Neural Network in AI: How It Works, Layers and Types

LLM foundationsModels and inferencePublished By Simon Budziak

A neural network is a machine learning model built from layers of simple, connected units called neurons. Each neuron weighs its inputs, sums them and passes the result through an activation function. Trained on examples, the weights settle into a mapping that classifies images, scores transactions or predicts the next token in a sentence.

How does a neural network work?

Each neuron computes activation(w · x + b): a weighted sum of its inputs plus a bias, passed through a nonlinear function. Neurons are arranged in layers: an input layer that receives numbers, hidden layers that transform them, and an output layer that produces a score, a class probability or a vector. Data flows forward through the layers to make a prediction. Training compares that prediction with the label using a loss, then backpropagation and gradient descent adjust every weight to reduce it. Stack many hidden layers and you have deep learning. Everything the network knows lives in its weights; nobody writes its rules.

What does an activation function do in a neural network?

It supplies the nonlinearity. Without one, any stack of layers collapses into a single linear transformation, no more expressive than the linear models of classic machine learning.

Activation Formula Typical use
ReLU max(0, x) Hidden layers; the long-standing default
Sigmoid 1 / (1 + e^-x) Output for a yes or no probability
Tanh (e^x - e^-x) / (e^x + e^-x) Hidden layers in older and recurrent networks
Softmax e^xi / Σ e^xj Output over several classes or tokens

Smooth ReLU variants such as GELU are common inside transformers. The output activation decides what the number means: a softmax score looks like a probability whether or not it behaves like one.

What are the main types of neural network?

The architectures differ in what structure they assume in the input.

Type Built for Typical use
Feedforward (multilayer perceptron) Fixed-size inputs Tabular scoring, simple classifiers
Convolutional (CNN) Grids such as images Computer vision, defect detection
Recurrent (RNN, LSTM) Sequences read step by step Older speech and text models, small streaming audio models
Transformer Sequences related through attention LLMs, vision-language models

The transformer architecture now dominates language, and increasingly vision and audio, because attention parallelizes well during training.

What should a team running AI know about neural networks?

Three operating facts. Outputs are scores, not certainties: a network’s confidence is often miscalibrated and needs checking through model calibration before a threshold relies on it. The weights do not explain themselves, so reasons for a decision must come from explainability methods or from the system around the model, never from reading the network. And behavior is fixed at training time: a neural network changes only when someone retrains or fine-tunes it, so every new version needs the same held-out evaluation as the first.

This entry was drafted with AI assistance.

Frequently asked questions

What is a neural network in AI?

A model made of layers of connected numeric units whose weights are learned from data. It is the building block of deep learning and of every large language model, image recognizer and speech model in use today.

What is an activation function in a neural network?

A nonlinear function applied to each neuron's weighted sum, such as ReLU or sigmoid. Without it, stacked layers would collapse into one linear transformation and the network could not learn complex patterns.

What is the difference between a neural network and deep learning?

A neural network is the model structure. Deep learning is the practice of training neural networks with many layers, which lets them learn their own features from raw data.

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