Benefits of Machine Learning in Business
Last Updated on August 17, 2023 by Owen McGab Enaohwo
Image Source: Unsplash
Machine learning (ML) is a branch of artificial intelligence (AI) and computer science, a multifunctional tool for analyzing large amounts of data and predicting outcomes. In business, ML allows owners to automate workflows. Thus, software for contract analysis analyzes documents uploaded to it according to a preset algorithm. Such a solution can identify weaknesses and increase sales efficiency quickly.
The main advantage of ML is its adaptability which distinguishes it from other analytical algorithms. ML-based software is constantly learning, and the accuracy of the result is directly dependent on the amount of data loaded into it. Such technology can create complex analytics, financial and other predictions using machine learning algorithms.
Machine learning is an application of AI that enables systems to identify many similar situations. Based on them, logic chains are formed, and, as a result, new, more profitable solutions for work tasks are created. Such technology is a way to reduce miscalculations to zero.
The main advantages of ML are as follows:
- Ability to adapt quickly to changing market conditions;
- Optimization of work processes;
- Easy identification of trends and patterns in consumer behavior;
- Most accurate sales forecasts;
- No need for manual data input.
As mentioned earlier, machine learning algorithms are typically supplemented with AI elements. Successful examples of use include Azure Machine Learning or Amazon SageMaker. The way they work is the cloud computing capabilities with which machine learning algorithms are adapted to any business needs.
Machine learning algorithms are successfully used in all business areas, including industrial applications, healthcare, agriculture, cybersecurity, the stock market, and others. ML is good for creating scenarios with constantly changing data and robotic automation.
ML is one of the most promising technology investments out there that will surely pay off as the efficiency and growth of the business increase over time.
Below we will look at the main benefits of ML for businesses.
Machine learning is a way to reduce the cost optimization that many tasks require. Since an ML-based software solution is capable of self-learning, it can quickly analyze large amounts of data and detect patterns that are invisible to humans.
The business owner does not need to constantly monitor the project at each stage, which reduces the number of miscalculations and increases productivity.
Machine learning algorithms are constantly improving. Due to this, they can be used wherever it’s necessary to analyze large amounts of data and identify current trends. For example, online stores and corporate websites need this technology to analyze customer behavior or tools such as text to speech AI applications. The results can be effectively used for marketing purposes.
Thanks to the ability of an ML-based software tool to automatically improve upon itself, the accuracy of information processing and the efficiency of predictions increase. Once a certain model of action is learned, ML-based software solutions can improve their algorithms without human intervention.
For example, antivirus programs and spam filters are trained to identify and disarm new threats.
Using machine learning algorithms, business analysts can transform information into new insights and actionable knowledge. This information is integrated into regular task management processes. Thus, it’s possible to analyze the market situation and its needs in real-time.
Machine learning helps companies promote their products effectively. This requires accurate sales forecasts, automated work with documentation, and customer behavior analysis. In the financial sector, such technology is needed for the high accuracy of rules and models. Machine learning algorithms can analyze customer behavior, automatically recognize images, and make maintenance predictions.
In retail, such programs gather information on user preferences, popular products, and other important data. Based on this, the entrepreneur can make the most effective decision for his/her company.
The main problems with financial documentation are duplication of data and inaccuracy of data entry. This problem can be easily solved with predictive modeling and software based on machine learning. Thus, automated data entry saves time because employees do not have to perform these operations manually.
In finance, machine learning is used to solve problems of varying complexity and help with the following processes:
- Cost forecasting and analysis;
- Anomaly detection and analysis.
Timely and accurate forecasting makes a company profitable. Elements of machine learning is used to automate repetitive tasks like accounting processes or automate complex processes, e.g., algorithmic trading, fraud detection, portfolio management, loan underwriting, etc.
With the help of this technology, it is also possible to perform banking IT modernization so that outdated financial systems do not lead to a crisis.
Automated collection and analysis of important factors like customer habits simplify management decisions. These can be:
- Accurate inventory management;
- Checkout optimization;
- High logistics efficiency;
- Integration with various marketing platforms.
With the help of such algorithms, even hidden user behavior patterns can be analyzed.
Marketers can use ML technology to receive and analyze relevant information. The result is the maximum engagement of the target audience and quick customer feedback.
In this case, the company using ML-based solutions can:
- Work effectively with big data;
- Create predictive analytics of user behavior;
- Ensure customer loyalty;
- Increase the conversion rate;
- Increase competitiveness in the market;
- Demonstrate expert knowledge.
Moreover, thanks to ML, entrepreneurs can make real-time recommendations for behavioral adjustments to customers if necessary. And quality feedback increases customer loyalty and improves sales.
