In 2024, Artificial intelligence is transforming business forecasting and predictive analytics.
According to IDC, over 50% of large manufacturers will adopt AI-powered predictive analytics by 2025 to improve forecast accuracy by 30% or more.
In this article, we will explore the top 10 AI tools that are setting new standards in data forecasting and prediction. Powered by advanced machine learning algorithms, these advanced tools analyze historical data to uncover patterns and future trends you may miss using traditional methods.
These AI forecasting tools are not only enhancing the accuracy of predictions but also simplifying the complex process of data analysis.
Are you ready to integrate the power of AI to make smarter data-driven decisions? Read on to learn complete details about AI data forecasting tools.
What is an AI Data Forecasting and Prediction Tool?
An AI data forecasting and prediction tool utilizes advanced machine learning algorithms to analyze historical data and identify patterns and trends.
It then uses these insights to make predictions about potential future outcomes with a high degree of accuracy and efficiency.
These AI-backed tools are more reliable for forecasting compared to traditional methods because of their ability to process large volumes of data and uncover complex relationships that would not be apparent to humans.
They can adapt their models based on new data, allowing the predictions to become more precise over time.
Common use cases for AI forecasting tools include demand planning, sales forecasts, inventory optimization, predictive maintenance, supply chain management, healthcare analytics, and more.
AI data forecasting and prediction tools are especially valuable for organizations that need to make data-driven strategic decisions in fast-changing environments.
List of 10 Best AI Tools for Data Forecasting and Prediction
Now, let's explore the 10 best AI-powered data forecasting and prediction tools that are leading the way in this space.
|1. Amazon Forecast
|2. H2O AI Cloud
|4. IBM Watson Studio
|5. Google Cloud AI Platform
|7. SAP Analytics Cloud
|8. Qlik Sense
|9. Microsoft Azure Machine Learning
Amazon Forecast is a fully managed service provided by Amazon Web Services (AWS) that uses machine learning and statistical algorithms to deliver highly accurate time-series forecasts.
It is based on the same technology used for time-series forecasting at Amazon.com, providing state-of-the-art algorithms to predict future time-series data based on historical data. This service is designed to be user-friendly and requires no prior machine-learning experience.
Amazon Forecast is particularly useful in various fields such as retail, finance, logistics, and healthcare. It can predict domain-specific metrics for inventory, workforce, web traffic, server capacity, and finances.
The service is built to optimize operations by forecasting millions of items, thereby helping businesses reduce waste, improve capital utilization, and make long-term decisions with more confidence.
1. Advanced Automated Machine Learning
Amazon Forecast automates complex machine-learning tasks by finding the optimal combination of machine-learning algorithms for your datasets.
This feature allows you to focus on preparing your datasets and interpreting your predictions, rather than spending time on the intricacies of machine learning.
2. Rapid Onboarding with No-Code Deployment
Amazon Forecast provides a rapid onboarding process with no-code deployment. This feature allows you to quickly start using the service without the need for extensive coding or technical expertise.
3. Continuous Monitoring of Model Quality
Amazon Forecast continuously monitors the quality of your forecasting models. This feature ensures that your forecasts remain accurate and reliable over time, even as your data changes.
4. Cold Start Forecasting
Amazon Forecast can generate forecasts for new products with no history, a feature known as “Cold Start Forecasting“.
This is particularly useful in industries such as retail and manufacturing, where there is a need to create a forecast for a brand-new item, but there is no historical data available.
Amazon Forecast Pricing:
Amazon Forecast's pricing is based on usage, with no minimum fees or upfront commitments:
|$0.088 per GB
|Training a predictor
|$0.24 per hour
|First 100K forecast data points
|Next 900K forecast data points
|Next 49M forecast data points
|Over 50M forecast data points
For the first two months of using forecast, customers receive up to 100,000 forecast data points per month; up to 10 GB of data storage per month; and up to 10 hours of training per month for free.
2. H2O AI Cloud
H2O AI Cloud is a state-of-the-art AI platform that is designed to deliver meaningful and significant value to organizations by leveraging data and AI.
This platform is built to make the process of data forecasting and prediction more sophisticated, reducing manual effort and providing businesses with a better understanding of future scenarios generated from relevant historical data.
