Machine learning is a field of computer science, probability theory, and optimization theory which allows complex tasks to be solved for which a logical/procedural approach would not be possible or feasible.
There are several different categories of machine learning, including (but not limited to):
- Supervised learning
- Reinforcement learning
Supervised Learning
In supervised learning, you have some really complex function (mapping) from inputs to outputs, you have lots of examples of input/output pairs, but you don't know what that complicated function is. A supervised learning algorithm makes it possible, given a large data set of input/output pairs, to predict the output value for some new input value that you may not have seen before. The basic method is that you break the data set down into a training set and a test set. You have some model with an associated error function which you try to minimize over the training set, and then you make sure that your solution works on the test set. Once you have repeated this with different machine learning algorithms and/or parameters until the model performs reasonably well on the test set, then you can attempt to use the result on new inputs. Note that in this case, the program does not change, only the model (data) is changed. Although one could, theoretically, output a different program, but that is not done in practice, as far as I am aware. An example of supervised learning would be the digit recognition system used by the post office, where it maps the pixels to labels in the set 0...9, using a large set of pictures of digits that were labeled by hand as being in 0...9.
Reinforcement Learning
In reinforcement learning, the program is responsible for making decisions, and it periodically receives some sort of award/utility for its actions. However, unlike in the supervised learning case, the results are not immediate; the algorithm could prescribe a large sequence of actions and only receive feedback at the very end. In reinforcement learning, the goal is to build up a good model such that the algorithm will generate the sequence of decisions that lead to the highest long term utility/reward. A good example of reinforcement learning is teaching a robot how to navigate by giving a negative penalty whenever its bump sensor detects that it has bumped into an object. If coded correctly, it is possible for the robot to eventually correlate its range finder sensor data with its bumper sensor data and the directions that sends to the wheels, and ultimately choose a form of navigation that results in it not bumping into objects.
More Info
If you are interested in learning more, I strongly recommend that you read Pattern Recognition and Machine Learning by Christopher M. Bishop or take a machine learning course. You may also be interested in reading, for free, the lecture notes from CIS 520: Machine Learning at Penn.