Limitations of Predative analytics (6)
Dependence On human Interpretation
The Role of Human Interpretation in Predictive Analytics In spite of the employment of complicated algorithms and huge data sets, human reasoning is still required for predictive analytics to become indispensable. The figures provided by the model are often just quantities or probabilities that have to be understood in a practical situation. This is the point where human experience and understanding enter.
Computers can detect patterns, but they lack the capacity to comprehend ethics, human feelings, or business objectives. An instance, a model could imply cost-cutting by laying off employees, but a human manager could provide evidence that this would be the case only if it were necessary to ensure that the team morale or customer service were not affected. Besides this, humans take into account factors that the model might not consider, such as possible market trends, local events etc.
One of the hazards is that when people misunderstand or uncritically follow the model's outputs, they do not even make the least effort to question them. If a speaker were to use predictions without knowing how they were created or what data were the basis thereof, then he or she might come to make a wrong or even dangerous decision. The people who make the decisions need to regard the models as just one of the many tools at their disposal and not as those that are "always right."
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