Welcome to this interesting blog about Artificial Intelligence (AI) and today we are going to talk about two of the most commonly used terms in AI as well as two of the most popular sub-fields of AI.
Yes, we are going to talk about Generative AI and Predictive AI and help you understand what they mean and what are the differences between these two categories of AI.
We will differentiate and define them and it is going to be quite an interesting journey for all you AI lovers out there.
So, let’s begin this journey by understanding the market presence of AI.
The Artificial Intelligence (AI) market has seen one of the highest growth rates and is expected to touch a CAGR of 35.7% by 2030.
This is largely due to Generative AI as well as Predictive AI that are making strides in influential markets such as the financial as well as healthcare and hospitality markets.
Among these, Generative AI is expected to grow by the billions thereby influencing everything from creativity to business.
The Predictive AI market is not far behind with this sub-field of AI being particularly important in markets that need prediction such as the financial markets.
So, let us understand what Generative AI and Predictive AI actually mean.
What Is Generative AI?
Generative AI is a specially trained and designed model of AI that has the ability to produce responses from text prompts to generate content such as audio and video and most importantly images and even text and software code.
Generative AI can be categorised into a class of algorithms that are primarily designed to generate new and original data and this generation is only possible through unsupervised learning as the model is trained in large data sets and mimics these datasets to produce results.
Generative AI is what you get when you provide it with a prompt and it creates content for you with the help of techniques like Variational Autoencoders (VAEs) and Generative Adversarial Networks (GANs).
Generative AI also utilises auto-regressive models and this is primarily to understand existing patterns from the training data in order to create new distributions in patterns.
Generative is quite popular in the mainstream in the form of tools such as ChatGPT by OpenAI which uses Generative AI to help produce results for users.
What is Predictive AI?
Predictive AI has a different purpose from Generative AI because Predictive AI is mostly used for forecasting future outcomes with the help of the existing data that is presented to these models.
This subfield of AI utilises statistical analysis with the help of ML in order to identify patterns from historical data and make predictions of upcoming events.
Predictive AI is also excellent when it comes to identifying patterns in order to predict future trends in the form of things like market trends and even future events. This can very well be utilised for business purposes.
This is where we can see the difference between the types of duties they have because Generative AI primarily is about creating new data that it has learned from existing data and Predictive AI is all about statistical analysis and forecasting.
Difference Between Generative AI vs Predictive AI
In order to understand the difference between Generative AI and Predictive AI we need to look at all the different kinds of applications of these subfields of AI.
When we look at the applications it will give us a better understanding of how different they are in terms of their use case in the real world.
Applications of Generative AI
Content Generation
Content creation is one of the most powerful use cases of Generative AI because you can utilise Gen AI to create everything from text to images as well as videos and music.
This is so popular in fact that there are many services out there specifically created for the generation of text and images as well as videos.
These are being used by every content creator and every kind of business in order to produce content for social media.
The best thing about Gen AI is that it is able to produce content with high levels of accuracy and it is only going to get better with time.
However, content generation is not just limited to images and videos or even music because generative AI is being utilised for 3D modelling tasks as well and this industry is picking up pace.
Healthcare
Generative AI is being used by the healthcare industry for everything from drug discovery to the identification of disease patterns to the creation of personalized treatments.
Gen AI is already seeing a lot of use in the healthcare industry and is being used to produce highly accurate molecular structures so that these simulations can be then tested with new kinds of drugs.
We are also seeing Generative AI being used to detect several kinds of cancerous tissue growth even before these can be detected with traditional methods.
This speaks volumes of the potential of this industry.
Virtual Assistants
If you have used Chat GPT then you understand how incredible it can be to utilise these virtual assistants and chatbots for daily tasks.
Generative AI is being used to create powerful AI models for virtual assistants that can help with everything from customer service to personalised response generating that can be beneficial for every kind of productivity.
This is one of the most mainstream adaptations of Generative AI and can be seen in virtual assistants like Alexa as well as Google Gemini and Chat GPT.
Simulation in Gaming
The gaming industry is heavily utilising Generative AI in order to drive their non-playable characters (NPCs) and how they interact with the user.
This has been a marvellous progression as Generative AI is perfectly suited to help game developers provide human-like responses and make games very realistic.
In addition to that Generative AI is being utilised in game designing in the form of environment creation as well as asset generation with accuracy that is very life-like.
Art and Fashion
Art and fashion are some of the industries that can heavily utilise Generative AI because when it comes to art, you need to imagine new forms and new designs as well as new colour combinations.
That is also the case with fashion and fashion is a little bit more complex because it is about experimentation with new kinds of fabrics and new textures.
