If you’ve been keeping up with discussions about artificial intelligence, you might have heard the terms “predictive” and “generative” AI. While these two approaches to AI both use machine learning algorithms, each has distinct objectives, capabilities, and applications.
Let’s take a look at their differences and what each can be used for.
In simple terms, predictive AI focuses on analysing existing trends and historical data to make accurate predictions about future events and behaviours. It uses machine learning algorithms such as regression, classification, and time series analysis to determine patterns and relationships.
Predictive AI is used in various industries, such as finance, marketing, and healthcare, as these models can be trained to forecast stock market trends, consumer behaviour, disease progression, and various other outcomes.
Generative AI is another subset of artificial intelligence that focuses on the creation of new and unique content. It uses techniques such as Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), and Autoregressive Models to learn patterns from available data and create new samples. Generative AI models can be trained to generate images, write essays, or generate code.
ChatGPT, an AI-powered text generation tool created by OpenAI, is an example of generative AI that can develop a distinct piece of text in response to a user’s inquiry, tailoring its output to the specific prompt or question provided. Other popular generative AI interfaces are Bard, Dall-E, and MidJourney.
Predictive and generative AI have applications in different business fields, with each presenting distinctive benefits and competencies.
Content creation – Generative AI models can create content for blogs, social media campaigns, product pages, and company websites. In addition to delivering fresh content, generative AI tools can modify, shorten, or expand copies with the right user prompts and information.
Customer support – Generative AI-powered chatbots can provide instant support and assistance to website visitors and social media followers, addressing common inquiries and concerns in real-time.
Graphic design and video content – Generative AI tools can deliver unique visual elements, such as textures, patterns, and illustrations, based on specified parameters or prompts. This capability enables designers to explore new aesthetics, streamline iterative design processes, and expand creative possibilities. Similarly, in video content creation, generative AI can automate aspects of the production pipeline, such as scene generation, special effects, and even scriptwriting, thereby facilitating faster content creation and enabling experimentation with innovative storytelling techniques.
Insurance – Insurance companies can use predictive AI models to evaluate the profiles of each policyholder with similar insurance coverage and accurately identify the likelihood of potential future claims. This process allows them to make more informed decisions regarding coverage terms, premiums, and strategies for risk management.
Retail – Retail companies can leverage data from their past promotional campaigns to gain insights into customer behaviour, purchasing patterns, and response rates. These valuable insights can then be utilised to predict the effectiveness of future offers and promotions, enhance decision-making, and optimise marketing strategies.
Energy and utilities – Predictive AI can analyse previous equipment failures, allowing companies to perform timely maintenance and prevent potential risks. Additionally, predictive AI tools can help examine past consumption patterns, which allows for efficient resource allocation and guarantees a consistent supply of energy.
While predictive AI is most effective at forecasting future outcomes based on historical data, generative AI is best used for creating new and original content by learning from existing patterns. By understanding the intricacies of predictive and generative AI, businesses can harness the power of these technologies to make informed decisions, drive innovation, and unlock new possibilities to grow and succeed.
