The Future We Want: Directing Customer Behaviors with Predictive Analytics and Nudge Technologies

Predictive analytics (PA) is a branch of artificial intelligence (AI), which uses patterns in historical and current (even real-time) data to predict future states of a system, and alert users or intervene as appropriate. PA is transforming from passively observing and identifying future scenarios, to actively influencing factors that will drive the observed system to a particular outcome. In particular, “nudge technologies” are geared toward influencing human attitudes and behaviors – a huge technical and ethical leap from early applications in internet of things (IoT) like energy (demand response / smart grid). Leading firms are already learning to use PA and nudges to sense and respond to customer needs in real time and even pre-time, and get the future they want.