Have you ever played chess or checkers against a computer? If you have, news flash – you’ve watched artificial intelligence at work. But what if the computer could get better at the game on its own just by playing more and analyzing its mistakes? That’s the power of machine learning, a type of AI that lets computers learn and improve from experience.

In fact, machine learning is becoming increasingly important in our daily lives. According to a report by Statista, revenues from the global market for AI software are expected to reach 126 billion by 2025, up from just 10.1 billion in 2018. From personalized recommendations on Netflix to self-driving cars, machine learning is powering some of the most innovative and exciting technologies of our time.

But how does it all work? In this article, we’ll dive into the concepts of machine learning and explore how it’s changing the way we interact with technology.

What is Machine Learning?

Machine learning is a subset of artificial intelligence (AI) that focuses on building algorithms that can learn from data and then make predictions or decisions and recognize patterns. Essentially, it’s all about creating computer programs that can adapt and improve on their own without being explicitly programmed for every possible scenario.

It’s like teaching a computer to see the world through a different lens. From the data, the machine identifies patterns and relationships within it. Based on these patterns, the algorithm can make predictions or decisions about new data it hasn’t seen before.

Because of these qualities, machine learning has plenty of practical applications. We can train computers to make decisions, recognize speech, and even generate art. We can use it in fraud detection in financial transactions or to improve healthcare outcomes through personalized medicine.

Machine learning also plays a large role in fields like computer vision, natural language processing, and robotics, as they require the ability to recognize patterns and make predictions to complete various tasks.

Concepts of Machine Learning

Machine learning might seem magical, but the concepts of machine learning are complex, with many layers of algorithms and techniques working together to get to an end goal.

From supervised and unsupervised learning to deep neural networks and reinforcement learning, there are many base concepts to understand before diving into the world of machine learning. Get ready to explore some machine learning basics!

Supervised Learning

Supervised learning involves training the algorithm to recognize patterns or make predictions using labeled data.

  • Classification: Classification is quite straightforward, evident by its name. Its goal is to predict which category or class new data belongs to based on existing data.
  • Logistic Regression: Logistic regression aims to predict a binary outcome (i.e., yes or no) based on one or more input variables.
  • Support Vector Machines: Support Vector Machines (SVMs) find the best way to separate data points into different categories or classes based on their features or attributes.
  • Decision Trees: Decision trees make decisions by dividing data into smaller and smaller subsets from a number of binary decisions. You can think of it like a game of 20 questions where you’re narrowing things down.
  • Naive Bayes: Naive Bayes uses Bayes’ theorem to predict how likely it is to end up with a certain result when different input variables are present or absent.

Regression

Regression is a type of machine learning that helps us predict numerical values, like prices or temperatures, based on other data that we have. It looks for patterns in the data to create a mathematical model that can estimate the value we are looking for.

  • Linear Regression: Linear regression helps us predict numerical values by fitting a straight line to the data.
  • Polynomial Regression: Polynomial regression is similar to linear regression, but instead of fitting a straight line to the data, it fits a curved line (a polynomial) to capture more complex relationships between the variables. Linear regression might be used to predict someone’s salary based on their years of experience, while polynomial regression could be used to predict how fast a car will go based on its engine size.
  • Support Vector Regression: Support vector regression finds the best fitting line to the data while minimizing errors and avoiding overfitting (becoming too attuned to the existing data).
  • Decision Tree Regression: Decision tree regression uses a tree-like template to make predictions out of a series of decision rules, where each branch represents a decision, and each leaf node represents a prediction.

Unsupervised Learning

Unsupervised learning is where the computer algorithm is given a bunch of data with no labels and has to find patterns or groupings on its own, allowing for discovering hidden insights and relationships.

