UNIT 2 - Artificial Intelligence and Machine Learning
UNIT 2 - Artificial Intelligence and Machine Learning
5. Introduction to Generative AI
Introduction
to
AI and ML
Artificial intelligence (AI) is an umbrella term for different strategies
and techniques you can use to make machines more humanlike. AI
includes everything from smart assistants like Alexa to robotic
vacuum cleaners and self-driving cars.
Machine learning (ML) is one among many other branches of AI. ML
is the science of developing algorithms and statistical models that
computer systems use to perform complex tasks without explicit
instructions. The systems rely on patterns and inference instead.
Computer systems use ML algorithms to process large quantities of
historical data and identify data patterns. While machine learning is
AI, not all AI activities are machine learning.
What is Artificial Intelligence?
Intelligent Machines
AI refers to the development of computer systems and algorithms that can perform
tasks that typically require human intelligence, such as perception, reasoning, and
learning.
https://youtu.be/ad79nYk2keg?si=rEv1u8zcLE961API
HOW DID ARTIFICIAL INTELLIGENCE DEVELOP?
• In Alan Turing’s seminal paper from 1950, "Computing Machinery and Intelligence," he considered whether machines could think.
In this paper, Turing first coined the term artificial intelligence and presented it as a theoretical and philosophical concept.
• Between 1957 and 1974, developments in computing allowed computers to store more data and process faster. During this period,
scientists further developed machine learning (ML) algorithms. The progress in the field led agencies like the Defense Advanced
Research Projects Agency (DARPA) to create a fund for AI research. At first, the main goal of this research was to discover whether
computers could transcribe and translate spoken language.
• Through the 1980s, the boosted funding available and the expanding algorithmic toolkit scientists used in AI streamlined
development. David Rumelhart and John Hopfield published papers on deep learning techniques, which showed that computers
could learn from experience.
• From 1990 to the early 2000s, scientists achieved many core goals of AI, like beating the reigning world chess champion. With more
computing data and processing power in the modern age than in previous decades, AI research is now more common and accessible.
It's rapidly evolving into artificial general intelligence so software can perform complex tasks. Software can create, make decisions,
and learn on their own, tasks previously limited to humans.
AI in Business
•AWS In 5 Minutes | What Is AWS? | AWS Tutorial For Beginners | AWS Training | Simpli
learn (youtube.com)
HOW CAN AWS SUPPORT YOUR ARTIFICIAL INTELLIGENCE
REQUIREMENTS?
• Amazon Web Services (AWS) provides the most comprehensive services, tools, and resources to meet your AI technology
requirements. AWS makes AI accessible to organizations of all sizes so anyone can build innovative, new technology without
having to worry about infrastructure resources.
• AWS artificial intelligence (AI) offers hundreds of services to build and scale AI applications for every type of use case. Here are
examples of services you can use:
• Amazon CodeGuru Security to detect, monitor, and fix code security vulnerabilities
• Amazon Fraud Detector to detect online fraud and enhance detection models
• Amazon Monitron to detect infrastructural issues before they occur.
• Amazon Rekogniton to automate, streamline, and scale image recognition and video analysis
• Amazon Textract to extract printed text, analyze handwriting, and automatically capture data from any document
• Amazon Transcribe to convert speech to text, extract key business insights from video files, and improve business outcomes
MACHINE LEARNING
WHAT IS MACHINE LEARNING?
• Machine learning is the science of developing algorithms and statistical models that
computer systems use to perform tasks without explicit instructions, relying on patterns
and inference instead.
• Computer systems use machine learning algorithms to process large quantities of
historical data and identify data patterns. This allows them to predict outcomes more
accurately from a given input data set.
• For example, data scientists could train a medical application to diagnose cancer from x-
ray images by storing millions of scanned images and the corresponding diagnoses.
WHERE IS MACHINE LEARNING USED?
