analytics
What It Means
Analytics is using data and mathematical methods to understand what happened, predict what might happen next, and recommend what actions to take. It's essentially turning raw data into insights that help businesses make smarter decisions by looking backward at patterns, forward at trends, and providing specific guidance on next steps.
Why Chief AI Officers Care
Analytics forms the foundation of most AI initiatives - you need solid analytics capabilities before implementing advanced AI systems. CAIOs must ensure their organizations have mature analytics practices to generate reliable training data, validate AI model performance, and demonstrate measurable business value from AI investments to executive leadership.
Real-World Example
A retail CAIO uses descriptive analytics to analyze last year's sales patterns, predictive analytics to forecast which products will be popular next quarter based on seasonal trends and market data, and prescriptive analytics to recommend optimal inventory levels and pricing strategies for each store location.
Common Confusion
Many people think analytics and AI are the same thing, but analytics is actually a prerequisite for AI - you need strong analytical foundations before you can successfully implement machine learning or other advanced AI capabilities.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, analytics transforms patient data, operational metrics, and clinical outcomes into actionable insights fo...
Finance: In finance, analytics drives critical functions including risk assessment, fraud detection, regulatory reporting, and in...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"Analytics is the application of scientific & mathematical methods to the study & analysis of problems involving complex systems. There are three distinct types of analytics: * Descriptive Analytics gives insight into past events, using historical data. * Predictive Analytics provides insight on what will happen in the future. * Prescriptive Analytics helps with decision making by providing actionable advice."Source: informs_analytics_2022
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