What is Machine Learning?

Machine Learning (ML) is a subset of artificial intelligence that enables systems to learn and improve from experience without being explicitly programmed. Instead of following pre-defined rules, ML algorithms identify patterns in data and make predictions or decisions based on those patterns.

For SMEs, machine learning offers practical applications across various business functions. In marketing, ML can predict which customers are most likely to purchase or churn. In operations, it can forecast inventory needs and optimize supply chains. In finance, ML models can detect fraudulent transactions and assess credit risk.

There are three main types of machine learning: supervised learning (learning from labeled examples), unsupervised learning (finding hidden patterns in unlabeled data), and reinforcement learning (learning through trial and error). Most business applications use supervised learning, where the system learns from historical data to make predictions about new situations.

The advantage for SMEs is that pre-built ML models and platforms like Google Cloud AI, Amazon SageMaker, and Microsoft Azure ML make it possible to implement machine learning solutions without hiring data scientists. Many tools offer drag-and-drop interfaces and automated model training, making ML accessible to businesses of all sizes.