AI, Big Data, and Data Analytics

big data & data analytics

e.g. Netflix back then: gut feelings, not enough data today: gut feelings, too much data need to turn the data captured into useful information i.e. crack the code - without analyzing the data, all we have are data points that don't mean all that much e.g. Hopper - what people are asking for precedes airlines adjusting their rates. This is called a leading indicator (forecasting) e.g. finance - financial services use data analytics to make better investment decisions with more consistent returns - algorithmic trading: computer executes financial trades at speeds and frequencies that a human trader cannot and at the best possible prices and time which reduces manual errors; executed solely on financial models and data - the algorithms leverage historical data to backtest strategies; less risky investments - created with structured and unstructured data; incorporate real-time news, social media, stock data, etc.

2 most common categories of AI

expert system: computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems e.g. Medical Expert Systems e.g. Mortgages: granting is subject to numerous regulations; mortgage applications before AI- application is completed and processed at the branch level, sent to a central office for checking, sent back to the branch (often with request for more information from the applicant, delays!!); mortgage applications with expert systems- provides branch employees with tools permitting them to process an application correctly, even if a bank employee does not have an exact knowledge of the screening procedure neural network: attempts to emulate the way the human brain works e.g. credit card fraud detection e.g. airline ticket price: Hopper

Artificial intelligence (AI)

simulates human intelligence such as the ability to reason and learn

main classes of data

structured: pre-defined data models e.g. dates, phone numbers, credit card numbers, SSNs, Product names/numbers unstructured e.g. social media, weather channel