AI Tech
Generative vs. Predictive AI: What Does Your Business Actually Need?
OOPXERA Research Team Dec 10, 2025 7 min read
ChatGPT is flashy, but simple regressions might be profitable. A guide to choosing the right tool for the job.
The hype cycle has confused the market. Everyone wants "Generative AI," but many business problems are "Predictive" in nature.
The Difference
Generative AI (GenAI) creates new content: text, images, code. It's great for customer support, marketing, and coding assistants.
Predictive AI analyzes historical data to forecast future outcomes. It's great for churn prediction, demand forecasting, and fraud detection.
Use Case Mapping
- Need to write emails? GenAI
- Need to know who will buy your product next month? Predictive AI
- Need to summarize meetings? GenAI
- Need to route delivery trucks? Predictive AI (Optimization)
Conclusion
Don't use a hammer to drive a screw. Understand your problem first, then pick the model.