Background
The inspiration for neural networks came from examination of central nervous systems. In an artificial neural network, simple artificial nodes, called "neurons", "neurodes", "processing elements" or "units", are connected together to form a network which mimics a biological neural network.
There is no single formal definition of what an artificial neural network is. Generally, it involves a network of simple processing elements that exhibit complex global behavior determined by the connections between the processing elements and element parameters. Artificial neural networks are used with algorithms designed to alter the strength of the connections in the network to produce a desired signal flow.
Neural networks are also similar to biological neural networks in that functions are performed collectively and in parallel by the units, rather than there being a clear delineation of subtasks to which various units are assigned. The term "neural network" usually refers to models employed in statistics, cognitive psychology and artificial intelligence. Neural network models which emulate the central nervous system are part of theoretical neuroscience and computational neuroscience.
In modern software implementations of artificial neural networks, the approach inspired by biology has been largely abandoned for a more practical approach based on statistics and signal processing. In some of these systems, neural networks or parts of neural networks (such as artificial neurons) are used as components in larger systems that combine both adaptive and non-adaptive elements. While the more general approach of such adaptive systems is more suitable for real-world problem solving, it has far less to do with the traditional artificial intelligence connectionist models. What they do have in common, however, is the principle of non-linear, distributed, parallel and local processing and adaptation. Historically, the use of neural networks models marked a paradigm shift in the late eighties from high-level (symbolic) artificial intelligence, characterized by expert systems with knowledge embodied in if-then rules, to low-level (sub-symbolic) machine learning, characterized by knowledge embodied in the parameters of a dynamical system.
Read more about this topic: Artificial Neural Network
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