For example, the algorithm could be given a list of clients with clear characteristics and be “told” which clients are VIP and which are not. In the future, the algorithm could determine “on its own” which client profiles are VIP vs. non-VIP.
In the context of machine learning algorithms, supervised learning is based on the concept of “predicting future data”. Learning is supervised when data in a given process is already known and categorized. The algorithm uses supervised learning to predict a result and be able to predict the same result when the data is no longer categorized.