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Executive Summary of Artificial Intelligence
How to use AI in business.
Artificial Intelligence is used in business through machine learning algorithms. Machine learning is a part of computer science focused on computer systems learning to perform a specific task without using explicit instructions, relying on patterns and inference instead.
Machine learning algorithms detect patterns and learn how to make predictions and recommendations by processing data, rather than by receiving explicit programming instruction (‘if then’ loops). The algorithms improve over time with new data coming in, ‘learning’ through examples.
Machine learning is primarily used in:
- predictions: what will happen
- prescriptions: what should be done to achieve goals
- descriptions: what happened
Machine Learning Types
There are three main types of machine learning algorithms: supervised learning, unsupervised learning and reinforcement learning.
Supervised learning uses training data and feedback from humans to learn the relationship of given inputs to a given output (for example how the inputs “date” and “sales” predict customers preferences). Use it if you know already how to classify the input data and the…
