Data mining is an essential process for many businesses, including McDonald’s and Amazon. It involves analyzing huge chunks of unprocessed information to discover valuable insights. It’s no surprise large organizations rely on data mining, considering it helps them optimize customer service, reduce costs, and streamline their supply chain management.

Although it sounds simple, data mining is comprised of numerous procedures that help professionals extract useful information, one of which is classification. The role of this process is critical, as it allows data specialists to organize information for easier analysis.

This article will explore the importance of classification in greater detail. We’ll explain classification in data mining and the most common techniques.

Classification in Data Mining

Answering your question, “What is classification in data mining?” isn’t easy. To help you gain a better understanding of this term, we’ll cover the definition, purpose, and applications of classification in different industries.

Definition of Classification

Classification is the process of grouping related bits of information in a particular data set. Whether you’re dealing with a small or large set, you can utilize classification to organize the information more easily.

Purpose of Classification in Data Mining

Defining the classification of data mining systems is important, but why exactly do professionals use this method? The reason is simple – classification “declutters” a data set. It makes specific information easier to locate.

In this respect, think of classification as tidying up your bedroom. By organizing your clothes, shoes, electronics, and other items, you don’t have to waste time scouring the entire place to find them. They’re neatly organized and retrievable within seconds.

Applications of Classification in Various Industries

Here are some of the most common applications of data classification to help further demystify this process:

  • Healthcare – Doctors can use data classification for numerous reasons. For example, they can group certain indicators of a disease for improved diagnostics. Likewise, classification comes in handy when grouping patients by age, condition, and other key factors.
  • Finance – Data classification is essential for financial institutions. Banks can group information about consumers to find lenders more easily. Furthermore, data classification is crucial for elevating security.
  • E-commerce – A key feature of online shopping platforms is recommending your next buy. They do so with the help of data classification. A system can analyze your previous decisions and group the related information to enhance recommendations.
  • Weather forecast – Several considerations come into play during a weather forecast, including temperatures and humidity. Specialists can use a data mining platform to classify these considerations.

Techniques for Classification in Data Mining

Even though all data classification has a common goal (making information easily retrievable), there are different ways to accomplish it. In other words, you can incorporate an array of classification techniques in data mining.

Decision Trees

The decision tree method might be the most widely used classification technique. It’s a relatively simple yet effective method.

Overview of Decision Trees

Decision trees are like, well, trees, branching out in different directions. In the case of data mining, these trees have two branches: true and false. This method tells you whether a feature is true or false, allowing you to organize virtually any information.

Advantages and Disadvantages

Advantages:

  • Preparing information in decision trees is simple.
  • No normalization or scaling is involved.
  • It’s easy to explain to non-technical staff.

Disadvantages:

  • Even the tiniest of changes can transform the entire structure.
  • Training decision tree-based models can be time-consuming.
  • It can’t predict continuous values.

Support Vector Machines (SVM)

Another popular classification involves the use of support vector machines.

Overview of SVM

SVMs are algorithms that divide a dataset into two groups. It does so while ensuring there’s maximum distance from the margins of both groups. Once the algorithm categorizes information, it provides a clear boundary between the two groups.

Advantages and Disadvantages

Advantages:

  • It requires minimal space.
  • The process consumes little memory.

Disadvantages:

  • It may not work well in large data sets.
  • If the dataset has more features than training data samples, the algorithm might not be very accurate.

Naïve Bayes Classifier

The Naïve Bayes is also a viable option for classifying information.

Overview of Naïve Bayes Classifier

The Naïve Bayes method is a robust classification solution that makes predictions based on historical information. It tells you the likelihood of an event after analyzing how many times a similar (or the same) event has taken place. The most frequent application of this algorithm is distinguishing non-spam emails from billions of spam messages.

Advantages and Disadvantages

Advantages:

  • It’s a fast, time-saving algorithm.
  • Minimal training data is needed.
  • It’s perfect for problems with multiple classes.

Disadvantages:

  • Smoothing techniques are often required to fix noise.
  • Estimates can be inaccurate.

K-Nearest Neighbors (KNN)

Although algorithms used for classification in data mining are complex, some have a simple premise. KNN is one of those algorithms.

Overview of KNN

Like many other algorithms, KNN starts with training data. From there, it determines the distance between particular objects. Items that are close to each other are considered related, which means that this system uses proximity to classify data.

Advantages and Disadvantages

Advantages:

  • The implementation is simple.
  • You can add new information whenever necessary without affecting the original data.

Disadvantages:

  • The system can be computationally intensive, especially with large data sets.
  • Calculating distances in large data sets is also expensive.

Artificial Neural Networks (ANN)

You might be wondering, “Is there a data classification technique that works like our brain?” Artificial neural networks may be the best example of such methods.

