Running head: AI & KNOWLEDGE MANAGEMENT

Opal Ruiz

Homework Assignment Week 7

Business Benefits of AI for knowledge management

Computer Applications

International College of the Cayman Islands

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Business benefits of AI for knowledge management

Artificial intelligence platforms can be used for effectively managing the organizational

knowledge of a business. As such, there are various business benefits of artificial intelligence

techniques which can be utilized for knowledge management by organizations. This essay will

discuss business benefits in relation to different types of artificial intelligence techniques. Hence,

this paper will define the terms expert system and neural network as well as how each technique

works and their associated business benefits. Additionally, this essay will also define the term

case-based reasoning and differentiate how it differs from an expert system. Furthermore,

machine based learning as well as its application and examples will also be included in this

essay. Lastly, this essay will also define, discuss, and explain how intelligence techniques work

and the kinds of problems that each is suited for, these intelligence techniques include; fuzzy

logic, genetic algorithms, and intelligent agents

There are various business benefits that can be derived from using intelligence techniques

for knowledge management. According to K. Laudon and J. Laudon (2016) although artificial

intelligence lacks the flexibility and extensiveness, of human beings, it can be utilized to gather,

organize, and extend the organizational knowledge of a business. Expert systems are beneficial

in catching tacit knowledge from human expertise (K. Laudon & J. Laudon, 2016). Additionally,

expert systems are also beneficial in diagnosis and classification problems (K. Laudon and J.

Laudon, 2016). Case-based reasoning enables business benefits as it represents a database of

organizational knowledge which can be constantly expanded and developed upon (K. Laudon &

J. Laudon, 2016). Moreover, fuzzy logic is advantageous in regulating physical devices and is

also presently being utilized for limited decision-making systems (K. Laudon & J. Laudon,
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2016). Therefore, there are significant business benefits which can be derived from using

artificial intelligence techniques for knowledge management.

According to K. Laudon and J. Laudon (2016) an expert system is defined as an

intelligence technique which is utilized to capture tacit knowledge in very specific and limited

human enterprise domain. In addition, Duval (1994) reports that expert systems consists of three

main components which include the knowledge base, the inference engine, and the user

interface. Additionally, expert systems catch the knowledge of skilled employees through the use

of a set of rules in a software system which can also be used by other employees within the

organization (K. Laudon & J. Laudon, 2016). Expert systems add value to businesses as the

knowledge acquired from the expert systems adds to the memory or stored learning of the

business (K. Laudon and J. Laudon, 2016). Moreover, by gathering information on human

expertise in limited areas, expert systems add value by enabling the organization to make high-

level decisions with fewer employees (K. Laudon & J. Laudon, 2016). Needless to say, expert

systems are extensively used by businesses for highly structured decision making processes (K.

Laudon & J. Laudon, 2016).

In order for expert systems to work or operate human knowledge must be molded in

method in which a computer is able to process (K. Laudon and J. Laudon, 2016). Accordingly, as

mentioned by K. Laudon and J. Laudon (2016) expert systems model knowledge as a unique set

of rules that are referred to as the knowledge base. The rules which are encoded into the

knowledge system are systematically obtained by interviewing a subject matter expert who has a

sound knowledge base of the system or by recording business rules which are found in books,

reports, or manuals (K. Laudon & J. Laudon, 2016). As indicated by K. Laudon and J. Laudon

(2016) expert systems can have from two hundred to thousands of rules which are contingent on
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the intricacy of the problem. Furthermore, as expert systems acquire tacit knowledge from expert

individuals it enables the organization to expand its knowledge base.

Klenk and Molineaux (2011) define case-based reasoning as a problem solving procedure

in which a current problem is solved by retrieving a previous problem with similar characteristics

and reusing its solution. As stated by K. Laudon & J. Laudon (2016) case-based reasoning or

CBR for short is a system comprising of descriptions of previous experiences of specialists or

expert individuals, which are represented as cases, and are stored and documented in a database.

These cases can therefore be retrieved and used as guidance in the event that other users

encounter a new case with similar parameters (K. Laudon and J. Laudon, 2016). Case-based

reasoning functions by searching the system for stored cases for an issue with similar patterns or

characteristics to a current issue, locating the closest match, and ultimately applying the solution

from the previous issue to the current one (K. Laudon and J. Laudon, 2016). According to K.

