AI Simulation Engine: Validate Your AI Forecasts with Real Historical Data
The deployment of AI in business processes is becoming increasingly sophisticated, but how can you be sure that your AI models are making truly reliable predictions? NetCare introduces the AI Simulation Engine: a powerful approach that allows organizations to validate their forecasts against historical data. This way, you know in advance whether your AI models are ready for practical application.
Applications for Banks, Insurers, and Energy Companies
- Banks can deploy the AI Simulation Engine to more accurately calculate risks associated with mortgages. By running simulations on historical mortgage data, supplemented with external factors, banks can substantiate their risk assessments and interest rates with hard figures.
- Insurers gain insight into risks within existing coverage as well as the impact of new policy conditions using the simulation engine. By running simulations on their claims administration, they can calculate the impact of changes in advance and thus optimize their claims portfolio.
- Energy Companies face the daily challenge of accurately forecasting energy demand. They must not only align supply with demand in the short term but also purchase energy and plan production capacity in the long term based on expected developments. Reliable forecasting models are crucial here. With the AI Simulation Engine, energy companies can calculate various scenarios, utilizing both internal consumption data and external factors such as weather forecasts, market prices, and policy developments. This provides insight into the reliability of models and allows for better-substantiated strategic decisions.
A Digital Twin as a Powerful Tool
The AI Simulation Engine fits within the broader NetCare vision:
Train, Simulate, Analyze, Retrain, Operate.
Companies can build a digital twin of their organization using AI, allowing them to digitally simulate future business changes before implementing them in the real world. Also read our extensive article on Digital Twins and AI Strategy for more background.
Transparency and Reliability as the Foundation
The unique aspect of this approach: the simulation engine makes forecasts transparent and demonstrably reliable. By comparing predictions based on historical data with actual realized results, organizations can objectively assess and strategically improve the predictive power of their AI model. In a stock case, for example, it immediately shows how closely a model approaches reality — and only when the margin of error is acceptably small (e.g., <2%) is the model ready for operational deployment.
Building Reliable AI Together
The AI Simulation Engine is always tailored to your specific business case and data. NetCare delivers this solution as custom work, where we determine the most relevant data, scenarios, and validations together with you. This can be in the form of consultancy or a fixed price, depending on your needs and the complexity of the assignment.
Want to Know More or See a Demo?
Would you like to know what the AI Simulation Engine can do for your organization? Or would you like to discuss the possibilities for your specific industry?
Contact Us for a non-binding demo or more information.
External References:
Backtesting: Definition, How It Works
What is a Digital Twin