Overview of ANN

ANNs are like your brain. Just like the brain has connected neurons, ANNs have artificial neurons known as nodes that are linked to each other. Classification methods relying on this technique use the nodes to determine the category to which an object belongs.

Advantages and Disadvantages

Advantages:

  • It can be perfect for generalization in natural language processing and image recognition since they can recognize patterns.
  • The system works great for large data sets, as they render large chunks of information rapidly.

Disadvantages:

  • It needs lots of training information and is expensive.
  • The system can potentially identify non-existent patterns, which can make it inaccurate.

Comparison of Classification Techniques

It’s difficult to weigh up data classification techniques because there are significant differences. That’s not to say analyzing these models is like comparing apples to oranges. There are ways to determine which techniques outperform others when classifying particular information:

  • ANNs generally work better than SVMs for making predictions.
  • Decision trees are harder to design than some other, more complex solutions, such as ANNs.
  • KNNs are typically more accurate than Naïve Bayes, which is rife with imprecise estimates.

Systems for Classification in Data Mining

Classifying information manually would be time-consuming. Thankfully, there are robust systems to help automate different classification techniques in data mining.

Overview of Data Mining Systems

Data mining systems are platforms that utilize various methods of classification in data mining to categorize data. These tools are highly convenient, as they speed up the classification process and have a multitude of applications across industries.

Popular Data Mining Systems for Classification

Like any other technology, classification of data mining systems becomes easier if you use top-rated tools:

WEKA

How often do you need to add algorithms from your Java environment to classify a data set? If you do it regularly, you should use a tool specifically designed for this task – WEKA. It’s a collection of algorithms that performs a host of data mining projects. You can apply the algorithms to your own code or directly into the platform.

RapidMiner

If speed is a priority, consider integrating RapidMiner into your environment. It produces highly accurate predictions in double-quick time using deep learning and other advanced techniques in its Java-based architecture.

Orange

Open-source platforms are popular, and it’s easy to see why when you consider Orange. It’s an open-source program with powerful classification and visualization tools.

KNIME

KNIME is another open-source tool you can consider. It can help you classify data by revealing hidden patterns in large amounts of information.

Apache Mahout

Apache Mahout allows you to create algorithms of your own. Each algorithm developed is scalable, enabling you to transfer your classification techniques to higher levels.

Factors to Consider When Choosing a Data Mining System

Choosing a data mining system is like buying a car. You need to ensure the product has particular features to make an informed decision:

  • Data classification techniques
  • Visualization tools
  • Scalability
  • Potential issues
  • Data types

The Future of Classification in Data Mining

No data mining discussion would be complete without looking at future applications.

Emerging Trends in Classification Techniques

Here are the most important data classification facts to keep in mind for the foreseeable future:

  • The amount of data should rise to 175 billion terabytes by 2025.
  • Some governments may lift certain restrictions on data sharing.
  • Data automation is expected to be further automated.

Integration of Classification With Other Data Mining Tasks

Classification is already an essential task. Future platforms may combine it with clustering, regression, sequential patterns, and other techniques to optimize the process. More specifically, experts may use classification to better organize data for subsequent data mining efforts.

The Role of Artificial Intelligence and Machine Learning in Classification

Nearly 20% of analysts predict machine learning and artificial intelligence will spearhead the development of classification strategies. Hence, mastering these two technologies may become essential.

Data Knowledge Declassified

Various methods for data classification in data mining, like decision trees and ANNs, are a must-have in today’s tech-driven world. They help healthcare professionals, banks, and other industry experts organize information more easily and make predictions.

To explore this data mining topic in greater detail, consider taking a course at an accredited institution. You’ll learn the ins and outs of data classification as well as expand your career options.

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Sage: The ethics of AI: how to ensure your firm is fair and transparent
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OPIT - Open Institute of Technology
Mar 7, 2025 3 min read

Source:


By Chris Torney

Artificial intelligence (AI) and machine learning have the potential to offer significant benefits and opportunities to businesses, from greater efficiency and productivity to transformational insights into customer behaviour and business performance. But it is vital that firms take into account a number of ethical considerations when incorporating this technology into their business operations. 

The adoption of AI is still in its infancy and, in many countries, there are few clear rules governing how companies should utilise the technology. However, experts say that firms of all sizes, from small and medium-sized businesses (SMBs) to international corporations, need to ensure their implementation of AI-based solutions is as fair and transparent as possible. Failure to do so can harm relationships with customers and employees, and risks causing serious reputational damage as well as loss of trust.

What are the main ethical considerations around AI?

According to Pierluigi Casale, professor in AI at the Open Institute of Technology, the adoption of AI brings serious ethical considerations that have the potential to affect employees, customers and suppliers. “Fairness, transparency, privacy, accountability, and workforce impact are at the core of these challenges,” Casale explains. “Bias remains one of AI’s biggest risks: models trained on historical data can reinforce discrimination, and this can influence hiring, lending and decision-making.”

