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Algorithm

Gradient-boosting trees

Description

Gradient-boosting trees is a state-of-the-art classification/regression technique. It is focusing on the error committed by the previous trees and tries to correct it.

Type

Regression
Classification
Unsupervised learning

In unsupervised learning, an algorithm explores input data without being given an explicit output variable (e.g., explores customer demographic data to identify patterns)

You can use it when you do not know how to classify the data, and you want the algorithm to find patterns and classify the data for you
Algorithm Name

K-means clustering

Description

Puts data into some groups (k) that each contains data with similar characteristics (as determined by the model, not in advance by humans)

Type

Clustering
Algorithm Name

Gaussian mixture model

Description

A generalization of k-means clustering that provides more flexibility in the size and shape of groups (clusters)

Type

Clustering
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Algorithm Name

Hierarchical clustering

Description

Splits clusters along a hierarchical tree to form a classification system.
Can be used for Cluster loyalty-card customer

Type

Clustering
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Algorithm Name

Recommender system

Description

Help to define the relevant data for making a recommendation.

Type

Clustering
Algorithm Name

PCA/T-SNE

Description

Mostly used to decrease the dimensionality of the data. The algorithms reduce the number of features to 3 or 4 vectors with the highest variances

Type

Dimension Reduction
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​How to Choose Machine Learning Algorithm

Now in this Machine learning basics tutorial, we will learn how to choose Machine Learning (ML) algorithm:
There are plenty of machine learning algorithms. The choice of the algorithm is based on the objective.

In the Machine learning example below, the task is to predict the type of flower among the three varieties.

The predictions are based on the length and the width of the petal. The picture depicts the results of ten different algorithms. The picture on the top left is the dataset. The data is classified into three categories: red, light blue and dark blue. There are some groupings. For instance, from the second image, everything in the upper left belongs to the red category, in the middle part, there is a mixture of uncertainty and light blue while the bottom corresponds to the dark category. The other images show different algorithms and how they try to classified the data.
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Challenges and Limitations of Machine Learning

Now in this Machine learning tutorial, we will learn about the limitations of Machine Learning:
The primary challenge of machine learning is the lack of data or the diversity in the dataset. A machine cannot learn if there is no data available. Besides, a dataset with a lack of diversity gives the machine a hard time. A machine needs to have heterogeneity to learn meaningful insight. It is rare that an algorithm can extract information when there are no or few variations. It is recommended to have at least 20 observations per group to help the machine learn. This constraint leads to poor evaluation and prediction.
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Application of Machine Learning

Now in this Machine learning tutorial, let’s learn the applications of Machine Learning:

Augmentation:

Machine learning, which assists humans with their day-to-day tasks, personally or commercially without having complete control of the output. Such machine learning is used in different ways such as Virtual Assistant, Data analysis, software solutions. The primary user is to reduce errors due to human bias.

Automation:

Machine learning, which works entirely autonomously in any field without the need for any human intervention. For example, robots performing the essential process steps in manufacturing plants.

Finance Industry

Machine learning is growing in popularity in the finance industry. Banks are mainly using ML to find patterns inside the data but also to prevent fraud.

Government organization

The government makes use of ML to manage public safety and utilities. Take the example of China with the massive face recognition. The government uses Artificial intelligence to prevent jaywalker.

Healthcare industry

Healthcare was one of the first industry to use machine learning with image detection.

Marketing

Broad use of AI is done in marketing thanks to abundant access to data. Before the age of mass data, researchers develop advanced mathematical tools like Bayesian analysis to estimate the value of a customer. With the boom of data, marketing department relies on AI to optimize the customer relationship and marketing campaign.
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Tomorrow, we'll look at why machine learning is important.

That will be the final section.
Example of application of Machine Learning in Supply Chain

Machine learning gives terrific results for visual pattern recognition, opening up many potential applications in physical inspection and maintenance across the entire supply chain network.
Unsupervised learning can quickly search for comparable patterns in the diverse dataset. In turn, the machine can perform quality inspection throughout the logistics hub, shipment with damage and wear.

For instance, IBM’s Watson platform can determine shipping container damage. Watson combines visual and systems-based data to track, report and make recommendations in real-time.
In past year stock manager relies extensively on the primary method to evaluate and forecast the inventory. When combining big data and machine learning, better forecasting techniques have been implemented (an improvement of 20 to 30 % over traditional forecasting tools). In term of sales, it means an increase of 2 to 3 % due to the potential reduction in inventory costs.
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​Example of Machine Learning Google Car

For example, everybody knows the Google car. The car is full of lasers on the roof which are telling it where it is regarding the surrounding area. It has radar in the front, which is informing the car of the speed and motion of all the cars around it. It uses all of that data to figure out not only how to drive the car but also to figure out and predict what potential drivers around the car are going to do. What’s impressive is that the car is processing almost a gigabyte a second of data.
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Why is Machine Learning Important?

Machine learning is the best tool so far to analyze, understand and identify a pattern in the data. One of the main ideas behind machine learning is that the computer can be trained to automate tasks that would be exhaustive or impossible for a human being. The clear breach from the traditional analysis is that machine learning can take decisions with minimal human intervention.

Take the following example for this ML tutorial; a retail agent can estimate the price of a house based on his own experience and his knowledge of the market.

A machine can be trained to translate the knowledge of an expert into features. The features are all the characteristics of a house, neighborhood, economic environment, etc. that make the price difference. For the expert, it took him probably some years to master the art of estimate the price of a house. His expertise is getting better and better after each sale.

For the machine, it takes millions of data, (i.e., example) to master this art. At the very beginning of its learning, the machine makes a mistake, somehow like the junior salesman. Once the machine sees all the example, it got enough knowledge to make its estimation. At the same time, with incredible accuracy. The machine is also able to adjust its mistake accordingly.
Most of the big company have understood the value of machine learning and holding data. McKinsey have estimated that the value of analytics ranges from $9.5 trillion to $15.4 trillion while $5 to 7 trillion can be attributed to the most advanced AI techniques.
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