MACHINE LEARNING &

ARTIFICIAL
INTELLIGENCE
ARTIFICIAL INTELLIGENCE
Artificial intelligence
  AI is the branch of computer science that aims to replicate or simulate human
intelligence in machines.

 Data analytics and artificial intelligence use data science and advanced
computing algorithms to automate, optimize and find value where the human
eye will never see it

https://www.youtube.com/watch?v=D5VN56jQMWM
AI in Data Analytics
“People used to say that information is power but that is no longer the case.
It’s the analysis of the data, use of the data, digging into it — that is the
power”

Data analytics is not something new. Its been used by firms since a very long
time. In fact, the global market for data analytics has been predicted to exhibit
a CAGR of 30.08% between 2017–2023 to surpass a valuation of USD 77.64
billion. Mainly due to increased production and usage of data and the ever
increasing ability to make use of advanced statistical algorithms and machine
learning techniques to create and exhibit valuable results for businesses. Data
Analytics and business intelligence already require a sophisticated command
of information technology, mathematics, and statistics. AI and machine
learning algorithms have the capability to automate and optimize analytics
processes, which in turn creates transformative business insights.
• Most people adopting AI and data analytics use it for customer interaction.
Applying AI algorithms to analytics insights from chatbots, e-commerce
platforms, and other sources can elevate the customer experience. These
customer analytics initiatives can lay the groundwork for using AI and
analytics across the business.
• Future updates on platforms such ERP & CRM will lead to increased AI and
machine learning capability in 2019, built around the principle of decision
automation. Experts predict rapid growth in decision automation via robotic
process operation or RPA. With RPA, changes can be implemented on business
processes as needed without human intervention. Robotic process operations
can produce costs savings of about 2 percent now, but it will be approximately
20 percent in one to two years, according to industry experts.
• Example: XYZ's credit card loyalty program could utilize machine learning to
determine that 1,000 of its male members live near a golf course, have not
golfed before but enjoy sports. It also determines that many women members
in the loyalty program are equally likely to be interested. It also sets
parameters for the golf season in certain climate zones. It further determines a
micro segment to offer Saturday afternoon to men and women without young
children, who can more likely take the time on a Saturday.
Examples of Firms Using AI in Data Analytics
• HubSpot uses Kemvi’s DeepGraph machine learning and natural language
processing technology in its internal content management system to better
identify trigger events and pitch prospective clients and serve existing
customers
• Twitter uses machine learning technology and AI to evaluate tweets in real
time and score them using various metrics to display tweets that have the
potential to drive the most engagement
• Google is researching nearly every aspect of machine learning and is making
developments in “classical algorithms” and other applications like natural
language processing, speech translation, and search ranking and prediction
systems
• Edgecase uses machine learning to analyze customer behaviors and actions to
provide a better experience for shoppers.
Artificial intelligence and data analytics

• Data Analytics and business intelligence already require a

sophisticated command of information technology, mathematics,
and statistics.
• Most people adopting AI and data analytics use it for customer
interaction. Applying AI algorithms to analytics insights from
chatbots, e-commerce platforms, and other sources can elevate
the customer experience. These customer analytics initiatives
can lay the groundwork for using AI and analytics across the
business.

https://www.youtube.com/watch?v=wTbrk0suwbg
Examples of artificial intelligence

Smart assistants (like Siri and Alexa)

 Drone robots
Spam filters on email
Social media monitoring tools for dangerous content or false news
Song or TV show recommendations from Spotify and Netflix
Self driving cars
MACHINE LEARNING
Machine Learning

• The primary aim is to allow the computers learn automatically without human

intervention or assistance and adjust actions accordingly.
• The process of learning begins with observations or data, such as examples, direct experience,
or instruction, in order to look for patterns in data and make better decisions in the future
based on the examples that we provide. 
• It generally delivers faster, more accurate results in order to identify profitable opportunities
or dangerous risks, it may also require additional time and resources to train it properly.
Combining machine learning with AI and cognitive technologies can make it even more
effective in processing large volumes of information.
Supervised Unsupervised Reinforcement
• Problems where we want to • Problems where our data does • Includes a specific task or
make predictions based on a not have a set of defined set of goal that the system must
set of examples categories, but instead, we are complete.
looking for the machine • Throughout the process, it
learning algorithms to help us receives feedback in order to
organize the data learn the desired behaviours.
Applications

