Tag Archives: AI

Analytics & Optimization AI-Enabled Personalization: A New Frontier In Dynamic Pricing

AI, personalization, dynamic pricing

Dynamic pricing, a practice started by American Airlines in the 1980s, has now become a common marketing discipline for many corporations across industry sectors. From airlines, hotels, and entertainment events to perhaps the most well-known e-retailer, Amazon, these companies have been using dynamic pricing to improve profitability relative to rapid changes in supply and demand. Personalization: Using AI to deliver optimal customer experiences, in real-time As technologies for machine learning and artificial intelligence become more advanced and the dimensions of available data expands, dynamic pricing is going beyond its traditional inventory management function enabling companies to deliver optimal customer experiences, in real-time. In essence, pricing is becoming dependent on the ability to make offers which continuously adjust to changing consumer behavior and preferences while also responding to  organizational inventory and profit requirements, as well as other external pricing influences.    Today, enterprises are able to marry rich data sets with sophisticated pricing... [Read More]

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Risk & Compliance Machine Learning and the FICO Score

Machine Learning and the FICO Score

Greetings from sunny (and humid) Miami!  I had the pleasure of speaking on a panel at ABS East yesterday, entitled “Traditional vs Non-Traditional Underwriting, Does Machine Learning Teach Us Anything New?” The panel primarily focused on the opportunities and challenges associated with the use of Machine Learning (ML) in credit underwriting.  I called out some highlights from FICO’s recent white paper on this subject. (We will dive into this further in future blogs so keep an eye out.) On the ‘opportunity’ side, I cited: The speed to powerful insights that ML offers, making it ideal for R&D efforts aimed at assessing new analytic challenges, and/or the potential of new data sources to add incremental lift. The great strides we’ve made at FICO as far as developing explainable artificial intelligence (AI)/ML and how that enables us to understand better than ever before what the key variables and risk patterns are that... [Read More]

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