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Glossary
Binary Classification
AI DEFINITION

Binary Classification

Binary classification is a supervised learning task where a model assigns each input to one of two possible categories. It is among the most fundamental problems in machine learning.

Typical examples

Challenges

  • Imbalanced datasets: when one class dominates (e.g., rare diseases).
  • Decision threshold: tuning probability cutoffs affects recall and precision.
  • Interpretability: ensuring decisions can be trusted in high-stakes contexts.

Applications

  • Fraud detection in financial transactions.
  • Voice recognition systems (authorized vs unauthorized speaker).
  • Predictive maintenance (failure vs normal operation).

Binary classification can be thought of as the yes-or-no decision-making engine of machine learning. Because so many real-world tasks reduce to two outcomes, it is one of the most widely applied techniques. What makes it powerful is not only its simplicity but also its adaptability across domains—from medicine to cybersecurity.

One of the main challenges lies in class imbalance. For example, in fraud detection, genuine transactions vastly outnumber fraudulent ones. In such cases, a model that always predicts “not fraud” would achieve high accuracy but be useless in practice. This is why practitioners rely on precision, recall, and F1-score rather than raw accuracy to evaluate models.

Another crucial consideration is the decision threshold. Most models output probabilities, and choosing where to “cut” determines whether the system favors sensitivity (catching more positives at the cost of false alarms) or specificity (avoiding false alarms but missing some positives). This trade-off is often visualized with ROC curves and AUC scores, helping organizations tune models for their specific risk appetite.

Reference

  • Hastie, T., Tibshirani, R., & Friedman, J. (2009). The Elements of Statistical Learning. Springer.