While Generative AI has been in the limelight for a while now, thanks to the growing use of tools like Microsoft-backed Chat GPT and media created using AI technology, Real Time AI, a member of the Predictive AI family of technology has been quietly making inroads into companies and advertisers’ tool kits.

The predictive AI stream utilises past data to predict future behaviours or trends, which makes predictive AI an area of immense interest for brands and businesses. Real Time Predictive AI models are trained to be able to make these predictions close to real-time or immediately.

According to Marketsandmarkets, “The global Predictive Analytics Market size was valued at $10.5 billion in 2021 and it is projected to reach $28.1 billion by the end of 2026, growing at a CAGR of 21.7% during the forecast period.”

“Real Time AI has varied business applications, including short-term+ demand forecasting, preventive machine maintenance, supply chain management and commodity pricing, share pricing etc which can help businesses reduce costs, improve efficiency, and increase margins. And the consumer-focused applications of Real Time AI, are equally valuable to businesses in a world where consumers are spoilt for choice,” explains Anand Chakravarthy, Chief Growth Officer, Omnicom Media Group India, adding that Real Time AI equips brands with the ability to create genuine customer delight, leading to greater loyalty, higher lifetime value, and positive word of mouth.

All Day Affair

Indeed, Vivek Kumar Anand, Chief Business Officer, DViO Digital, notes that Real Time AI and predictive AI may sound like ground-breaking technologies, but the truth is that they have become an integral part of our everyday lives.

“Just think about it for a moment: when you effortlessly open your map app and find the quickest route to your destination, when Spotify suggests the perfect song that matches your mood, or when you quickly check tomorrow's weather with a simple tap on your phone, you are experiencing the power of Real Time and predictive AI. Even when you start conversing with Siri, you're tapping into these incredible technologies,” he says.

These activities, which we often take for granted, are made possible by the intelligence and adaptability of AI algorithms working behind the scenes. They analyse vast amounts of data, learn from patterns, and make predictions in real-time to enhance user experiences.

Tanvi Bosmia, Associate Account Director, SoCheers, says one of the most effective, and common, ways to use these tools is through dynamic content optimization. “By analysing consumer data in real-time, brands can tailor their content and messaging to suit individual preferences, behaviour, and context. Some notable examples include the use of personalized recommendations in ecommerce and entertainment. Companies like Amazon and Netflix have perfected the art of using Real Time AI algorithms to analyse consumer browsing and purchase history to deliver tailored recommendations instantly. This ensures that consumers receive relevant and engaging content at the right moment, maximizing the chances of immediate engagement and gratification.”

Real Time Examples

Anand illustrates how Amazon's Anticipatory Shipping is a fascinating example of predictive and Real Time AI. “Imagine a shipping model that aims to reduce delivery times by sending products to fulfilment centres or local hubs before customers even place their orders. That's precisely what Amazon Anticipatory Shipping does. By utilising data analysis, customer behaviour patterns, and predictive algorithms, Amazon anticipates which products will be in demand in specific areas. They then proactively ship these items to nearby warehouses, positioning them closer to potential buyers. The genius behind this concept lies in the sophisticated algorithms and data analysis that accurately predict customer preferences.”

Essentially, by leveraging vast amounts of customer data, Amazon streamlines its delivery process and enhances customer satisfaction by reducing the time between placing an order and receiving the product.

Chakravarthy gives another example, with regards to recommendations. “Let’s say you are a Spotify user - not a very heavy user but someone who listens to music on Spotify 1-2 times a week.  Spotify’s objective is to get you to come back to Spotify more often and for that the brand needs to ensure that your experience on Spotify, whenever you log in, is great - meaning you find the songs you want to listen to easily or even better your discover songs/artists/albums, you are likely to enjoy etc. The latter is where recommendation engines play a big role. Spotify will recommend an artist, album or even a specially curated playlist for you, all based on your past or even immediate listening behaviour.  And as a result, if you always have a great experience on Spotify, you will come back more often…Mission Accomplished!”

Bosmia says another powerful application of Real Time AI is in the area of programmatic advertising. “In the realm of social media advertising, platforms like Instagram and Facebook leverage Real Time AI to optimize ad delivery based on user behaviour and preferences. By combining data-driven insights with automation, brands can optimize their ad placements and target strategies that can yield them unexpected results. This level of personalization not only enhances consumer engagement but also improves advertising efficiency and ROI,” she explains.

Data Drive

Sukrit Singh, Founder - XP&DLand, says that brands and advertisers can leverage data and Real Time AI tools to enhance consumer engagement and cater to the need for immediate gratification in several ways including contextual advertising, and social listening and sentiment analysis.

“By presenting ads that align with consumers' current needs and interests, brands can capture their attention and drive immediate engagement. Real Time AI tools can also monitor social media platforms and other online channels to gauge consumer sentiment, identify trends, and understand public opinion. By leveraging this data, brands can promptly respond to consumer feedback, leading to increased engagement,” he says.

“Thanks to Real Time AI, chatbots too have evolved from just offering customers a set of standard responses/actions, to providing them with customised responses based on the sequence of queries made by the customer. This leads to quicker customer query resolution and happier customers,” adds Chakravarthy.

Even with all its inherent advantages, Singh says it is important for brands and advertisers to respect consumer privacy and ensure transparency when using data and real-time AI tools. “Implementing robust data security measures and obtaining explicit consent from consumers can help build trust and foster long-term engagement.”

AI has arrived

Real-time and predictive AI availability is more comprehensive than just a handful of organisations with deep pockets. Investing in AI is becoming more affordable, and businesses of all sizes are adopting these technologies. It's an opportunity that no one should miss out on.

“Whether you're a small start-up or a large corporation, incorporating AI into your operations can revolutionise the way you do business. It can help you understand your customers better, optimise your processes, make more accurate predictions, and ultimately, improve your bottom line. The era of AI is here, and it's time to embrace its potential. AI is no longer a luxury reserved for a select few; it's necessary for any organisation that wants to stay competitive and thrive in the digital age,” says Anand.