Five Competitive Advantages of AI Cloud Clustering


The digitalization of the business landscape created a highly competitive environment where every participant aims to strengthen their position by modernizing how the business operates. One of the latest breakthrough solutions is the omnipresent AI, Artificial intelligence, which takes the performance of every company to a new level.

AI has started a new era of business performance, opening the stairway to success and significant financial rewards. Let’s learn the essential competitive advantages that companies achieve when implementing AI techniques.

What Is Artificial Intelligence?

Artificial intelligence is a machine simulation of human intelligence. AI enables the relevant technologies to think, make decisions, and recognize behavioral patterns like humans.

AI brings a competitive edge to business or industry performance as it helps simplify extensive and specific chunks of workload within a shorter time than human resources.

As data and information processing analysis become quicker, businesses can reach certain milestones regarding development and financial gains faster and more efficiently.

What is AI clustering?

Tech development never sleeps and only settles for less if there is a chance to gain more. While AI alone is a real game-changer, upgrading the way businesses function, AI clustering is the next step of its evolution.

AI clustering is the machine learning process that organizes data into separate containers with similar characteristics and elements. Clustering is performed according to certain algorithms and is effective in unsupervised learning.

The most common environments for application are human resources, data analytics, social science, and recommendation systems.

AI Clustering Algorithms

Leading vendors ‘ data science and AI services exploit numerous algorithms to perform their functions. Gcore allows the creation of a turnkey AI infrastructure, offering all the necessary tools and workflows to meet the demands of the clients. Gcore AI typically exploits the K-means centroid method, density, and distribution model to provide a fully supervised environment to build and train the learning models.

Google uses a density-based,centroid-based, and hierarchical model. SageMaker builds AI models implementing K-means clustering. Microsoft Azure tends to implement agglomerative, divisive, and K-means algorithms, etc

Let’s have a look at their characteristics:

  1. Agglomerative, hierarchical, bottom-up — these algorithms pair each point of data with its closest neighbor into clusters and then pairs themselves are paired with one another. The clusters keep growing until they reach a certain number of clusters or a specific distance between them.
  2. Divisive — the algorithm works just the opposite to the bottom-up. The data points are collected as a single cluster, and then they are divided, while the distance increases.
  3. K-means — different clusters are assigned data points provided that the sum of squared distances between them and the centroid is minimized. Put simply, under K-means algorithms the objects are divided into clusters sharing similarities, yet they are dissimilar to another cluster. It is the most commonly used algorithm.
  4. Density-based clustering — the clusters of different forms and sizes are identified from a large amount of data by using the minPts (minimum number of points) clustered together within a certain region.
  5. Distribution clustering — identifies groups of clusters in a database based on their distribution probability.

How Can AI Clustering Improve Business Performance?

Efficient performance

AI integration into the company structure creates a multitude of improvements regarding the workload.


AI-powered services are successfully used for automating repetitive administrative tasks, data entry, customer service inquiries, inventory management, order of production, company supplies, etc. Such a delegation of duties will decrease the number of man-made mistakes, and let the employees concentrate more on the creative aspects of their job, which will lead to a boost in a company’s performance.

Improved marketing and customer engagement

Customers of today feel no lack of goods and services, as the market is flooded with offers. What they are looking for is personalization and an individual approach — that’s where AI tools change the game.

Typically, the customer avatar is rather extensive in its characteristics, as it is not possible to consider every single experience and story behind the customer; however, it is not an issue when AI is used.

AI algorithms provide valuable insights into customer behavioral patterns, and preferences, and allow businesses to create personalized marketing campaigns when every customer feels counted. When the audience is targeted with more personal offers, they become more engaged with the company’s services, and thus, increase the conversion rates.

Enhanced customer support

Customer support is one of the most challenging aspects of business performance, as it requires an extensive level of knowledge regarding the products along with well-developed soft skills. AI-powered customer support brings the whole communication to a new level, as it helps to generate instant answers to simple queries and communicate with many clients simultaneously. While the chatbots take care of simple issues, the human resources can get down to more complicated requests.

Apart from that, the AI analyzes typical issues of the customers and helps to anticipate their future needs, thus, bringing a more personalized experience in the future.

Improved pricing policies

Pricing policies are often burdensome, as it is important to attract customers, yet not to lose profit. The AI-powered approach allows businesses to create a flexible pricing approach, giving timely reports about market fluctuations and adjusting the bargains accordingly.

Advanced data analytics

The commercial world is fully dependent on data analytics, as it gives clear insights into the company’s efficiency, and lets the managers change the strategy along the way. Despite all the employees’ conscientiousness, they can fail to provide the data accurately, which can slow down the company’s progress.

AI services take the analytics to a new level, as the reports are always on time (the frequency depends on the request), and all-embracing. AI, unlike humans, will notice even the slightest changes in trends, tendencies, and patterns, and let the business make the right decisions.

The Bottom Line

The usage of AI tools will certainly make a difference for every company using it. Apart from reorganizing all the internal work, it helps the industries grow by automating and streamlining the processes, improving marketing campaigns, enhancing the production cycle, and providing timely and valuable insights into the performance.

If you feel the need to take your company’s performance to a new level of development. Don’t hesitate to contact a reliable vendor like Gcore for more detailed assistance.