Machine Learning Supervised: 10 Popular Applications in 2023

Hrvoje Smolic

There are three main branches of machine learning. One of the most popular is machine learning supervised method. Among the most accurate machine learning methods, it is used to predict concise data needed in various industries.

So, what can supervised machine learning do for you, and how does it work? Let's take a closer look below.

What Is Machine Learning Supervised method?

Supervised machine learning is a predictive analysis technique used to make predictions based on inputs, also called features.

In simple words, supervised machine learning is where machines are trained to predict output based on well “labeled” training data.

Its input would be a set of examples classified into one of two categories: the positive and the negative. Because it is supervised, it requires labeled data as input using one or more classifiers. The goal of the analysis is to predict the value of a label for new, unlabeled data.

In other words, supervised machine learning processes labeled data and produces statistical estimations for future outcomes.

This can be useful in many applications such as retail, face categorization, spam detection, and more. But we'll get into that later. For now, let's talk about how it works.

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Photo by Andrea De Santis on Unsplash

How Do Machines Learn Under Supervised Learning Methods?

Let's keep this simple. A supervised algorithm breaks the data into two parts: the training set and the testing set.

The training set is used to make predictions based on past observations of the data. This may be done by processing the entire dataset, finding features through a mathematical formula, or other methods. Once these features are found and assigned numeric values (also called labels), they're combined to form a majority opinion among them to create an aggregate prediction for future outcomes. The testing set is the real test to see how good the algorithm is at making predictions. If a model can accurately predict a future outcome with this set, it's considered accurate and ready for production.

For instance, let's say you fed in a set of 100 patient records, with one record per patient. You can use the example of sorting them by age, gender, diagnosis, and so on. If you're trying to classify what kind of disease each patient has, you can use the feature to find the best indicators for that specific condition by looking at other variables in each record. You can then create a formula that places this data point into proper categories to look for future results.

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Supervised Machine Learning Applications

While many different applications use supervised machine learning, below are the most common examples.

1. Retail

Supervised machine learning is used in retail to predict customers' purchasing behavior. It can predict future sales based on previous purchases, using relevant features such as the time of day, the type of store they are in, their income level, or other demographic information. This can help with inventory levels and staffing decisions.

Supervised machine learning has become an invaluable tool in the retail industry. With its ability to predict customer behavior, retail companies can better market to their existing and potential customers while improving operations and cost savings. Recent research shows that retailers are expected to save over $400 billion by applying supervised machine learning technologies such as predictive analytics, AI-driven pricing algorithms, and computer vision applications.

These technologies allow retailers to gain a deeper understanding of their customers and spending habits, enabling them to craft personalized marketing campaigns focusing on specific customer needs and preferences.

On the operational side, supervised machine learning can help retailers improve stock management, reduce waste, and prevent fraud. In addition, it can also be used for data security purposes by detecting suspicious activities and preventing breaches before they occur. Overall, supervised machine learning has revolutionized the retail landscape by helping companies maximize profits and enhance operational efficiency. By leveraging cutting-edge tools such as predictive analytics and AI-driven pricing models, retailers can remain competitive in this ever-evolving marketplace.

2. Finance

Finance also uses supervised machine learning for predictions. These include predicting stock market volatility based on past trends performed during volatile periods, even for specific stocks over a longer period. Financial institutions also use supervised machine learning for fraud detection and anti-money laundering compliance.

The use of supervised machine learning in finance is becoming increasingly popular due to its ability to accurately predict outcomes. Supervised machine learning can be used to forecast stock prices, identify fraud, and make reliable investment decisions.

Companies such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley have invested heavily in supervised machine learning capabilities for their businesses. According to a recent survey from McKinsey & Company, nearly 62% of US financial services companies are using some form of supervised machine learning for their operations.

One specific application of supervised machine learning in finance is credit scoring. Using algorithms, lenders can better assess the creditworthiness of potential borrowers while accurately predicting the probability that they will default on a loan or make late payments.

According to Experian's Global Market Intelligence Survey 2018-19, an estimated 85% of lending decisions globally are now based on AI-driven models and techniques such as supervised machine learning. These models have enabled institutions to reduce fraudulent activity by quickly and accurately recognizing patterns in data that signal suspicious behavior.

