Why Businesses Embrace Machine Learning [Excerpt]

Excerpted with permission from The Master Algorithm: How the Quest for the Ultimate Learning Machine Will Remake Our World, by Pedro Domingos. Available from Basic Books, a member of The Perseus Books Group. Copyright © 2015.Why is Google worth so much more than Yahoo? They both make their money from showing ads on the web, and they’re both top destinations. Both use auctions to sell ads and machine learning to predict how likely a user is to click on an ad (the higher the probability, the more valuable the ad). But Google’s learning algorithms are much better than Yahoo’s. This is not the only reason for the difference in their market caps, of course, but it’s a big one. Every predicted click that doesn’t happen is a wasted opportunity for…

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