Applications of Reinforcement Learning has achieved impressive results over a diverse set of dynamic challenges faced by different industries. Its inherent complex structure and time consumption in design & deployment held back industries in applying reinforcement learning in various scenarios. Misconceptions about obligations in the systematic application of reinforcement learning have been diminished gradually with increased industry usage. The increased development of prototypes in industries and buzz of successful application like AlphaGo made reinforcement learning an evolving fintech that every industry should consider.
Reinforcement technology is one of the prominent areas of machine learning. And it’s often considered as semi-supervised learning, as both the models are performed under software agents’ guidance. In RL (Reinforcement Learning), there is an agent to tackle the problems in the changing environment with the ultimate goal of maximizing the positive outcomes. The machine is trained to recognize algorithms for forecasting the optimal solutions. The agent is rewarded every time with a positive value after determining the right solution and negative value for making wrong decisions. The environment situations are changed after every wrong decision to train the positive outcomes made by the machine. RL gives better results with increased training sessions.
Applications of Reinforcement Learning
If the industry’s goal is to work closely with AI, then consideration of reinforcement learning is one of the key factors in achieving the desired goal. As AI industries leveraging applications of reinforcement learning have advantages from manufacturing to digital marketing to maximize their return on investments. Below mentioned are few practical examples of how industries are leveraging RL.
Product differentiation, product assembling, and product distribution are difficult jobs and require high-level qualified labor. Availability and shortage of skilled labor is the biggest concern. Manufacturing companies with heavy production schedules require automated machines that can optimize the production time and production cost. Reinforcement learning can help heavy-duty machines in analyzing the best practices for building qualitative products.
A robot performing tasks with deep RL can read and develop from committed mistakes. And the more it interacts with the environment, the more it can analyze and provide optimal suggestions to advance the production processes automation. The automotive companies are taking advantage of these robots for building and assembling maximum parts of auto cars to reduce defects.
Text mining and creating personalized recommendation engines provide advantages in digital marketing for advertising the right products to the right customers. With advanced analytics, the data insights provide an advantage in customer categorization and targeting. With the application of reinforcement learning, businesses can increase the chance of conversion by providing personalized product recommendations on search tool by analyzing and categorizing real-time data. It helps in reducing advertising costs and constraints in the advertising budget.
70% of the organizations state that 30% of the revenue is spent on product marketing to reach target audience. And in most cases, the ROI on product marketing is negative. A personalized recommendation data engine can be a solution in product marketing. With reinforcement learning, the machine or system can analyze, store, and gain knowledge from the repeated actions of the consumers, which helps in advertising the right product to the target audience at a convenient time to close a lead.
Optimal liquidation is the biggest concern of traders in the capital and equity markets. Traders can use advanced analytics to forecast the real-time price fluctuations in the market sphere. Integration of deep machine reinforcement learning as a vital tool for understanding market trends and detecting grouped shares with low costs helps in perfect trade execution with minimum risks.
The applications of reinforcement learning helps in building optimal trade execution systems that foresee the flexible time and dynamic behavior in trade transactions. By understanding market microstructures, the system provides optimal trade execution in both favorable and unfavorable situations.
The execution and perfection in the coordination of inventory policy management systems practiced by various suppliers and manufacturers to reduce the shipment delivery time is a dream of every product manufacturer and supplier. With reinforcement learning the optimized inventory differentiation, stocking, and logistics scheduling is possible. It provides an advantage over time and cost. Retrieving products into warehouse, minimum space utilization, and handling warehouse operations can be performed by machines with deep reinforcement learning. Optimizing delivery management system with reinforcement learning provides an advantage in using Q-learning based split delivery system that delivers all the customers with one vehicle by reducing time and cost.
The growth of reinforcement learning as a tool of machine learning has been the last option in industry usage to solve complex problems that are rising every day with changing market dynamics. With increasing intelligent systems, reinforcement learning for industrial applications is unfolding advanced intelligent solutions to tackle complex problems. Industries are significantly realizing the importance of reinforcement learning in their operations which help them in for being more customer-centric. The future goal of industries using reinforcement learning would be a 100 % return on investment. Please connect with us if you resonate with our article.