Published on

January 3, 2024

Artificial Intelligence

Generative AI vs Predictive AI: Which One Should You Use?

Generative AI vs Predictive AI is a refreshing read for business owners and employees looking to upscale their AI game. Learn how the two types are used.
Julia Dunlea
VP of Marketing
Artificial Intelligence

Ever wonder how AI can help create stunning designs or predict customer behavior? The answer lies in understanding the exciting world of generative AI vs predictive AI!

In this blog post, we’ll dive into the key differences, techniques, applications, and ethical considerations of these amazing technologies. Get ready to unlock the incredible potential of AI for your business.

Key Takeaways

  • Generative AI generates new content and/or original insights previously unavailable;
  • Predictive AI forecast future outcomes from existing data. Platforms like Akkio focus on this type to drive business results;
  • Focus on Generative for creative content and Predictive for predictions or decisions. Both have their own advantages;
  • Data privacy, job loss, and monopoly concerns are some of the challenges that should be tackled with emerging roles in AI;

Understanding Generative AI

An image generated by ChatGPT DALL-E 3

Generative AI creates innovative content with multiple algorithms. Machine learning algorithms can generate diverse and creative content, making it an incredibly valuable tool. It can be used for tasks like image generation, content creation, and artistic expression.

Creative fields such as design, art and entertainment are being transformed by Generative AI. It enables unprecedented solutions which are pushing the limits of imagination. ChatGPT DALL-E 3 is a prime example, and other content writers like Jasper can give you a glimpse into how it's transforming content creation.

Predictive AI focuses on analyzing existing data. Its proficiency in structured data is its forte. For example, in health care, Predictive AI is used to reduce costs and improve patient outcomes by assisting doctors in making more accurate diagnoses and treatment plans through predictive analytics. In banking, it can be used to prevent fraud.

Key Components of Generative AI

Generative AI employs deep learning techniques like Generative Adversarial Networks (GANs) and autoregressive models to create innovative content from patterns gleaned from existing data.

Advanced techniques such as GANs, Variational Autoencoders (VAEs), and Autoregressive Models are being used by Generative AI to learn patterns and distributions from existing data. It can then generate new samples based on those findings.

Generative AI uses machine learning techniques to create fresh and engaging content that is not present in the original dataset. However, Generative AI can also generate wrong data. Humans are frequently involved in troubleshooting why the AI gives wrong answers to try and improve the deep learning engine continuously.

Real-World Applications of Generative AI

Generative AI models boast a remarkable ability to construct realistic images, compose captivating music, write author engaging text, and even fabricate virtual worlds. Here are some awe-inspiring examples that shows how truly impressive Generative AI's potential can be:

Understanding Predictive AI

Employing statistical algorithms, Predictive AI detects patterns in data to foresee future events, making this technology enthralling. AI technology enables organizations to:

  • Make decisions based on data
  • Optimize strategies and achieve better business results
  • Conduct unprecedented analysis
  • Detect patterns and insights that may be otherwise overlooked using conventional processes

We can anticipate future outcomes and make smarter decisions, thanks to the capabilities of Predictive AI. It is also being used to optimize multiple processes making them more efficient and effective.

For example, it is used in manufacturing and supply chain management to optimize production schedules, resource allocation, logistics, predict equipment maintenance needs, and reduce downtime. In marketing, Predictive AI is used to analyze customer data and predict their future behaviors.

Key Components of Predictive AI

Data analysis, pattern recognition, and forecasting techniques are the key components of Predictive AI. Here’s a breakdown of each component:

  1. Data analysis: This is the process of collecting, organizing, and analyzing data to gain insights and make informed decisions;
  2. Pattern recognition: This involves recognizing patterns in data and using them to make predictions;
  3. Forecasting techniques: These are methods used to predict future outcomes based on existing data;
  4. Deep Learning: Predictive AIs have to constantly learn from your data to predict future outcomes.

These components work together to enable Predictive AI to make accurate predictions and provide valuable insights.

Predictive AI centers on making predictions and decisions derived from data. It can be used to identify trends, forecast outcomes, and optimize processes. Additionally, Predictive AI incorporates machine learning algorithms into the mix, which helps adjust for real-time deviations from historical data.

Real-World Applications of Predictive AI

The use of predictive AI in the real world is fascinating and encompasses a wide range of applications. Here are some examples:

Comparing Generative AI and Predictive AI

AI Types Comparison
Generative AI Predictive AI
Description Creates new content from prompts and patterns Scrutinizes data to formulate predictions
Use Cases Used in creative fields Used in business and finance fields
Limitations Limited by quality control and may produce non-sensical work without the right prompts Limited by reliance on existing data and inability to predict unforeseen events

While Generative AI centers on creating new content from learned patterns, Predictive AI scrutinizes existing data to formulate remarkable predictions.

In most cases, you don't "choose" between the two, but use a combination to drive results.

Focus and Techniques

Generative AI is often used in creative fields, providing unique solutions and pushing the boundaries of creativity. In contrast, Predictive AI is used for decision-making and forecasting in business and finance, optimizing processes and operations, and identifying potential risks and opportunities.

