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Home Singapore Blog Machine Learning & AI What Is an Artificial Neural Network, and Why Does It Matter for AI?

What Is an Artificial Neural Network, and Why Does It Matter for AI?

Vamshi Krishna sanga by Vamshi Krishna sanga
October 31, 2025
in Machine Learning & AI
What Is an Artificial Neural Network and Why It Matters
OpenAI
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An artificial neural network (ANN) works like a simplified version of the human brain, processing data, spotting patterns, and making predictions. It’s a key technology behind AI applications, from chatbots to self-driving cars.

A striking example is the U.S.’s El Capitan supercomputer, which runs over 11 million cores and achieves 1.742 exaFLOPS. This massive system leverages ANNs to perform advanced simulations, research, and AI-driven problem solving at incredible speeds. Understanding how ANNs work is essential to grasping AI’s rapid evolution. From self-driving cars to personalized recommendations, these networks are shaping industries and everyday life, making them one of the most important innovations in modern technology. In this blog, we’ll explore what artificial neural networks are, how they work, and why they are so crucial for the future of AI.

In this blog, we’ll explore what artificial neural networks are, how they work, and why they are so crucial for the future of AI.

Source: Wikipedia

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Understanding Artificial Neural Networks and Their Role in AI

Artificial intelligence has transformed the way we interact with technology, and at the heart of many AI breakthroughs is the artificial neural network. These systems mimic the human brain’s structure to process information, learn patterns, and make predictions.

Also read: Key Details to Know about Neural Networks and Deep Learning

What Is an Artificial Neural Network?

A neural network AI is made up of layers of interconnected nodes, called neurons, that process information step by step.

How it works:

  • Input Layer: Receives raw data.
  • Hidden Layers: Analyze and transform information.
  • Output Layer: Produces predictions or classifications.
  • Learning Process: Adjusts connections to improve accuracy.

Neural networks can handle complex data such as images, speech, and text, making them ideal for diverse AI applications.

Why Do Neural Networks Matter for AI?

AI and neural networks are essential because they enable machines to learn from experience rather than rely solely on pre-programmed rules.

Key Benefits:

  • Recognizes patterns in large datasets.
  • Automates tasks requiring human-like decisions.
  • Improves over time with more data.
  • Powers applications in healthcare, finance, self-driving cars, and voice assistants.

Also read: From Novice to Neural Network: A Beginner’s Guide to Learn AI and ML

Biological vs Artificial Neural Networks

Biological and artificial neural networks share similarities in structure and function but differ in complexity, adaptability, and processing. Understanding these differences helps in designing efficient AI systems.

FeatureBiological Neural NetworkArtificial Neural Network
StructureHighly complex and dynamic neuronsLayers of nodes with fixed architecture
LearningNatural adaptation and experienceAlgorithm-based weight adjustments
SpeedSlower and depends on chemical signalsFaster and handles large datasets
FlexibilityHighly adaptive and context-awareTask-specific and less flexible
ExampleHuman brainDeep learning models in AI

How Artificial Neural Networks Work

Artificial neural networks (ANNs) are inspired by how our brain works. They take in information, analyze it, and produce results just like humans do when solving problems.

  • Input Layer: Receives the raw data to be processed.
  • Hidden Layers: Find patterns and relationships in the data.
  • Output Layer: Gives the final prediction, decision, or classification.
  • Learning Process: The network adjusts connections based on past mistakes to improve over time.

This process allows ANNs to learn from experience. They’re behind technologies like voice assistants, image recognition, recommendation systems, and other AI applications we use every day.

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Types of Artificial Neural Networks

Artificial neural networks come in various types, each suited for different tasks and data. The table below summarizes the main types and their typical applications.

ANN TypeDescription
Feedforward Neural NetworkInformation moves in one direction from input to output.
Convolutional Neural Network (CNN)Excellent for image and video processing.
Recurrent Neural Network (RNN)Handles sequential data, such as speech or text.
Long Short-Term Memory (LSTM)Captures long-term dependencies in sequential data.
Self-Organizing Map (SOM)Performs clustering and visualization of data.

Also read: Understanding Recurrent Neural Networks: Applications and Examples

Applications of Artificial Neural Networks in Real Life

AI and neural networks are increasingly shaping our daily lives, driving more innovative solutions across industries.

IndustryReal-Life Applications
HealthcareDisease diagnosis, medical imaging, and drug discovery
FinanceFraud detection, algorithmic trading, and risk assessment
RetailPersonalised recommendations and inventory management
TransportationSelf-driving cars and traffic optimization
TechnologyVoice assistants and facial recognition
ManufacturingPredictive maintenance and quality control

Benefits and Limitations of Neural Networks

A neural network in artificial intelligence offers powerful capabilities but comes with certain challenges.

Benefits:

  • Pattern Recognition: Excels at identifying complex patterns in large datasets.
  • Automation: Enables AI systems to perform tasks without explicit programming.
  • Adaptability: Learns and improves performance over time.
  • Versatility: Used in image recognition, natural language processing, and predictive analytics.

Limitations:

  • Data Dependency: Requires large amounts of high-quality data.
  • Computationally Intensive: Needs significant processing power.
  • Interpretability Issues: Can act as a “black box,” making decisions hard to explain.

Understanding both sides helps businesses and developers use neural networks effectively.

How Online Programs Through upGrad Help You Master Neural Networks

upGrad USA provides access to industry-relevant courses and certifications from top universities, helping learners master neural networks and AI skills flexibly online. With guided projects, mentorship, and practical exercises, you can build expertise while balancing work or studies.

Relevant Programs via upGrad:

  • Master of Science in Machine Learning & AI (Liverpool John Moores University)
  • Executive Diploma in Machine Learning & AI (IIT Bangalore)

These programs make it easier to gain hands-on experience and confidently apply neural network knowledge in real-world AI projects.

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FAQs on Artificial Neural Network

What is the difference between a neural network and deep learning?

Neural networks are the building blocks of AI, while deep learning uses multiple layers of neural networks to handle complex tasks and large datasets.

How do artificial neural networks mimic the human brain?

Artificial neural networks mimic the human brain by processing information through interconnected nodes that act like neurons. They adjust the strength of these connections, or weights, as they learn from data, improving accuracy over time.

What are the main types of neural networks?

The following are the main types of neural networks:

1. Feedforward (FNN): Data flows one way from input to output.
2. CNN: Best for images and videos.
3. RNN: Handles sequences like text or speech.
4. LSTM: Captures long-term dependencies.
5. SOM: Clusters and visualizes complex data.

Can I build a neural network without coding experience?

Yes. Tools like TensorFlow Playground, Weka, and no-code AI platforms let beginners design neural networks visually.

How are neural networks used in healthcare?

They help with disease diagnosis, medical image analysis, drug discovery, and predicting patient outcomes.

Vamshi Krishna sanga

Vamshi Krishna sanga

85 articles published

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