Last updated on December 14, 2021
Machine Learning in a nutshell
Machine Learning is the science of using data to help computers "learn" and act without being programmed to do so. Considered a type of Artificial Intelligence, Machine Learning's core precepts are focused on analysing data and making predictions, which improve with more observations or data. The beauty is that the more data is analysed, the more accurate the predictions become. It's like learning by doing or like the maxim "practise makes perfect".
The limits of Machine Learning (in gini's context)
While Machine Learning is more reliable than human-made forecasts. There are certain limits.
- Insufficient data Because the forecasts come from analysing your Xero data, without sufficient historical data, you will not be able to get a forecast. This is why we recommend you have one year's worth of data at the very least.
- Human interpretation
It's important to remember that the forecast is purely based on your historical data, and it's up to you to interpret that data. Misinterpretation of data can translate into decisions that may not be in your organisation's best interest. Be as objective as possible when reviewing the forecasted data.