Labels are the known outcomes, classifications, or target values associated with historical data that enable supervised learning models to learn from experience.
Every supervised learning model requires examples where both the input information and the correct outcome are already known. The input information consists of the features, while the known outcome is the label.
For example:
Features
Label
Customer demographics, purchase history, website activity
Customer purchased (Yes/No)
Financial statements, market indicators
Stock outperformed the market (Yes/No)
Medical observations and test results
Diagnosis
Loan application information
Loan repaid or defaulted
Manufacturing measurements
Product passed or failed inspection
By analyzing thousands or even millions of labeled examples, an AI model learns the relationships between features and outcomes. It can then apply those learned relationships to make predictions for new data where the outcome is not yet known.
At AISL Solutions, we view labels as much more than technical data fields. Labels represent organizational knowledge—the historical decisions and outcomes that teach artificial intelligence how to recognize patterns and support future business decisions.