• Manufacturing
Machine learning can support predictive maintenance, quality control, and innovative research
in the manufacturing sector. Machine learning technology also helps companies improve
logistical solutions, including assets, supply chain, and inventory management. Healthcare
and life sciences
The proliferation of wearable sensors and devices has generated a significant volume of health
data. Machine learning programs can analyze this information and support doctors in real-time
diagnosis and treatment. Machine learning researchers are developing solutions that detect
cancerous tumors and diagnose eye diseases.
WHERE IS MACHINE LEARNING USED?
• Financial services
Financial machine learning projects improve risk analytics and regulation. Machine learning technology can allow investors to identify
new opportunities by analyzing stock market movements, evaluating hedge funds, or calibrating financial portfolios. In addition, it can
help identify high-risk loan clients and mitigate signs of fraud.
• Retail
Retail can use machine learning to improve customer service, stock management, upselling and cross-channel marketing. For
example, Amazon Fulfillment (AFT) cut infrastructure costs by 40 percent using a machine learning model to identify misplaced
inventory. This helps them deliver on Amazon’s promise that an item will be readily available to customers and arrive on time, despite
processing millions of global shipments annually.
• Media and entertainment
Entertainment companies turn to machine learning to better understand their target audiences and deliver immersive, personalized, and
on-demand content. Machine learning algorithms are deployed to help design trailers and other advertisements, provide consumers with
personalized content recommendations, and even streamline production.
HOW DOES MACHINE LEARNING WORK?
• The central idea behind machine learning is an existing mathematical relationship between any input and output
data combination. The machine learning model does not know this relationship in advance, but it can guess if
given sufficient data sets. This means every machine learning algorithm is built around a modifiable math
function. The underlying principle can be understood like this:
1. We ‘train’ the algorithm by giving it the following input/output (i,o) combinations – (2,10), (5,19), and (9,31)
2. The algorithm computes the relationship between input and output to be: o=3*i+4
3. We then give it input 7 and ask it to predict the output. It can automatically determine the output as 25.
• While this is a basic understanding, machine learning focuses on the principle that all complex data points can be
mathematically linked by computer systems as long as they have sufficient data and computing power to process
that data. Therefore, the accuracy of the output is directly co-relational to the magnitude of the input given.
WHAT ARE THE TYPES OF MACHINE LEARNING ALGORITHMS?
Algorithms can be categorized by four distinct learning styles depending on the expected
output and the input type.
1. Supervised machine learning
2. Unsupervised machine learning
3. Semi-supervised learning
1. SUPERVISED MACHINE LEARNING
• Data scientists supply algorithms with labeled and defined training data to assess for correlations.
The sample data specifies both the input and the output of the algorithm. For example, images of
handwritten figures are annotated to indicate which number they correspond to. A supervised-
learning system could recognize the clusters of pixels and shapes associated with each number,
given sufficient examples. It would eventually recognize handwritten numbers, reliably
distinguishing between the numbers 9 and 4 or 6 and 8.
• The strengths of supervised learning are simplicity and ease of design. It's useful when predicting a
possible limited set of outcomes, dividing data into categories, or combining results from two other
machine learning algorithms. However, labeling millions of unlabeled data sets is challenging. Let’s
take a closer look at this:
1. SUPERVISED MACHINE LEARNING
• Unsupervised learning algorithms train on unlabeled data. They scan through new data, trying to establish
meaningful connections between the inputs and predetermined outputs. They can spot patterns and categorize
data. For example, unsupervised algorithms could group news articles from different news sites into common
categories like sports, crime, etc. They can use natural language processing to comprehend meaning and emotion
in the article. In retail, unsupervised learning could find patterns in customer purchases and provide data analysis
results like — the customer is most likely to purchase bread if also buying butter.
• Unsupervised learning is useful for pattern recognition, anomaly detection, and automatically grouping data into
categories. As the training data does not require labeling, set up is easy. These algorithms can also be used to
clean and process data for further modeling automatically. The limitation of this method is that it cannot give
precise predictions. In addition, it cannot single out specific types of data outcomes independently.
3. SEMI-SUPERVISED LEARNING
• As the name suggests, this method combines supervised and unsupervised learning. The
technique relies on using a small amount of labeled data and a large amount of unlabeled
data to train systems. First, the labeled data is used to train the machine-learning
algorithm partially. After that, the partially trained algorithm itself labels the unlabeled
data. This process is called pseudo-labeling. The model is then re-trained on the resulting
data mix without being explicitly programmed.
