Machine Learning Model

A machine learning technique where a model trained on one task is repurposed as the starting point for a different but related task, significantly reducing the data and compute required for training. Transfer learning accelerates AI development timelines and reduces costs, making AI adoption more accessible to SMEs.

A machine learning technique that trains models across multiple decentralised devices or servers holding local data, without transferring the raw data to a central location. Federated learning addresses data privacy and sovereignty concerns by keeping sensitive data on-device while still enabling collaborative model improvement.

A type of neural network trained on vast corpora of text data, capable of generating human-like text, answering questions, summarising documents, and performing reasoning tasks. Large language models such as GPT and Claude represent significant R&D investment and are reshaping knowledge work, customer service, and content production across industries.

A business strategy that minimises investment in physical assets and instead relies heavily on intangible assets such as software, brand, data, and intellectual property to generate revenue. Asset-light companies typically exhibit higher scalability and return on capital but can be harder to value using traditional balance-sheet methods.

A business model that creates value by facilitating exchanges between two or more interdependent user groups — typically producers and consumers — through a digital platform. Platform businesses generate powerful network effects and intangible assets including user data, algorithmic matching capabilities, and brand trust.

The degradation in a machine learning model's predictive accuracy over time as the statistical properties of the input data diverge from the training data distribution. Model drift requires ongoing monitoring and periodic retraining to maintain performance, and is a key operational risk in production AI systems.

A business model in which a basic version of a product or service is offered free of charge while premium features, enhanced functionality, or expanded capacity are available for a subscription fee. The freemium model is prevalent in SaaS, enabling rapid user acquisition and product-led growth, with conversion rates from free to paid users typically ranging from 2% to 5%.

A dividend discount model that values a perpetual stream of cash flows growing at a constant rate, calculated as the next period's cash flow divided by the difference between the discount rate and the growth rate. The Gordon growth model is widely used to estimate terminal value in discounted cash flow analyses and requires that the assumed growth rate remains below the discount rate.