H2O AI Cloud is designed to be user-friendly, enabling both professionals and beginners to use the power of AI for data analysis and prediction.
1. Sophisticated Data Analysis
H2O AI Cloud is equipped with sophisticated data analysis capabilities. It leverages advanced AI algorithms to analyze historical data and generate accurate predictions about future scenarios.
2. Seamless Integration
H2O AI Cloud offers seamless integration with various data sources. This feature allows businesses to easily import their data into the platform for analysis and prediction.
3. AutoML Capabilities
H2O AI Cloud's robust AutoML capabilities are the driving force behind its ability to automate everything from feature transformation to model selection, monitoring, and deployment.
This feature supports data scientists and machine learning engineers by simplifying the deployment, management, and monitoring of models in production.
4. Deployment Flexibility
The H2O AI Cloud offers flexible deployment options, including a fully managed cloud environment (H2O AI Managed Cloud) and a hybrid cloud option (H2O AI Hybrid Cloud).
The managed cloud handles infrastructure provisioning, scaling, and software updates, while the hybrid cloud gives you complete control over its infrastructure and compliance.
Both options are designed for high availability and include robust security features such as single-tenant architecture, encryption at rest and in transit, and a zero-trust policy for production environment access.
H2O AI Cloud Pricing:
The pricing for H2O AI Cloud starts at $50,000 per unit, with a minimum purchase of 4 AI units, which totals $200,000.
DataRobot is a leading technology company that offers a comprehensive AI platform, bringing together predictive and generative AI capabilities with robust governance, observability, and security.
DataRobot is widely used across various industries, serving over 1000 customers, including Fortune 50 companies, and has successfully delivered over 1 million AI projects.
It uses Augmented Intelligence technology to reshape different industries by utilizing machine learning models that require low code to generate real-time predictions. This enables businesses to facilitate data-driven and impactful decision-making.
1. Automated Feature Selection
DataRobot employs expert model blueprints that automatically select relevant features for machine learning models.
This feature selection process is crucial as it reduces the chance of overfitting, improves algorithm run speed, and increases the model’s interpretability by revealing the most informative factors driving the model’s outcomes. It also supports manual tuning, providing flexibility for data scientists.
2. Feature Impact Analysis
DataRobot provides a quantitative ranking of how impactful each feature is for each model it produces.
This feature impact analysis is computed using three methodologies: permutation, SHAP, and tree-based importance.
This allows data scientists to understand the importance of each feature in the model and make informed decisions.
3. Integration with Existing Systems
DataRobot offers seamless integration with existing systems, including data warehouses, data lakes, and feature stores.
This allows organizations to maximize their existing investments and streamline their data science workflows.
4. AI Accelerators
DataRobot provides AI Accelerators to help organizations build, deploy, and manage AI applications quickly and efficiently.
These accelerators are designed to speed up the AI development process and deliver value faster.
DataRobot pricing starts at $98,000 per year based on the cloud marketplaces.
IBM Watson Studio is a powerful AI platform that empowers data scientists, developers, and analysts to build, run, and manage AI models, and optimize decisions anywhere on IBM Cloud Pak for Data.
Watson Studio is crucial for AI forecasting and prediction as it offers robust machine learning capabilities, allowing users to build, train, and deploy machine learning models.
This enables organizations to leverage predictive analytics for a variety of applications, from fraud detection to customer churn prediction.
Moreover, Watson Studio's AutoAI capabilities automate the process of preparing data and selecting model types, which simplifies the process of creating machine learning models for forecasting and prediction.
This makes it a valuable tool for businesses looking to leverage AI for predictive analytics and forecasting.
1. Automated Machine Learning (AutoML)
IBM Watson Studio features an Automated Machine Learning (AutoML) capability that simplifies the process of creating accurate forecasting models.
This feature automatically builds model pipelines, prepares data, and selects model types, thereby saving time and reducing the complexity of model development.
2. Integration with Open-Source Frameworks
Watson Studio integrates with open-source frameworks like PyTorch, TensorFlow, and scikit-learn, allowing you to leverage these powerful tools in your data science projects.
3. Multicloud Architecture
Watson Studio supports an open multi-cloud architecture, allowing you to build, run, and manage AI models anywhere on IBM Cloud Pak® for Data.
