IIC Journal of Innovation 8th Edition | Page 14

Causal Analytics in IIoT – AI That Knows What Causes What, and When Figure 1: Granger causality test Researchers extended this framework, e.g. to allow for analysis of multiple time series generated by nonlinear models, for lagging the cause and effect variables and for causal graphical models for better handling of latent variables. The application of TE to empirical analytics has been substantial in areas of biomedicine and climate science. However, further developments were needed to help overcome shortcomings related to 26 unreliability and a lack of accuracy . Au Sable’s work on improving the reliability of TE, combined with other Au Sable proprietary algorithms, have led to the development of an algorithmic approach to causal analytics that can process IoT event data and provide reliable results. This means that Causal Analytics can now be applied to real-world scenarios with non-experimental data. Transfer Entropy 24 25 (TE) is a later implementation of the principle that causes must precede and predict their effects. TE improves on Granger in that it directly caters for nonlinear interactions and helps minimize problems of noisy data. TE is a model-free and non-parametric measure of directed information flow from one variable to another. 24 Transfer Entropy https://en.wikipedia.org/wiki/Transfer_entropy 25 Transfer entropy between multivariate time series https://www.sciencedirect.com/science/article/pii/S1007570416305020 26 Progress in Root Cause and Fault Propagation Analysis of Large-Scale Industrial Processes https://www.hindawi.com/journals/jcse/2012/478373/ - 10 - June 2018