Introduction
A model can predict very accurately that people who carry umbrellas are more likely to get wet. That doesn't mean taking away umbrellas would keep people dry. Both are caused by rain.
Machine learning models are excellent at finding associations: "when X is high, Y tends to be high". But many business and policy questions are causal:
- "If we give this customer a discount, will they stay?"
- "Does this medicine improve recovery?"
- "If we change the recommendation algorithm, will people watch more?"
These ask what happens if we intervene — change something on purpose. Answering them needs causal inference, not just prediction.