
“One cannot say apriori which one will work better on a particular dataset. The correct way is to try both and compare the results. Also, note that when it comes to segmentation, it is not so easy to "compare the results": IoU based measures like dice coefficient cover only some aspects of the quality of the segmentation; in some applications, different measures such as mean surface distance or Hausdorff surface distance need to be used. As you see, not even the choice of the correct quality metric is trivial, let alone the choice of the best cost function.
I personally have very good experience with the dice coefficient; it really does wonders when it comes to class imbalance (some segments occupy less pixels/voxels than others). On the other hand, the training error curve becomes a total mess: it gave me absolutely no information about the convergence, so in this regard cross-entropy wins. Of course, this can/should be bypassed by checking the validation error anyways.”
The Dice coefficient is a metric used to evaluate the performance of object detection and segmentation algorithms. It is calculated as twice the intersection of the predicted and ground truth bounding boxes divided by the sum of the areas of the predicted and ground truth bounding boxes 1.

While IoU is a popular metric for evaluating object detection algorithms, it is not commonly used as a loss function for training deep learning-based segmentation models. Instead, the Dice coefficient is often used as a loss function for segmentation tasks because it is differentiable, whereas IoU is not. The Dice coefficient loss function is defined as 1 minus the Dice coefficient.
Here’s an example to help you understand the Dice coefficient better:
Let’s say we have two binary images, one is the ground truth and the other is the predicted image. The Dice coefficient is calculated as twice the number of pixels that are common in both images divided by the total number of pixels in both images. The Dice coefficient ranges from 0 to 1, where 0 indicates no overlap between the two images and 1 indicates perfect overlap
Dice Loss:
Cross Entropy Loss: