Machine Learning: Definition, Types, and Business Applications

Machine learning

If you wonder what is machine learning, you must know it is a subfield of computer science that allows systems to learn and improve from experience without being explicitly programmed automatically. It is an umbrella term that includes two principal fields of study: Artificial Intelligence (AI) and Statistical Learning.

Machine learning has evolved from several source fields, including statistics, computer science, mathematics, and engineering. Machine learning is associated with three core techniques: supervised, unsupervised, and reinforcement learning.

What Can Machine Learning Do?

The benefits of machine learning include:

  • Improved data analysis accuracy and efficiency,
  • The ability to classify and classify new objects using computer algorithms that most often define the problem in objective mathematical terms,
  • It provides solution methods that are generally easier to implement than programmatic code.

More recently, machine learning has been extended to multimedia data analysis based on applications like speech recognition, image recognition, and music transcription.

Types of Machine Learning

1. Supervised Learning

Supervised learning is a statistical model-based approach used to learn from a set of training examples. It requires that observations are labeled with some label, for example, positive or negative. In supervised learning, the goal is to find the best mapping function that fits the training data points. The mapping function or model is typically expressed as a function of only two parameters, an input and its corresponding output.

2. Unsupervised Learning

On the other hand, unsupervised learning is driven by structured facts that are unknown beforehand that need to be discovered through analysis of the dataset by machine learning algorithms’ processes. These facts are also known as inductive bias. It could be a correlation between different variables, a pattern in the data, a cluster in the data, or any other associative patterns essential to predict the unseen from the observed.

3. Reinforcement Learning

Reinforcement learning is a subset of supervised learning where the model learns from interactions with an environment. Whereas in supervised learning, there is a distinct separation between the model and environment, in reinforcement learning, the model is embedded into the environment from which it receives continuous feedback.

Top Machine Learning Business Applications

1. Predictive Analysis

Predictive analysis is the first step in any machine-learning process. It relies on training a supervised model that can provide accurate predictions on new, unseen data. Predictive analysis has applications in many business areas, including insurance, healthcare, and risk management.

2. Recommendation Systems

Recommendation systems predict which items will be preferred or rated positively by a particular user or group. One can do it by analyzing the history of purchases and ratings made by those users. Amazon and Netflix are examples of online companies that use recommendation systems to provide personalized shopping experiences.

3. Data Mining

Data mining is a machine learning process that identifies patterns in large data sets. This type of analysis usually involves the creation of predictive models to discover previously unknown ways and relationships.

4. Customer Relationship Management

The customer relationship management (CRM) industry has effectively used machine learning to improve its services. Machine learning is used in CRMs to provide a more personalized, efficient, and proactive customer experience.

5. Image Analysis

Machine learning techniques are helpful in many areas of computer vision, including image classification, image enhancement, colorization, and segmentation. Several methods are used to classify images into different classes, including unsupervised and supervised (also known as semi-supervised learning).

Some applications of machine learning include detecting and classifying faces in photographs to act based on their gender or identify objects within an image. The goal is to provide accurate and reliable recognition or categorization at a low computational cost.

Bottom Line

As businesses face increasing competition, they turn to machine learning and AI solutions to gain a competitive advantage. As a result, machine learning offers significant potential for organizations that wish to get an edge in areas such as marketing, sales, and customer service.

The use of machine learning can give businesses a clearer understanding of what consumers want and need. The technology gathers data from various sources, such as web analytics, user behaviors, pricing, and inventory systems, to identify patterns and trends. This data is then analyzed to find relevant insights that can help businesses improve their processes.

However, businesses need to understand the principles behind and potential problems with machine learning before deploying it on a large scale.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.