The developments in the area of science and technology are constantly changing the business world. As a business owner and an entrepreneur, one needs to gather a better understanding of the technology which goes way beyond the simple smartphone release. Today people are increasingly talking about artificial intelligence and machine learning. So, what is this and how can it affect the business? Let's look ahead to find out how these tools can help marketers and businesses to grow and develop. The terms artificial intelligence and machine learning have been often used interchangeably.

Machine learning is revolutionising how companies are capitalising on Big Data to develop their marketing strategies. While the term encompasses a broad spectrum of technologies and approaches, in a marketing context it can be used to improve targeting, response rates and overall marketing ROI. To put it simply, machine learning involves the automated analysis of large volumes of data – such as consumer spending habits and purchasing behaviour, as well as demographic information – and using a mathematical algorithm and a computer to identify patterns and trends. The algorithm then tests predictions based on historical campaign data and learns from the predictions it gets right. With time, these algorithms become highly accurate as more data from campaign results is added.

Amazon is one of the best-known examples of machine learning in action, as anyone who has perused their online store is sure to know. The recommended products shown once you log in are based on your unique purchasing and browsing history, and have been proven effective over the many years of its implementation. This type of machine learning technology also helps Amazon predict and forecast demand, thereby informing supply decisions to prepare for any given increases and wanes. Companies like Amazon have access to vast quantities of data that hold immense potential for not only estimating supply/demand, but for wider business decisions as well. By automating the intelligent analysis of huge sets of data, machine learning technology offers retailers a faster, easier and more accurate method of forecasting and planning.