In enterprises, elements of machine learning can be used to automate the most complex processes. These include:
- Preventive maintenance;
- Innovative research (including robotics);
- Minimum downtime in production;
- Creation of a management system;
- Identification of safety threats;
- Quality control.
Combined with AI, ML is also used to create industrial robots.
Spam not only annoys users but often reduces computer performance. ML-based spam filtering systems use a sophisticated neural network in their work and can detect junk mail or even phishing messages.
For example, Google uses AI and TensorFlow technology for its Gmail spam filters. With elements of machine learning, traditional options work more accurately. Spam filtering and protection software solutions constantly find new patterns to identify emails without useful information.
Web application developers can make them more resistant to these types of threats:
- Identity theft by users;
- Phishing attacks;
- Data leakage;
- Blocking ransomware.
Machine learning is needed to continuously monitor possible threats, assessing the vulnerability of this or that application. It’s most effective when combined with existing security teams. Such software tools can help make accurate predictions about future attack vectors. This will require an analysis of previous threats before the application is used in a production environment.
Machine learning can be used to enhance cognitive services, i.e., a set of machine learning algorithms designed by Microsoft to solve problems in the AI sphere. These are automatic recognition of images, speech, and texts.
Automatic recognition of the user’s native language is handy for companies with customers from different countries. Natural speech analysis systems help computer systems understand human speech.
Here are a few examples of such applications:
- Smartphone virtual keyboards (text recognition elements anticipate and prompt the user for the next words in a sentence);
- Accessible applications on PCs, smartphones, and other devices (they use speech synthesis algorithms);
- Popular voice assistants, e.g., Siri and Google Assistant (can perform simple commands, convert human speech into text, control elements of smart home operating systems, and much more);
- Various machine translation systems (working based on statistical language models).
Product lines of applications utilize ML technologies for more natural and understandable interfaces. Cognitive technologies are also used to scale, improve, and automate other business processes.
Automated facial recognition systems can be used in a variety of business applications as follows:
- Remote identification for financial company customers;
- Contactless identification of people in logistics;
- Biometric verification of bank customers;
- Detection of potential fraudsters and unscrupulous clients in retail trade;
- People are counting.
The advantage of using such systems is the rapid recognition of faces. Memorizing a new person often takes less than 1 minute. Software with elements of machine learning is compatible with most security systems, including industrial ones. Neural network software makes facial recognition as accurate as possible.
Google, Pinterest, and Facebook use automated image recognition. For example, Google cloud vision, among its most popular services, offers a comparison of image APIs. The technology is even used in medicine.
In radiology, platforms with elements of machine learning are actively used to analyze X-rays accurately. The system automatically detects problems, marking the findings as requiring extra attention. This makes the physician’s job easier since there’s no need to analyze hundreds of images manually.
Even more significantly, AI enhancements like image recognition can be integrated with all sorts of apps thanks to publicly available APIs. As this selection of AI APIs demonstrates, developers don’t need to build their own machine learning tools from scratch, but can leverage existing solutions to enhance their own software products. This is why the tech is being adopted so rapidly.
Elements of machine learning can be used to increase the loyalty of web users. Here are a few examples of how such a technology can be used:
- Search engine algorithms (machine learning elements analyze human behavior according to many parameters. Thus, if a user spends a lot of time on a particular website, Google can raise that page higher for similar queries in the future);
- Chatbots (a “trained” machine learning model provides the user with automatic responses. To make them as accurate as possible, data from previously entered human information is used);
- Customer retention (machine learning helps identify customers who haven’t used the service for a long time and offer them more favorable terms. For example, in banking, if customers haven’t used their credit cards for a long time, the system will send them emails with more favorable credit terms).
The technology is used by popular streaming platforms such as Netflix. Machine learning algorithms constantly analyze what kind of movies or music is best for each user. Based on such data, the service then generates recommendations for content that might be appealing to users. Personalized advertising is also created using the same principle.
Machine learning technology is a technique for automatically collecting and analyzing large amounts of data. With its help, companies can create effective models for business scaling, timely detection, and addressing various problems. Among other things, machine learning helps extract meaningful information from a large amount of raw data.
The benefits of ML and AI include the versatility of application, the ability to adjust flexibly to market changes, and integration with other technologies. They can be used in almost any field of activity, from agriculture and automation of production processes to analysis of financial market trends.
Platforms that use machine learning models help businesses ensure their growth, and customer loyalty, find promising revenue sources and solve problems promptly.
Roy Emmerson is a technology enthusiast, a loving father of twins, a programmer in a custom software company, a co-founder of TechTimes.com, and a marketing specialist of Itrate.co