Big data is on every CEOs agenda but is this the critical topic for growth?
Everyone has big data but is that gaining them a competitive advantage?
Not necessarily. It is the quality of the AI algorithms used with the data.
Next generation analytics may involve using big or small data, but it must involve cutting-edge artificial intelligence techniques that provide reliable insights to transform rreults.
The beauty of artificial intelligence is that it can recognize behavioral patterns through computational learning. Yes, the machine continues to learn as it mines data sets and provides predictions. IBM’s Watson, for instance, parses enormous reams of data on cancer and cancer treatment to identify patterns that can lead to treatment decisions for individual patients. Every new study, every feedback from physicians, “teaches” the computer more about the topic and enables it to fine-tune its recommendations.
Machine learning is a subset of artificial intelligence based on algorithms that learn from data without the need for rules-based programming. In other words, the “machine,” or computer, learns to identify patterns humans cannot see and to solve problems without human intervention.
The fundamental goal of machine learning is to generalize beyond the examples in the training set.
This differs markedly from statistics used in simple analytics, which was developed for small, more manageable data sets and is unable to pull out the synergy of complex interactions that AI can.
Computers, however, can process and mine data to discover insights and generate predictive models. Unconstrained by the preset assumptions required in statistics, machine learning can yield insights that statistics and humans cannot feasibly attain—and it does so with a far higher degree of accuracy than is possible with other approaches.
The bottom line is that the insights and pattern recognition that these powerful algorithms and super computers provide enable companies to make far better decisions and provides them with new sources of power to gain real-world results.AI
Big data is the oil of the 21st century. But for all of its value, data is inherently dumb. It doesn’t actually do anything unless you know how to use it. Oil is useless thick goop until it’s refined into fuel. Big data’s version of refined fuel – proprietary algorithms that solve specific problems that translate into actions – will be the secret sauce of successful organizations in the future. The next digital gold rush will be focused on how you do something with data, not just what you do with it. This is the promise of the algorithm economy. The closely guarded secret ...After all, what makes Google one of the most valuable brands in the world? It isn’t data; it’s the company’s most closely guarded secret, its algorithms.