Artificial intelligence
Unsupervised learning is the form of machine learning in which the system works on unlabelled data, with nobody telling it the right answer.
It looks on its own for similarities, structures and groups (clusters) in the data. It contrasts with supervised learning, where every example carries its answer, and with reinforcement learning, which learns from rewards and penalties. One of the oldest and most used methods, k-means, which splits data into a given number of groups, was described by James MacQueen in 1967. In marketing it is the tool for segmentation discovered in the data rather than decided at a desk.
An example
A model divides customers into groups with similar buying habits that nobody had defined before.
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