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(1)

BIQUANTS

TECHNOLOGIES

DESCRIPTION

(2)

INTRODUCTION

TO MACHINE LEARNING & AI

PART #1

(3)

THE PROGRESSION OF ANALYTICS

DIFFICULTY / TECHNOLOGY VA LUE What happened?

DESCRIPTIVE ANALYTICS

Why did it happen?

DIAGNOSTIC ANALYTICS

PREDICTIVE ANALYTICS What will happen?

PRESCRIPTIVE ANALYTICS How can we make

it happen?

INSIGHTS & FORESIGHT

Statistics, Clustering, Classification, Regressions

OPTIMIZED HUMAN DECISION-MAKING

Neural Network & Deep Learning THE LEARNING & INTELLIGENT ENTERPRISE

Reinforcement Learning, AI

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AI VS MACHINE LEARNING VS DEEP LEARNING

*machine learning – ML deep learning - DL

LEARNING DEEP MACHINE LEARNING ARTIFICIAL INTELLIGENCE

A technique which enables machines to mimic human behavior

Subset of AI technique which use statistical methods to enable machines to improve with experience

Subset of MACHINE LEARNING which make the computation of multi-layer neural network feasible

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MACHINE LEARNING

A NEW

PROGRAMMING PARADIGM

RULES

VS

CLASSICAL

PROGRAMMING MACHINE

LEARNING

DATA

ANSWERS

DATA ANSWERS

RULES

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MACHINE LEARNING =

STATISTICAL + DEEP LEARNING

INPUT FEATURE

EXTRACTION DECISION TREE

NOT CAR CAR

OUTPUT

STATISTICAL LEARNING

DEEP LEARNING

INPUT FEATURE EXTRACTION

+ CLASSIFICATION OUTPUT

CAR

NOT CAR

HAS MORE HIDDEN NEURAL NETWORK LAYERS CAN DO FEATURE ENGINEERING / EXTRACTION

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EXAMPLE OF DEEP

REPRESENTATION LEARNED

HIERARCHICAL

REPRESENTATION OF FEATURES

EDGES CONTOURS OBJECT

PARTS OBJECT IDENTITY

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HOW DEEP LEARNING WORKS

LAYER

data transformation

LAYER

data transformation

WEIGHTS

WEIGHTS

PREDICTIONS

Y

INPUT X

TRUE TARGETS

Y

LOSS FUNCTION

LOSS SCORE OPTIMIZER

Weight update

A NEURAL NETWORK IS PARAMETRIZED BY ITS WEIGHTS

LOSS FUNCTION MEASURES THE QUALITY OF THE NETWORK’S OUTPUT

THE LOSS SCORE IS USED AS A FEEDBACK SIGNALTO ADJUST THE WEIGHTS

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SCHEMATIC DEPICTION OF DEEP REINFORCEMENT LEARNING

REINFORCEMENT LEARNING

Currently, reinforcement learning is mostly a research area and hasn’t yet had significant practical successes beyond games

SUPERVISED LEARNING IS ”TEACH BY EXAMPLE”

REINFORCEMENT LEARNINGS IS “TEACH BY EXPERIENCE”

AGENT is represented by a neural network.

KEY CHALLENGE:

SIMULATION OF ENVIRONMENT AND REWARD

The neural network interacts directly with the environment.

It observes the current STATE of the ENVIRONMENT

and decides which ACTION to take (e.g. move left, right etc.) on basis of the current STATE and the past experiences.

Based on the taken ACTION the AI Agent receives a REWARD The amount of the REWARD determines the quality of the taken ACTION with regards to solving the given problem (e.g. learning how to walk).

The objective of an AGENT is to learn taking ACTIONS in any given circumstances that maximize the accumulated REWARD over time.

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GOOGLE’s FRAMEWORK FOR DEEP LEARNING

TensorFlow is a open-source software library for training deep neural networks

It is used for both research and production at Google

Google web search interest for DL

frameworks over time

Companies using TensorFlow:

VIDEO

5D tensors of shape (sample, frame, height, width, channels)

A 3D TIMESERIES DATA TENSOR

REAL WORLD EXAMPLES OF TENSORS

VECTOR DATA

2D tensors of shapes (samples, features) TIMESERIES DATA OR SEQUENCE

3D tensors of shape (samples, timesteps, features) IMAGES

4D tensors of shape (sample, height, width, channels)

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THE DEEP-LEARNING SW & HW STACK