Techniques used in Generative AI include deep learning, natural language processing, and reinforcement learning.

Predictive AI techniques include supervised learning, unsupervised learning, and reinforcement learning.

Generative AI concentrates on generating diverse and creative content, whereas Predictive AI excels in making predictions and decisions.

Strengths and Limitations

The advantages of generative AI include its capacity to learn from vast volumes of data, which enables it to generate material that is more creative and diverse than that of humans and of a better caliber.

Limitations include perhaps unrealistic or illogical results, resource-intensive training, and problems with quality control.

The accuracy and dependability of predictions based on past data are the strengths of predictive AI.

Limitations include the reliance on past data, the challenge of catching unanticipated occurrences, and the possibility of bias in the data.

Ethical Considerations and Future Prospects

privacy shield to discuss the ethical considerations and limits of AI as of today

As AI technology continues to evolve, ethical considerations and future prospects become increasingly important. Both Generative AI and Predictive AI raise concerns about:

  • Data privacy
  • Potential biases in their outputs
  • Job loss
  • Monopoly concerns

Data Privacy and Bias Concerns

Due to their ability to process personal data and generate potentially sensitive information, both Generative AI and Predictive AI elicit concerns about data privacy. There's an undeniable risk if sensitive or personal data is utilized without the necessary permissions, as this could lead to data leaks and unauthorized access to personal details. Stict data protection measures, compliance with regulations, and transparent data practices must be implemented in order to address these concerns.

When dealing with both generative and predictive AI, bias emerges as a serious ethical issue. Algorithms can be subject to unintentional bias, leading to discriminatory outcomes. To ensure fairness and equity in AI applications, addressing bias requires diverse and representative training data. Continuous monitoring and transparent model development must also be enabled to reach this goal. These exciting initiatives can help mitigate the risks associated with data privacy and bias in AI algorithms.

Job Loss

As AI automates tasks previously performed by humans, job loss is a significant concern. AI can automate tasks such as data entry, customer service, and other repetitive tasks, eliminating the need for human workers.

To be clear, many of these roles will change, rather than be replaced. AI's role in the job market is to enhance your career, not necessarily to replace it. We wrote a piece on AI in Marketing and the potential market disruption.

However, AI also offers exciting new roles such as AI engineers, data scientists, and AI strategists. These new job opportunities will require new skills and knowledge.

This transition presents challenges and opportunities for the workforce.

Monopoly concerns

A primary concern in generative AI is the potential for dominant players to gain massive monopoly power, which can be quite alarming. This can lead to drastically reduced innovation and potentially dramatically exacerbate inequality and job issues.

Additionally, control over key building blocks and the scarcity of specialized talent in generative AI can also contribute to monopoly concerns significantly. Addressing these concerns requires fostering competition, innovation, and equitable access to AI technologies.

Future Developments and Innovations

The future of AI technology is expected to bring about more advanced and capable systems that can perform intricate tasks. This will enable AI to be used in more industries and applications, such as healthcare, finance, and transportation. Additionally, AI is expected to become more efficient and cost-effective, allowing for wider adoption.Here are some practical examples of how AI is expected to develop in the future:

  • AI-powered ERP systems: AI is poised to take over ERP functions, with ERP vendors adding new machine learning features. This will enable companies to streamline their operations and make more informed decisions based on data.
  • Cloud computing innovations: As cloud computing becomes increasingly prevalent, it fuels the development of groundbreaking technologies such as AI, blockchain, and the Internet of Things (IoT). This will enable companies to access emerging technologies and enhance operational efficiency and workflows.

Akkio: A Platform for Leveraging Generative AI and Predictive AI

Akkio facilitates users to leverage the capabilities of both Generative AI and Predictive AI for data transformation, insights, and growth without the need for coding.

Akkio takes data privacy and security seriously and has implemented information security controls in every part of their operations to protect users and their data. A few core features include:

  • Best models: Akkio's fastest training models take less than 1 minute to deploy. You'll be amazed by the accuracy and speed;
  • Pricing structure: after a no-commitment 14 days free trial (no credit card required), Akkio starts at only $49/m; 
  • Scalability: customers use the platform for a few thousand rows up to millions without problems;
  • Usability: our UI/UX is designed to make every step of the process as easy as possible;
  • Chat Features: Chat Data PrepChat Explore are our signature GPT-4 and LLM-powered features to chat with your data. You can now prepare, cluster, and create charts by simply writing in plain english.
  • Integration capabilities

Akkio is revolutionizing how businesses utilize AI technology by empowering users to leverage AI’s power without the burdens of lengthy and costly traditional AI solutions.


In conclusion, both Generative AI and Predictive AI offer exciting possibilities for businesses and industries alike.

While Generative AI excels in creating diverse and creative content, Predictive AI shines in making accurate predictions and decisions.

Ethical considerations such as data privacy, bias, job loss, and monopoly concerns must be addressed as AI technology continues to evolve and bring more advanced applications across various industries. Embracing platforms like Akkio can empower businesses to harness the power of AI, transforming their operations and driving growth in exciting new ways.

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