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Fundamentals

Neural Network

A neural network is a machine-learning model composed of layers of interconnected nodes ("neurons") whose numerical weights are adjusted during training so the network maps inputs to desired outputs.

Full definition

Each neuron computes a weighted sum of its inputs, applies a non-linear activation function, and passes the result to the next layer. Training uses backpropagation and gradient descent to update the weights so the network's output gets closer to the target on the training data. Modern neural networks can have hundreds of billions of parameters; GPT-4 is widely estimated to be in that range.

Why it matters

Neural networks are the universal substrate for modern AI. The same basic building block is reused — with different topologies — to power vision, speech, language, recommendation, and robotic control. For executives, this means a single technical capability investment compounds across many use cases.

Example

A convolutional neural network trained on chest X-rays classifies images as normal, pneumonia, or COVID-19 with diagnostic accuracy comparable to board-certified radiologists.

Source & further reading

Primary source: Goodfellow, Bengio, Courville — "Deep Learning" (MIT Press) (2016).

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