You might have heard terminology from AI, such as machine learning, or data science, or neural

networks or deep learning. What do these terms mean? In this video, you see what is this terminology
of the most important concepts of AI? So that you will speak with others about it and start thinking how
these things could apply in your business. Let's get started. Let's say you have a housing data set like
this, with the size of the house, number of bedrooms, number of bathrooms, whether the house is
newly renovated, as well as the price. If you want to build a mobile app to help people price houses, so
this would be the input A and this would be the output B. Then this would be a machine learning
system, in particular, it'd be one of those machine learning systems that learns input to output, or A to B
mappings. So machine learning often results in a running AI system. So it's a piece of software that any
time of day, any time of night, can automatically input A these properties of a house and output B. So if
you have an AI system running serving dozens or hundreds of thousands of millions of users, that's
usually a machine learning system. In contrast, here's something else you might want to do, which is to
have a team analyze your data set in order to gain insights. So a team might come up with a conclusion
like, hey, did you know if you have two houses of a similar size of a similar square footage. If the house is
three bedrooms, then they cost a lot more than the house of two bedrooms, even if the square footage
is the same? Or did you know that newly renovated homes have a 15% premium? And this could help
you make decisions such as, given a similar square footage, do you want to build a 2 bedroom or a 3
bedroom size in order to maximize value? Or is it worth an investment to renovate a home in the hope
that the renovation increases the price you can sell a house for? So these would be examples of data
science projects, where the output of a data science project is a set of insights that can help you make
business decisions, such as what type of house to build or whether to invest in renovation. The
boundaries between these two terms, machine learning and data science, are actually a little bit fuzzy,
and these terms are not used consistently, even in industry today. But what I'm giving here is maybe the
most commonly used definitions of these terms, but you will not find universal adherence to these
definitions. To formalize these two notions a bit more, machine learning is the field of study that gives
computers the ability to learn without being explicitly programmed. This is a definition by Arthur
Samuel, many decades ago. Arthur Samuel was one of the pioneers of machine learning, who was
famous for building a checkers playing program that could play checkers even better than he himself,
the inventor could play the game. So a machine learning project will often result in a piece of software
that runs that outputs B, given A. In contrast, data science is a science of extracting knowledge and
insights from data. And so the output of a data science project is often a slide deck, the PowerPoint
presentation that summarizes conclusions for executives to take business actions. Or that summarizes
conclusions for a product team to decide how to improve a website. Let me give an example of machine
learning versus data science in the online advertising industry. Today, the launch ad platforms all have a
piece of AI that quickly tells them what's the ad you are most likely to click on. So that's a machine
learning system, and this turns out to be incredibly lucrative. AI system that inputs information about
you and about the ad and outputs, will you click on this or not? These systems are running 24/7, and
these are machine learning systems that drive ad revenue for these companies. So there's a piece of
software that runs. In contrast, I've also done data science projects in the online advertising industry. If
analyzing data tells you, for example, that the travel industry is not buying a lot of ads, but if you send
more salespeople to sell ads to travel companies, you could convince them to use more advertising.
Then that would be an example of a data science project and a data science conclusion that results in
executives deciding to ask the sales team to spend more time reaching out to the travel industry. So
even in one company, you may have different machine learning and data science projects, both of which
can be incredibly valuable. You have also heard of deep learning. So what is deep learning? Let's say you
want to predict housing prices. You want to price houses, so you have an input that tells you the size of
house, number of bedrooms, number of bathrooms, and where it's newly renovated. One of the most
effective ways to price houses, given this input A, would be to feed it to this thing here in order to have
it output the price. This big thing in the middle is called a neural network. And sometimes we also call it
an artificial neural network, and that's to distinguish it from the neural network that is in your brain. So
the human brain is made up of neurons. And so when we say artificial neural network, that's just to
emphasize that this is not the biological brain, but instead it's a piece of software. And what a neural
network does, or an artificial neural network does is takes this input A, which is all of these four things,
and then output B, which is the estimated price of the house. Now, in a later optional video this week,
I'll show you more what this artificial neural network really is. But all of human cognition is made up of
neurons in your brain passing electrical impulses, passing little messages to each other. And when we
draw a picture of an artificial neural network, there's a very loose analogy to the brain. And these little
circles are called artificial neurons, or just neurons for short, that also passes neurons to each other. And
this big artificial neural network is just a big mathematical equation that tells it, given the inputs A, how
do you compute the price B? In case it seems like there are a lot of details here, don't worry about it.
We'll talk more about these details later. But the key takeaways are that a neural network is a very
effective technique for learning A to B, or input to output mappings. And today, the terms neural
network and deep learning are used almost interchangeably, they mean essentially the same thing.