1. Customer relationship management (CRM) - Using a combination of regression

analysis and clustering techniques, CRM tools can separate company’s customers
into cohorts based on their demographics and where they are in the customer life-
cycle, allowing you to target your marketing efforts in ways that are most likely to
be effective.
2. Detecting outliers and fraud - Where most predictive analytics applications look
for underlying patterns, anomaly detection looks for items that stick out. Financial
services have been using it to detect fraud for years, but the same statistical
techniques are useful for other applications as well, including medical and
pharmaceutical research.
Applications

3. Anticipating demand - An important but challenging task for every business is

predicting demand for new products and services. Earlier, these kinds of predictions
were made using time-series data to make general forecasts, but now retailers are
able to anonymize search data to predict sales of a given product down to the
regional level.
4. Improving time-to-hire and retention - Businesses can use data from the human
resource systems to optimize their hiring process and identify successful candidates
who might be overlooked by human screeners. Also, some departments are use a mix
of performance data and personality profiles to identify when employees are likely to
leave or anticipate potential conflicts so that they can be proactively resolved.
Applications

5. Improving processes - For manufacturers, energy producers and other businesses

that rely on complex and sensitive machinery, predictive analytics using historical
performance data and real-time sensor data, these predictive models can improve
performance and reduce downtime while helping to avert the kinds of major work
stoppages that can occur when major systems unexpectedly fail.
6. Building recommendation engines - Personalized recommendations are relied on
by streaming services, online retailers, dating services and others to increase user
loyalty and engagement. Collaborative filtering techniques use a combination of past
behavior and similarity to other users to produce recommendations, while content
based filtering assigns characteristics to items and recommends latest items based on
their similarity to past items.
Case Study - Dell
• Since data is a core part of Dell’s hard drive, their marketing team needed a data-driven
solution that supercharges response rates and displays why certain words and phrases
outperform others.
• Dell partnered with Persado, the world’s leading technology in AI and ML generated
marketing creative, to harness the power of words in their email channel and garner data-
driven analytics for each of their key audiences.
• As a result of this partnership, Dell noticed a 50% average increase in CTR and a 46%
average increase in responses from customers. It also generated a 22% average
increase in page visits and a 77% average increase in add-to-carts.
• Excited by their success and learnings with email, Dell was eager to elevate their entire
marketing platform with Persado. Dell now uses machine learning to improve the
marketing copy of their promotional and lifecycle emails, Facebook ads, display banners,
direct mail, and even radio content.
AUGMENTED REALITY
Augmented Reality

• Augmented reality is the technology that expands our physical world, adding layers
of digital information onto it. Unlike Virtual Reality (VR), AR does not create the
whole artificial environments to replace real with a virtual one. AR appears in direct
view of an existing environment and adds sounds, videos, graphics to it.
• By some estimates, the total value of the AR market is expected to reach $100 billion
by 2020.
Practical Applications

• Emergency management/search and rescue

• Social interaction
• Gaming
• Design & Modelling
• Healthcare planning, practice and education
• Flight training
• Military
• Navigation
• Broadcast and live events
Practical Applications
• Tourism and sightseeing
• Translation
• Music
• Snapchat
• Retail
• Advertising & Promotion
• Business Logistics
• Field Service/ Maintenance & Repair
Case Studies

