Predictive AI
FoundationsCore AI Concepts
Predictive AI is a class of model that analyses historical data to forecast future outcomes. It is used for structured, quantitative operational tasks such as supply chain forecasting and dynamic pricing. Unlike generative AI, it produces a number or a probability rather than new text or images.
In practice
Most of the AI already earning money inside a mid-market business is predictive rather than generative: demand forecasts, churn scores, pricing models. When a vendor pitches AI, establish which of the two they mean, because the cost base, the failure modes and the governance questions all differ.