Let's define what we mean by machine learning and algorithmic AI. Machine learning is a subset of AI that enables computers to learn from data and make decisions without being explicitly programmed. It's like teaching a child to recognize animals by showing them lots of pictures; eventually, they learn to identify them on their own. Algorithmic AI, on the other hand, involves using algorithms to perform specific tasks, such as data sorting, pattern recognition, and automated decision-making.
Machine learning has several key techniques: supervised learning, unsupervised learning, and reinforcement learning. Each of these techniques has unique applications in business.
Algorithmic AI is powerful in automating repetitive tasks and making data-driven decisions. For instance, Zara uses algorithmic AI to manage inventory and predict fashion trends. By analyzing sales data, social media trends, and other factors, their AI system forecasts demand for different products, ensuring they stock the right items at the right time.