This feature provides flexibility and scalability, enabling organizations to deploy their AI models across various cloud environments.
IBM Watson Studio Pricing:
IBM Watson Studio offers a Lite plan that is free and a Professional plan that charges $1.02 per Capacity Unit-Hour.
Google Cloud AI Platform is a robust end-to-end machine learning platform that enables organizations to easily build, deploy, and manage AI applications at scale.
It offers a wide range of AI development tools and managed services that help businesses leverage advanced machine learning capabilities for use cases like data forecasting and prediction.
For forecasting and predictive analytics, Google Cloud provides Vertex AI, a unified ML platform to build, deploy, and maintain ML models.
It allows data scientists to generate accurate demand forecasts, predict equipment failures, anticipate patient needs, and more using historical data.
Vertex AI simplifies the process with automated ML, feature engineering, and model monitoring, and supports advanced techniques like time series forecasting.
1. Automated Machine Learning
Vertex AI allows you with limited data science expertise to train high-quality custom models specific to your data and use case by automating repetitive tasks.
2. Integrated Platform
Vertex AI by Google Cloud brings together services like data labeling, training, monitoring, and deployment in a single, integrated platform to streamline the end-to-end ML workflow.
3. Time Series Forecasting
It provides native support for time series forecasting techniques like ARIMA, Prophet, and Neural Network-based models to uncover trends and patterns in temporal data.
Google Cloud Vertex AI Pricing:
Vertex AI pricing is based on the usage of services like training, prediction, data labeling, etc:
|$0.11 per vCPU training hour
|$0.10 per node hour
|$0.10 per data object
The pricing for Google Cloud AI Platform is based on a pay-as-you-go model, meaning you only pay for the services you use. Detailed pricing information can be availed by connecting with the Google Cloud sales team to get a custom quote for your organization.
RapidMiner is a leading data science platform that empowers organizations to transform their business analytics.
Acquired by Altair, RapidMiner shares a vision to make data analytics accessible for all users while ensuring scalability, governance, and safety for enterprises.
Its demand forecasting software allows businesses to accurately predict demand beyond seasonal trends, optimizing production, inventory costs, and marketing strategies. This is particularly useful for businesses that need to plan production and inventory based on predicted demand.
1. Predictive Analytics
RapidMiner's predictive analytics capabilities leverage historical data, artificial intelligence, machine learning, statistical modeling, and data mining to detect abnormal patterns and prevent criminal activities.
This feature is particularly useful in industries such as finance and cybersecurity, where early detection of anomalies can prevent significant losses.
2. Time Series Analysis
RapidMiner supports time series analysis, which is crucial for predicting future trends based on past data. It integrates with R, a popular open-source data mining tool, to handle time series forecasting, allowing users to apply advanced techniques like ARIMA.
3. Predictive Maintenance
RapidMiner's predictive maintenance software helps determine the lifetime of factory components and machines, predict when repairs will be needed, and schedule maintenance accordingly.
This feature is very useful in industries such as manufacturing, where equipment downtime can lead to significant operational and financial disruptions.
4. Automated Data Science
RapidMiner supports automated data science, which can help you build models and make predictions more efficiently. This feature can be particularly useful for users who are new to data science or who want to automate parts of their data science workflow.
|Price (Per User Per Month)
RapidMiner also offers a free RapidMiner Studio product license for academic usage.
SAP Analytics Cloud is a robust business intelligence and data analytics tool that includes predictive analytics capabilities, making it a valuable asset for data forecasting and prediction.
As the analytics and planning layer of the SAP Business Technology Platform, SAP Analytics Cloud supports analytics and planning enterprise-wide with unique integration into SAP business applications and data sources.
1. Time Series Forecasting
SAP Analytics Cloud (SAC) provides time series forecasting, which is essential for predicting future trends based on historical data.
This feature is available in areas such as Smart Predict and Smart Planning, and it can be used for various predictive planning use cases like expense and cost planning, revenue and sales planning, and headcount planning.
2. Smart Predict
Smart Predict is a feature that makes machine learning algorithms accessible to all users, allowing them to make trusted and actionable predictions.
It simplifies the predictive process by focusing on what users want to predict rather than how to obtain predictions. Smart Predict supports classification, regression, and time series forecasting models, enabling users to generate predictions and insights with ease.