Generative AI is perfectly suited for both of these applications as it is already excellent at art and is being used heavily by digital artists. Some of these artists are also fashion designers and they are slowly but surely increasing the use of Generative AI in their work.
We can even see Generative AI trickling down into the consumer space in the fashion industry as fashion giants are utilising AI to help their consumers pick out outfits and much more.
Software Development
A majority of the average software development process is about repetitive manual coding which can take up a lot of time for software developers.
That is why Generative AI is being used in code generation where it is being utilised to generate snippets and templates that the developers can then utilise to speed up their development process.
Generative AI is also excellent at bug detection as it is being used to identify conflicting patterns so that bugs can be detected better.
Applications of Predictive AI?
Finance Forecasting
One of the most popular use cases of Predictive AI is in the area of finance forecasting and this can be in the form of stock market predictions.
Predictive AI can also be utilised in the prediction of the behaviour of different markets and the forecast of market trends based on historical data.
This is being used by governments and financial institutions as well as independent stock traders in order to make changes to their decision-making.
Predictive AI is also being utilised in applications of sales forecasting in order to predict revenue and analyse historical sales data and factor in market conditions and customer behaviour in order to estimate sales figures better.
Risk Management
The finance world is riddled with risks which can be in the form of credit risks, fraud risks and other forms of risk that can harm financial institutions.
This is where a predictive model is able to take into consideration historical data and a million other factors and predict whether an investment or a credit is going to result in a healthy transaction profit or a default.
That is where Predictive AI can work wonders as it is able to flag off potential risky credit requests and understand fraudulent activities with ease.
Behaviour Analysis
Understanding the behaviour of clients and understanding client needs can result in is success story or a failure in the finance world.
That is exactly where Predictive AI can come in as it can do excellent churn prediction so that financial institutions can change their approach to dealing with customers in order to better serve their needs.
Predictive AI is also excellent when it comes to taking into consideration behaviour analysis in order to bring out personalization recommendations for each and every client.
This is not possible with any traditional algorithm or system because only Predictive AI can factor in thousands of customer data points in order to forecast their preferences better.
This can even be utilised for better finance marketing.
Inventory Management
Inventory management as well as supply chain management and optimisation are an area where predictive AI is playing an important role.
Forecasting demand when it comes to inventory management as well as the optimisation of a supply chain is where Predictive AI can shine because it is able to factor in market conditions and even traffic conditions in order to come up with the best kind of inventory suggestions.
Predictive AI is able to also take into consideration inefficiencies of present inventory management in order to optimise the situation of manual inventory management systems and this can save companies a lot of resources.
Disease Prediction
Healthcare diagnosis is an area where Predictive AI is making legendary leaps as Predictive AI is being utilised for better disease prediction.
This is possible only because Predictive AI can take into consideration the historical patient data and medical history and also factor in everything from the dietary data as well as the genetic data of the patient and predict diseases.
This kind of technology is being utilised to predict everything from heart diseases to fatal diseases like cancer and is paving the way for the most advanced form of early-direction systems.
Predictive Maintenance
Predictive AI is being used to predict machinery failure much before there are any signs of failure visible by any traditional methods.
This is being done with the help of the analysis of historical sensor data in order to identify signs of wear. Predictive AI is thereby being used by companies to schedule maintenance more accurately and it is saving a lot of time and resources for companies.
This has the potential to become mainstream when it comes to quality control thereby improving the safety of the workspace no matter the industry.
Energy Management
Industries need energy to operate and sometimes energy utilisation is not really optimised and that is where Predictive AI comes into the picture.
Predictive AI is being used to analyse historical data in order to identify potential leaks in energy efficiency and it is even being used to chart more efficient power grids that are able to supply energy without any losses.
Weather Forecasting
And finally, we come to weather forecasting and this is where Predictive AI can work wonders because the existing models are simply not smart enough to factor in millions of variables that are required for the accurate analysis of meteorological data.
However Predictive AI can factor in every data point whether it is temperature, wind speed or even historical data and make very accurate weather predictions.
This can be then utilised for a larger climate modelling system which is even able to predict natural disasters more accurately and has the potential to save lives on the ground.
Climate modelling can further be used to map climate change with far greater accuracy and might just even save our planet in the future.
We hope this blog helps you understand what is Generative AI and Predictive AI and how both are being used to bring real changes into the world.
If you are interested in integrating Generative AI and Predictive AI into your business operations thereby improving efficiency and ensuring better decision-making through accurate forecasting, we are here for you.
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We are among the pioneers to utilise Generative AI as well as Predictive AI for custom use cases for our clients and we would love to do the same for you.
In addition to that, we also provide a whole host of other IT solutions and we welcome you to visit our website and check out everything we do.
