Ask NUS economists

Machine learning - a powerful tool in economics


While it is hard to formally define what machine learning is exactly due to its interdisciplinary nature, one could say that it is a field that develops algorithms designed to be applied to data sets, with the main focus being prediction or clustering tasks.
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A: Our lives are full of daily interactions with services powered by machine learning algorithms, be it avoiding traffic using Google Maps, looking through personalised recommendations on Netflix, humming a tune to music-identifying app Shazam or navigating your spam folder.

The term "machine learning" is perhaps among the biggest buzzwords that permeate the media in recent years. Oftentimes sensationally worded headlines make it sound like machines can learn just like humans do. Big success stories, predominantly in tech, are emphasised, such as DeepMind's AlphaGo defeating Go grandmaster Lee Sedol, and the progress seen in self-driving cars.

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