What are some examples of data drift in business?

What are some examples of data drift in business?

Data drift occurs when the statistical properties of a model's input data change over time. For example, a retail company may notice that customer purchasing behavior shifts due to seasonal trends, affecting sales predictions.

Can you give me another example?

Sure! In finance, a credit scoring model might experience data drift if economic conditions change, leading to different default rates than those the model was trained on.

How can businesses detect data drift?

Businesses can detect data drift by monitoring model performance metrics over time, comparing input data distributions, and using statistical tests to identify significant changes.

What are the consequences of ignoring data drift?

Ignoring data drift can lead to poor decision-making, inaccurate predictions, and ultimately financial losses, as models become less reliable.