Data Annotation is the process of labeling or tagging data to make it understandable for machines. This is crucial in training machine learning models, as it helps them learn to recognize patterns and make predictions. For example, in image recognition, annotators might label objects within images, such as cars or trees. The annotated data serves as a foundation for artificial intelligence systems, enabling them to perform tasks like natural language processing or computer vision. Accurate data annotation improves the performance of these systems, ensuring they can interpret and respond to real-world scenarios effectively.