Almost every machine learning problem starts with one question: does your data have known, correct answers attached to it, or not? That single distinction — labeled versus unlabeled data — is what separates supervised from unsupervised learning, and it determines which entire family of algorithms is even applicable.
Supervised learning uses labeled data: each training example has both input features and the correct output. Predicting house prices from square footage, location, and age is regression — the output is a continuous number. Detecting spam email is classification — the output is a category. In both cases, you can measure the model's accuracy directly, because you know the right answers for your training data.
Ask yourself: do I already have examples with correct labels I can train on? If you have historical data where the outcome is already known (did this customer churn or not, was this transaction fraudulent or not), that's supervised learning. If you're trying to discover unknown patterns or groupings with no predefined categories, that's unsupervised learning.
In practice, fully labeled datasets are expensive and time-consuming to produce. Semi-supervised learning uses a small amount of labeled data alongside a much larger amount of unlabeled data, letting the model leverage the structure found in the unlabeled data while still being anchored by the limited labeled examples — a practical middle ground increasingly common in real-world projects.
The presence or absence of labeled data determines which entire toolkit of algorithms applies to your problem. Get this classification right first — most confusion in early machine learning study comes from trying to apply a supervised technique to a problem that's actually asking for unsupervised structure discovery, or vice versa.
Yes. The same customer dataset could be used with supervised learning to predict who will churn (if you have historical churn labels) or with unsupervised learning to discover customer segments (if you're exploring the data without a specific known outcome to predict).
Image recognition, like identifying whether a photo contains a cat or dog, is typically supervised learning — the model trains on a large dataset of images that have already been correctly labeled with what they contain.
Clustering is a classic unsupervised learning technique. It groups similar data points together based on their inherent characteristics, without being told in advance what the correct groups are.