The Role of AI and ML in Shaping Predictive Analytics for Modern Business Intelligence: Techniques, Challenges, and Applications for Data-Driven Decision-Making

Abstract

In modern business, data drives informed decision-making, with AI and BI ushering in a new era of predictive analytics essential for sustainable success. This chapter explores leveraging AI and ML for predictive analytics in BI, covering its mission, methodologies, challenges, applications, and future trends. Predictive analytics, enhanced by AI and ML, enables data-driven decisions by anticipating market trends, identifying opportunities, and optimizing resources. Key methodologies include data preprocessing, algorithm selection, model training, and evaluation, illustrated through real-world examples. Despite its benefits, challenges such as data quality, model interpretability, ethical issues, and resource constraints remain, with strategies provided to address these. Case studies in retail, healthcare, finance, and manufacturing showcase predictive analytics' impact on decision-making and efficiency. The chapter concludes by emphasizing the transformative potential of AI and ML in predictive analytics, equipping readers with the knowledge to drive success in the digital era.