Generative AI’s Impact on Data Analytics Transforming Insights and Intelligence.

14 November, 2023 Sania Kanwal
Generative AI's Impact on Data Analytics: Transforming Insights and Intelligence.

Generative AI’s applications in the data are not just about processing and analyzing large amounts of data and driving intelligent insights from the data, it’s about generating new perspectives, automating tasks, and enhancing the decision-making process.

From text mining to PDF data extraction and natural language processing (NLP), generative AI and large language models are becoming the ultimate resource to lower the barriers to foster a more collaborative approach to understanding and harnessing the full potential of data, ultimately empowering organizations to achieve business intelligence.

A recent research report by Alteryx highlighted AI-driven insights; it said that 89% of companies are currently using generative AI for better insights. 

By 2026, more than 80% of enterprises will start using generative artificial intelligence and (GenAI) application programming interfaces (APIs) up from less than 5% in 2023, according to Gartner. 

In this blog, we will talk about the impact of generative AI on data analytics and how to start using generative AI for better data insights.

 Generative AI’s Impact on the Data Analytics

  • Data augmentation:

Generative AI models augment data sets that closely resemble real-world data.  

This synthetic data is further used to train machine learning models more effectively, improve model performance, and reduce bias. Additionally, generative AI can find missing data points, ensuring a more complete and accurate representation of the data landscape.

A generative model Google AI’s VAE-GAN is ideal for data augmentation. It generates high-quality images and text. 

  • Anomaly Detection:

Generative AI models have the ability to effectively identify anomalies in the data. This capability of generative AI plays an important role in fraud detection, network security, and quality control, as it helps to pinpoint potential problems and prevent costly errors or disruptions.

A report by Forrester found that AI-powered anomaly detection can save companies up to $30 million per year in fraud prevention.

An open-source anomaly detection DAD (Deep Anomaly Detection) framework uses generative AI models to identify anomalies in various data streams.

  • Insights Generation and Predictive Analytics:

Generative AI models efficiently extract useful hidden insights and patterns from large and complex datasets, these insights are very helpful in providing a deeper understanding of customer behavior, market trends, and operational patterns. A deeper understanding of the data helps in a predictive analysis that forecasts future outcomes, optimizes business strategies, and helps in informed decisions.

A generative model Google AI’s Deep Forecasting, forecasts time series data with high accuracy, enabling businesses to anticipate future trends and make proactive decisions.

  • Personalized Recommendations and Customer Experience:

Considering customer preferences and behaviors, Generative AI models can suggest recommendations and product suggestions. This generative model is very helpful in enhancing the customer experience, increasing customer satisfaction, and driving sales growth.

Amazon uses an AI-powered system that powers Amazon’s personalized product recommendations, ultimately driving significant revenue growth for the company.

  • AI-Powered Automation and Decision-Making:

Generative AI has the potential to automate various repetitive tasks, such as data preparation and feature engineering, freeing up data analysts to focus on more complex and Strategic work. Moreover, it assists in decision-making processes by providing probabilistic forecasts and risk assessments.

A study by PwC refers that AI can improve decision-making accuracy by up to 20%. Another study by McKinsey & Company mentioned that AI can reduce the time it takes to make decisions by up to 50%.

AutoML is an automated machine learning framework that utilizes generative AI to optimize model parameters and hyperparameters, reducing the time and expertise required for machine learning development.

Generative AI Tools And Models for Data Analytics:

  • Bard:

Bard, a product of Google AI that can be used to perform multiple tasks in data analytics. It’s a large language model that can generate synthetic data, create new features from data, and efficiently detect anomalies in the data. 

  • GPT-3: 

GPT-3, is a more mature model as compared to Bard. It is also a large language model from OpenAI that offers multiple solutions in data analytics such as its can be used to detect anomalies in the data, generating synthetic data, and understand human language for data-driven insights.

  • DALL-E 3:

DALL-E 3 is a generative AI model from OpenAI that can generate images from text descriptions. With the text prompts, DALL-E 3 can generate synthetic images of data, 

  • Imagen: 

Imagen is known for more realistic and detailed images as compared to DALL-E 3. It is a generative AI model from Google AI that can generate realistic and detailed images from text descriptions. 

  • Parti:

Parti is another generative AI model that can be helpful in data analytics. Parti can be used to generate synthetic code for data analytics tasks, such as data preprocessing and model training.

    How To Start Using Generative AI For Better Data Insights?

    • Choose The Right Generative AI Tools And Platforms: 

    Explore various generative AI tools and platforms that align with your specific needs and business goals. Consider factors such as ease of use, model capabilities, integration with existing tools, and pricing.

    • Prepare And Clean Your Data: 

    Ensure the quality and consistency of your data before feeding it into generative AI models. This may involve data cleaning, missing value imputation, and data normalization. For this, you can also use AI tools.

    • Take Into Account The Challenges Of Generative AI:

    Before integrating or starting to make generative AI part of your data analytics strategy, make sure you have proactively dealt with the possible challenges that might arise, such as security and accuracy concerns. So it’s very important for an organization to address these challenges before taking the next step.

    • Make Generative Ai Part Of Your Data Strategy:

    Once you choose the right generative AI tools according to your business needs, make sure you make these tools part of your data strategy. 

    • Train And Fine-Tune Your Generative AI Models: 

    Train your chosen generative AI models using your prepared data. Fine-tune the model parameters and hyperparameters to achieve optimal performance in your specific use case.

    Final Thought

    The positive impacts of generative AI have empowered businesses to unlock deeper insights, make informed decisions, and gain a competitive edge. To ensure the successful integration of generative AI into your organization, it is crucial to select the right tools and methods and collaborate with expert service providers. 

    Contact BITLogix to harness the transformative power of generative AI and elevate your data analytics to new heights. Our expertise will guide you through the entire process, ensuring that you reap the full benefits of this revolutionary technology. Our expert will also help you optimize the impact of generative AI on your business intelligence capabilities.