The Foundations of AI and ML in Business

Abstract

Machine learning (ML), a subfield of artificial intelligence (AI), has been rapidly expanding both conceptually and in its various applications. Over the years, organizations across different business sectors have increasingly adopted modern machine-learning approaches. This chapter outlines the fundamentals of ML in business analytics. Special attention is given to the most prominent techniques of supervised learning, such as decision trees, random forests, k-nearest neighbors (KNN), and Naive Bayes. Additionally, the chapter explores significant theoretical examples that demonstrate the core principles of machine learning and its practical applications, aiming to foster an understanding of more technical explanations throughout.