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.

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 chooses 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.

The Importance of Machine Learning

The nearly limitless quantity of available data, affordable data storage, and growth of
less expensive and more powerful processing has propelled the growth of ML. Now
many industries are developing more robust models capable of analyzing bigger and
more complex data while delivering faster, more accurate results on vast scales. ML
tools enable organizations to more quickly identify profitable opportunities and potential
risks.
The practical applications of machine learning drive business results which can
dramatically affect a company’s bottom line. New techniques in the field are evolving
rapidly and expanded the application of ML to nearly limitless possibilities. Industries
that depend on vast quantities of data—and need a system to analyze it efficiently and
accurately, have embraced ML as the best way to build models, strategize, and plan.

Industries that Use Machine Learning

Healthcare. The proliferation of wearable sensors and devices that monitor everything
from pulse rates and steps walked to oxygen and sugar levels and even sleeping
patterns has generated a significant volume of data that enable doctors to assess their
patients’ health in real time. One new ML algorithm detects cancerous tumors on
mammograms; another identifies skin cancer; a third can analyze retinal images to
diagnose diabetic retinopathy.
Government. Systems that use machine learning enable government officials to use
data to predict potential future scenarios and adapt to rapidly changing situations. ML
can help to improve cybersecurity and cyber intelligence, support counterterrorism
efforts, optimize operational preparedness, logistics management, and predictive
maintenance, and reduce failure rates. This recent article highlights 10 more
applications for machine learning within the healthcare industry.
Marketing and sales. Machine learning is even revolutionizing the marketing sector as
many companies have successfully implemented artificial intelligence (AI) and ML to
increase and enhance customer satisfaction by over 10%. In fact, according to Forbes,
“57% of enterprise executives believe that the most important growth benefit of AI and
ML will be improving customer experiences and support
E-commerce and social media sites use ML to analyze your buying and search history
—and make recommendations on other items to purchase, based on your past habits.
Many experts theorize that the future of retail will be driven by AI and ML as systems
become even more adept at capturing, analyzing, and using data to personalize
individuals’ shopping experiences and develop customized, targeted marketing
campaigns.
Transportation. Efficiency and accuracy are key to profitability within this sector; so is
the ability to predict and mitigate potential problems. ML’s data analysis and modeling
functions dovetail perfectly with businesses within the delivery, public transportation,
and freight transport sectors. ML uses algorithms to find factors that positively and
negatively impact a supply chain’s success, making machine learning a critical
component within supply chain management.
Financial services. The insights provided by ML in this industry allow investors to
identify new opportunities or know when to trade. Data mining pinpoints high-risk clients
and informs cybersurveillance to find and mitigate signs of fraud. ML can help calibrate
financial portfolios or assess risk for loan and insurance underwriting.
Oil and gas. ML and AI are already working to find new energy sources and analyze
mineral deposits in the ground, predict refinery sensor failure, and streamline oil
distribution to increase efficiency and shrink costs. ML is revolutionizing the industry
with its case-based reasoning, reservoir modeling, and drill floor automation, too. And
above all, machine learning is helping to make this dangerous industry safer.
Manufacturing. Machine learning is no stranger to the vast manufacturing industry,
either. It’s accomplishing the goal of improving operations from conceptualization to final
delivery, significantly reducing error rates, improving predictive maintenance, and
increasing inventory turns.