What is predictive analytics and how does it work?

Predictive analytics is a data-driven AI approach that forecasts future outcomes using machine learning, statistical modeling, and historical data analysis. It helps businesses identify patterns, anticipate trends, and make data-backed decisions in industries like marketing, finance, and healthcare.

For example, e-commerce platforms use predictive analytics to recommend products, while banks assess credit risk based on customer data. The healthcare industry uses it to predict disease risks and improve patient care. Businesses rely on predictive analytics to enhance marketing strategies, optimize supply chains, and detect fraud, making it an essential tool for data-driven decision-making.

Key takeaways:

• Uses machine learning and statistical models for forecasting.

• Helps businesses predict trends, risks, and customer behavior.

• Used in marketing, finance, healthcare, and fraud detection.

• Optimizes operations, reduces risks, and improves efficiency.