  • Clustering: Clustering groups similar data points together based on their features.
  • K-Means: K-Means is a popular clustering algorithm that separates the data into a predetermined number of clusters by finding the average of each group.
  • Hierarchical Clustering: Hierarchical clustering is another way of grouping that creates a hierarchy of clusters by either merging smaller clusters into larger ones (agglomerative) or dividing larger clusters into smaller ones (divisive).
  • Expectation Maximization: Expectation maximization is quite self-explanatory. It’s a way to find patterns in data that aren’t clearly grouped together by guessing what might be there and refining the guesses over time.
  • Association Rule Learning: Association Rule Learning looks to find interesting connections between things in large sets of data, like discovering that people who buy plant pots often also buy juice.
  • Apriori: Apriori is an algorithm for association rule learning that finds frequent itemsets (groups of items that appear together often) and makes rules that describe the relationships between them.
  • Eclat: Eclat is similar to apriori, but it works by first finding which things appear together most often and then finding frequent itemsets out of those. It’s a method that works better for larger datasets.

Reinforcement Learning

Reinforcement learning is like teaching a computer to play a game by letting it try different actions and rewarding it when it does something good so it learns how to maximize its score over time.

  • Q-Learning: Q-Learning helps computers learn how to take actions in an environment by assigning values to each possible action and using those values to make decisions.
  • SARSA: SARSA is similar to Q-Learning but takes into account the current state of the environment, making it more useful in situations where actions have immediate consequences.
  • DDPG (Deep Deterministic Policy Gradient): DDPG is a more advanced type of reinforcement learning that uses neural networks to learn policies for continuous control tasks, like robotic movement, by mapping what it sees to its next action.

Deep Learning Algorithms

Deep Learning is a powerful type of machine learning that’s inspired by how the human brain works, using artificial neural networks to learn and make decisions from vast amounts of data.

It’s more complex than other types of machine learning because it involves many layers of connections that can learn to recognize complex patterns and relationships in data.

  • Neural Networks: Neural networks mimic the structure and function of the human brain, allowing them to learn from and make predictions about complex data.
  • Convolutional Neural Networks: Convolutional neural networks are particularly good at image recognition, using specialized layers to detect features like edges, textures, and shapes.
  • Recurrent Neural Networks: Recurrent neural networks are known to be good at processing sequential data, like language or music, by keeping track of previous inputs and using that information to make better predictions.
  • Generative Adversarial Networks: Generative adversarial networks can generate new, original data by pitting two networks against each other. One tries to create fake data, and the other tries to spot the fakes until the generator network gets really good at making convincing fakes.

Conclusion

As we’ve learned, machine learning is a powerful tool that can help computers learn from data and make predictions, recognize patterns, and even create new things.

With basic concepts like supervised and unsupervised learning, regression and clustering, and advanced techniques like deep learning and neural networks, the possibilities for what we can achieve with machine learning are endless.

So whether you’re new to the subject or deeper down the iceberg, there’s always something new to learn in the exciting field of machine learning!

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Sage: The ethics of AI: how to ensure your firm is fair and transparent
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Mar 7, 2025 3 min read

Source:


By Chris Torney

Artificial intelligence (AI) and machine learning have the potential to offer significant benefits and opportunities to businesses, from greater efficiency and productivity to transformational insights into customer behaviour and business performance. But it is vital that firms take into account a number of ethical considerations when incorporating this technology into their business operations. 

The adoption of AI is still in its infancy and, in many countries, there are few clear rules governing how companies should utilise the technology. However, experts say that firms of all sizes, from small and medium-sized businesses (SMBs) to international corporations, need to ensure their implementation of AI-based solutions is as fair and transparent as possible. Failure to do so can harm relationships with customers and employees, and risks causing serious reputational damage as well as loss of trust.

What are the main ethical considerations around AI?

According to Pierluigi Casale, professor in AI at the Open Institute of Technology, the adoption of AI brings serious ethical considerations that have the potential to affect employees, customers and suppliers. “Fairness, transparency, privacy, accountability, and workforce impact are at the core of these challenges,” Casale explains. “Bias remains one of AI’s biggest risks: models trained on historical data can reinforce discrimination, and this can influence hiring, lending and decision-making.”

Part of the problem, he adds, is that many AI systems operate as ‘black boxes’, which makes their decision-making process hard to understand or interpret. “Without clear explanations, customers may struggle to trust AI-driven services; for example, employees may feel unfairly assessed when AI is used for performance reviews.”

Casale points out that data privacy is another major concern. “AI relies on vast datasets, increasing the risk of breaches or misuse,” he says. “All companies operating in Europe must comply with regulations such as GDPR and the AI Act, ensuring responsible data handling to protect customers and employees.”

