The AI and Machine Learning report should serve as a primer for business managers, operations experts, and anyone interested in the branch of AI known as deep learning. It is intended provide an overview on where innovation is occurring in the market and to aid the reader in understanding how neural nets and machine learning is being applied. Deep learning algorithms use computational methods to “learn” information directly from data without relying on a predetermined equation as a model. The algorithms adaptively improve their performance as the number of samples available for learning increases using large neural networks. Applied business use cases include improvement in network optimization, churn management, fraud detection, threat detection, targeted campaign management, and service impact analysis. Machine learning is being used to perform high data input rates in near real time and using ML algorithms to provide insights into service impacting events more accurately and faster than possible by human experts. The report is a first in a series of reports that Appledore Research will publish this year. Follow on reports will evaluate machine learning applied to operations, care, and marketing. We will also report on CSP deployments in the telecommunication market.