Predictive models are developed automatically for a plurality of modeling variables. The plurality of modeling variables is transformed, based on a transformation rule. A clustering of the transformed modeling variables is performed to create variable clusters. A set of variables is selected from the variable clusters based on a selection rule. A regression of the set of variables is performed to determine prediction variables. The prediction variables are utilized in developing a predictive model. The development of the predictive model may include modification of the predictive model, review of the plurality of transformations, and validation of the predictive model.