SUGGESTED AI INFRASTRUCTURE

PROGRAMMING LANGUAGES

AI HIGH LEVEL FRAMEWORKS

AI LOW LEVEL FRAMEWORKS

AI INFRASTRUCTURE

APACHE

MXNET CUDA,

cuDNN BLAS, Eigen

AMAZON EC2 CPUs

AMAZON EC2

GPUs ENHANCED

NETWORKING

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TRAINING DEEP LEARNING NETWORKS

Typical structure of sequential deep learning NN

Recurrent NN structure

DATA PREPROCESSING NETWORK STRUCTURE HYPERPARAMETRS

• encoding

• normalization

• data augmentation

• class imbalance weighting

• number of layers and

connectivity between neurons

• type and order of layers

• network type

• loss function

• learning rate

• minibatch size

• number of epoch

• convolution kernel width

Data augmentation (apply different transformation to initial data)

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WORKFLOW OF DEEP LEARNING

1 2

DEFINE THE PROBLEM AND ASSEMBLING A DATASET

What are we trying to predict?

Do we have training data?

What type of problem we are facing?

Binary or multiclass classification, scalar or vector regression, clustering, reinforcement learning

CHECK DATA HYPOTHESES

• outputs can be predicted given your inputs

• available data is sufficiently informative to learn the relationship between inputs and outputs

DATA PREPROCESSING

Vectorization - all inputs & targets must be tensors of floating value

Normalization- convert to 0..1 range Handling missing values

Feature engineering - using your own knowledge about the data

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WORKFLOW OF DEEP LEARNING

4 3 CHOOSING A MEASURE

OF SUCCESS

Accuracy, AUC, etc.

Evaluation protocol (hold-out validation, k-fold cross-validation)

Tension between optimization and generalization Prevent a model from learning misleading or

irrelevant patterns found in the training data

• get more training data

• modulate the quantity of information

• reduce network’s size

• weight regularization (make distribution of weight values more regular )

• adding dropout (randomly dropping out number of output features of the layer during training)

Hyperparameters tuning and model regularization

OVERFITTING AND UNDERFITTING

OPTIMIZATIONrefers to the process of adjusting a model to get the best performance possible on the training data

GENERALIZATIONrefers to how well the trained model performs on data it has never seen before.

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ROLES AND OPERATION OF DATA SCIENCE TEAM

PART #2

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DATA SCIENCE ROLES & INTERACTION

Enables data access & utilization Enables value capture

Builds and supports the infrastructure of data pipe and all associated SW engineering infrastructure tasks

Optimizes & enables data for business and functional value capture and value creation

Analysis and interpretation od complex digital data to extract or discover knowledge and assist decision-making

Helps the business make better decisions through data

Blend of business, analytic and math skills to explore and solve challenges, bridging the data and business communities

DATA OPERATIONALIZATION

DATA MONETIZATION

DATA OPTIMIZATION

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AI / DATA SCIENCE: ROLES, SKILLS, QUALIFICATION

DATA

ANALYST MACHINE LEARNING

ENGINEER DATA ENGINEER DATA SCIENTIST PROGRAMMING TOOLS

DATA VISUALIZATION & COMMUNICATION DATA INTUITION

STATISTICS / ALGORITHMS DATA WRANGLING

DATA WAREHOUSE, DATABASE SYSTEMS, ETL MACHINE LEARNING

SOFTWARE ENGINEERING

DISTRIBUTED COMPUTATIONS

MULTIVARIABLE CALCULUS AND LINEAR ALGEBRA

Very important Somewhat important Not that important

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TECHNOLOGY & SKILLS MAP

SKILLS / TECHNOLOGY TECHNOLOGY

Programming Tools Python, R, Java/script, MatLab

Data Visualization & Communication GGPLOT, D3.js, Shiny apps, Tableau, Power BI, HTML, JavaScript, REST API, Swagger

Data Intuition R Studio, Python notebooks

Statistics / Algorithms Clustering, decisions trees, Regression, OpenCV

Data Wrangling SQL

Data Warehouse, Database Systems, ETL Amazon RedShift, IBM dash DB, IBM Netezza, Oracle

Machine Learning TensorFlow, Keras, Caffe, Theano, caret R, scikit-learn Python.

Software Engineering Scrum, Version control systems (git), Continuous Integration (jenkins), Docker Distributed Computations Apache MXNET, Amazon AWS, Microsoft Azure, Google cloud, IBM, Apache Hive,

Hadoop, Spark

Multivariable Calculus And Linear Algebra CUDA, cuDNN, BLAS, Eigen

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BIQUANTS

BUSINESS

INTELLIGENCE QUANTS

Technologies to help your business

drive success

References

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