Machine Learning

The use of Artificial Intelligence (AI) has only risen to prominence over the last five years. Artificial intelligence is a vast set of applications that provide new analysis capabilities not previously available. One example of artificial intelligence is machine learning. Machine learning offers systems with the ability to learn and improve from experience without being explicitly programmed automatically. A key ingredient of machine learning is to have a large data sample to characterise the historical data used to derive predictive algorithms. For example, the FICO credit score uses machine learning, analysing millions of data records across hundreds of variables. A credit score (or credit rating) is a number representing the credit reliability of an individual or company, the likelihood that they will pay back their financial debts. Lenders, like financial institutions and credit card firms, use credit scores like the FICO score to assess the prospective risk caused by providing loan to customers.