Artificial Intelligence is used in predictive analytics to forecast outcomes by analyzing historical data patterns. Machine learning algorithms assess vast datasets to identify relationships and trends, enabling organizations to make informed decisions based on predictions. For example, businesses use AI to anticipate customer behavior, optimize inventory, or mitigate risks in finance. By leveraging AI's capabilities, predictive analytics provides deeper insights than traditional statistical methods, allowing for quicker and more accurate responses to changing scenarios. This technology ultimately enhances strategic planning and operational efficiency across various sectors.