A prediction is a statement made about the future based on reasoning and analysis of already collected historical data. In the context of machine learning, prediction refers to the output of an algorithm. Once it has trained on historical data, it can apply what it has learned to new data and provide a prediction of a particular outcome.
Prediction is one of the most common goals of machine learning, as it can help businesses predict variables that are hidden in the data. This can also be called classification and is trained by utilizing historical data that will help the model learn.
The predictions can refer to insights such as the next best action for a business to take or the likelihood that a customer will churn, but not always. It can also mean things like tagging a transaction as fraudulent – the purchase has already occurred, but the automated machine learning model is predicting whether it was fraudulent.
Predictions are the reason why machine learning models are so useful to businesses. They allow companies to make highly accurate assumptions about the likelihood of an outcome, over a wide variety of topics like customer churn, fraudulent activity, and even what the next step should be in a marketing campaign.
Having these insights available allows organizations to make data-driven, strategic decisions that can result in many actionable benefits. For instance, if a model predicts that a transaction is likely fraudulent, the organization can move to take quick action against it. Similarly, if a model predicts that a customer is about to churn, your customer service team can reach out to them to try and prevent it.
When you work with LogicPlum, you are working with the top data models in the industry. Our platform allows you to take essential data from across your organization to build machine learning models – and these models can arm you with invaluable insights about your customers, industry trends, and predictions about what the next best step is.
We provide product and managed services that help businesses across the globe take predictions from our automated machine learning models to create competitive advantages and better serve their consumers.