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Machine learning (ML) has recently gained momentum as a method for measurement in strategy research. Yet, little guidance exists regarding how to appropriately apply the method for this purpose in our discipline. We address this by offering a guide to the application of ML in strategy research, with a particular emphasis on data handling practices that should improve our ability to accurately measure our constructs of interest using ML techniques. We offer a brief overview of ML methodologies that can be used for measurement before describing key challenges that exist when applying those methods for this purpose in strategy research (i.e., sample sizes, data noise, and construct complexity). We then outline a theory-driven approach to help scholars overcome these challenges and improve data handling and the subsequent application of ML techniques in strategy research. We demonstrate the efficacy of our approach by applying it to create a linguistic measure of CEOs' motivational needs in a sample of S&P 500 firms. We conclude by describing steps scholars can take after creating ML-based measures to continue to improve the application of ML in strategy research.

With the advent of Big Data, the ability to store and use the unprecedented amount of clinical information is now feasible via Electronic Health Records (EHRs). The massive collection of clinical data by health care systems and treatment canters can be productively used to perform predictive analytics on treatment plans to improve patient health outcomes. These massive data sets have stimulated opportunities to adapt computational algorithms to track and identify target areas for quality improvement in health care.

According to a report from Association of American Medical Colleges, there will be an alarming gap between demand and supply of health care work force in near future. The projections show that, by 2032 there is will be a shortfall of between 46,900 and 121,900 physicians in US (AAMC, 2019). Therefore, early prediction of health care risks is a demanding requirement to improve health care quality and reduce health care costs. Predictive analytics uses historical data and algorithms based on either statistics or machine learning to develop predictive models that capture important trends. These models have the ability to predict the likelihood of the future events. Predictive models developed using supervised machine learning approaches are commonly applied for various health care problems such as disease diagnosis, treatment selection, and treatment personalization.

This chapter provides an overview of various machine learning and statistical techniques for developing predictive models. Case examples from the extant literature are provided to illustrate the role of predictive modeling in health care research. Together with adaptation of these predictive modeling techniques with Big Data analytics underscores the need for standardization and transparency while recognizing the opportunities and challenges ahead.

Traditionally, loan officers use different credit scoring models to complement judgmental methods to classify consumer loan applications. This study explores the use of decision trees, AdaBoost, and support vector machines (SVMs) to identify potential bad loans. Our results show that AdaBoost does provide an improvement over simple decision trees as well as SVM models in predicting good credit clients and bad credit clients. To cross-validate our results, we use k-fold classification methodology.

Purpose – The advancement of multimedia technology has spurred the use of multimedia in business practice. The adoption of audio and visual data will accelerate as marketing scholars become more aware of the value of audio and visual data and the technologies required to reveal insights into marketing problems. This chapter aims to introduce marketing scholars into this field of research.Design/methodology/approach – This chapter reviews the current technology in audio and visual data analysis and discusses rewarding research opportunities in marketing using these data.Findings – Compared with traditional data like survey and scanner data, audio and visual data provides richer information and is easier to collect. Given these superiority, data availability, feasibility of storage, and increasing computational power, we believe that these data will contribute to better marketing practices with the help of marketing scholars in the near future.Practical implications: The adoption of audio and visual data in marketing practices will help practitioners to get better insights into marketing problems and thus make better decisions.Value/originality – This chapter makes first attempt in the marketing literature to review the current technology in audio and visual data analysis and proposes promising applications of such technology. We hope it will inspire scholars to utilize audio and visual data in marketing research.

The utilization of artificial intelligence (AI) in the solution of many problems encountered in healthcare in recent years is rapidly becoming widespread. Understanding of the use and importance of efficiency, security and accessible healthcare to everyone and providing value-based services for healthcare decision-makers is essential. The special uses of machine learning, natural language processing and smart voice assistants, which have developed as sub-branches of AI, for healthcare services, the contributions of these techniques to the digital transformation of healthcare services and how all these will help decision-making processes in healthcare services, will be discussed in this chapter. And also, FDA-approved algorithms that are a kind of AI tool will be explained.

This article reviews the quantitative marketing literature on artificial intelligence (AI) through an economics lens. We apply the framework in Prediction Machines: The Simple Economics of Artificial Intelligence to systematically categorize 96 research papers on AI in marketing academia into five levels of impact, which are prediction, decision, tool, strategy, and society. For each paper, we further identify each individual component of a task, the research question, the AI model used, and the broad decision type. Overall, we find there are fewer marketing papers focusing on strategy and society, and accordingly, we discuss future research opportunities in those areas.

Purpose: This chapter aims to examine machine learning (ML) models for predicting credit card fraud (CCF).