3. Augmented and Predictive Analytics
SAP Analytics Cloud's augmented analytics features include automated workflows and natural language processing, which democratize analytics and help users make data-driven decisions.
The platform's predictive analytics tools use machine learning to reveal hidden relationships in data and generate actionable insights. With Smart Predict, you can predict outcomes and generate forecasts with a single click.
4. Conversational Analytics
The platform offers conversational analytics, allowing you to ask questions in a conversational manner and receive instant answers explained in natural language. This feature enhances user interaction with data and supports quick decision-making.
5. Predictive Scenarios
Predictive scenarios in SAP Analytics Cloud (SAC) are preconfigured workspaces that you can utilize to create predictive models and reports to address business questions requiring the prediction of future events or trends.
This feature helps you create sorted lists based on expected probability or estimates about future or unknown values.
SAP Analytics Cloud Pricing:
SAP Analytics Cloud pricing starts at $432 per user per year for the “SAP Analytics Cloud for business intelligence, predictive analytics, standard edition” plan.
This plan includes features like business intelligence, planning, data modeling, data visualizations, augmented analytics, and more.
8. Qlik Sense
Qlik Sense is a modern, cloud-based analytics platform that empowers users of all skill levels with AI-assisted insights and predictions.
It is designed to support intelligent action when it matters most, providing a dynamic relationship with information that reflects the current moment.
Qlik Sense's unique associative analytics engine allows you to explore data freely, making selections in any direction to refine context and make discoveries.
With AI and machine learning built into its foundation, Qlik Sense delivers a full range of uniquely integrated augmented analytics capabilities.
Qlik Sense goes beyond generic dashboards and query-based analytics with superfast calculations, contextual predictions, and an interactive user interface.
1. Automated Insight Generation
Qlik Sense features over 20 automated analysis types such as rankings, trendings, comparisons, clustering, correlations, and forecasts.
These are powered by Qlik's associative engine, AI, and machine learning, providing you with a range of insights and predictions.
2. Advanced Analytics Integration
Qlik Sense's advanced analytics integration allows you to extend the built-in expression library, enabling the use of predictive analytics and advanced machine learning algorithms as part of Qlik apps. This feature facilitates forecasting, clustering, and supervised machine learning.
3. Qlik AutoML
Qlik AutoML is a no-code, automated machine learning feature that quickly generates models, makes predictions, and plans decisions.
It identifies key drivers in historical data and generates machine-learning models using the best algorithms.
You can make predictions on your current data and get explainability data (SHAP values) at the record level, which helps understand why predictions were made and how to best influence outcomes.
4. Advanced Forecasting with Deep Learning
Qlik Sense offers advanced forecasting capabilities through its Python server-side extension. This feature allows you to pass multiple variables to a forecast to build more complex models. Deep learning techniques are used to tackle more complex sequence prediction problems.
5. Predictive Analytics
Qlik Sense's AI enables more accurate and powerful prediction models. AI algorithms can analyze large and diverse data sets, capture nonlinear relationships, and handle complex features more effectively.
AI techniques, such as ensemble learning and deep neural networks, can improve the accuracy and robustness of predictive models.
6. AI-Assisted Insights and Predictions
Qlik Sense empowers users at all skill levels with AI-assisted insights and predictions. With AI and ML built into its foundation, Qlik Sense delivers a full range of uniquely integrated augmented analytics capabilities that allow more people, regardless of skill level, to reach their full potential with data.
7. Automated Machine Learning
Qlik Sense's automated machine-learning feature allows you to easily create machine-learning experiments to generate models and make predictions.
This feature can process complex data sets, perform predictive analysis, and provide recommendations based on historical data and patterns.
Qlik Sense Pricing:
Qlik Sense pricing starts at $20 per user per month, with options for custom plans based on the customer's request.
Microsoft Azure Machine Learning is a cloud-based service that empowers data scientists and developers to build, train, and deploy machine learning models.
It plays a crucial role in data forecasting and prediction, providing businesses with valuable insights for strategic decision-making.
Azure Machine Learning is designed to accelerate the machine learning lifecycle, offering a centralized workspace for data preparation, model training, and deployment. It supports coding in both Python and R, catering to different user preferences.
