Predictive vs. Generative AI Models
Two key branches of AI serve different purposes
It is important to understand the difference between generative AI and predictive AI; particularly as their application is best suited to different types of use case. Predictive AI models are used where reasoning, pattern recognition, and analysis is needed. For instance, it is used to forecast trends and make predictions using historical data. By contrast, generative AI is used in applications that require fluency, and its strengths lay in content generation including images, text and audio. The above table shows an example of how each model can operate in the capital markets industry.
According to a survey by Oliver Wyman, 70% of financial services firms surveyed said that they are at the pilot stage of a project to utilise generative AI to enhance employee efficiency tools, and expect a return on this investment from between three to five years.