Need for the study: With the advance of technology, the world is increasingly relying on credit cards rather than cash in daily life. This creates a slew of new opportunities for fraudulent individuals to abuse these cards. As of December 2020, global card losses reached $28.65billion, up 2.9% from $27.85 billion in 2018, according to the Nilson 2019 research. To safeguard the safety of credit card users, the credit card issuer should include a service that protects customers from potential risks. CCF has become a severe threat as internet buying has grown. To this goal, various studies in the field of automatic and real-time fraud detection are required. Due to their advantageous properties, the most recent ones employ a variety of ML algorithms and techniques to construct a well-fitting model to detect fraudulent transactions. When it comes to recognising credit card risk is huge and high-dimensional data, feature selection (FS) is critical for improving classification accuracy and fraud detection.

Methodology/design/approach: The objectives of this chapter are to construct a new model for credit card fraud detection (CCFD) based on principal component analysis (PCA) for FS and using supervised ML techniques such as K-nearest neighbour (KNN), ridge classifier, gradient boosting, quadratic discriminant analysis, AdaBoost, and random forest for classification of fraudulent and legitimate transactions. When compared to earlier experiments, the suggested approach demonstrates a high capacity for detecting fraudulent transactions. To be more precise, our model’s resilience is constructed by integrating the power of PCA for determining the most useful predictive features. The experimental analysis was performed on German credit card and Taiwan credit card data sets.

Findings: The experimental findings revealed that the KNN achieved an accuracy of 96.29%, recall of 100%, and precision of 96.29%, which is the best performing model on the German data set. While the ridge classifier was the best performing model on Taiwan Credit data with an accuracy of 81.75%, recall of 34.89, and precision of 66.61%.

Practical implications: The poor performance of the models on the Taiwan data revealed that it is an imbalanced credit card data set. The comparison of our proposed models with state-of-the-art credit card ML models showed that our results were competitive.

This research navigates the confluence of data analytics, machine learning, and artificial intelligence to revolutionize the management of urban services in smart cities. The study thoroughly investigated with advanced tools to scrutinize key performance indicators integral to the functioning of smart cities, thereby enhancing leadership and decision-making strategies. Our work involves the implementation of various machine learning models such as Logistic Regression, Support Vector Machine, Decision Tree, Naive Bayes, and Artificial Neural Networks (ANN), to the data. Notably, the Support Vector Machine and Bernoulli Naive Bayes models exhibit robust performance with an accuracy rate of 70% precision score. In particular, the study underscores the employment of an ANN model on our existing dataset, optimized using the Adam optimizer. Although the model yields an overall accuracy of 61% and a precision score of 58%, implying correct predictions for the positive class 58% of the time, a comprehensive performance assessment using the Area Under the Receiver Operating Characteristic Curve (AUC-ROC) metrics was necessary. This evaluation results in a score of 0.475 at a threshold of 0.5, indicating that there's room for model enhancement. These models and their performance metrics serve as a key cog in our data analytics pipeline, providing decision-makers and city leaders with actionable insights that can steer urban service management decisions. Through real-time data availability and intuitive visualization dashboards, these leaders can promptly comprehend the current state of their services, pinpoint areas requiring improvement, and make informed decisions to bolster these services. This research illuminates the potential for data analytics, machine learning, and AI to significantly upgrade urban service management in smart cities, fostering sustainable and livable communities. Moreover, our findings contribute valuable knowledge to other cities aiming to adopt similar strategies, thus aiding the continued development of smart cities globally.

Recent research advances in artificial intelligence, machine learning, and neural networks are becoming essential tools for building a wide range of intelligent applications. Moreover, machine learning helps to automate analytical model building. Machine learning based frameworks and approaches allow making well-informed and intelligent choices for improving daily eating habits and extension of healthy lifestyle. This book chapter presents a new machine learning approach for meal classification and assessment of nutrients values based on weather conditions along with new and innovative ideas for further study and research on health care-related applications.

This chapter introduces a risk control framework on credit card fraud instead of providing a solely binary classifier model. The anomaly detection approach is adopted to identify fraud events as the outliers of the reconstruction error of a trained autoencoder (AE). The trained AE shows fitness and robustness on the normal transactions and heterogeneous behavior on fraud activities. The cost of false-positive normal transactions is controlled, and the loss of false-negative frauds can be evaluated by the thresholds from the percentiles of reconstruction error of trained AE on normal transactions. To align the risk assessment of the economic and financial situation, the risk manager can adjust the threshold to meet the risk control requirements. Using the 95th percentile as the threshold, the rate of wrongly detecting normal transactions is controlled at 5% and the true positive rate is 86%. For the 99th percentile threshold, the well-controlled false positive rate is around 1% and 83% for the truly detecting fraud activities. The performance of a false positive rate and the true positive rate is competitive with other supervised learning algorithms.