• PepsiCo pranked commuting Londoners with an AR-enabled bus stop display. Travelers were shown a prowling
tiger, a meteor crashing, and an alien tentacle grabbing people off the street.
• The United States Army is giving soldiers improved situational awareness with the use of AR technology. The
tech, called “Tactical Augmented Reality” (TAR), is essentially an eyepiece that helps soldiers precisely locate
their positions as well as the locations of others—both friend and foe.
• Acura live-streamed an AR race featuring its 2018 TLX sedan. From behind the wheel of Acura’s newest
model, four influencers competed in the “What a Race” AR experience for the fastest overall time during three-
lap individual runs.
• Back in 2015, Disney Research developed technology that makes coloring book characters 3D as they are being
colored.
• L’Oréal partnered with Perfect Corp. to integrate the brand’s makeup collections into the YouCam Makeup app,
a move that is challenging the way consumers have traditionally discovered, tried, and bought beauty products.
Data Mining
The practice of examining large pre-existing databases in order to generate new information.
• The process of extracting information to identify patterns, trends, and useful data that would allow the
business to take the data-driven decision from huge sets of data is called Data Mining.
• In other words, we can say that Data Mining is the process of investigating hidden patterns of information to
various perspectives for categorization into useful data, which is collected and assembled in particular areas
such as data warehouses, efficient analysis, data mining algorithm, helping decision making and other data
requirement to eventually cost-cutting and generating revenue.
• Data mining is the act of automatically searching for large stores of information to find trends and patterns
that go beyond simple analysis procedures. Data mining utilizes complex mathematical algorithms for data
segments and evaluates the probability of future events. Data Mining is also called Knowledge Discovery of
Data (KDD).
• Data Mining is a process used by organizations to extract specific data from huge databases to solve business
problems. It primarily turns raw data into useful information.
Applications:
1. Web usage mining is the application of data mining techniques to
discover usage patterns from Web data, in order to understand and
better serve the needs of Web-based applications. 
2. Market basket analysis is a modelling technique based upon a
theory that if you buy a certain group of items you are more likely to
buy another group of items. This technique may allow the retailer to
understand the purchase behavior of a buyer. This information may
help the retailer to know the buyer’s needs and change the store’s
layout accordingly. 
3) Fraud Detection: Data mining aids in providing
meaningful patterns and turning data into information.
A perfect fraud detection system should protect
information of all the users. A supervised method
includes collection of sample records. These records are
classified fraudulent or non-fraudulent. A model is built
using this data and the algorithm is made to identify
whether the record is fraudulent or not.
4) Customer Segmentation: Data mining aids in
aligning the customers into a distinct segment and can
tailor the needs according to the customers. Data
mining allows to find a segment of customers based on
vulnerability and the business could offer them with
special offers and enhance satisfaction.
Data Warehouse

A Data Warehouse Is A Large Collection Of Business Data Used To Help An Organization Make Decisions. 

It Was Developed To Help Transition Data From Merely Powering Operations To Fueling Decision Support Systems.

The Data Typically Originates In Multiple Systems, Then It Is Moved Into The Data Warehouse For Long-term Storage
And Analysis.

Storage Is Structured Such That Users From Many Divisions Or Departments Within An Organization Can Access And
Analyze The Data According To Their Needs.
Who needs Data warehouse?

Users who use customized,

It is also used by the people
Decision makers who rely on complex processes to obtain
who want simple technology
mass amount of data information from multiple
to access the data
data sources.

If the user wants fast

It also essential for those performance on a huge Data warehouse is a first
people who want a amount of data which is a step If you want to discover
systematic approach for necessity for reports, grids or 'hidden patterns' of data-
making decisions. charts, then Data warehouse flows and groupings.
proves useful.
Example: Retail chains
Retail chains use Data warehousing for:

DISTRIBUTION AND HELPS TO TRACK CUSTOMER BUYING PROMOTIONS USED FOR

MARKETING ITEMS PATTERN DETERMINING
PRICING POLICY
Difference Between Database And Data Warehouse
Oracle Database Is A Proprietary Multi- A Relational Database Management System It Is A Database Commonly Used For
model Database Management System – RDBMS Running Online Transaction
Produced And Marketed By Oracle Processing (OLTP), Data Warehousing (DW)
Corporation. And Mixed (OLTP & DW) Database
Workloads.