What Kind of Problems Can Machine Learning Models Solve?

The use of machine learning technology is spreading across all areas of modern organizations, and its predictive capabilities suit the finance function's forward-looking needs. Understanding how to work with machine learning models is crucial for making informed investment decisions. Yet, for many finance professionals, successfully employing them is the equivalent of navigating the Bermuda Triangle. Machine learning is a subset of artificial intelligence that's focused on training computers to use algorithms for making predictions or classifications based on observed data. Finance functions typically use "supervised" machine learning, where an analyst provides data that includes the outcomes and asks the machine to make a prediction or classification based on similar data.