WEEK 6 — DIGITAL TRANSFORMATION
Week 6: AI/ML/DL
Agenda
- 1Review last week's material
- 2Introduce AI
- 3Different types of AI
- 4Machine learning
- 5ML algorithms
- 6Different paradigms of learning
- 7Conclusion
- 8Q&A
CHAPTER 01
Artificial Intelligence
CLASS DISCUSSION
- 1When you hear ‘Artificial Intelligence,’ what’s the first example that comes to mind?
- 2Have you interacted with AI today without realizing it? Let’s brainstorm hidden AI in daily life.
- 3How is a ‘smart’ app like ChatGPT different from a basic calculator? What makes it ‘AI’?
CLASS DISCUSSION
- 1If you asked ChatGPT for advice, would you trust it more than a human? Why or why not?
- 2What kind of topics do you post on your social media?
- 3If you trained an AI using only your social media posts, what might it ‘learn’ about people?
CORE CONCEPT
Artificial Intelligence
Artificial Intelligence: Intelligence shown by machines.
Intelligence:
ARTIFICIAL INTELLIGENCE
Artificial Intelligence: Which One Is AI?
Which one is AI?
- 1.A computer chess game playing against humans beats a human player. It uses rules-based algorithms to decide its next move.
Each scenario below shows a form of intelligence at work. Name whether it demonstrates Animal, Human, or Artificial intelligence.
Which concept does this case show?
CHAPTER 02
Machine Learning
DEFINITION
Machine Learning
A technique that uses Data and Performance Metric to automatically find how to solve a Task.
Contrasted with Rules-Based Expert Systems.
Gained popularity in the 21st century.
DRIVERS
Rise of Machine Learning
- 1.Increase in Compute Power
- 2.Increase in Data (Big Data)
- 3.Decrease in Storage Costs
Sort each development into the force driving the 21st-century rise of Machine Learning that it illustrates.
Tap a card, then tap the group it belongs to.
CHAPTER 03
Machine Learning Algorithms
ML ALGORITHMS
Decision Trees
Imagine you are decision whether to go outside to play tennis.
To make your decision you use a mentally formed Decision Tree.
ML ALGORITHMS
Linear Regression
Imagine you have recorded transaction data for a retail store.
You have the price of the items and their sales.
You wish to predict sales based on the prices.
ML ALGORITHMS
Logistic Regression
Imagine you have recorded historical click data for a retail website.
You have product and customer characteristics in a database.
You wish to predict whether a given customer will click on the product.
Each team below is choosing a machine learning algorithm. Name whether the task fits a Decision Tree, Linear Regression, or Logistic Regression.
Which concept does this case show?
ML ALGORITHMS
Ensemble Learning
Ensemble learning combines multiple models to improve prediction accuracy,
Much like seeking advice from several experts to make a better decision.
The idea is that the collective “wisdom” of diverse models reduces individual errors.
Scenario: You want to predict if it will rain tomorrow.
Single Model (Apple Weather):
- Apple Whether predicts rain with 70% accuracy.
- If it says “rain,” you’re 70% confident.
Ensemble Approach (Apple Weather, AccuWeather, Google Weather):
- Three apps, each with 70% accuracy, make independent predictions.
- Possible outcomes:
- All three say “rain” → Ensemble says “rain.”
- Two say “rain,” one says “no rain” → Majority vote → “rain.”
- If only one says “rain,” ensemble says “no rain.”
ENSEMBLE ALGORITHM
Random Forest
Random Forest is an ensemble learning algorithm that combines multiple decision trees to improve predictive accuracy and control overfitting. It is widely used for both classification and regression tasks.
Match each core element of Random Forest with how it works when a logistics firm predicts package delivery delays.
Random Forest Concept
In the Delivery Delay Model
Tap a term, then the example it goes with.
CHAPTER 04
Supervised vs. Unsupervised Learning
LEARNING PARADIGMS
Supervised vs. Unsupervised Learning
Supervised Learning: Algorithms learn from labeled data, where each input example is paired with a corresponding output (target). The model aims to map inputs to outputs for prediction or classification.
- Example: Customer classification into hedonic vs. utility consumers
Supervised:
- Predicting house prices (regression).
- Classifying emails as spam vs. not spam.
- Medical diagnosis (e.g., identifying diseases from symptoms).
LEARNING PARADIGMS
Popular Algorithms, When to Use, and Challenges
Popular Algorithms
Supervised: Linear Regression, Decision Trees, Support Vector Machines (SVM), Neural Networks.
Unsupervised: K-Means Clustering, Hierarchical Clustering, Principal Component Analysis (PCA), Autoencoders.
COMPARISON
Supervised vs. Unsupervised Learning: Comparison
| Aspect | Supervised Learning | Unsupervised Learning |
|---|---|---|
| Data | Labeled (inputs + known outputs) | Unlabeled (inputs only) |
| Goal | Predict outcomes or classify new data | Explore data structure, find patterns |
| Feedback | Direct feedback (errors are corrected via labels) | No feedback; model infers patterns autonomously |
| Common Tasks | Regression, Classification | Clustering, Dimensionality Reduction |
| Evaluation Metrics | Accuracy, Precision, Recall, F1-Score, RMSE | Silhouette Score, Elbow Method, Reconstruction Error |
Sort each data characteristic, task, or evaluation metric into Supervised Learning or Unsupervised Learning.
Tap a card, then tap the group it belongs to.
CASE STUDIES
Case Studies: Supervised vs. Unsupervised Learning
Test your understanding by classifying these scenarios into Supervised vs. Unsupervised Learning
Case 1
A company wants to predict customer churn (whether a customer will stop using their service) based on usage patterns and demographics. They have historical data showing which customers churned in the past.
Answer: Supervised Learning
Why? The model uses labeled data (past churn outcomes) to learn patterns and predict future churn.
A pharmacy chain launches two analytics projects: Project A uses five years of labeled prescription refill records (refilled on time vs. abandoned) to predict which patients will miss their next refill. Project B feeds 40 unlabeled store-level demographic and basket variables into an algorithm to group its 600 pharmacies into natural store formats. Which learning paradigms do Projects A and B use?
CONCLUSION
Conclusion
KEY TAKEAWAYS
- 1Artificial Intelligence definition
- 2Rules-based AI vs ML
- 3Decision Trees
- 4Linear Regression
- 5Logistic Regression
- 6Ensemble Learning
- 7Random Forest
- 8Supervised vs. Unsupervised learning