this post was submitted on 29 Oct 2023
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Machine Learning
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This is something I've been wondering as well. Is causal ML or causal analysis used in industry?
It's situational, but yes.
Imagine you offer two membership tiers. You notice that people in the higher tier spend much more money with you. Yay!
Question: is the additional spend caused by (the fringe benefits of) the higher tier? If so, if you gave people a complementary upgrade, they'd spend more money with you. Win win. Or maybe people with more money to spend naturally tend to go for the higher tier, in which case your intervention will come to naught.
In this case, it's easy to run an A/B test and find out. But in a lot of cases applying this kind of intervention can be difficult (because of cost, signal delay, amount of additional confounders) or downright immoral.