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KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

KIROI - Artificial Intelligence Return on Invest: The AI strategy for decision-makers and managers

Start » Proximal Policy Optimization (PPO) (Glossary)
31 January 2025

Proximal Policy Optimization (PPO) (Glossary)

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Proximal Policy Optimization (PPO) falls within the domains of Artificial Intelligence, automation, and Industry 4.0. It is a method that enables machines and computer programs to learn to make better decisions autonomously. PPO is an approach from so-called Reinforcement Learning, a popular learning method in AI.

Instead of executing a task blindly, a computer learns step by step how to achieve the best outcome using PPO. This works as follows: the machine tries out different actions and is rewarded or „punished“ depending on whether the outcome is good or bad. With each iteration, the AI optimises its approach. What's special about PPO is that these improvements occur in a very stable and controlled manner – this prevents the learning process from making overly large, erroneous jumps.

A simple example: A robot is meant to learn how to pick packages efficiently in a warehouse. Using Proximal Policy Optimization, it analyses different routes and grips, evaluates their success, and thereby continuously refines its behaviour. This is how it increases efficiency step by step and entirely automatically.

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