Many decades ago, this type of software was called a neural network. But in recent years, we found that
deep learning was just a much better sounding brand. And so that, for better words, is the term that's
been taking off recently. So what do neural networks, or artificial neural networks have to do with the
brain? It turns out almost nothing. Neural networks were originally inspired by the brain, but the details
of how they work are almost completely unrelated to how biological brains work. So is very cautious
today about making any analogies between artificial neural networks and the biological brain, even
though there was some loose inspiration there. So AI has many different tools. In this video, you learned
about what are machine learning and data science, and also what is deep learning and what's a neural
network. You might also hear in the media other buzzwords like generative AI, unsupervised learning,
reinforcement learning, graphical models, planning knowledge graphs, and so on. You don't need to
know what all of these other terms mean, but these are just other tools for getting AI systems to make
computers act intelligently. I'll try to give you a sense of what some of these terms mean in later videos
as well. But the most important tools and terms I hope you remember from this are machine learning
and data science, as well as deep learning and neural networks. Which are a very powerful way to do
machine learning and sometimes data science. If we were to draw a diagram showing how all these
concepts fit together, this is what it might look like. AI is this huge set of tools for making computers
behave intelligently. Of AI, the biggest subset is probably tools from machine learning, but AI does have
other tools than machine learning, such as some of these buzzwords listed at the bottom. And of
machine learning, the part of machine learning that's most important these days is neural networks or
deep learning. Which is a very powerful set of tools for carrying out supervised learning, or A to B
mappings, as well as some other things. But there are also other machine learning tools that are not just
deep learning tools. So how does data science fit into this picture? There is inconsistency in how the
terminology is used. Some people will tell you data science is a subset of AI. Some people will tell you AI
is a subset of data science. It depends a bit on who you ask, but I would say that data science is maybe a
cross cutting subset of all of these tools that uses many tools from AI, machine learning and deep
learning. But has some other separate tools as well that solves a very set of important problems in
driving business insights. In this video, you saw what is machine learning, what is data science, and what
is deep learning and neural networks. I hope this gives you a sense of the most common and important
terminology used in AI, and you can start thinking about how these things might apply to your company.
Now, what does it mean for a company to be good at AI? Let's talk about that in the next video.

ou might have heard terminology from AI, such as machine learning, or data science, or neural networks
or deep learning. What do these terms mean? In this video, you see what is this terminology of the most
important concepts of AI? So that you will speak with others about it and start thinking how these things
could apply in your business. Let's get started. Let's say you have a housing data set like this, with the
size of the house, number of bedrooms, number of bathrooms, whether the house is newly renovated,
as well as the price. If you want to build a mobile app to help people price houses, so this would be the
input A and this would be the output B. Then this would be a machine learning system, in particular, it'd
be one of those machine learning systems that learns input to output, or A to B mappings. So machine
learning often results in a running AI system. So it's a piece of software that any time of day, any time of
night, can automatically input A these properties of a house and output B. So if you have an AI system
running serving dozens or hundreds of thousands of millions of users, that's usually a machine learning
system. In contrast, here's something else you might want to do, which is to have a team analyze your
data set in order to gain insights. So a team might come up with a conclusion like, hey, did you know if
you have two houses of a similar size of a similar square footage. If the house is three bedrooms, then
they cost a lot more than the house of two bedrooms, even if the square footage is the same? Or did
you know that newly renovated homes have a 15% premium? And this could help you make decisions
such as, given a similar square footage, do you want to build a 2 bedroom or a 3 bedroom size in order
to maximize value? Or is it worth an investment to renovate a home in the hope that the renovation
increases the price you can sell a house for? So these would be examples of data science projects, where
the output of a data science project is a set of insights that can help you make business decisions, such
as what type of house to build or whether to invest in renovation. The boundaries between these two
terms, machine learning and data science, are actually a little bit fuzzy, and these terms are not used
consistently, even in industry today. But what I'm giving here is maybe the most commonly used
definitions of these terms, but you will not find universal adherence to these definitions. To formalize
these two notions a bit more, machine learning is the field of study that gives computers the ability to
learn without being explicitly programmed. This is a definition by Arthur Samuel, many decades ago.
Arthur Samuel was one of the pioneers of machine learning, who was famous for building a checkers
playing program that could play checkers even better than he himself, the inventor could play the game.
