Decoder. plain-English AI glossary

Loss function

● Core

The formula that scores how wrong the model is, giving training something to minimize.

Think of it like

Like a golf score — the lower the number, the better you’re doing, and every swing aims to bring it down.

Example

A model’s loss on a batch is high when its predictions miss the targets; training keeps pushing that number lower.

How it actually works

The loss function turns the gap between predictions and targets into a single number that optimization minimizes. Its choice defines what “good” means — cross-entropy for classification, mean-squared error for regression, custom losses for special goals. Because the model optimizes exactly what you measure, a poorly chosen loss produces a model that’s technically great at the wrong thing.

For product teams

You get the behavior you measure — the loss encodes your definition of success, so choose it carefully.

For engineers

Scalar objective quantifying prediction error; its gradient drives all weight updates. Choice defines the target behavior.

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