• The advantage of this method is that you do not require large amounts of labeled data. It is
handy when working with data like long documents that would be too time-consuming for
humans to read and label.
DEEP LEARNING
WHAT IS DEEP LEARNING?
• Deep learning is a type of machine learning technique that is modeled on the human brain.
• Deep learning algorithms analyze data with a logic structure similar to that used by humans.
• Deep learning uses intelligent systems called artificial neural networks to process
information in layers.
• Data flows from the input layer through multiple “deep” hidden neural network layers
before coming to the output layer.
• The additional hidden layers support learning that’s far more capable than that of standard
machine learning models.
WHAT IS AN ARTIFICIAL NEURAL NETWORK?
• The deep learning layers are artificial neural network (ANN) nodes that operate like
human brain neurons. Nodes can be a combination of hardware and software. Each layer
in a deep learning algorithm is made up of ANN nodes. Each node, or artificial neuron,
connects to another and has an associated value number and threshold number. A node
sends its value number as an input to the next layer node when activated. It is activated
only if its output is above the specified threshold value. Otherwise, no data is passed
along.
WHAT IS COMPUTER VISION?
• The short answer is no. While the terms Machine learning and Artificial Intelligence (AI)
may be used interchangeably, they are not the same.
• Artificial Intelligence is an umbrella term for different strategies and techniques used to
make machines more human-like. AI includes everything from smart assistants like Alexa
to robotic vacuum cleaners and self-driving cars.
• Machine learning is one among many other branches of Artificial Intelligence. While
machine learning is AI, all AI activities cannot be called machine learning.
ARE MACHINE LEARNING AND DATA SCIENCE THE SAME?
• No, machine learning and data science are not the same.
• Data science is a field of study that uses a scientific approach to extract meaning and
insights from data. Data scientists use a range of tools for data analysis, and machine
learning is one such tool.
• Data scientists understand the bigger picture around the data like the business model,
domain, and data collection, while machine learning is a computational process that only
deals with raw data.
WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF MACHINE
LEARNING?
Conversational Experiences
AI-powered chatbots and virtual assistants provide natural, human-like interactions, delivering personalized
responses and seamless support.
Automated Assistance
These intelligent systems can handle a wide range of customer inquiries and tasks, freeing up human agents to
focus on more complex issues.
24/7 Availability
Chatbots and virtual assistants are available around the clock, ensuring customers can get the help they need
whenever they need it.
Predictive Analytics for Personalized Experiences
Resolution
Automated workflows can quickly access relevant data and provide
personalized solutions, streamlining the customer service process.
Feedback
AI can analyze customer feedback to continuously improve service quality
and identify areas for optimization.
AI
for
Data-Based Decision-
Making
Examples of Data based Decision-making
Predictive Search
AI-powered search algorithms can anticipate user intent and provide personalized, relevant search results,
enhancing the customer's ability to find the products or information they are looking for.
Personalized Recommendations
AI can analyze customer behavior, preferences, and past interactions to suggest personalized product or content
recommendations, leading to increased engagement and sales.
Intelligent Chatbots
AI-driven chatbots can provide personalized, conversational support to customers, addressing their inquiries
and concerns in real-time, improving customer satisfaction and loyalty.
Integrating AI into Strategic Decision-Making Processes
Scenario Planning
AI can be used to simulate different business scenarios, allowing decision-makers to explore the potential
impact of various strategic choices and better prepare for possible future events.
Resource Allocation
AI algorithms can analyze data on resources, costs, and expected outcomes to help organizations optimize the
allocation of their financial, human, and technological assets, ensuring maximum return on investment.
Strategic Insights
AI-powered data analysis can uncover hidden trends, patterns, and correlations that would be difficult for
humans to detect, providing valuable insights to inform strategic decision-making.
Adaptive Planning
AI can enable organizations to continuously monitor and adjust their strategies in response to changing market
conditions, ensuring they remain agile and responsive to new challenges and opportunities.
