What is Machine Learning?
Perhaps the most significant appeal of AI is that it helps machines deal with the complexities of human lives in a more efficient manner. In essence, AI empowers machines to learn and understand the world around us.
While this might seem like a far-fetched goal, AI is already integral to some aspects of our lives. For example, your smartphone’s speech-recognition capability is powered by AI. Likewise, social media platforms use AI to identify trends and serve you targeted ads.
Machine Learning, or ML, is a subset of AI that allows computer systems to learn without human guidance.
Machine learning is about exploiting data to produce intelligent, accurate algorithms. However, unlike traditional computer programs designed to perform specific tasks (like speech recognition), machine-learning algorithms must be trained with large amounts of data before they can be used for applications like self-driving cars or targeted advertising campaigns.
Machine Learning Sample Use Cases
- Customer Segmentation
- Social Media
- Predictive Modeling For Businesses
- Image Classification For Retail Products, Medical Diagnosis
The number of use cases for machine learning is virtually limitless, and businesses increasingly depend on this technology to power their latest products and services. Here are five key benefits of machine learning for businesses.
- It Helps Businesses Make Smart Decisions
The data largely determines the way you manage your business that it generates. Machine learning can help you bring structure to this data, identify patterns and draw insights that allow you to make better decisions. For example, retailers can use machine-learning algorithms to identify their most profitable customers and design marketing campaigns that focus on increasing or retaining business from those individuals.
Similarly, machine learning can be used for predictive modeling; this technique is instrumental in eliminating fraud and improving credit risk assessment. For instance, by using historical data about credit card transactions, banks can use machine-learning models to evaluate whether a given transaction is valid or fraudulent.
- It Helps Businesses Personalize Customer Experience
Machine learning can also be leveraged to personalize the customer experience. Whether you own an e-commerce portal, mobile app, or even a brick-and-mortar store, anticipating your customers’ preferences is a great way to increase ROI and drive engagement. By leveraging machine-learning algorithms, businesses can learn what customers like and do not like based on their past activities and deliver relevant offers at the right time.
- It Can Identify Extremes And Find Unusual Patterns
Machine learning allows you to bring structure and order to your data without human supervision. This means that you can use machine learning to identify trends and patterns that might not be obvious to the naked eye. For instance, social media platforms use machine-learning algorithms to identify trending topics and serve relevant content based on your interests.
- It Can Help You Set Pricing Strategy And Drive More Conversions
Today’s e-commerce portals are desperate to increase conversions. By using machine learning, businesses can study user behavior and set the optimal price point for each product or service, adjusting prices according to supply and demand, among other uses.
- It Can Boost Productivity And Process Automation
Machine learning also allows you to automate time-consuming tasks that are not considered core competencies of your business. For example, it can automate processes like bookkeeping and HR management using algorithms that employ natural language processing (NLP).
Of course, machine learning also has its drawbacks; these include lack of explainability (meaning the algorithm’s reasoning behind its decisions is unclear), scalability issues, and reliance on large amounts of data. Firms need to understand these limitations before deploying this technology in their businesses.