Data Labeling and its Significance

Ananya Avasthi
October 6, 2021

Data Labeling uses the information available in numerous forms like texts, images, audio, or videos which are labeled with a specific technique for a specific purpose to make it coherent for machines. This makes it easier for the various systems to understand and analyze the information to give the results correspondingly.

Data Labeling for machine learning (ML) teaches Artificial Intelligence (AI) to learn from the labeled data and eventually implement the knowledge it has gathered in real-time scenarios. Data labeling is a crucial part of data preprocessing for ML, especially for supervised learning. Supervised learning uses both input and output data that are labeled for grouping to contribute a learning basis for future data processing. 

In simple terms, data labeling trains the system to identify cars for instance, images might be provided with multiple images of various types of cars from which it would learn the common features of each, enabling it to correctly identify the cars in unlabeled images.

Another use of data labeling is constructing ML algorithms for autonomous vehicles. Autonomous vehicles like self-driving cars need to be able to perceive their environment by differentiating between objects to provide a safe experience.  Data labeling helps the car identify its environment to ensure the driver’s safety. Data labeling helps the car's artificial intelligence (AI) to differentiate between a person, the street, another car, and the sky by labeling the main features of those objects by looking for similarities between them.

Data labeling: How does it work?

Machine Learning (ML) and deep learning often require colossal amounts of information to establish a foundation for dependable learning patterns. The information that they procure for their training systems must be labeled to organize the data and recognize patterns to produce the desired result.

The labels used to recognize the features have to be informative,  selective and individualistic to produce an accurate algorithm. A properly labeled dataset provides authenticity that the ML model uses to scan its predictions for accuracy and to continue distilling its algorithm.

A quality algorithm is the epitome of accuracy and quality. Accuracy refers to the accessibility of certain labels in the dataset to the source. Quality refers to the accuracy of an entire dataset. 

Importance of Data Labeling

As discussed before, Machine Learning (ML) and Deep Learning require data labeling to sift through information to build a proper training model.

An AI research firm, Cognilytic, showcased that over 80% of the time spent on AI projects goes into preparing, cleaning and labeling data. AI systems are solely dependent on the quality of the algorithm as well as the quality of the training model. This deduces the fact the foundation of a good AI system depends on the quality and quantity of the data provided. Since 80% of effort goes into categorizing the data, we must understand how data labeling assists experts. Here are a few features of data labeling that assist in making the entire process easier:


ML-assisted capacity can drastically decrease human errors by automatically pre-labeling. Quality Assurance (QA) and Quality Control (QC) are integrated into the labeling to ensure accuracy. Consensus (essentially to assign the same task to several systems, the majority solution is implemented) is also used as a parameter to ensure accuracy. Of course, in the end, the results are screened and inspected by humans.


An alliance with a human workforce, as well as AI algorithms, show a 50% decrease in cost compared to traditional methods.


Every time Machine Learning goes through testing, computer scientists learn new ways to improve the algorithm. It learns new ways to bring out the best results.

Transfer learning

Takes one or additional pre-trained models from one dataset and applies them to a different dataset. This can comprise multi-task learning, within which multiple tasks are learned in sequences.

Active learning

ML algorithms and a subset of semi-supervised learning that assists humans to uncover the most relevant datasets. 

AI heavily relies on the quality of the data it is provided. Labeling data manually consumes a lot of time and energy. Automated Data Labeling saves time and energy to a great extent. It also helps humans focus on other complicated information, improving efficiency. There is still quite a bit of trial and error still left to explore. It is flexible in providing solutions and is dynamic in nature. Data is what makes the world go round. The more the data is consumed, the better an AI can learn. It can practically be molded to be used in any sphere of work. Personalized annotation tools and services can be applied according to customer requirements. Data Labeling is the essence of AI. It is the reason why we are moving towards automation. It is the reason for Datasaur.