Generative AI AND Predictive AI: The Power Couple You Haven’t Thought Twice About
In the whirlwind of AI advancements, Generative AI (Gen AI) has stolen the spotlight, with its ability to create text, images, and even code seemingly out of thin air. From Gemini’s conversational prowess to DALL-E's artistic creations, these tools have rapidly become integral to our daily lives. Yet, another powerful force in the AI landscape was quietly evolving in the background for years until Gen AI became the shiny red toy: Predictive AI. While less flashy on the front end, Predictive AI's ability to forecast trends, anticipate behaviors, and inform decision-making is the unsung hero. It's becoming increasingly clear that the true potential of AI lies in the marrying of the power of Generative and Predictive technologies.
Imagine using the power of Predictive AI models to predict which customer is going to purchase or churn, and then using that knowledge to pair it with Generative AI to custom craft the right message or offer to retain them or push them over the goal line to purchase. That’s the compounding effect that you cannot get by solely using Generative AI.
Why Predictive AI has taken a backseat
In the past few years, Gen AI has been on the tip of everyone’s tongue. From its seemingly limitless potential to create content in mere seconds. All it takes is one copyrighted Drake song to break the internet and keep the flame going on the news surrounding this technology. But new tools and lawsuits are not the only reason it's in the news; many were having an ‘iRobot moment’ when the headlines were full of “Generative AI to replace your job by 2030.” All Gen AI will do is drive a ton of productivity in each process and each role - not replace them.
This topic is still finding its way into headlines; hopefully, we’ve all concluded at this point that there’s no need to be worried about total job replacement. AI Generally will shape the future of work, and humans are still an essential part of the workforce. For now at least.
Developing AI is not a job that anyone can do, though ChatGPT can likely guide someone on the steps they need. However, using these AI tools brings up a different reason why Predictive AI has taken a backseat. It takes specialized knowledge and stellar data science and modeling expertise to build Predictive AI solutions. To use Gen AI, you can type a few prompts in a free text box on the open web and wait mere seconds for output. You may not always get the reply you wanted on the first try, but it can help guide you.
Building a Predictive AI solution is harder than it seems; you have access to a plethora of open source and paid models, but deciding which one to use, how to set up the model features, and tweaking the model based on the early predictions and insights, all require data science depth.
The Value of Using Both Gen AI & Predictive AI
If you’re curious about how you might be able to combine the forces of Generative AI and Predictive AI, here are a few suggestions.
One of the biggest uses of Predictive AI is to forecast market trends and consumer behavior. Pair that with Gen AI to influence business strategy with tailored content, ads, or products based on these predictions. A major telecom provider aimed to enhance customer satisfaction by improving the decision-making process during product selection. By integrating Predictive AI and Generative AI into their ‘Smart Reviews’ system, the provider was able to predict which product features were most important to individual customers and automatically highlight relevant reviews. Additionally, Generative AI generated personalized summaries and product recommendations based on these predictions, tailored to the customer's unique preferences and past interactions. This dual approach streamlined the decision-making process and led to higher conversion rates and increased customer loyalty by offering a truly tailored shopping experience.
Another good example of putting the AI duo to use is predicting which customer is going to call in or have issues and then, you guessed it, using Gen AI to provide personalized solutions or tailored responses based. A financial advisory firm sought to provide clients with deeper and more actionable insights into their investment portfolios. Using ‘Financial Insights Pro’, advisors could leverage Predictive AI to monitor real-time market events and assess their potential impact on clients' portfolios. Building on this, Generative AI was employed to synthesize and explain these insights, drawing from various internal data sources such as historical performance, client preferences, and risk assessments. This combination of Predictive and Generative AI-enabled advisors delivers a comprehensive and personalized analysis, helping clients make informed decisions and enhancing overall portfolio performance.
The Future of Joint AI
Together, Generative and Predictive AI form a powerful duo that is capable of anticipating future trends and also crafting tailored solutions once armed with that information. When used properly, it could have the potential to revolutionize healthcare, finance, retail, and countless other industries with hyper-personalized experiences and accelerated innovation. And, as a bonus, it will likely cut down on costs and time spent on projects. We expect the integration of both Generative AI and Predictive AI to lead to more proactive decision-making, adaptive strategies, and unprecedented levels of automation across various sectors, reshaping how we approach complex challenges in the years to come.
