Preface xi Chapter 1 Magic Happens at the Intersections 1 Asking the Right Questions: Data, Intuition, and Strategy 3 Simplifying the Complexity 6 Connecting the Dots 8 Uncovering Hidden Patterns: Models and Algorithms in Action 10 Decoding Consumer Behavior: The Interplay of Psychology and Economics 11 Empowering Behavioral Economics: The Synergy of Data Analytics, ML, and AI 14 Crafting a Customer- Centric Paradigm: The Fusion of Technology and Behavioral Insights 17 Chapter 2 It Is All Connected: Behavioral Economics, Decision-Making, Biases, and Heuristics 19 History and Origins of Behavioral Economics 20 Early Days 21 Entering Mainstream Economics 23 Current Research and Practical Applications 26 Back to the Beginning 30 Psychology of Decision- Making 33 Dual- Process Theories 33 Heuristics and Biases 35 Noise 39 Prospect Theory 40 Nudging 42 Experimentation 46 How It Works 47 Uber and Experimentation 49 Chapter 3 Minimal Data, Maximal Impact: From Big Data to Minimum Viable Data 53 How Much Data Are We Talking About? Lots and Lots 55 You Do Not Need a Lot of Data to Get Started, You Need the MVD 58 Asking the Right Questions, Again! 59 Synthetic Data: What It Is and What It Isn''t 63 Survey Data to the Rescue 67 Chapter 4 Building Intelligence: AI and ML Essentials, Transforming Data into Intelligence 73 Classical AI 76 ML 78 Deep Learning 82 Generative AI 86 Machine Intelligence and Biologically Inspired Models 90 Chapter 5 Real-World Impact: Harnessing AI and ml for Practical Solutions 95 Unleashing the Full Potential of AI: Beyond the Hype 96 Rethinking Segmentation: Beyond Demographics and Life Stages 97 Uncovering Unexpected Customer Patterns 101 Predicting Intent and Mapping Customer Journeys 104 Overcoming Challenges in Predicting Customer Intent 106 Predicting and Managing Returns 108 The Power and Nuances of Recommendation Models 111 Broadening Horizons: Beyond Category Killers 114 Enhancing In- Store Experience with Recommendation Models 116 Leveraging Propensity Models for Targeted Campaigns 118 Personalized Pricing: Influencing Behaviors and Financial Outcomes 121 Behavioral Economics in Personalized Pricing Strategies 124 Forecasting: Understanding the Dynamics of Demand 127 The Power of Forecasting and Optimization 131 Transparent MMMs 132 Ensembling Models for Enhanced Forecasting 133 The Interplay of Demand Forecasting and Inventory Optimization 133 Conclusion 135 Chapter 6 Decoding Complexity: Leveraging Systems Thinking in Modern Organizations 137 Only a Wet Baby Likes Change: Loss Aversion + Status Quo Bias 140 It Gets Better! Commitment Device, Peer Effect, and Sunk Cost Fallacy 145 Conclusion 151 Chapter 7 Unlocking Scale: Overcoming Operational and Organizational Complexity in Scaling AI Projects 155 Enablers of Success 156 Communication and Intellectual Diversity 159 Building Trust, Experimentation, and Adoption 164 Interpretation Layers 166 The Power of Experimentation 169 Measuring ROI Through Experimentation 171 Conclusion 173 Epilogue 175 Notes 179 Additional Reading 189 Bibliography 197 Acknowledgments 205 About the Author 207 Index 209.