What Is Causal AI , the technology that the world is shifting towards and where can it be used?
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Causal AI

What Is Causal AI , the technology that the world is shifting towards and where can it be used?

Author
P
ProjektAnalytics Team
Date Published
01/12/2025

First let's look at something funny.

Spurious correlation chart between Motorola stock and Xiomara name popularity

Cr: https://tylervigen.com/

This says that the stock price of Motorola solutions has grown with the number of babies named Xiomara!

So a smart man would first dump his money into Motorola Stock, then make a tonne of babies and name all of them Xiomara and tell his friends to do the same, make a fortune.

You know, I know, hell even a 15 year old kid will know this is not the case.

We cannot say, naming babies Xiomara causes stock to rise.

The Correlation Trap in Business

Now imagine how dangerous this is in a business (marketing) application, you start seeing a slight rise in sales because you put 20% extra in Meta Ads. Does that mean just pumping money in Meta Ads will increase your Sales? NO (PLEASE DO NOT TRY THIS) IT WILL NOT DO THAT.

Because sales are caused by factors such as demand, pricing, seasonality, how much people like it and lot's of other things. So putting all your savings into ads without understanding the cause is a bad idea.

If you understand the sales are caused by the season (Eg: Football season), you will be more sure of how to market and plan for that quarter, instead of shooting in the dark and failing.

What Is Causal AI?

This is what Causal AI does, finds the cause. (Well one of the things it does)

Instead of only predicting outcomes, it tries to understand the cause and effect behind them.

Why Causal AI Will Grow Fast

As putting trust in AI and ML driven models becomes more common, companies need to understand "why" something is working instead of just depending on correlations. They want to know which decisions will make a real difference. Causal AI gives them that clarity.

Top Companies in Causal AI

  • CausaLens
  • Alembic Technologies
  • Causaly
  • ProjektAnalytics Technologies
  • Fujitsu

Simple Example

Imagine a company sees a drop in sales. A normal AI model may point out that sales fall when website traffic falls. But Causal AI can help answer the real questions:

  • Did the traffic drop cause lower sales?
  • Did a slow website cause both?
  • Did a new competitor trigger the decline?

By finding the real cause, the company knows where to take action.

IMAGINE HOW POWERFUL THIS IS NOW!

Key Applications of Causal AI

Here are a few places where Causal AI is already making a difference.

Marketing

Marketers want to know what actually makes customers buy. Causal AI helps show which actions move the needle, like emails, ads, discounts, or product changes.

Operations and Supply Chains

Businesses can test "what if" scenarios. What happens if we change suppliers, switch routes, or adjust inventory levels? Causal AI predicts the impact based on real cause and effect, not guesswork.

Healthcare

Doctors can use Causal AI to understand which treatments truly work for certain patients. Instead of guessing based on averages, they can see which factors directly influence recovery.

Finance

Banks and financial institutions use it to find what really drives risk. For example, instead of simply flagging risky customers, they can understand which behaviors or events cause risk to increase.

Product Development

Teams can see which features truly change user behavior. This leads to better product decisions and less wasted time.

Ready to transform your decision-making?

Join forward-thinking teams using Causal AI to uncover the "Why" behind their data.

ProjektAnalytics.