So a machine learning project will often result in a piece of software that runs that outputs B, given A. In
contrast, data science is a science of extracting knowledge and insights from data. And so the output of
a data science project is often a slide deck, the PowerPoint presentation that summarizes conclusions
for executives to take business actions. Or that summarizes conclusions for a product team to decide
how to improve a website. Let me give an example of machine learning versus data science in the online
advertising industry. Today, the launch ad platforms all have a piece of AI that quickly tells them what's
the ad you are most likely to click on. So that's a machine learning system, and this turns out to be
incredibly lucrative. AI system that inputs information about you and about the ad and outputs, will you
click on this or not? These systems are running 24/7, and these are machine learning systems that drive
ad revenue for these companies. So there's a piece of software that runs. In contrast, I've also done data
science projects in the online advertising industry. If analyzing data tells you, for example, that the travel
industry is not buying a lot of ads, but if you send more salespeople to sell ads to travel companies, you
could convince them to use more advertising. Then that would be an example of a data science project
and a data science conclusion that results in executives deciding to ask the sales team to spend more
time reaching out to the travel industry. So even in one company, you may have different machine
learning and data science projects, both of which can be incredibly valuable. You have also heard of
deep learning. So what is deep learning? Let's say you want to predict housing prices. You want to price
houses, so you have an input that tells you the size of house, number of bedrooms, number of
bathrooms, and where it's newly renovated. One of the most effective ways to price houses, given this
input A, would be to feed it to this thing here in order to have it output the price. This big thing in the
middle is called a neural network. And sometimes we also call it an artificial neural network, and that's
to distinguish it from the neural network that is in your brain. So the human brain is made up of
neurons. And so when we say artificial neural network, that's just to emphasize that this is not the
biological brain, but instead it's a piece of software. And what a neural network does, or an artificial
neural network does is takes this input A, which is all of these four things, and then output B, which is
the estimated price of the house. Now, in a later optional video this week, I'll show you more what this
artificial neural network really is. But all of human cognition is made up of neurons in your brain passing
electrical impulses, passing little messages to each other. And when we draw a picture of an artificial
neural network, there's a very loose analogy to the brain. And these little circles are called artificial
neurons, or just neurons for short, that also passes neurons to each other. And this big artificial neural
network is just a big mathematical equation that tells it, given the inputs A, how do you compute the
price B? In case it seems like there are a lot of details here, don't worry about it. We'll talk more about
these details later. But the key takeaways are that a neural network is a very effective technique for
learning A to B, or input to output mappings. And today, the terms neural network and deep learning
are used almost interchangeably, they mean essentially the same thing. Many decades ago, this type of
software was called a neural network. But in recent years, we found that deep learning was just a much
better sounding brand. And so that, for better words, is the term that's been taking off recently. So what
do neural networks, or artificial neural networks have to do with the brain? It turns out almost nothing.
Neural networks were originally inspired by the brain, but the details of how they work are almost
completely unrelated to how biological brains work. So is very cautious today about making any
analogies between artificial neural networks and the biological brain, even though there was some loose
inspiration there. So AI has many different tools. In this video, you learned about what are machine
learning and data science, and also what is deep learning and what's a neural network. You might also
hear in the media other buzzwords like generative AI, unsupervised learning, reinforcement learning,
graphical models, planning knowledge graphs, and so on. You don't need to know what all of these
other terms mean, but these are just other tools for getting AI systems to make computers act
intelligently. I'll try to give you a sense of what some of these terms mean in later videos as well. But the
most important tools and terms I hope you remember from this are machine learning and data science,
as well as deep learning and neural networks. Which are a very powerful way to do machine learning
and sometimes data science. If we were to draw a diagram showing how all these concepts fit together,
this is what it might look like. AI is this huge set of tools for making computers behave intelligently. Of
AI, the biggest subset is probably tools from machine learning, but AI does have other tools than
machine learning, such as some of these buzzwords listed at the bottom. And of machine learning, the
part of machine learning that's most important these days is neural networks or deep learning. Which is
a very powerful set of tools for carrying out supervised learning, or A to B mappings, as well as some
other things. But there are also other machine learning tools that are not just deep learning tools. So
how does data science fit into this picture? There is inconsistency in how the terminology is used. Some
people will tell you data science is a subset of AI. Some people will tell you AI is a subset of data science.
It depends a bit on who you ask, but I would say that data science is maybe a cross cutting subset of all
of these tools that uses many tools from AI, machine learning and deep learning. But has some other
separate tools as well that solves a very set of important problems in driving business insights. In this
video, you saw what is machine learning, what is data science, and what is deep learning and neural
networks. I hope this gives you a sense of the most common and important terminology used in AI, and
you can start thinking about how these things might apply to your company. Now, what does it mean for
a company to be good at AI? Let's talk about that in the next video.