Blockchain & AI

How Artificial Neural Networks (ANNs) Work

Artificial Neural Networks (ANNs) have revolutionized the field of artificial intelligence by mimicking the information processing mechanisms of the human brain.

Over the decades, research in neural networks has evolved from early perceptron models to today's complex deep learning architectures.

Artificial Neural Networks (ANNs) work by mimicking the structure and function of the human brain to learn patterns from data. At their core, ANNs consist of layers of interconnected nodes (neurons), where each neuron receives input, processes it using a weighted sum, applies an activation function, and passes the result to the next layer. The network learns by adjusting these weights during training, based on how well its predictions match the actual outcomes

How Artificial Neural Networks (ANN) Work

Artificial neural networks (ANNs) are widely used machine learning models that imitate how biological systems learn. 

In the human nervous system, learning takes place through a network of neurons, cells that transmit signals via connections known as synapses. These connections are formed through axons and dendrites, and their strength can vary depending on external input. This adaptive behavior is the foundation of biological learning.

Artificial neural networks replicate this concept using artificial “neurons” or processing units connected by weighted links, which function similarly to synaptic strengths. 

Each input to a neuron is multiplied by a weight that influences the output of that unit. The network computes a function by passing information from input neurons through one or more hidden layers to the output neurons, using the weights to guide the transformations along the way.

Learning in an ANN occurs by adjusting these weights. Just as biological systems learn through sensory input, artificial networks learn from training data, sets of input-output pairs that teach the network how to make predictions. 

For example, an image (input) and its label (e.g., banana or carrot) provide the basis for feedback. When the network makes a prediction, it compares its output to the correct label, and if there’s a mismatch, it adjusts its weights to reduce the error. This is analogous to how biological systems adapt through feedback from incorrect actions.

The objective of training is to minimize prediction errors by fine-tuning the weights over multiple training examples. As the network processes more data, it gradually becomes better at predicting outcomes, even for inputs it hasn’t seen before. 

This capability is known as generalization, the hallmark of a successful machine learning model. Ultimately, a well-trained neural network can apply what it has learned to new, unseen data, making it a powerful tool for pattern recognition and decision-making tasks.

Activation Function

In neural networks, an activation function determines the output of a node (or neuron) given a set of inputs and weights. Its primary role is to introduce non-linearity into the network, allowing the model to learn and represent complex patterns beyond simple linear relationships. 

Without activation functions, even a deep multi-layer network would collapse into an equivalent single-layer linear model. This makes activation functions essential for tasks involving image recognition, language understanding, and any data with non-linear features.

Different activation functions are used depending on the nature of the task:

  • Sigmoid Function: outputs values between 0 and 1, is historically one of the earliest activation functions used in binary classification. 
  • Tanh Function: outputs between -1 and 1, making it zero-centered and often more effective than sigmoid in certain settings. 
  • Rectified Linear Unit (ReLU): has become the most popular activation function in deep learning due to its simplicity and efficiency. it outputs zero for negative values and the raw input for positive ones.

Loss Function

While activation functions define how a network computes predictions, loss functions measure how far those predictions are from the actual target values. 

In essence, the loss function quantifies the network’s performance and serves as the objective that training aims to minimize. During training, the network adjusts its weights through backpropagation to reduce the total loss across the dataset.

The choice of a loss function depends on the type of task. 

For regression problems, where the output is continuous, common loss functions include Mean Squared Error (MSE) and Mean Absolute Error (MAE). 

For classification problems, Binary Cross-Entropy is used for binary classification, while Categorical Cross-Entropy (often paired with a softmax activation in the final layer) is used for multi-class classification. 

The effectiveness of learning greatly depends on selecting a suitable loss function aligned with the problem’s goal.

Categorization Based on Depth

We can categorize Neural Networks into single-layer and multi-layer neural networks.

Single Computational Layer: The Perceptron

The most basic form of a neural network is known as the perceptron. This model consists of a single computational layer, where input features are passed from an input layer to an output node. Each feature is multiplied by an associated weight, and the weighted inputs are summed at the output node. The resulting aggregate is then passed through an activation function, commonly the sign function, to produce a discrete class label.

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Although alternative activation functions, such as those used in least-squares regression, support vector machines, or logistic regression, can be employed to simulate different machine learning models, the core idea remains the same. In fact, many classical machine learning methods can be reinterpreted as simple neural network architectures. 

While the perceptron technically has two layers (an input and an output), only the output layer performs computation. The input layer merely serves as a conduit for feeding in feature values and is therefore not counted in the total number of layers. As a result, the perceptron is classified as a single-layer network, since it has only one trainable (computational) layer.

Multilayer Neural Networks

Multilayer neural networks are composed of multiple computational layers, with the intermediate layers, positioned between the input and output, known as hidden layers. These layers are termed “hidden” because the internal transformations they perform are not directly observable to the user. 

