Classification and clustering are two methods of organizing objects into groups based on their features. Classification involves assigning objects to predefined classes based on their attributes, while clustering aims to group similar objects together without predefined labels. Classification uses supervised learning with training data containing class labels, while clustering is unsupervised and does not use pre-labeled data. Different algorithms such as decision trees and Bayesian classifiers are used for classification, while k-means, expectation maximization, and other methods are typically applied to clustering.