With its robust capabilities and continuous growth, Azure Machine Learning is poised to offer more advanced AI-driven forecasting tools and improved integration with other Microsoft products in the future.
1. Data Preparation
Azure Machine Learning provides robust data preparation capabilities. It allows you to quickly iterate on data preparation at scale on Apache Spark clusters within Azure Machine Learning, interoperable with Azure Databricks.
This feature enables data scientists to clean, transform, and understand their data, ensuring it's ready for model training.
2. Collaborative Notebooks
Azure Machine Learning offers collaborative notebooks, providing a shared environment for data scientists and developers.
This feature facilitates team collaboration, allowing multiple users to work on the same project simultaneously. It supports Jupyter Notebooks, Jupyter Lab, and R Studio, catering to different coding preferences.
3. Automated Machine Learning
Automated Machine Learning (AutoML) automates the process of training a machine learning model with any given dataset, applying multiple feature engineering techniques to reduce loss and error, and validation techniques to remove bias.
4. Model Deployment and Management
Azure Machine Learning provides a comprehensive platform for model deployment and management. Once a model is trained, it can be deployed as a web service, making it accessible for real-time or batch predictions.
Azure Machine Learning also includes MLOps tools to monitor, retrain, and redeploy models, ensuring they continue to deliver accurate predictions over time.
Azure Machine Learning Pricing:
Azure Machine Learning follows a pay-as-you-go pricing model, with costs incurred for Azure resources consumed.
|Price per Hour
Tableau is a prominent analytics platform that excels in AI forecasting and prediction, offering a suite of tools that enhance data-driven decision-making.
Its forecasting capabilities are built on exponential smoothing techniques, which prioritize recent data to identify and extend trends into the future.
This approach is particularly effective for time series data, where understanding temporal patterns is crucial for accurate predictions.
Tableau's predictive modeling functions integrate seamlessly with its visualization features, allowing you to create predictive models directly within the platform.
These models can forecast a wide range of business metrics, aiding in demand forecasting, resource allocation, and strategic planning.
Tableau's ease of use and advanced analytics tools enable organizations to explore multiple scenarios and make informed predictions without extensive technical expertise.
1. Data Visualization
Tableau is renowned for its data visualization capabilities. It allows you to generate basic oriented graph-like data representations by querying various data sources, including cloud databases, spreadsheets, machine learning algorithms, and social databases.
This feature helps businesses present their data in attractive graphs, charts, shapes, and plots, increasing the quality and accuracy of the datasets they're working with.
2. Forecasting and Predictive Modeling
Tableau offers robust forecasting and predictive modeling features. You can add a forecast to a view when there is at least one date dimension and one measure in the view.
Tableau uses exponential smoothing models for forecasting, giving more weight to recent observations.
This feature is particularly useful for AI data forecasting and prediction, as it allows you to predict future trends based on your current data.
3. Collaboration and Sharing
Tableau provides convenient options to collaborate with other users and instantly share data in the form of visualizations, sheets, dashboards, etc., in real-time.
This allows for secure sharing of data from various data sources such as on-premise, on-cloud, hybrid, etc., leading to a better overall analysis of the data.
|Price per User per Month
|Tableau Creator (On-Premise or Public Cloud/Fully Hosted)
|Tableau Explorer (On-Premise or Public Cloud/Fully Hosted)
|Tableau Viewer (On-Premise or Public Cloud)
Comparing AI Data Forecasting Tools vs Traditional Forecasting Methods
AI-powered forecasting and prediction tools utilize advanced machine learning algorithms to uncover complex patterns in large volumes of historical and real-time data. This enables them to make highly accurate predictions that continuously improve over time.
In contrast, traditional statistical forecasting relies on simpler regression models applied to smaller data samples. While easier to interpret, traditional methods fail to capture subtle data relationships and trends.
Studies show AI forecasting reduces errors by over 50% in areas like demand planning and predictive maintenance.
AI forecasting tools also automate data processing, adapt models to new information, and provide clear visualizations to act on insights. However, traditional methods remain essential where interpretability is critical.
Overall, AI forecasting delivers superior accuracy at scale, freeing up planners to focus more on strategy. But blending AI with human expertise is the optimal approach to account for business context beyond the data.
