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3 April 2025

Class Imbalance (Glossary)

Artificial intelligence Automation Big data and smart data Digital transformation Sanjay Sauldie Glossary

The term class imbalance originates from the fields of artificial intelligence, big data, smart data and automation. It describes a situation in which the individual groups or "classes" in the data set are very unevenly distributed when developing AI systems or analysing large amounts of data.

This often happens, for example, when a data set for an AI used to recognise fraud in online banking contains 9900 normal transactions but only 100 fraudulent transactions. The AI model then "learns" what normal transactions look like because they occur much more frequently. As a result, fraud cases may be overlooked because they are too rare.

Class imbalance is so important because it can significantly impair the results of data analyses and the performance of artificial intelligence. Developers must take targeted action against this, for example by collecting additional data for the rare classes or using special equalisation procedures. This is the only way to create truly reliable and fair AI solutions.

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Sanjay Sauldie

Sanjay Sauldie is a digital strategist, speaker and developer of the transruption toolkit, which companies can use to make their digital transformation measurable, human and sustainable. With kiROI - the AI-based approach to value creation in the digital age - he helps self-employed people and companies to integrate artificial intelligence into their processes in a practical way. With his outstanding marketing strategy iROI, he has already led countless companies to greater visibility and thus more profits. He combines digital innovation with disruptive thinking models for a sustainable business strategy. He studied mathematics and computer science at the University of Cologne, completed a Master of Science in Digital Disruption at the University of Salford (UK) and a Design Thinking programme at MIT/EMERITUS Singapore. As a multiple award-winning expert - including the Golden Web Award and the Innovation Award of the Initiative Mittelstand - he advises SMEs and corporations. His motto: "Digitalisation is not an end in itself - it must serve people."

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