The overall structure of such networks is commonly referred to as a feedforward architecture, where data flows in a single direction, layer by layer, from the input to the output.

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In standard feedforward networks, it is typically assumed that every neuron in one layer is connected to every neuron in the next, forming a dense or fully connected configuration. As a result, the architecture of the network is largely determined once the number of layers and the type and number of nodes in each layer are specified. 

The final design consideration involves selecting an appropriate loss function for the output layer, which defines how the network will evaluate and optimize its predictions during training.

Backpropagation: Training a Neural Network

In single-layer neural networks, the training process is relatively simple because the loss function can be directly expressed in terms of the model’s weights. This direct relationship allows for easy computation of gradients, which are necessary for optimization. 

However, in multi-layer networks, the situation becomes more complex. The loss function becomes a composite function of the weights across multiple layers, making gradient calculation more intricate.

To handle this, multi-layer networks use the backpropagation algorithm. The backpropagation algorithm operates in two main steps: 

Forward Phase: in the forward phase, the input data is passed through the network layer by layer using the current weight values. The final predicted output is compared to the true label, and the derivative of the loss with respect to the output is calculated. This sets the stage for the backward phase.

Backward Phase: the algorithm computes the gradient of the loss function with respect to each weight in the network by systematically applying the chain rule. These gradients are then used to update the weights in a direction that reduces the overall loss. Since this computation propagates from the output layer back to the earlier layers, it is known as the backward phase.

This two-step process enables the network to learn from its errors and improve performance over time.

Practical Challenges

Overfitting

Overfitting is a common challenge in training neural networks, particularly in deep architectures. It occurs when the model learns the training data too well, capturing not only the underlying patterns but also the noise and minor fluctuations that do not generalize to new, unseen data. 

As a result, an overfitted model performs well on training data but poorly on validation or test data. This problem is especially pronounced when the model has too many parameters relative to the size of the training dataset. 

Regularization techniques such as L1/L2 penalties, dropout, early stopping, and data augmentation are commonly used to reduce overfitting and improve generalization.

Vanishing and Exploding Gradient Problems

The vanishing and exploding gradient problems are significant issues during the training of deep neural networks. They occur during backpropagation, when gradients are computed layer by layer. 

In the case of vanishing gradients, the gradients become increasingly smaller as they are propagated backward through the network. This results in the early layers learning very slowly or not at all. On the other hand, exploding gradients cause excessively large updates to the network weights, leading to instability in the learning process. 

These problems are particularly severe in very deep networks and recurrent neural networks (RNNs). Solutions include using activation functions like ReLU, applying gradient clipping, and using advanced architectures such as LSTMs or batch normalization.

Difficulties in Convergence

Convergence difficulties refer to the challenges in ensuring that the training process reaches a stable solution where the loss function is minimized effectively. These difficulties often stem from improper weight initialization, poorly chosen learning rates, and complex, non-convex loss landscapes.

When convergence is slow or erratic, training time increases significantly, and model performance may stagnate. Techniques such as adaptive learning rate optimizers (e.g., Adam, RMSprop), learning rate schedules, and initialization strategies like Xavier or He initialization are often employed to stabilize and accelerate convergence.

Local and Spurious Optima

Neural network training involves minimizing a highly non-linear and non-convex loss function, which can contain numerous local minima and spurious optima, regions in the parameter space where the loss is not globally optimal. 

In high-dimensional spaces, these local optima may trap the optimization algorithm, preventing it from finding a better global solution. However, research has shown that many local minima in deep networks yield similar performance, especially when the network is overparameterized. 

To mitigate this issue, techniques such as stochastic gradient descent (SGD), random restarts, and ensemble learning can help escape poor local optima and improve the chances of finding a satisfactory solution.

Computational Challenges

Training deep neural networks is computationally intensive and often requires significant hardware resources, including GPUs or TPUs.

The sheer number of parameters, especially in large models like transformers or deep CNNs, leads to increased memory usage, processing time, and energy consumption. 

Additionally, real-time applications demand efficient inference speeds, which may not be feasible with very large models. To address these computational challenges, researchers and engineers employ model compression techniques, pruning, quantization, and distributed training strategies. 

Cloud-based platforms and hardware accelerators have also become essential for managing the computational demands of modern deep learning.

EndNote

This article explored the fundamental mechanisms behind artificial neural networks (ANNs), highlighting their structural components, and  training dynamics. 

We examined the roles of activation functions, loss functions, forward and backward propagation, and weight updates in enabling neural networks to learn complex patterns from data. 

By understanding the inner workings of ANNs, we gain deeper insight into how modern AI systems generalize, adapt, and make predictions, bridging the gap between traditional algorithms and intelligent, data-driven models.

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