What it is
Machine learning is a subset of artificial intelligence where algorithms are trained on data to identify patterns, make predictions, or take decisions. Instead of being explicitly programmed for every task, these systems learn from examples, adjusting their internal parameters based on feedback or observed outcomes. The learning process involves feeding the algorithm a large dataset, allowing it to discover relationships and rules that can then be applied to new, unseen data to perform specific tasks.
Machine learning is a broad category often discussed in business news as companies adopt AI to automate tasks, personalize experiences, or analyze complex data. News often highlights its applications in areas like fraud detection, medical diagnostics, and algorithmic trading. Investors monitor companies investing heavily in machine learning capabilities, as these technologies can drive efficiency gains, create new products, and offer competitive advantages across various sectors.
Why it matters
Machine learning drives a vast array of AI applications, impacting business efficiency, product innovation, and market trends across industries.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice