6 Tips to Best Set Up Your Artificial Intelligence Model For Success

Artificial intelligence

Artificial intelligence (A.I.) is simply a way to describe an application of machine learning by a company or computer system. Since machine learning relies on data and models, Artificial intelligence can work with a large dataset and complex models. 

One of the most fundamental skills for a machine learning practitioner is choosing features that models can use to learn effectively. It can be one of the most challenging problems in data science, as there are an infinite number of possible features that could potentially matter and a finite amount of time to test which ones are useful. It is a crucial part of ensuring that models are booming.

1. Creating Architecture That Targets Data

The vision and use-cases define the data platform and tools needed to deliver. It is vital for all (data-relevant) projects, from the image, to determine the data platform and tools required to build and test models. 

Artificial intelligence center needs to decide between on-premises versus cloud variations, self-maintained open-source solutions versus licensed solutions, and use user-ready analytics tools with open-source components. It allows quick, user-friendly modeling rather than packaged tools that are historically B.I oriented. 

Data-focused projects need to define their vision and use cases, which will drive the data platform and tools required.


2. Run The Backtest Long Enough

The best way to train an A.I. model is to have lots of good historical data. The AI training data you provide should cover a range of industries and company sizes to ensure you are not learning the wrong lessons. 

If the dataset only includes existing companies within a universe, your model might know that all of those companies are stronger than they are. By not having the companies that fall out and fold, your machine cannot learn what failure looks like, which is essential for avoiding pitfalls in the future. The enemy of many artificial intelligence models is not enough data. 

A 1 year backtest may hide weaknesses your model has in other years. Be sure to have a longer backtest, at least ten years, so you can see how your model performs across more regimes and understand how it will perform in adverse conditions. The most successful hedge funds currently use models that work for ten years or more. A 12-year window is recommended as a minimum when backtesting and training models.

3. Give the Machine Just Enough Data

Optimizing machine learning algorithms requires creating a training set. If too much data is available, the algorithm can become overfit to the point that it may not generalize. The trick is finding a balance—you don’t want your training set to be too small (or you risk underfitting), yet you don’t want it to be too large either (as overfitting can occur). 


Algorithms predict the outcome data (target variable) given the input variables (features). The process of creating a model design that maximizes its performance while minimizing its risk is called model tuning. Instead, using targeted data points that make intuitive sense to the user is more likely to result in a robust, generalized model.

4. Be Able To Explain Machine Decisions

As A.I. becomes more widely used, results are important but difficult to sell to stakeholders if they cannot understand the model and its choices. Many machine-learning apps can be “black box” in nature, meaning when the machine makes a decision, the end-user does not understand any decisions. 


To trust their systems, you need explainable artificial intelligence for your models. Constantly seek to update your explainability engine to provide more glass box AI using natural language processing for input. Its interactions help build trust that a model will work or be adjusted to work.

5. Have Clear Goals

A.I. training data can be hard to get, but you also need to consider what problem you are trying to solve before using an A.I. algorithm. At the beginning of every A.I. project, you should always ask questions. 


What are you trying to achieve through A.I.? Based on your answer, you need to consider what data you need to address the question or problem that you are working on. Make some assumptions about the data you require and be careful to record those assumptions so that you can test them later if needed.

6. Develop Business Driven Models

A.I. developers will need a prioritized list of applications or use cases they are working on. They should layer strategic value with what is achievable. Start by building some of these use cases as pilots or prototypes and then move them toward production deployment. 

For example, they identify an online shopper as a customer of a new product at an online store, saving time and resources by letting a doctor see medical results as part of a temporary training session or making your home more accessible while you are at work.


Wrapping Up

Reflect on what has worked for you, what needs improvement, and how your training data is shaping up. The best way to succeed in machine learning model building is to continuously look for ways to improve and meet evolving requirements constantly. 


Building a model can be more art than science because it’s hard to set precise metrics for success. It can be not easy to try and get models to perform, but when you have the proper training data, it’s a little easier and faster.

Categorized as Technology

Elizabeth Howard is a seasoned writer who loves to write on topics related to Business, Finance, Marketing & Energy Markets. Well known for her eloquence, Liz is a full time contributor to a dozen top notch publishing portals.