BIG DATA AND AI: COLLABORATING TO IMPROVE CUSTOMER BEHAVIOR FORECASTING AND BUSINESS STRATEGY

Abstract

The increased 3-way overlap among big data analytics, artificial intelligence (AI), and business strategy has opened up new territory in terms of refining a customer behavior predictability and format to develop a business strategy. Specifically, predictive modeling due to the power of AI has shown to be a disruptive technology of gaining familiarity on complex consumer patterning and improving organizational decision making processes. This study will consider exploring the synergy between big data and AI to predict customer behavior and devise the best business strategies. Our machine learning systems were based on decision trees and neural networks that were used to interpret consumer-based transactional/behavioral big data. The outcomes demonstrate a high increase of predictive accuracy, where the neural network models report better precision and recall, than the traditional models. Moreover, the combination of AI-generated insights with business processes resulted in better targeting of the customers and an increase in the effectiveness of operations. This research shows that big data and AI can predict consumer behavior and make strategic choices that could lead to business development. The results highlight the necessity of using AI tools in business strategy designing that has a significance in academia and industry. Artificial Intelligence, Customer Behavior, Forecasting, Machine Learning, Business Strategy, and Predictive Analytics.