Laudon and J. Laudon (2016) expert systems predominantly captures the tacit knowledge of

individual employees or subject matter experts whereas case-based reasoning captures and stores

the collective organizational knowledge and the expertise that the organization has acquired

throughout the years. Hence, case-based reasoning provides value to organizations as it affords

guidance to employees in problem solving based on previous cases.

As reported by Gronlund (2016) machine learning is a method of data science that

enables computers to learn from existing information it order to predict future trends, behaviors,

and outcomes. In addition, machine learning can also be described as the study of how computer

programs can increase their performance without the need for explicit programming (K. Laudon

& J. Laudon, 2016). Accordingly, machine learning refers to a machine that has the ability to

recognize patterns in data, and adjust its behavior or outputs based on its recognition of patterns,
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prior learnings, or previous experiences (K. Laudon & J. Laudon, 2016). Examples of machine

learning include; a self-driving car that is able to recognize and adjusts to other cars, Google

searches where algorithms rank web pages based on search queries, Amazons recommender

engine which makes suggestions based on previous purchases, or Netflixs recommender system

which recommends movies viewers might like based on previous movies watched (K. Laudon &

J. Laudon, 2016). Machine learning systems are beneficial to businesses as it enables business to

forecast future outcomes based on existing data (Gronlund, 2016).

According to Rouse, (2016) a neural network is a hardware or software system which is

modeled after the functions of neurons located in the human brain. Moreover, as stated by K.

Laudon and J. Laudon (2016) neural networks are utilized for solving complicated problems that

are poorly understood for which vast volumes of data have been collected. In addition, neural

networks uncover patterns and relationships in vast amounts of data that would be too complex

and difficult for a human to analyze (K. Laudon & J. Laudon, 2016). As indicated by K. Laudon

and J. Laudon (2016) neural networks uncover information by utilizing software and hardware

which are equal to the processing patterns of the biological human brain.

Neural network provides and enables tremendous business benefits. As reported by K.

Laudon and J. Laudon (2016) neural network uses in business, science, and medicine resolves

problems in pattern classification, financial analysis, control and optimization, as well as

prediction. As stated by Rouse (2016) commercial applications of neural network technology

generally focuses on complex problem solving of signal processing or pattern detection

problems. Examples of notable commercial neural network applications include speech-to-text

transcription, handwriting recognition for check processing, facial recognition, oil-exploration

data analysis, and weather prediction (Rouse, 2016). In addition, according to K. Laudon and J.
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Laudon (2016) in the healthcare industry neural network applications are utilized for diagnosing

patients with epilepsy and Alzheimers disease, executing pattern recognition for pathology

images, and screening patients for coronary artery disease.

Neural networks also provide business benefits to the financial industry. As mentioned by

K. Laudon and J. Laudon (2016) the financial industry utilizes neural networks in order to

distinguish patterns in massive pools of information that might help in predicting the

performance of corporate bond ratings, equity performance, or corporate bankruptcies. Also,

Visa International uses a neural network system to help in detecting credit card fraud by

monitoring all transactions for sporadic changes in the purchasing patterns of card holders (K.

Laudon and J. Laudon (2016). Additionally, artificial neural networks were initially developed as

a part of a comprehensive research effort in relation to artificial intelligence and neural networks

are also important in research around human consciousness and human cognition (Rouse, 2016).

Therefore, organizations can benefit from using neural networks as it has the capability to

provide solutions to problems that are too complex for humans to solve (K. Laudon & J. Laudon,

2016).

According to Dingle (2011) fuzzy logic has been around since the 1960s; however its

practical application was not demonstrated until the 1970s. Additionally, fuzzy logic is a form of

artificial intelligence and is a rule based system which relies on the practical experience of an

operator, and is specifically useful in capturing knowledge from experienced operators. As

reported by authors K. Laudon and J. Laudon (2016) fuzzy logic is defined as a rule-based

technology that is able to represent imprecision by generating rules which utilize subjective or

objective values. Also fuzzy logic systems can describe a specific phenomenon or process

linguistically and represent that description in a small quantity of flexible rules (K. Laudon & J.
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Laudon, 2016). Furthermore, businesses can utilize fuzzy logic to develop systems which capture

tacit knowledge in the case of linguistic ambiguity (K. Laudon and J. Laudon, 2016). Also, as

stated by K. Laudon and J. Laudon (2016) fuzzy logic works by providing solutions to issues that

require expertise that is difficult to characterize in the form of crisp IF-THEN rules.

