Harnessing Artificial Intelligence for Predictive Analytics: Challenges and Opportunities

Abstract

Artificial Intelligence (AI) significantly advances predictive analytics by improving forecasting accuracy and automating complex processes. This paper examines the integration of AI in predictive analytics, addressing both the opportunities and challenges it presents. While AI enhances predictive capabilities and provides real-time insights, it also brings challenges such as data quality issues, model interpretability, and ethical concerns like bias and privacy. Additionally, organizational hurdles, including skill gaps and resource demands, are discussed. Despite these challenges, AI offers valuable opportunities for more nuanced insights and handling large datasets, with emerging trends pointing towards further advancements and ethical considerations. This paper aims to provide a balanced view of how AI can be effectively utilized in predictive analytics, highlighting key areas for future research and development.