Part of the problem, he adds, is that many AI systems operate as ‘black boxes’, which makes their decision-making process hard to understand or interpret. “Without clear explanations, customers may struggle to trust AI-driven services; for example, employees may feel unfairly assessed when AI is used for performance reviews.”

Casale points out that data privacy is another major concern. “AI relies on vast datasets, increasing the risk of breaches or misuse,” he says. “All companies operating in Europe must comply with regulations such as GDPR and the AI Act, ensuring responsible data handling to protect customers and employees.”

A third significant ethical consideration is the potential impact of AI and automation on current workforces. Businesses may need to think about their responsibilities in terms of employees who are displaced by technology, for example by introducing training programmes that will help them make the transition into new roles.

Olivia Gambelin, an AI ethicist and the founder of advisory network Ethical Intelligence, says the AI-related ethical considerations are likely to be specific to each business and the way it plans to use the technology. “It really does depend on the context,” she explains. “You’re not going to find a magical checklist of five things to consider on Google: you actually have to do the work, to understand what you are building.”

This means business leaders need to work out how their organisation’s use of AI is going to impact the people – the customers and employees – that come into contact with it, Gambelin says. “Being an AI-enabled company means nothing if your employees are unhappy and fearful of their jobs, and being an AI-enabled service provider means nothing if it’s not actually connecting with your customers.”

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Reuters: EFG Watch: DeepSeek poses deep questions about how AI will develop
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Feb 10, 2025 4 min read

Source:

  • Reuters, Published on February 10th, 2025.

By Mike Scott

Summary

  • DeepSeek challenges assumptions about AI market and raises new ESG and investment risks
  • Efficiency gains significant – similar results being achieved with less computing power
  • Disruption fuels doubts over Big Tech’s long-term AI leadership and market valuations
  • China’s lean AI model also casts doubt on costly U.S.-backed Stargate project
  • Analysts see DeepSeek as a counter to U.S. tariffs, intensifying geopolitical tensions

February 10 – The launch by Chinese company DeepSeek, opens new tab of its R1 reasoning model last month caused chaos in U.S. markets. At the same time, it shone a spotlight on a host of new risks and challenged market assumptions about how AI will develop.

The shock has since been overshadowed by President Trump’s tariff wars, opens new tab, but DeepSeek is set to have lasting and significant implications, observers say. It is also a timely reminder of why companies and investors need to consider ESG risks, and other factors such as geopolitics, in their investment strategies.

“The DeepSeek saga is a fascinating inflection point in AI’s trajectory, raising ESG questions that extend beyond energy and market concentration,” Peter Huang, co-founder of Openware AI, said in an emailed response to questions.

DeepSeek put the cat among the pigeons by announcing that it had developed its model for around $6 million, a thousandth of the cost of some other AI models, while also using far fewer chips and much less energy.

Camden Woollven, group head of AI product marketing at IT governance and compliance group GRC International, said in an email that “smaller companies and developers who couldn’t compete before can now get in the game …. It’s like we’re seeing a democratisation of AI development. And the efficiency gains are significant as they’re achieving similar results with much less computing power, which has huge implications for both costs and environmental impact.”

The impact on AI stocks and companies associated with the sector was severe. Chipmaker Nvidia lost almost $600 billion in market capitalisation after the DeepSeek announcement on fears that demand for its chips would be lower, but there was also a 20-30% drop in some energy stocks, said Stephen Deadman, UK associate partner at consultancy Sia.

As Reuters reported, power producers were among the biggest winners in the S&P 500 last year, buoyed by expectations of ballooning demand from data centres to scale artificial intelligence technologies, yet they saw the biggest-ever one-day drops after the DeepSeek announcement.

One reason for the massive sell-off was the timing – no-one was expecting such a breakthrough, nor for it to come from China. But DeepSeek also upended the prevailing narrative of how AI would develop, and who the winners would be.

Tom Vazdar, professor of cybersecurity and AI at Open Institute of Technology (OPIT), pointed out in an email that it called into question the premise behind the Stargate Project,, opens new tab a $500 billion joint venture by OpenAI, SoftBank and Oracle to build AI infrastructure in the U.S., which was announced with great fanfare by Donald Trump just days before DeepSeek’s announcement.

“Stargate has been premised on the notion that breakthroughs in AI require massive compute and expensive, proprietary infrastructure,” Vazdar said in an email.

There are also dangers in markets being dominated by such a small group of tech companies. As Abbie Llewellyn-Waters, Investment manager at Jupiter Asset Management, pointed out in a research note, the “Magnificent Seven” tech stocks had accounted for nearly 60% of the index’s gains over the previous two years. The group of mega-caps comprised more than a third of the S&P 500’s total value in December 2024.

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