Fuzzy logic applications are often included in washing machines, cameras, as well as

stock trading applications (Dingle, 2011). According to K. Laudon and J. Laudon (2016) fuzzy

logic can be utilized to solve complex and sensitive issues such as allowing trains to accelerate

smoothly without requiring passengers to hold on or decreasing electric consumption in air

conditioners. In addition, the autofocus feature in cameras is possible as a result of fuzzy logic

(K. Laudon & J. Laudon, 2016). Fuzzy logic systems are suitable for assisting with business or

management decisions and or organizational control (K. Laudon & J. Laudon, 2016). As an

illustration, fuzzy logic systems can be used by businesses to select potential companies for

acquisition (K. Laudon & J. Laudon, 2016). According to K. Laudon and J. Laudon (2016) an

additional problem for which fuzzy logic systems are well suited for is fraud detection in medical

claims. Accordingly, a fuzzy logic system has been created to detect optional fraud cases in

medical claims processed by U.S health care providers (K. Laudon & J. Laudon, 2016).

Therefore, there are substantial benefits which can be derived from using fuzzy logic.

John Holland of the University of Michigan was one of the pioneering theorists of genetic

algorithms in the early 1970s (Hosch, 2013). A genetic algorithm is a type of artificial

intelligence, and a form of evolutionary computer algorithm in which symbols (often referred to

as genes) representing probable solutions are bred (Hosch, 2013). According to K. Laudon

and J. Laudon (2016) genetic algorithms are advantageous for determining the optimal solution

for a particular issue by analyzing large volumes of possible solutions that are applicable to the
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issue in question. Furthermore, genetic algorithms are based upon techniques which are

stimulated by evolutionary biology such as mutation, selection, inheritance, and recombination

(K. Laudon & J. Laudon, 2016). As stated by K. Laudon & J. Laudon (2016) genetic algorithms

work by representing data as a sequence of 0s and 1s. Genetic algorithms function by searching a

population of arbitrarily generated sequences of binary digits in order to detect the right sequence

representing the most correct solution for the problem (K. Laudon & J. Laudon, 2016).

Ultimately, as solutions combine and alter, the worst ones are rejected and the best ones endure

and go on to produce even better solutions (K. Laudon & J. Laudon, 2016).

According to K. Laudon and J. Laudon (2016) genetic algorithms are most suited to solve

issues that are very complex and dynamic which involves hundreds of thousands of formulas or

variables. Specifically, the problem must be a problem in which the range of potential solutions

can be represented in a genetic method and the criteria can be recognized for assessing fitness

(K. Laudon and J. Laudon, 2016). As an illustration, the supply chain management system from

i2 Technologies utilizes genetic algorithms to enhance production-scheduling models by

incorporating thousands of details about material and resource availability, customer orders,

manufacture and distribution capability, and delivery dates (K. Laudon and J. Laudon, 2016).

Additionally, NASA utilized genetic algorithm programming in designing antennas for its Space

Technology 5 project; this consists of three micro-satellites which were launched in 2006 for

observing the impact of solar activity on the Earths magnetosphere (Hosch, 2013).

Consequently, there are noteworthy business benefits which can be derived though the use of

genetic algorithms.

According to K. Laudon and J. Laudon (2016) intelligence agents are defined as

technology programs that function without human interference to conduct specific

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responsibilities on behalf of an individual user, software application, or business process. As

reported by Rouse (n.d.) an intelligent agent is often referred to as a bot or robot for short and is

a software system that collects information. A typical intelligent agent uses parameters set up by

users to search the internet, and gathers information the user is interested in and presents the

information on a daily or periodic basis (Rouse, n.d). Additionally, an intelligent agent is a form

of technology that enables businesses to navigate through vast amounts of data in order to locate

and take action on information that is considered to be important (K. Laudon & J. Laudon,

2016). As mentioned by K. Laudon and J. Laudon (2016) intelligent agents work by using a

learned knowledge base or built-in platform to complete tasks or decision making on behalf of

users, such as scheduling appointments or deleting junk email.

