Business AI Application

Module 2: Machine Learning Basics

Understanding the core mechanisms that power AI systems

Executive Summary

Key Concepts

If AI is the broader concept, then Machine Learning (ML) is the engine that powers it. ML involves algorithms learning from data to make predictions or identify patterns without being explicitly programmed. There are three main types:

Executives should understand that ML thrives on data quality and quantity. The better your data, the better your model.

Interactive Charts

This scatterplot illustrates how supervised models work. Toggle the trend line to see how a machine learning model would fit the data.

This visualization demonstrates unsupervised clustering with dynamic color-coded customer segments based on spending behavior and engagement.

Real-World Examples

Email Spam Filters

ML models train on labeled examples of spam emails to identify and filter out new spam messages.

Fraud Detection

Banks use ML to detect anomalies in transaction patterns that might indicate fraudulent activity.

Predictive Maintenance

Manufacturers use sensor data to predict equipment failure before it happens, reducing downtime.

Customer Segmentation

E-commerce platforms group shoppers based on behavior patterns for targeted marketing campaigns.

Discussion Prompts

Knowledge Check: True or False

Question 1: In supervised learning, the algorithm learns from labeled training data to make predictions or decisions.

Question 2: Feature engineering is unnecessary when using deep learning models.

Question 3: Overfitting occurs when a model performs well on training data but poorly on unseen data.

Call to Action

Pick one dataset in your business and brainstorm with a data-savvy colleague how ML might unlock value from it.

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