Chapter 10: Deep Learning & Neural Networks

Deep Learning & Neural Networks, explained like we’re huddled over your laptop in Airoli at 5:30 PM on a January evening in 2026 — the sky outside is already dark, chai is steaming, and we’re about to go from “what is a neuron?” to building something that actually works on images or sequences. This chapter is the big leap: from scikit-learn style ML to true deep learning, where models learn hierarchical features automatically.

In 2026, deep learning is everywhere — from GenAI apps in startups to production CV in Jio/Amazon warehouses. For beginners in India, PyTorch has become the go-to for learning (dynamic, Pythonic, research-friendly, Hugging Face ecosystem). TensorFlow/Keras is still strong for quick prototypes or Google Cloud deployment, but most fresh learners start with PyTorch now. We’ll use PyTorch here for examples — it’s more intuitive for debugging and custom stuff.

1. Neural Network Fundamentals

A neural network is inspired by the brain but much simpler: layers of neurons (nodes) connected by weights.

  • Input layer → raw data (e.g., flattened image pixels, customer features).
  • Hidden layers → learn patterns (edges → shapes → objects in CV).
  • Output layer → prediction (class probabilities, regression value).

Each neuron does: z = (input · weights) + bias output = activation(z)

Forward pass — data flows forward to compute prediction. Loss — how wrong we are (e.g., CrossEntropy for classification). Goal: minimize loss by adjusting weights.

Example intuition: For churn prediction (from our Telco data), input could be [tenure, MonthlyCharges, …] → hidden layers learn “high charges + short tenure = high churn risk” → output probability of churn.

2. Activation Functions, Backpropagation, Optimizers

Activation functions — introduce non-linearity (without them, whole network = linear regression).

Common ones in 2026:

  • ReLU (Rectified Linear Unit): f(x) = max(0, x) Fast, avoids vanishing gradients mostly. Default in hidden layers.
  • Leaky ReLU / PReLU: f(x) = max(αx, x) (α small like 0.01) — fixes “dying ReLU” (neurons stuck at 0).
  • Sigmoid: 0 to 1 — used in binary output (but vanishing gradients).
  • Tanh: -1 to 1 — centered, but still vanishing.
  • Softmax (multi-class output): turns logits into probabilities.
  • GELU / SwiGLU (2026 favorites in transformers): smoother, better performance in large models.

Backpropagation — the learning algorithm (chain rule magic).

  1. Forward pass → compute loss.
  2. Backward pass → compute gradients (∂loss/∂weight) for every weight.
  3. Update weights: weight -= learning_rate * gradient.

Optimizers — smarter ways to update weights (beyond basic gradient descent).

  • SGD (Stochastic GD) — simple, but slow/noisy.
  • Momentum — adds velocity, smooths.
  • Adam (Adaptive Moment Estimation) — most popular 2026 default: adaptive LR per parameter, momentum + RMSprop.
  • AdamW — Adam + weight decay (better for transformers).
  • Lion / Sophia — newer 2025–2026 optimizers (faster convergence in some cases).

In practice: Start with Adam or AdamW (lr=1e-3 or 3e-4).

3. Frameworks: TensorFlow / Keras or PyTorch

PyTorch (2026 recommendation for you):

  • Dynamic computation graph → define-by-run (easy debug, print tensors mid-model).
  • Feels like NumPy + autograd.
  • Huge community (Hugging Face, fastai).

Keras (on TensorFlow):

  • High-level, beginner-friendly (Sequential API).
  • Static graph (faster on some hardware, easier deployment).

We’ll code in PyTorch — install:

Bash

4. CNNs for Computer Vision (Basics)

Convolutional Neural Networks excel at images (local patterns via filters/kernels).

Key layers:

  • Conv2D — slides filters, detects edges/textures.
  • MaxPool2D — downsamples, reduces params, translation invariance.
  • BatchNorm — stabilizes training.
  • Dropout — prevents overfitting.
  • GlobalAvgPool / Flatten + Dense — final classification.

Simple CNN example on MNIST (handwritten digits — classic starter, 28×28 grayscale):

Python

This CNN learns edges → curves → digit shapes automatically.

5. RNNs / LSTMs / Transformers Intro

RNN — processes sequences (time series, text), but vanishing gradients.

LSTM — adds gates (forget, input, output) → remembers long-term.

Example: Time-series churn prediction (monthly usage sequence per customer).

Python

Transformers (2026 dominant for sequences):

  • Self-attention → parallel, captures long dependencies.
  • No recurrence → faster training.
  • Encoder-decoder or just encoder (BERT-style).

Intro: Use Hugging Face for real work — transformers library.

Python

6. Transfer Learning

Use pre-trained model (trained on millions of images) → fine-tune on your small data.

Huge time-saver in 2026 (small datasets common in startups).

PyTorch example — Image classification (e.g., classify shop products or defect detection):

Python

Workflow:

  1. Freeze base → train classifier head (fast).
  2. Unfreeze top layers → lower LR (1e-4/1e-5) → fine-tune.
  3. Use data aug (RandomCrop, Flip, ColorJitter).

Common models: ResNet50, EfficientNet, ConvNeXt (2026 efficient ones), Vision Transformers (ViT).

That’s Chapter 10 — the gateway to modern AI!

Practice:

  • Run the MNIST CNN (download data auto).
  • Try transfer learning on a small Kaggle dataset (e.g., Cats vs Dogs subset).
  • For sequences: Adapt LSTM to monthly Telco aggregates.

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