What is Machine Learning? How Has it Benefited Businesses?
By: Eng. Sara Thabet
In recent years, we’ve witnessed the tremendous impact of AI in the business world… I believe this is tied to the evolution of “Machine Learning”, But what exactly is machine learning?
ML is essentially a subset of AI, but unlike other subsets that require explicit programming to mimic human behavior, Machine learning allows machines to learn and gain experience on their own, by enabling them to analyze data independently and use it to perform their tasks.
AI-Driven Machine Learning
Before getting deep into the benefits of ML on businesses, I want to mention that there are two key types of AI-driven machine learning are predominantly used in business… What are they?
- Predictive AI: Which relies on previous data to forecast what might happen in the future, and provide accurate predictions based on the information it has been given.
Banks and retail giants, like Amazon, use predictive AI to anticipate potential fraud in credit cards or financial transactions, as it analyzes purchasing patterns quickly, based on clients’ previous data, and alerts them if any anomalies are detected.
- Generative AI, on the other hand, focuses on creating something new, as unlike predictive AI, which mainly focuses on analyzing the data it’s given, generative AI also conducts its own analysis of other relevant data that aligns with your interests, to design images, create content, or brainstorm ideas… just like what we see with ChatGPT.
So, how has Machine Learning helped businesses?
- Improve Customer Service Efficiency:
Today, thanks to ML, Chatbots have become much more efficient, by engaging in realistic conversations with customers and helping them find relevant answers that align with their interests.
For instance, Zendesk’s automated chat services use ML not only to enable businesses to interact with their customers, but also to analyze incoming queries to measure service quality and develop helpful articles.
- Provide Personalized Recommendations:
If you’ve used Netflix, you’ve likely seen the “Because you watched” section, where series are recommended based on your preferences… This list is developed using an ML system that analyzes viewer preferences.
Retail businesses can also leverage this to provide products tailored to their customers’ interests, to enhance their CX and boost sales.
- Offer Dynamic Pricing:
Ever noticed how Uber fares change at different times?
That’s because Uber uses a technique called “dynamic pricing” powered by ML to analyze demand patterns and adjust prices accordingly.
- Predict Customer Churn:
According to the AI-specialized website “Techtarget”, ML systems can analyze large sets of historical, demographic, and sales data to help companies understand why they lose customers, assess current customers’ behavior, and alert them about those likely to leave, plus recommend steps to keep them.
- Enhance Recruitment Processes:
As LinkedIn uses ML algorithms to help companies find the right job candidates by analyzing job requirements and candidate characteristics based on their profiles and behaviors… This improves the efficiency of the recruitment process.
These are just a few examples of how machine learning systems are boosting business processes, if your business isn’t leveraging these technologies yet, you might find it difficult to stay competitive in the ever-evolving market.”
About the author:
Sara Thabet is an entrepreneur and author. She is the Business Strategy Manager at E3mel Business Academy.