Blockchain and AI for Business

Artificial Intelligence &

Machine Learning

Instructor:
Prashant Kumar
(Ph.D., IIT Delhi)
Lecturer
Email: prashant.kumar@jgu.edu.in
ML originated with the checkers GameAI created by Arthur
Samuel 1959
Samuel completed his first checker
program on the IBM 701, and when it was
about to be demonstrated, Thomas J.
Watson, Sr., the founder and president of
IBM, remarked that the demonstration
would raise the price of IBM stock by 15
points. It really did!

The AI learnt by playing games with other players and also by

itself, using a minmax strategy
 A learning machine can create and manage its own knowledgebase

 Imagine machine learning applied to the Chinese room experiment

 After observing and examining thousands of exchanges, the computer
identifies a pattern of communication and adds common words and
phrases to its database.
 It can then use its collection of words and phrases to more quickly
decipher the notes it receives and quickly assemble a response using
these words and phrases instead of having to assemble a response from a
collection of characters.
 It may even create its own dictionary based on these matching patterns,
so it has a complete response to certain notes it receives.

 BUT Machine learning still qualifies as weak AI, we just removed the
expert
 Machine learning has become one of the fastest growing areas in AI
primarily because the cost of data storage and processing has
dropped dramatically
~Moore’s Law
 the era of data science and big data — extremely large data sets that
can be computer analyzed to reveal patterns, trends and
associations.

 Machine learning can identify patterns even when you really don't
know what you're looking for. In a sense, machine learning enables
computers to find out what's inside your data and let you know what
it found.

 Instead of memorizing symbols a computer system uses machine

learning algorithms to create models of abstract concepts.
 It detects statistical patterns by using machine learning algorithms
on massive amounts of data
 Machine can be taught to lean by an expert- Supervised learning.

 It can also learn on its own- Unsupervised learning.

 Both of these require- Training data set and testing/validation data set.
Applications of ML

Data Security Fraud Detection and

Prevention
Personalised Marketing Healthcare
Choosing the best approach for business
 expert system or machine learning
 Although machine learning is certainly more advanced, an expert
system is often best for certain applications

 The choice depends on: available amount of data, Variation in the

data and is a there clear set of steps to reach to the solution?

 An expert system is best when you have a sequential problem and

there are finite steps to find a solution

 Machine learning is best when your problem contains a certain level

of uncertainty, you need to analyze large volumes of data to make
predictions or to identify patterns that you may not even know would
provide insight
 consider which approach is best for your specific use case

 Expert systems are easier to deploy, can save you time and money

 If your use case deals with a dynamic environment with huge

amounts of data to work with, Machine learning becomes necessary

 You can also mix the 2 approaches

Supervised and unsupervised learning

 With supervised learning, a human labels the data. So the

machine has an advantage of knowing the human definition of
the data.

 With unsupervised learning, the machine figures out on its

own how to cluster the data.

 Having a machine create its own categories has advantages

and disadvantages

 In a business case, if you already have well defined categories that

you want the machine to use to classify input, you probably want to
stick with supervised learning

 If you’re unsure how to group and categorize the data or you want to
look at the data in a new way, unsupervised learning is probably the
better approach
 With supervised learning, you need a way to let the neural network
know when it has made a mistake — when it has failed to identify a
match or has falsely identified a match

 Backpropagation, short for "backward propagation of errors," is an

algorithm for supervised learning of artificial neural networks using
gradient descent

 These algorithms work by making adjustments to the weights of each

connection.
 Regression Analysis
 Classification isn't the only form of supervised machine learning You can also have your ANN
use Regression Analysis

 identifies the relationship between a dependent variable and one or more independent
variables

 The idea behind this is to predict the behaviour of the dependent variable with the changes
know in independent variable/variables

 If you need classification/sorting use backpropagation

 If you need connecting then use regression

 your ANN can only show you the patterns, not provide explanations
Questions?