Machine learning involves using data to allow computers to learn without being explicitly programmed. There are three main types of machine learning problems: supervised learning, unsupervised learning, and reinforcement learning. The typical machine learning process involves five steps: 1) data gathering, 2) data preprocessing, 3) feature engineering, 4) algorithm selection and training, and 5) making predictions. Generalization is an important concept that relates to how well a model trained on one dataset can predict outcomes on an unseen dataset. Both underfitting and overfitting can lead to poor generalization by introducing bias or variance errors.