What is machine learning?

Machine learning (ML) is a type of artificial intelligence (AI) that allows software applications
to become more accurate at predicting outcomes without being explicitly programmed to do so.
Machine learning algorithms use historical data as input to predict new output values.

Recommendation engines are a common use case for machine learning. Other popular uses
include fraud detection, spam filtering, malware threat detection, business process
automation (BPA) and Predictive maintenance.

Why is machine learning important?

Machine learning is important because it gives enterprises a view of trends in customer behavior
and business operational patterns, as well as supports the development of new products. Many of
today's leading companies, such as Facebook, Google and Uber, make machine learning a central
part of their operations. Machine learning has become a significant competitive differentiator for
many companies.

What are the different types of machine learning?

Classical machine learning is often categorized by how an algorithm learns to become more
accurate in its predictions. There are four basic
approaches:supervised learning, unsupervised learning, semi-supervised learning and
reinforcement learning. The type of algorithm data scientists choose to use depends on what type
of data they want to predict.

 Supervised learning: In this type of machine learning, data scientists supply algorithms with
labeled training data and define the variables they want the algorithm to assess for
correlations. Both the input and the output of the algorithm is specified.

 Unsupervised learning: This type of machine learning involves algorithms that train on
unlabeled data. The algorithm scans through data sets looking for any meaningful connection.
The data that algorithms train on as well as the predictions or recommendations they output
are predetermined.
 Semi-supervised learning: This approach to machine learning involves a mix of the two
preceding types. Data scientists may feed an algorithm mostly labeled training data, but the
model is free to explore the data on its own and develop its own understanding of the data set.

 Reinforcement learning: Data scientists typically use reinforcement learning to teach a

machine to complete a multi-step process for which there are clearly defined rules. Data
scientists program an algorithm to complete a task and give it positive or negative cues as it
works out how to complete a task. But for the most part, the algorithm decides on its own
what steps to take along the way.
How does supervised machine learning work?

Supervised machine learning requires the data scientist to train the algorithm with both labeled
inputs and desired outputs. Supervised learning algorithms are good for the following tasks:

 Binary classification: Dividing data into two categories.

 Multi-class classification: Choosing between more than two types of answers.

 Regression modeling: Predicting continuous values.

 Ensembling: Combining the predictions of multiple machine learning models to produce an

accurate prediction.
How does unsupervised machine learning work?

Unsupervised machine learning algorithms do not require data to be labeled. They sift through
unlabeled data to look for patterns that can be used to group data points into subsets. Most types
of deep learning, including neural networks, are unsupervised algorithms. Unsupervised learning
algorithms are good for the following tasks:

 Clustering: Splitting the dataset into groups based on similarity.

 Anomaly detection: Identifying unusual data points in a data set.

 Association mining: Identifying sets of items in a data set that frequently occur together.

 Dimensionality reduction: Reducing the number of variables in a data set.

How does semi-supervised learning work?
Semi-supervised learning works by data scientists feeding a small amount of labeled training
data to an algorithm. From this, the algorithm learns the dimensions of the data set, which it can
then apply to new, unlabeled data. The performance of algorithms typically improves when they
train on labeled data sets. But labeling data can be time consuming and expensive. Semi-
supervised learning strikes a middle ground between the performance of supervised learning and
the efficiency of unsupervised learning. Some areas where semi-supervised learning is used
include:

 Machine translation: Teaching algorithms to translate language based on less than a full
dictionary of words.

 Fraud detection: Identifying cases of fraud when you only have a few positive examples.

 Labelling data: Algorithms trained on small data sets can learn to apply data labels to larger
sets automatically.
How does reinforcement learning work?

Reinforcement learning works by programming an algorithm with a distinct goal and a

prescribed set of rules for accomplishing that goal. Data scientists also program the algorithm to
seek positive rewards -- which it receives when it performs an action that is beneficial toward the
ultimate goal -- and avoid punishments -- which it receives when it performs an action that gets it
farther away from its ultimate goal. Reinforcement learning is often used in areas such as:

 Robotics: Robots can learn to perform tasks the physical world using this technique.

 Video gameplay: Reinforcement learning has been used to teach bots to play a number of
video games.

 Resource management: Given finite resources and a defined goal, reinforcement learning
can help enterprises plan out how to allocate resources.
Who's using machine learning and what's it used for?

Today, machine learning is used in a wide range of applications. Perhaps one of the most well-
known examples of machine learning in action is the recommendation engine that powers
Facebook's news feed.
 Facebook uses machine learning to personalize how each member's feed is delivered. If a
member frequently stops to read a particular group's posts, the recommendation engine will start
to show more of that group's activity earlier in the feed.

Behind the scenes, the engine is attempting to reinforce known patterns in the member's online
behavior. Should the member change patterns and fail to read posts from that group in the
coming weeks, the news feed will adjust accordingly.

In addition to recommendation engines, other uses for machine learning include the following:

 Customer relationship management. CRM software can use machine learning models to
analyze email and prompt sales team members to respond to the most important messages
first. More advanced systems can even recommend potentially effective responses.

 Business intelligence. BI and analytics vendors use machine learning in their software to
identify potentially important data points, patterns of data points and anomalies.

 Human resource information systems. HRIS systems can use machine learning models to
filter through applications and identify the best candidates for an open position.

 Self-driving cars. Machine learning algorithms can even make it possible for a semi-
autonomous car to recognize a partially visible object and alert the driver.

 Virtual assistants. Smart assistants typically combine supervised and unsupervised machine
learning models to interpret natural speech and supply context.
What are the advantages and disadvantages of machine learning?

Machine learning has seen use cases ranging from predicting customer behavior to forming the
operating system for self-driving cars.

When it comes to advantages, machine learning can help enterprises understand their customers
at a deeper level. By collecting customer data and correlating it with behaviors over time,
machine learning algorithms can learn associations and help teams tailor product development
and marketing initiatives to customer demand.
Some companies use machine learning as a primary driver in their business models. Uber, for
example, uses algorithms to match drivers with riders. Google uses machine learning to surface
the ride advertisements in searches.

But machine learning comes with disadvantages. First and foremost, it can be expensive.
Machine learning projects are typically driven by data scientists, who command high salaries.
These projects also require software infrastructure that can be expensive.

There is also the problem of machine learning bias. Algorithms trained on data sets that exclude
certain populations or contain errors can lead to inaccurate models of the world that, at best, fail
and, at worst, are discriminatory. When an enterprise bases core business processes on biased
models it can run into regulatory and reputational harm.

How to choose the right machine learning model

The process of choosing the right machine learning model to solve a problem can be time
consuming if not approached strategically.

Step 1: Align the problem with potential data inputs that should be considered for the solution.
This step requires help from data scientists and experts who have a deep understanding of the
problem.

Step 2: Collect data, format it and label the data if necessary. This step is typically led by data
scientists, with help from data wranglers.

Step 3: Chose which algorithm(s) to use and test to see how well they perform. This step is
usually carried out by data scientists.

Step 4: Continue to fine tune outputs until they reach an acceptable level of accuracy. This step
is usually carried out by data scientists with feedback from experts who have a deep
understanding of the problem.

Importance of human interpretable machine learning

Explaining how a specific ML model works can be challenging when the model is complex.
There are some vertical industries where data scientists have to use simple machine learning
models because it's important for the business to explain how every decision was made. This is
especially true in industries with heavy compliance burdens such as banking and insurance.

Complex models can produce accurate predictions, but explaining to a lay person how an output
was determined can be difficult.