3. Health

Supervised learning can also help predict whether or not a patient will die from heart failure based on history and treatment plan. More recent applications also include cancer cell detection, where machine learning algorithms are used to sort cancerous cells from non-cancerous ones.

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Supervised machine learning in Graphite Note

The use of supervised machine learning in the health industry is growing rapidly. By leveraging machine learning techniques to analyze large datasets, healthcare organizations can quickly identify important trends and correlations that can help them improve patient care.

From diagnostics and treatments, to improved data accuracy, supervised machine learning provides valuable insights into a range of medical applications. One example of the success of supervised machine learning in the health industry is its use for the early detection of cancer and other diseases. An analysis from IBM Watson Health found that using AI-supported imaging can reduce false negatives by 87% compared to human interpretation alone.

Clinical trials have also found that AI-assisted diagnosis speeds up the process while still providing accurate results – leading to earlier diagnoses and better treatment outcomes. In addition, research conducted by Stanford University showed that a deep learning algorithm could successfully predict heart failure hospitalizations with 91% accuracy – more than 5% greater accuracy than traditional models. These advances demonstrate how supervised machine learning can offer powerful support for medical professionals in their efforts to provide comprehensive patient care.

4. Spam Detection

Supervised machine learning is similarly used in spam detection to filter out unauthorized senders hiding behind fake addresses. This is done by monitoring targets, which are the senders' addresses, for changes over time. These features can act as indicators of legitimate email behavior, allowing users to determine whether or not their email is spam.

Supervised machine learning is a powerful tool for spam detection and prevention. By leveraging supervised ML, organizations can quickly build models that sort through incoming emails and classify them as spam or not. This helps keep users safe from malicious messages while also reducing the time spent manually sorting through emails.

Recent statistics on email-based threats show that 58.3% of all emails sent in 2019 were identified as spam, with an additional 12.2% classified as potentially dangerous phishing or malware-laden messages. Supervised machine learning can help reduce these numbers substantially by quickly detecting and blocking malicious emails before they reach the inbox.

For instance, Google's Gmail relies heavily on supervised ML for its spam filters, which effectively block unwanted messages from ever reaching inboxes across their network. Furthermore, deep learning algorithms are especially effective at accurately identifying legitimate users from malicious ones and can be trained over time to recognize new patterns of suspicious behavior.

5. Weather Forecasting

The use of supervised machine learning for weather forecasting helps predict changes in the weather through the use of historical data. Predictions are based on past patterns found in similar weather patterns to determine what will happen next. For example, the past 24 hours of weather data can be used to determine the weather the next day.

Supervised machine learning has become increasingly popular in weather forecasting, as it can provide more accurate predictions of upcoming weather compared to traditional methods. Using supervised machine learning algorithms, meteorologists can consider various factors such as temperature, atmospheric pressure, humidity, and wind speed to help predict the weather.

By combining this information with other data, such as satellite images and radar readings, supervised machine learning can give detailed forecasts with very high accuracy.

A study by the University of Miami found that using supervised machine learning in hurricane prediction increased accuracy by up to 90%. Furthermore, another study published in the International Journal of Forecasting showed that using supervised machine learning in short-term forecasts improved accuracy by 10% compared to traditional methods. T

hese results demonstrate how powerful supervised machine learning can be for predicting future weather patterns and could go a long way toward reducing damages caused by hurricanes and other extreme weather events.

sales forecasting in graphite note
Image by the Author: sales forecasting in Graphite Note

6. Image Classification

Supervised machine learning is also used in image classification, which compares images instead of text to compare similarities between them. Similar images are placed in the same category, and new ones are categorized according to the rules set for this model. This is useful for separating similar images that may contain more details that distinguish them from each other. It is effective even when the images may have been taken at the same times and from the same angles.

Image classification is one of the most popular applications of supervised machine learning. By leveraging labeled training data, machines can accurately identify and classify images.

Recent statistics show that the use of supervised machine learning in image classification has led to an impressive increase in accuracy. For example, the average error rates for image recognition have decreased from 28% in 2012 to less than 5% today. This indicates that supervised machine learning has enabled machines to recognize objects and classify them with remarkable accuracy. The use of this technology has had a profound impact on many areas, such as healthcare, security, transportation, and more.

