithms and frameworks used in this process are Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), and diffusion models.
Both AI types have their capabilities that are unique from each other and they can help businesses in different ways. If you are thinking of integrating AI into your business processes, you must know that planning a budget is essential. Building AI solutions comes with different costs depending on several factors. However, you can make use of Clavax’s smart app cost calculator which will give an estimated cost to create an app for your business.
Pros and Cons of Predictive AI
Benefits
- Stay ahead of the competition
This enables businesses to get accurate forecasts of future events helping them plan strategically and maintain a competitive advantage with the capability to anticipate market trends.
- Better decision-making skills
This helps companies to analyse data and simulate different situations to make the best choice using the information they have, which speeds up the decision-making capabilities.
- Enhanced efficiency
As AI helps in predicting correctly, businesses can work faster without repetitive work and fewer errors.
Weaknesses
- Predictive AI will not work effectively without consistent, complete and quality data.
- This may not work where unpredictable events occur and where patterns change over a long time, resulting in the generation of false patterns and inaccurate predictions.
- To make predictions relevant and accurate, predictive AI models need to continuously update data as the prediction made by the model may have a short life span.
Pros and Cons of Generative AI
Benefits
- Increase in Efficiency
Generative AI helps in making tasks faster as it can create content more quickly than humans enabling teams to complete their work on time.
- Lower Costs
This can also help in reducing repetitive tasks, which will lower the need for manual labour, saving cost and effort.
- Better Creativity
As generative AI works on vast data sets, it makes it easy to produce creative content like designing new artwork and composing music.
- Enhanced Decisions
Generative AI helps in decision-making as it can simulate scenarios and provide data to make faster decisions, enhancing the business’s ability to serve customers better.
Weaknesses
- Training Data Dependency
Generative AI depends highly on the training data as this model doesn’t possess independent reasoning or judgment.
- Ethical Concerns
Another weakness is ethical concerns, which need careful consideration as there can be misuse of generative AI in media creation like fake images, videos, and audio content that are almost similar to the real ones.
- Potential Information Misuse
Generative AI can cause concerns regarding privacy, reputation and the spread of false information because they have the potential to create deceptive content, making it difficult to maintain trust and integrity in the digital world.
Final Takeaways
As we can see both Predictive AI and Generative AI are two different types of artificial intelligence, with its unique capabilities and pros and cons. Generative AI is known for creating fresh content like images content music using complex algorithms and deep learning from its training data. On the other hand, predictive AI works differently with the help of statistical algorithms and machine learning to study information and predict what will happen next.
We can see that the future of AI has immense potential and businesses will use generative and predictive AI to help them grow and thrive. Both AI models offer substantial benefits across various industry domains. If you plan to unlock AI’s potential in your business, Clavax is a renowned custom software development company that can help you build smart AI solutions to automate business operations and enhance efficiency. Connect with our AI experts today to build solutions that are aligned to meet your specific business needs.