Data mining is the collection of techniques used to make sense of data in general by gleaning patterns, relationships, and associations between various quantities. With the recent boom in AI, data mining has become a must for any company with data. Data mining can be an abstract concept for the non-expert, no matter how many technical or theoretical definitions they are given. I intend to overcome this obstacle in this article by listing eight clear business cases where data mining is used to give a good sense of the power of mining to the non-expert.
1 – Financial fraud detection
Data mining algorithms such as neural networks can be trained to recognize what constitutes user normal activity, and flag outliers as suspicious. This is commonly referred to as anomaly detection. If you’ve ever been on a trip and got a message saying your credit card has been suspended until you call your bank, your activity has been flagged by an algorithm for abnormal behavior (in this case, transactions far away from your residence).