For instance, healthcare professionals can use it to accurately identify tumors in medical scans or diagnose diseases from X-rays and MRIs. In addition, facial recognition technology is being used for security purposes - allowing machines to quickly determine if someone is a wanted criminal or an unauthorized visitor. Furthermore, self-driving cars use image classification algorithms to avoid obstacles on roads and highways. These are just some of the ways supervised machine learning is revolutionizing how we interact with images.

7. Face Recognition

Face recognition technology uses supervised machine learning to identify people in photos or videos based on their facial features. Different algorithms can be applied using classified features (e.g., hair color, eye color, smile, etc.) for accurate face matching. These can then be matched against full-length photos of people to make determinations for features.

The use of supervised machine learning in face recognition has revolutionized the way we validate identity, adding an extra layer of security to our everyday lives. With its ability to identify individuals based on facial features such as eyes, nose, and mouth shape, this technology has become instrumental in areas such as law enforcement, airport security, and access control systems.

Recent statistics have shown that supervised machine learning algorithms now power over 95% of face recognition systems. Compared with traditional matching techniques, which relied on manual comparison between two images, these algorithms have significantly increased accuracy and improved scalability. In addition, the cost associated with obtaining the necessary training data has also dropped significantly. As a result, more businesses are beginning to implement facial authentication solutions into their everyday processes and existing infrastructures.

8. Therapeutic Drug Interaction

Supervised machine learning is used to predict the side effects of new medications, how they may interact with other medications, and to determine when an overdose has occurred. This is achieved by looking at the chemical structure of the drug and potential receptor interactions with other drugs or compounds that affect that same receptor.

Supervised machine learning has become increasingly popular in the healthcare industry for its ability to predict therapeutic drug interactions. With predictive algorithms, physicians and pharmacists can identify possible drug-drug interactions before they occur.

This enhanced safety measure helps protect patients from incorrect dosages, contraindications, and unfavorable side effects. In the United States alone, over 3 billion prescriptions are filled each year. Of these prescriptions, approximately 2 million involve drugs that interact with at least one other drug a patient may be taking.

A recent study found that supervised machine learning could accurately predict more than 90% of potentially dangerous drug combinations by using an algorithm that looked at patient demographics, medication history, and drug classifications. By deploying this tool in clinical practice, it is estimated that the rate of adverse events related to medication interactions can be reduced by up to 30%.

9. Predictive Lead Scoring

Sales and marketing teams find it challenging to predict their conversion rates, especially when they have multiple lead pipelines that generate different sales levels.
Generating leads is the lifeblood of your business. Your ability to prioritize and follow up on the right ones can significantly impact your bottom line.

Gathering data on lead scoring or categorizing lead attributes and activities can be a tremendously tedious task when done manually.

10. Predict Customer Churn

The one challenge businesses always face - is customer churn. A churn is when customers stop buying a product or opt-out of service. Often, this entails the need to find new leads and pipelines so you can still meet revenue targets.

The more ideal solution, however, is to map out reasons for customer churn to prevent customers from turning to a competitor.
Understanding customer churn goes together with customer retention analysis. Knowing why customers are leaving can improve your customer retention rates and help you understand the weaknesses of your product and strategy.

Final Words

Supervised machine learning is a form of machine learning increasingly used in various industries and professions. It has become a popular area of research and development for people who can use these predictions to make informed decisions with greater accuracy.

Software like Graphite Note focuses on giving you the ability to leverage technology like this without knowing a single line of code. Get started on harnessing the full potential of your data today by getting in touch with us.

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This blog post provides insights based on the current research and understanding of AI, machine learning and predictive analytics applications for companies.  Businesses should use this information as a guide and seek professional advice when developing and implementing new strategies.


At Graphite Note, we are committed to providing our readers with accurate and up-to-date information. Our content is regularly reviewed and updated to reflect the latest advancements in the field of predictive analytics and AI.

Author Bio

Hrvoje Smolic, is the accomplished Founder and CEO of Graphite Note. He holds a Master's degree in Physics from the University of Zagreb. In 2010 Hrvoje founded Qualia, a company that created BusinessQ, an innovative SaaS data visualization software utilized by over 15,000 companies worldwide. Continuing his entrepreneurial journey, Hrvoje founded Graphite Note in 2020, a visionary company that seeks to redefine the business intelligence landscape by seamlessly integrating data analytics, predictive analytics algorithms, and effective human communication.

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