Furthermore, intelligent agent systems are included in operating software, e-mail

systems, network tools, application software, as well as mobile computing tools (K. Laudon & J.

Laudon, 2016). Intelligent agents are useful in guiding users on how to complete various tasks in

Microsoft Office, such as creating charts or document formatting and can also anticipate when

users need assistance (K. Laudon & J. Laudon, 2016). Additionally, as indicated by K. Laudon

and J. Laudon (2016) intelligent agents shopping bots are also useful in helping consumers locate

products online and also provide assistance in comparing prices and other features. Aa as

illustration, Siri is an intelligent personal assistant application on Apples iOs system; Siri has

the capability to acclimate to the users personal preferences over a period of time and is able to

individualize results, get directions, schedule appointments, send messages, or purchase movie

tickets (K. Laudon and J. Laudon, 2016). Therefore, intelligent agents are valuable to businesses

and individuals as they provide assistance in decision making and locating and presenting

information.
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In conclusion, artificial intelligent techniques can be used by businesses for effectively

organizing and managing organizational knowledge. Additionally, there are various business

benefits of artificial intelligence techniques which can be utilized for knowledge management.

Intelligence techniques such as expert systems, case-based reasoning, machine learning, neural

networks, fuzzy logic, genetic algorithms, and intelligent agents can enable organizations to

improve knowledge management processes and decision making. Artificial techniques can be

used to effectively collect, store, and manage an organizations knowledge (K. Laudon & J.

Laudon, 2016). As mentioned by K. Laudon and J. Laudon (2016) artificial intelligence

technologies are beneficial for businesses as they enable the business to acquire both collective

and individual knowledge and also allow businesses to expand their knowledge base. For

example, fuzzy logic and case-based reasoning can be used for acquiring tacit knowledge (K.

Laudon & J. Laudon, 2016). In addition, neural networks can be used by organizations for

knowledge discovery (K. Laudon & J. Laudon, 2016). According to K. Laudon and J Laudon

(2016) businesses can use genetic algorisms for developing solutions for problems that are far

too complex for humans to scrutinize on their own. Furthermore, intelligent agents can

systematize routine tasks which enable businesses to locate and filter information for electronic

commerce, supply chain management and other activities (K. Laudon & J. Laudon, 2016).

Ultimately, whilst intelligent techniques are unable to exemplify the originality and complexity

of human intelligence they are an important tool for management decision making, and are

responsible for a significant role in modern knowledge management and enable substantial

business benefits for organizations (K. Laudon & J. Laudon).

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References

Dingle, N. (2011). Artificial Intelligence: Fuzzy Logic Explained. Retrieved from

http://www.controleng.com/single-article/artificial-intelligence-fuzzy-logic-

explained/8f3478c13384a2771ddb7e93a2b6243d.html

Duval, B. K., & Main, L. (1994). Expert systems: What is an expert system? Library Software

Review, 13(1), 44. Retrieved from http://search.proquest.com.ezp-

02.lirn.net/docview/233629007?accountid=158672

Gronlund, C. (2016). Introduction to machine learning in the cloud. Retrieved from

https://docs.microsoft.com/en-us/azure/machine-learning/machine-learning-what-is-

machine-learning

Hosch, W. (2013). Genetic algorithm. Retrieved form

https://www.britannica.com/technology/genetic-algorithm

Klenk, M., Aha, D. W., & Molineaux, M. (2011). The case for case-based transfer learning. AI

Magazine, 32(1), 54-69. Retrieved from http://search.proquest.com.ezp-

02.lirn.net/docview/867824943?accountid=158672

Laudon, K. & Laudon, J. (2016). Management information systems: Managing the Digital Firm.

Harlow, Essex, England: Pearson

Rouse, M. (2016). Neural Network. Retrieved from

http://searchnetworking.techtarget.com/definition/neural-network

Rouse, M. (n.d.). Intelligent agent. Retrieved from

http://searchcio.techtarget.com/definition/intelligent-agent
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