Machine learning may be hyped as the way of the future, but as a forecasting method, it works best when combined with standard algorithms.
Just about every business depends on accurate forecasting. A classic example is a manager forecasting the amount of goods to produce or the level of inventories to keep. In the case of Uber, the ride-hailing firm requires sophisticated models to predict ride supply-and-demand, as well as how much personnel is needed for its customer service and support systems. Even hardware requirements can be predicted: Under-provisioning may lead to outages, but over-provisioning can be very costly. Forecasting can help find the sweet spot.
