APPLICATIONS OF

MACHINE LEARNING
• Wherever there is a substantial amount of past data, machine
learning can be used to generate actionable insight from the data.
• It can be used for a simple task like to predict the sales
of a store or as difficult as a speech recognition or face
detection.
• Application of MI three major domains-
Banking and finance
Insurance
Health care
Banking and finance
• In the banking industry, fraudulent transactions, especially the ones
related to credit cards, are extremely prevalent.
• Since the volumes as well as velocity of the transactions are
extremely high, high performance machine learning solutions are
implemented by almost all leading banks across the globe.
• The models work on a real-time basis, i.e. the fraudulent
transactions are spotted and prevented right at the time of
occurrence.
• Customers of a bank are often offered lucrative(profitable)
proposals by other competitor banks.
• Proposals like higher bank interest, lower processing charge of loans,
zero balance savings accounts, no overdraft penalty, etc. are offered to
customers, with the intent that the customer switches over to the
competitor bank.
• Also, sometimes customers get demotivated by the poor quality of
services of the banks and shift to competitor banks.
• Machine learning helps in preventing or at least reducing the customer
churn(the loss of customers or subscribers for any reason
at all).
• Both descriptive and predictive learning can be applied for reducing
customer churn.
• Using descriptive learning, the specific pockets of problem, i.e. a
specific bank or a specific zone or a specific type of offering like car
loan, may be spotted where maximum churn (shake )is happening.
• Quite obviously, these are troubled areas where further investigation
needs to be done to find and fix the root cause.
• Using predictive learning, the set of vulnerable customers who may
leave the bank very soon, can be identified. Proper action can be
taken to make sure that the customers stay back.
Insurance
• Insurance industry is extremely data intensive.
• Two major areas in the insurance industry where machine learning is used are risk
prediction during new customer onboarding and claims management.
• During customer onboarding, based on the past information the risk profile of a new
customer needs to be predicted.
• Based on the quantum (quantity or size )of risk predicted, the quote is generated for
the prospective customer.
• When a customer claim comes for settlement, past information related to historic claims
along with the adjustor notes are considered to predict whether there is any possibility of
the claim to be fraudulent.(illegal)
• Other than the past information related to the specific customer, information related to
similar customers, i.e. customer belonging to the same geographical location, age group,
ethnic group, etc., are also considered to formulate the model.
Healthcare
• Wearable device (People use wearable technology to track and receive notifications for their
heart rate and blood pressure, watch their calorie intake or manage their training
regimens. )data form a rich source for applying machine learning and predict the health
conditions of the person real time.
• In case there is some health issue which is predicted by the learning model, immediately the
person is alerted to take preventive action.
• In case of some extreme problem, doctors or healthcare providers in the vicinity of the person
can be alerted.
• Suppose an elderly person goes for a morning walk in a park close to his house.
• Suddenly, while walking, his blood pressure shoots up beyond a certain limit, which is tracked by
the wearable.
• The wearable data is sent to a remote server and a machine learning algorithm is constantly
analyzing the streaming data. It also has the history of the elderly person and persons of similar
age group.
• The model predicts some fatality unless immediate action is taken.
Alert can be sent to the person to immediately stop walking and take
rest.
• Also, doctors and healthcare providers can be alerted to be on
standby Machine learning along with computer vision also plays a
crucial role in disease diagnosis from medical imaging.
• Tourism : ML can be used to analyse and recommend different tourist
spots to people. It can also be used to detect anomalies and find the
cheapest flight or hotel. It can also be used to predict sales of a
particular tourism company.
• Automobile : The algorithms can be used for product innovations like
self driving car or parking assistance and smart energy systems. It is also
very useful for marketing of a particular vehicle. It can also be used to
analyse which ads of the particular vehicle were most viewed
(Reinforcement Learning). Self-driving cars:
• One of the most exciting applications of machine learning is self-driving
cars. Machine learning plays a significant role in self-driving cars. Tesla,
the most popular car manufacturing company is working on self-driving
car. It is using unsupervised learning method to train the car models to
detect people and objects while driving.
• Agriculture : ML in the field of agriculture is used to improve productivity and quality
of the crops. It can be used to determine which conditions yield the best quality of
crops. Most of the companies are also programming and designing robots to handle the
essential tasks of agriculture like harvesting crops and they work faster than humans.
• E-commerce : ML helps e-commerce businesses to create a more personalised
customer experience. It can also be used to target their regular customers with more
offers and deals. Sentiment analysis is also used to better understand the customer’s
expectations.
• Media and Entertainment : The algorithms help increase the capabilities to find the
necessary content - the recommendations on netflix or youtube we see today are
examples of this. It is also used for a more personalized content for each user or to
increase the advertising effectiveness. There is a voice search option also available
today, thanks to the Speech recognition system.
• Mining : Data is analysed from multiple sources and with the help of ML algorithms,
different areas are identified where minerals are likely to be found. It is also used to set
the appropriate power according to the hardness of the ore or to analyse whether the
material is a useful ore or just a waste material.