Machine learning allows machines to learn from past data, mimicking human capabilities but at a much faster rate. The video illustrates this with Paul, who likes songs with fast tempos and soaring intensity, disliking those with relaxed tempos and light intensity. By analyzing Paul's past preferences, we can predict his liking for a new song with fast tempo and soaring intensity, classifying it based on the established pattern. Machine learning empowers us to make predictions based on existing data, enabling automated decision-making in various fields.