AI and ML
in
Marketing and Sales
Personalized Product Recommendations
Increased Conversion Rates Enhanced Customer Operational Efficiency
Experience
ML algorithms can automate the
AI-powered recommendations can Personalized recommendations recommendation process, reducing
suggest products tailored to each create a seamless and engaging the burden on marketing and sales
customer's unique preferences, shopping experience, building brand teams.
leading to higher conversion rates loyalty and customer satisfaction.
and revenue growth.
Predictive Customer Churn
Analysis
1 Data Collection
Gather relevant customer data, such as purchase history, engagement
metrics, and customer service interactions.
2 Model Training
Use ML algorithms to identify patterns and predict which customers
are at risk of churning.
3 Targeted Interventions
Proactively reach out to high-risk customers with personalized
retention strategies to prevent churn.
Automated Lead Scoring and
Prioritization
1 Lead Scoring
AI-driven models analyze lead data to assign a score based on their
likelihood of conversion.
2 Lead Prioritization
Automatically prioritize the most promising leads, allowing sales
teams to focus their efforts effectively.
3 Predictive Insights
ML algorithms can identify patterns and trends to forecast future
lead behavior and sales opportunities.
Intelligent Chatbots for Customer Support
24/7 Availability
Chatbots can provide instant, around-the-clock customer support, improving response times and
availability.
Personalized Interactions
Chatbots can tailor their responses based on customer data, creating a more personalized support
experience.
Scalable Solutions
Chatbots can handle multiple customer queries simultaneously, reducing the burden on human customer
service representatives.
Continuous Learning
Chatbots can leverage ML to continuously improve their responses and capabilities over time.
Optimized Pricing and Promotions
Pricing Optimization
AI-powered models can analyze market data, customer behavior, and competitor pricing to recommend
optimal pricing strategies.
Promotional Targeting
ML algorithms can identify the most effective promotional offers and target them to the right customers.
Revenue Maximization
Integrated AI and ML solutions can help businesses maximize revenue through dynamic pricing and
personalized promotions.
Targeted Digital Advertising and
Campaigns
Audience Segmentation
AI can analyze customer data to create highly targeted audience segments for
digital advertising and marketing campaigns.
Content Optimization
ML models can optimize the content, messaging, and creative elements of digital
ads to maximize engagement and conversions.
AI & ML
in
Finance
The financial industry has been at the forefront of adopting artificial
intelligence (AI) and machine learning (ML) technologies to drive
innovation and gain a competitive edge. From fraud detection and
personalized recommendations to algorithmic trading and credit risk
modeling, AI and ML have transformed various aspects of the finance
sector, offering increased efficiency, improved decision-making, and
enhanced customer experiences.
Fraud Detection and Prevention
Real-Time Monitoring
AI-powered fraud detection systems continuously monitor financial transactions in real-time, identifying
suspicious patterns and anomalies that may indicate fraudulent activity. These systems can quickly flag and
stop potentially fraudulent transactions, protecting both businesses and customers from financial loss.
Predictive Analytics
Machine learning algorithms analyze large datasets of past fraud cases to identify key indicators and
develop predictive models. These models can then be used to proactively detect and prevent new instances
of fraud, reducing the overall risk and impact on financial institutions.
Adaptive Learning
AI-based fraud detection systems have the ability to learn and adapt over time, continuously improving
their accuracy and effectiveness. As new fraud patterns emerge, the systems can quickly update their
models to stay ahead of the evolving threat landscape.
Personalized Financial Recommendations
Intelligent Wealth Customized Product Offerings Automated Financial Planning
Management
AI and ML-powered robo-advisors By leveraging customer data and AI- AI-powered chatbots and virtual
can analyze an individual's financial driven analytics, financial institutions assistants can provide customers with
goals, risk tolerance, and investment can create highly personalized real-time, personalized financial
history to provide personalized product and service advice, helping them manage their
recommendations for asset recommendations, such as tailored budgets, track spending, and plan
allocation, portfolio diversification, insurance plans, loan options, or for their financial future. This level
and investment strategies. This savings accounts. This enhances of automation and personalization
helps customers make more informed customer engagement and loyalty, as empowers customers to take a more
and data-driven decisions about their well as increases the likelihood of active role in their financial well-
financial well-being. customers finding the right financial being.
solutions for their needs.
