Difference Between Predictive and Prescriptive Analytics

Key Difference

Predictive analytics uses historical data to forecast future outcomes, focusing on what might happen. Prescriptive analytics goes a step further by suggesting actions and strategies based on predictive analyses, concentrating on what should be done.

Comparative Analysis

1. Objective:
   • Predictive Analytics: Forecasts future possibilities.
   • Prescriptive Analytics: Recommends actions based on predictions.
2. Data Utilization:
   • Predictive Analytics: Analyzes past data for trends.
   • Prescriptive Analytics: Uses predictive data for decision-making.
3. Complexity and Tools:
   • Predictive Analytics: Less complex, uses statistical models.
   • Prescriptive Analytics: More complex, often incorporates AI and machine learning.
4. Application in Decision Making:
   • Predictive Analytics: Informs about potential future scenarios.
   • Prescriptive Analytics: Advises on the best course of action.

Table Summary of Predictive vs Prescriptive Analytics

Feature	Predictive Analytics	Prescriptive Analytics
Objective	Forecasting the future	Recommending actions
Data Utilization	Trends from past data	Decision-making from predictions
Complexity	Statistical models	AI, machine learning
Application	Informing about scenarios	Advising on actions

While both predictive and prescriptive analytics are valuable in strategic decision-making, they serve different purposes, with predictive focusing on what might happen and prescriptive advising on what actions to take.