What are Neural Networks ?

Artificial neural networks are distributed parallel systems composed of a number of processing elements that compute simple mathematical functions. Neural networks are ``inspired'' in some properties and characteristics of the human brain and learn to solve problems through a process of learning. The network units are linked to each other through connection weights which store the network knowledge about the environment. The steps that describe the operation of a neural network during learning can be basically described as follows :

An Example

The figure below illustrates a 2-D view (left) and a 3-D view (right) of a neural network in a character recognition application. The units on the left (input units) are used to represent the characters (input signal) that are presented to the network. The units on the rightmost side are ouput units where each one of them represents a class of alphanumeric characters. During network use (after training) when a pattern is fed into the network such as the character ``I'' in the figure, the corresponding unit representing that class provides the strongest response at the output layer.

Why Neural Networks ?

Neural networks are a powerfull technique to solve many real world problems. They have the ability to learn from experience in order to improve their performance and to adapt themselves to changes in the environment. In addition to that they are able to deal with incomplete information or noisy data and can be very effective especially in situations where it is not possible to define the rules or steps that lead to the solution of a problem. The advantages and attractive characteristics of neural networks can be summarized as follows:

Application Areas

Neural net have been used in such a diverse range of practical applications that it is almost impossible to find an area where they have not ben applied nor have their potential use being investigated. Large companies such as UK High Street Banks, Visa, Mastercard, American Express, European Bank, USA Bank, Asia Pacific Institution, UK Brokers, Britvic Soft Drinks are just a few examples of the corporations that are investing in the neural network technology. A recent article in The Economist points out that world sales and business involving the technology of neural networks will reach the amount of R$ 1 billion dollars in 1997. Below you find just a few example areas where neural networks have been applied.

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