5 Benefits of Machine Learning for Business
Have you ever wondered how businesses make accurate decisions about their next steps?
How do they know that those decisions are correct? What is the data they rely on and how do they analyze it?
One of the most accurate ways, is machine learning, and today we're going to look at what it is and what its advantages are.
What is Machine Learning
Nowadays most businesses have learned to collect data.
For example, it is common for a business to gather data on how their customers and potential customers move through their website.
However, this data has a ceiling of interpretation. That is, the business can see which products and pages a user visits, but what are the stories, patterns and hidden information behind this behaviour?
The answer to this question comes from machine learning.
In essence, machine learning is an offshoot of artificial intelligence, through which machine learning algorithms, through the data and patterns they create, learn to make predictions about future actions.
But how does machine learning differ from the algorithms we all know? The difference that actually highlights the value of machine learning is the ability of these machine algorithms to "adapt" whenever they receive new data.
An interesting discipline that includes machine learning is NLP (Natural Language Processing).
Can you imagine how important machine learning is for the decision making of a company?
The advantages it offers solve real problems of years.
Let's go through them one by one.
5 Advantages of Machine Learning
Let's have a look st some advantages of machine learning.
Advantage #1: Pattern identification
Mechanical algorithms have the ability to identify patterns within the data they receive. These patterns can become a guide to a company's decision making to make the right moves, at the right time.
For example, through machine learning and the patterns generated, we can identify the seasonality of a product.
This directly influences the amount we are expected to need to have of that product and how we plan the promotions of that product.
So we can see how the patterns generated by machine learning can have a direct impact on a company's profits.
Advantage #2: Rapid data analysis
An algorithm can clearly analyze the data it receives much faster than would be the case for a worker.
This gives us two positives.
- Work hours are significantly reduced, which allows a company to give other responsibilities to its employees, responsibilities that only one person can do efficiently.
- Decisions are made visibly faster. Those involved in entrepreneurship know very well that growth comes when specific actions are taken at the right time. In other words, delaying, for example, a manager to make a decision can be the cause, at best, of a missed opportunity for the business and, at worst, can have financial consequences.
But do quick decisions mean accurate decisions? The answer is given below.
Advantage #3: Accurate decisions
The truth is that a quick decision usually tends to be the wrong decision.
How do we prevent this from happening? By having enough data and correct interpretations of it.
Through machine learning, we have both, which allows businesses and organizations to increase the speed and accuracy of decision making.
For example, in the field of medicine, there are frequent cases of high-risk patients, where there is an immediate need to find the best drugs to administer. Through machine learning, this decision can be made extremely quickly, literally saving lives.
Advantage #4: Autonomy
As mentioned above, the operation of machine learning does not require the presence of a human agent. At first thought, this may sound unpleasant, as our minds go to job loss.
But how many companies, do not focus on what will actually benefit their growth, than too much adherence to micromanagement?
Through machine learning, then, some micro-tasks can be removed from the agenda and replaced with something more meaningful.
Something that requires the creativity and combinatorial thinking that only humans possess.
Advantage #5: Massive data analysis
More data, means better results and decision making.
But the problem is, humans have a limit to how much data they have the ability to collect, analyze and interpret.
So through machine learning, this issue is solved, with machine algorithms analyzing large masses of data, with virtually no human intervention.
So having analysed some of the major advantages of machine learning, let's summarise.
In a few words
For years, uncertainty in decision making has been a huge problem for businesses.
The solution then comes through machine learning, which now bases decision making on a substantial amount of data and especially patterns, which strengthen the decision being made and significantly reduce its uncertainty.
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