What is Dynamic models

Understanding Dynamic Models in Artificial Intelligence

Dynamic models are complex models used in artificial intelligence that can change their parameters and outputs in real-time. They are mainly used in forecasting, decision-making and system control. These models are usually subject to frequent changes, making the models’ parameters unstable. To manage these changes, dynamic models need various techniques and tools capable of handling any uncertainties that may arise.

What are Dynamic Models?

Dynamic models refer to the creation of mathematical representations of physical systems that evolve over time. These models usually capture the events and actions taking place in a particular environment by taking into account their interactions. The process dynamics are the foundation of the dynamic models, and it is the one that provides the essential link between the model's inputs and outputs.

Dynamic models are created to help understand how real-world systems function and how they respond to an event. They provide a structure for implementing predictive models and control which can be modified based on the input data. These models are created with the use of computations such as differential equations, finite-state machines or data-driven techniques such as machine learning.

Why use Dynamic Models?

Dynamic models have numerous benefits, including:

  • Prediction Accuracy: Dynamic models capture the changes in the environment and any underlying factors that affect the system. They can make predictions based on the current inputs and past trends.
  • Data Analysis: Dynamic models help in analysing and synthesising large datasets that describe the state of a system. These dataset analysis helps to develop predictive models and controls.
  • Improved Decision-making: Dynamic models enable organisations to make informed and accurate decisions based on real-time data. They can anticipate the future performance of a system and optimise its performance.
Types of Dynamic Models

Dynamic models can be classified into four groups based on the complexity of the model and the techniques and tools used to create them. These are:

  • Simple Models: Simple models use univariate relationships to represent systems.
  • Unstructured Models: Unstructured models rely on expert knowledge and experience in creating models.
  • Semi-structured Models: Semi-structured models use a combination of data-driven and structured data to develop models.
  • Structured Models: These are the most complex dynamic models and use both structured and unstructured data in creating models.
Techniques Used in Developing Dynamic Models

There are various techniques used in developing dynamic models, including:

  • Differential Equations: Differential equations represent how a system changes over time. They are commonly used in modelling physical systems because they capture the rate of change of a system.
  • Markov Models: Markov models provide a probabilistic framework for modelling discrete systems, especially when there are unknown elements in the system.
  • Agent-Based Models: Agent-based models are used for modelling complex social systems based on the behaviours, motives, and interactions of individuals or agents within a system.
  • Neural Networks: Neural networks are computational techniques that can identify complex patterns within large datasets. This technique learns from data and can predict unknown outcomes.
Limitations of Dynamic Models

Dynamic models have a few limitations that affect their effectiveness, including:

  • Data Availability: Dynamic models need historical data to build models, and this may not be available always.
  • Complexity: Dynamic models are highly complex, and it is essential to have skilled personnel to develop, deploy and maintain them.
  • Cost: Dynamic models are highly sophisticated, and their development and implementation can be expensive.
Applications of Dynamic Models

Dynamic models have various applications in different industries such as

  • Manufacturing: Dynamic models are used in monitoring production processes in real-time to optimise operations and increase productivity.
  • Transportation: Dynamic models can be used to monitor traffic and predict future traffic situations for route planning, optimal fuel consumption and transport scheduling.
  • Finance: Dynamic models are used in portfolio optimisation, risk management, and trading strategies.
  • Healthcare: Dynamic models can be used to develop personalised treatments based on an individual's unique data, medical history, and genetic information.

Dynamic Models play a crucial role in various sectors by providing organisations with real-time data analysis to make informed decisions. They require skilled personnel to develop, deploy, and maintain, even though their development can be expensive. The increasing use of dynamic models, additive manufacturing and Industry 4.0 concepts have brought the need to develop more robust, accurate, and flexible dynamic models. Hence, there is a need to continue the research and development of dynamic models to keep pace with changing technology and the ever-increasing productivity demands.