ARTIFICIAL INTELLIGENCE

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What is AI?
Artificial Intelligence systems include
people, procedures, hardware, software,
data and knowledge needed to develop
computer systems and machines that
demonstrate characteristics of intelligence
[Ralph Stair].
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What is AI?
Intelligence: ability to learn, understand and
think (Oxford dictionary)

AI is the study of how to make computers
make things which at the moment people do
better.

Examples: Speech recognition, Smell, Face,
Object, Intuition, Inferencing, Learning new
skills, Decision making, Abstract thinking

Whats AI? (to me)
Computers making decisions in real-world
problems
apply
formulate
solve
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ARTIFICIAL INTELLIGENCE
Artificial intelligence (AI) the science of
making machines imitate human thinking and
behavior
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AI Objectives
Make machines smarter (primary goal)

Understand what intelligence is (Nobel
Laureate purpose)

Make machines more useful (entrepreneurial
purpose)

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Components of AI
Expert Systems are computer programs that act or
behave like a human expert in a field or area.

Robotics involves developing mechanical or computer
devices controlled by software to perform tasks that
require a high degree of precision or are tedious or
hazardous for humans

Vision Systems include hardware and software that
permit computers to capture, store and manipulate
visual images and pictures
Natural Language Processing allows the computer to
understand and react to statements and commands
made in a "natural" language, such as English

Learning Systems include hardware and software
that allow the computer to change how it functions
or reacts to situations based on feedback it receives

Neural Networks are computer systems that act like
or simulate the functioning of the human brain

Components of AI
ARTIFICIAL INTELLIGENCE
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ARTIFICIAL INTELLIGENCE
Types of AI systems used in business

Expert systems
Neural networks
Genetic algorithms
Intelligent agents
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EXPERT SYSTEMS
Expert (knowledge-based) system an
artificial intelligence system that applies
reasoning capabilities to reach a conclusion
Used for
Diagnostic problems (whats wrong?)
Prescriptive problems (what to do?)
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What Expert Systems Can and Cant
Do
An expert system can
Reduce errors
Improve customer service
Reduce cost
An expert system cant
Use common sense
Automate all processes
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NEURAL NETWORKS
Neural network (artificial neural network
or ANN) an artificial intelligence system
that is capable of finding and differentiating
patterns
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The Layers of a Neural Network
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Neural Networks Can
Learn and adjust to new circumstances on
their own
Take part in massive parallel processing
Function without complete information
Cope with huge volumes of information
Analyze nonlinear relationships
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GENETIC ALGORITHMS
Genetic algorithm an artificial intelligence
system that mimics the evolutionary, survival-
of-the-fittest process to generate increasingly
better solutions to a problem
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Evolutionary Principles of Genetic
Algorithms
1. Selection or survival of the fittest or
giving preference to better outcomes
2. Crossover combining portion of good
outcomes to create even better outcomes
3. Mutation randomly trying combinations
and evaluating the success of each
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Genetic Algorithms Can
Take thousands or even millions of possible
solutions and combining and recombining
them until it finds the optimal solution
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INTELLIGENT AGENTS
Intelligent agent software that assists you,
or acts on your behalf, in performing
repetitive computer-related tasks
Buyer agents or shopping bots
User or personal agents
Monitoring-and surveillance agents
Data-mining agents
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Buyer Agents
Buyer agent or shopping bot an
intelligent agent on a Web sites that helps
you, the customer, find products and services
you want
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User Agents
User agent or personal agent intelligent
agent that takes action on your behalf
Examples:
Prioritize e-mail
Act as gaming partner
Assemble customized news reports
Fill out forms for you
Discuss topics with you
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Monitoring-and-Surveillance Agents
Monitoring-and-surveillance (predictive)
agents intelligent agents that observe and
report on equipment.
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Data-Mining Agents
Data-mining agent operates in a data
warehouse discovering information