Machine Learning is a form of Artificial Intelligence that can discover relationships between objects or variables which are either invisible to the human eye or which will take too long for a human to discover. That's why we use computers. It will discover those relationships by training and testing on data with the property that the algorithm will continuously develop and improve based on new information.
Machine Learning can be used to predict an output based on certain inputs. For example:
- will the borrower default based on certain characteristics and historical data, or;
- What should the price of a house be based on its characteristics and the current offers in the market, or;
- How interest rates are predicted to move tomorrow based on financial market indicators of today.
Besides, Machine Learning can be used to quickly and efficiently categorize unlabeled data based on similarities. For example, do you have 1,000 pictures of cats and dogs and do you want to split them into the 2 categories, but are they not labeled? Let Machine Learning do the job!
The possibilities are endless and can significantly help your data analytics.