Credit Risk Assessment and Modeling
1 Predictive Modeling
AI and ML algorithms can analyze vast amounts of customer data, including credit histories, financial
behaviors, and demographic information, to develop predictive models that more accurately assess the
creditworthiness of individuals and businesses. This helps financial institutions make more informed
lending decisions and reduce the risk of default.
Predictive Maintenance
Demand Forecasting
Amazon employs AI to forecast customer demand for products. By
analyzing past sales data, customer behavior, and external factors like
holidays and weather, Amazon can predict which products will be in
high demand and adjust their inventory and supply chain accordingly.
Warehouse Automation
Quality Control
BMW uses AI for quality control in its manufacturing process. AI
systems analyze images of car parts to detect defects that human
inspectors might miss. This ensures that only high-quality parts are
used in their cars.
AI and ML In Operations and Supply Chain
Interview Scheduling
AI can automate the scheduling of interviews, saving time for HR
teams.
Example: L’Oreal uses AI to manage interview schedules, reducing
administrative workload and speeding up the hiring process.
AI and ML In Human Resource Management
Employee Onboarding
Virtual Assistants: AI chatbots can answer new employees' questions
and guide them through the onboarding process.
Example: T-Mobile uses a virtual assistant named Tinker to help new
hires complete paperwork and learn about company policies.
Performance Management
Continuous Feedback: AI tools can provide real-time feedback to
employees based on their performance metrics.
Example: General Electric (GE) uses AI to analyze employee
performance data and give instant feedback, helping employees
improve continuously.
Objective Evaluations
ML algorithms can reduce bias in performance reviews by focusing on
data and outcomes.
Example: Adobe uses AI to ensure fair and unbiased performance
evaluations by analyzing objective performance data.
AI and ML In Human Resource Management
Performance Management
Continuous Feedback: AI tools can provide real-time feedback to
employees based on their performance metrics.
Example: General Electric (GE) uses AI to analyze employee
performance data and give instant feedback, helping employees
improve continuously.
Objective Evaluations
ML algorithms can reduce bias in performance reviews by focusing on
data and outcomes.
Example: Adobe uses AI to ensure fair and unbiased performance
evaluations by analyzing objective performance data.
AI and ML In Human Resource Management
Employee Retention
Predictive Analytics: AI can predict which employees are at risk of
leaving by analyzing factors like engagement levels, workload, and
career progression.
Example: IBM’s AI system predicts potential employee turnover,
allowing HR to intervene with retention strategies.
Sentiment Analysis
AI analyzes employee feedback from surveys, emails, and social media
to gauge morale and job satisfaction.
Example: Goldman Sachs uses sentiment analysis to monitor employee
satisfaction and address issues proactively.
AI and ML In HRM: Training and Development
Demand Forecasting
AI predicts future workforce needs based on business trends and
market conditions.
Example: PepsiCo uses AI to forecast staffing needs and optimize
workforce levels, ensuring the right number of employees are available
when needed.
• Feb. 2023
Bing AI • Developed by Microsoft
• https://www.bing.com
• Mar. 2023
Google Bard • Developed by Google
• https://bard.google.com/
Transformer =
GPT: Generative = Pre-Trained = uses machine
Generative Pre- creates billions of text files to learning model that
respond determines
Trained text responses
Transformer possible
outputs
based on probability.
HOW DOES GENERATIVE AI WORK?
Step One Step Three
Step Two
• ChatGPT identifies keywords and
•User inputs a prompt or question ChatGPT uses a deep phrases in the prompt to understand the
context of the question
into learning algorithm to
• Command: Write an essay in
ChatGPT analyze the prompt and 150- words
•Prompt: Write a 150-word generate a response • Topic: Impressionism characteristics,
essay on the Impressionism 19th century France
movement in 19th-century
France and its characteristics.