A third significant ethical consideration is the potential impact of AI and automation on current workforces. Businesses may need to think about their responsibilities in terms of employees who are displaced by technology, for example by introducing training programmes that will help them make the transition into new roles.

Olivia Gambelin, an AI ethicist and the founder of advisory network Ethical Intelligence, says the AI-related ethical considerations are likely to be specific to each business and the way it plans to use the technology. “It really does depend on the context,” she explains. “You’re not going to find a magical checklist of five things to consider on Google: you actually have to do the work, to understand what you are building.”

This means business leaders need to work out how their organisation’s use of AI is going to impact the people – the customers and employees – that come into contact with it, Gambelin says. “Being an AI-enabled company means nothing if your employees are unhappy and fearful of their jobs, and being an AI-enabled service provider means nothing if it’s not actually connecting with your customers.”

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Reuters: EFG Watch: DeepSeek poses deep questions about how AI will develop
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Feb 10, 2025 4 min read

Source:

  • Reuters, Published on February 10th, 2025.

By Mike Scott

Summary

  • DeepSeek challenges assumptions about AI market and raises new ESG and investment risks
  • Efficiency gains significant – similar results being achieved with less computing power
  • Disruption fuels doubts over Big Tech’s long-term AI leadership and market valuations
  • China’s lean AI model also casts doubt on costly U.S.-backed Stargate project
  • Analysts see DeepSeek as a counter to U.S. tariffs, intensifying geopolitical tensions

February 10 – The launch by Chinese company DeepSeek, opens new tab of its R1 reasoning model last month caused chaos in U.S. markets. At the same time, it shone a spotlight on a host of new risks and challenged market assumptions about how AI will develop.

The shock has since been overshadowed by President Trump’s tariff wars, opens new tab, but DeepSeek is set to have lasting and significant implications, observers say. It is also a timely reminder of why companies and investors need to consider ESG risks, and other factors such as geopolitics, in their investment strategies.

“The DeepSeek saga is a fascinating inflection point in AI’s trajectory, raising ESG questions that extend beyond energy and market concentration,” Peter Huang, co-founder of Openware AI, said in an emailed response to questions.

DeepSeek put the cat among the pigeons by announcing that it had developed its model for around $6 million, a thousandth of the cost of some other AI models, while also using far fewer chips and much less energy.

Camden Woollven, group head of AI product marketing at IT governance and compliance group GRC International, said in an email that “smaller companies and developers who couldn’t compete before can now get in the game …. It’s like we’re seeing a democratisation of AI development. And the efficiency gains are significant as they’re achieving similar results with much less computing power, which has huge implications for both costs and environmental impact.”

The impact on AI stocks and companies associated with the sector was severe. Chipmaker Nvidia lost almost $600 billion in market capitalisation after the DeepSeek announcement on fears that demand for its chips would be lower, but there was also a 20-30% drop in some energy stocks, said Stephen Deadman, UK associate partner at consultancy Sia.

As Reuters reported, power producers were among the biggest winners in the S&P 500 last year, buoyed by expectations of ballooning demand from data centres to scale artificial intelligence technologies, yet they saw the biggest-ever one-day drops after the DeepSeek announcement.

One reason for the massive sell-off was the timing – no-one was expecting such a breakthrough, nor for it to come from China. But DeepSeek also upended the prevailing narrative of how AI would develop, and who the winners would be.

Tom Vazdar, professor of cybersecurity and AI at Open Institute of Technology (OPIT), pointed out in an email that it called into question the premise behind the Stargate Project,, opens new tab a $500 billion joint venture by OpenAI, SoftBank and Oracle to build AI infrastructure in the U.S., which was announced with great fanfare by Donald Trump just days before DeepSeek’s announcement.

“Stargate has been premised on the notion that breakthroughs in AI require massive compute and expensive, proprietary infrastructure,” Vazdar said in an email.

There are also dangers in markets being dominated by such a small group of tech companies. As Abbie Llewellyn-Waters, Investment manager at Jupiter Asset Management, pointed out in a research note, the “Magnificent Seven” tech stocks had accounted for nearly 60% of the index’s gains over the previous two years. The group of mega-caps comprised more than a third of the S&P 500’s total value in December 2024.

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