AI in Finance and FP&A Tools
Artificial intelligence is transforming finance departments by automating data analysis, optimizing resource allocation, and improving forecasting accuracy. AI tools can analyze large volumes of financial data to uncover insights, trends, and risks that may be difficult for humans to detect.
This leads to more informed and strategic decision-making.Specifically within financial planning and analysis (FP&A), AI enables advanced predictive analytics for budgeting, financial modeling, and reporting. It also allows for rapid scenario planning to assess potential business outcomes.
Top AI capabilities for FP&A teams include cash flow forecasting, predictive analytics, sensitivity analysis, and real-time reporting. Adoption is still in early stages, but expected to accelerate. Leading studies show AI could boost productivity in finance by over 14%. As AI capabilities advance, FP&A teams that embrace these technologies will operate more efficiently and drive better business performance.
AI & Machine Learning in Demand Forecasting
Artificial intelligence and machine learning are revolutionizing demand forecasting across industries by enabling more accurate, granular, and real-time predictions. These technologies can analyze vast volumes of historical sales data, external market factors, and forward-looking indicators to uncover subtle patterns and trends.
Key machine learning techniques like neural networks, regression, and gradient boosting trees can continuously update demand models to reduce forecast errors by up to 50%. According to Gartner, early adopters of AI forecasting realized 10-20% improvement in accuracy.
Another study by McKinsey states incorporating both internal and external datasets in forecasting models can lower inventory costs by 20-50%. Companies combining AI demand sensing with integrated business planning achieved 17% higher forecast accuracy and 31% lower inventory costs. As algorithms become more advanced, they will provide richer segmentation, be able to rapidly adapt forecasts based on market changes, run more simulations, and enable better decision making through prescriptive guidance.
Though AI adoption is still in early stages, leading companies are investing heavily as they recognize AI's potential to drive leaner supply chains and boost revenues through demand-shaping.
Frequently Asked Questions related to AI Tools for Data Forecasting
What data does an AI forecasting tool require?
AI forecasting tools require historical time-series data to identify patterns and trends. This includes sales, operational, financial, and external data like demographics and weather.
How accurate are AI-powered forecasting tools?
AI forecasting accuracy varies by industry and use case but typically reduces errors by 30-50% vs traditional methods by better analyzing more data.
What industries use AI data forecasting tools the most?
Retail, manufacturing, finance, healthcare, and transportation lead in the adoption of AI forecasting for use cases like demand planning, predictive maintenance, and patient flow optimization.
What skills are needed to operate AI data forecasting tools?What skills are needed to operate AI data forecasting tools?
While some tools are easy to use, data science skills like statistics, modeling, ML, and domain expertise are key to configuring and interpreting AI forecasting models.
What are some limitations of AI-powered forecasting?
AI models rely heavily on data quality and can propagate biases. Interpretability is also a challenge when predictions seem counterintuitive.
How do AI forecasting tools calculate forecasts?
Advanced ML algorithms automatically model time series data to uncover complex patterns and relationships missed by traditional statistical methods.
Can AI forecasting tools adapt to changing market conditions?
Yes, automated model retraining on new data allows AI forecasting to continuously adapt to evolving trends.
What integration is required to connect AI forecasting tools to data sources?
APIs, ETL tools, or batch loading of CSV data can feed internal and external data sources into AI forecasting platforms.
To Cap It All
On a final note, we suggest you to take a deep look at each of these leading AI-powered forecasting and prediction tools we have discussed here.
You know, as we step into an increasingly volatile and uncertain future, the ability to anticipate trends, plan for disruptions, and predict outcomes is becoming mission-critical.
These AI-backed solutions allow us to uncover valuable insights into data that humans alone may miss, enabling more informed planning.
While factors like accuracy, scalability, and ease of use differ across solutions, the overarching benefit is clear – improved forecasts and predictions empower businesses to allocate resources optimally, avoid risks proactively, capitalize on growth opportunities, and thrive in dynamic markets.
As AI and machine learning continue to progress, so will the sophistication of these tools. However, technology is only one piece of the puzzle – successfully leveraging these platforms also requires building a data-driven culture focused on acting on data-backed insights.
With the right vision and strategy, AI-powered forecasting can steer businesses to new heights.