Artificial Neural Network (ANN) is a computational model based on the structure and functions of biological neural networks. Information that flows through the network affects the structure of the ANN because a neural network changes - or learns, in a sense - based on that input and output. ANNs are considered nonlinear statistical data modeling tools where the complex relationships between inputs and outputs are modeled or patterns are found. ANN is also known as a neural network.

An ANN has several advantages but one of the most recognized of these is the fact that it can actually learn from observing data sets. In this way, ANN is used as a random function approximation tool. These types of tools help estimate the most cost-effective and ideal methods for arriving at solutions while defining computing functions or distributions. ANN takes data samples rather than entire data sets to arrive at solutions, which saves both time and money. ANNs are considered fairly simple mathematical models to enhance existing data analysis technologies. ANNs have three layers that are interconnected. The first layer consists of input neurons. Those neurons send data on to the second layer, which in turn sends the output neurons to the third layer.

Artificial neural networks use different layers of mathematical processing to make sense of the information it’s fed. Typically, an artificial neural network has anywhere from dozens to millions of artificial neurons—called units—arranged in a series of layers. The input layer receives various forms of information from the outside world. This is the data that the network aims to process or learn about. From the input unit, the data goes through one or more hidden units. The hidden unit’s job is to transform the input into something the output unit can use.