&APPLICATIONS
REPORT 1
02115603909
CONTENTS
1
S.NO TOPIC PAGE NO
1. ABSTRACT 3
2. HISTORY 4-5
3. INTRODUCTION 6-7
4. AI AND OTHER FIELDS 8-10
5. AI TECHINQUES 11-23
6. COMPARATIVE STUDY OF 24-25
DIFFERENT AI TECHNIQUES
7. ARTIFICIAL INTELLIGENCE & 26-27
DSS
8. CONCLUSION 28
9. FUTURE SCOPE OF 29
ARTIFICIAL INTELLIGENCE
10. REFERENCES 30
ABSTRACT
Artificial intelligence (AI) is a field of computer science that explores computational models
of problem solving, where the problems to be solved are of the complexity of problems
solved by human beings. Artificial Intelligence is the study of how to make computers do
things which, at the moment, people do better. It is the intelligence of machines and the
branch of computer science that aims to create it. The study and design of intelligent agents is
also called as Artificial Intelligence. The central problems of AI include such traits as
reasoning, knowledge, planning, learning, communication, perception and the ability to move
and manipulate objects.
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This paper elaborates the new approaches to AI. Artificial intelligence in the future will churn
out machines and computers, which are much more sophisticated than the ones that we have
today.
It is expected that the robots in future, will take on everybody's work. Whether it is office
work or the work at home, robots will accomplish it even faster and efficiently than human
beings. So if somebody's falling ill, they can obtain a robot nurse who will give periodic
medicines to them. How much care, concern and empathy the robot nurse will have towards
the patient is anybody's guess!
This paper intends to study the techniques developed in artificial intelligence (AI) from the
standpoint of their applications in all fields related to engineering. In particular, it focuses on
techniques developed (or that are being developed) in artificial intelligence that can be
deployed in solving problems associated with distinct processes. This paper highlights a
comparative study between approaches and its applications.
The history of artificial intelligence began in antiquity, with myths, stories and rumors of
artificial beings endowed with intelligence or consciousness by master craftsmen; as Pamela
McCorduck writes, AI began with "an ancient wish to forge the gods.
The seeds of modern AI were planted by classical philosophers who attempted to describe the
process of human thinking as the mechanical manipulation of symbols. This work culminated
in the invention of the programmable digital computer in the 1940s, a machine based on the
abstract essence of mathematical reasoning. This device and the ideas behind it inspired a
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handful of scientists to begin seriously discussing the possibility of building an electronic
brain.
The field of artificial intelligence research was founded at a conference on the campus of
Dartmouth College in the summer of 1956.
In 1973, in response to the criticism of Sir James Lighthill and ongoing pressure from
congress, the U.S. and British Governments stopped funding undirected research into
artificial intelligence. Seven years later, a visionary initiative by the Japanese Government
inspired governments and industry to provide AI with billions of dollars, but by the late 80s
the investors became disillusioned and withdrew funding again.
Progress in AI has continued, despite the rise and fall of its reputation in the eyes of
government bureaucrats and venture capitalists. Problems that had begun to seem impossible
in 1970 have been solved and the solutions are now used in successful commercial products.
In the 1990s and early 21st century, AI achieved its greatest successes, albeit somewhat
behind the scenes. Artificial intelligence is used for logistics, data mining, medical diagnosis
and many other areas throughout the technology industry.
• The creation of new ties between AI and other fields working on similar problems,
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INTRODUCTION
Artificial intelligence (AI) is the intelligence of machines and the branch of computer science
that aims to create it. AI textbooks define the field as "the study and design of intelligent
agents" where an intelligent agent is a system that perceives its environment and takes actions
that maximize its chances of success.
John McCarthy, who coined the term in 1956,defines it as "the science and engineering of
making intelligent machines."
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“Artificial Intelligence is the study of human intelligence such that it can be replicated
artificially. “
There are several programming languages that are known as AI languages because they are
used almost exclusively for AI applications. The two most common are LISP and prolog.
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1. Machines can be used to take on complex & stressful work that would be otherwise
performed by humans.
2. Machines can complete the task faster than the human assigned to do the same task.
3. Use of robotics to discover unexplored landscape, outer space and also be useful in our
home activities.
4. Less danger, injury and stress to humans as the work is done by a artificially intelligent
machine.
6. Used for games to create a atmosphere where you don't feel like you are playing against
just a machine
7. Understanding complex software can be made in to easy-to-understand types with the aid
of artificial intelligence
9. Minimized time and resources. Time and resources are not wasted but effectively used to
achieve the end goal
7
AI has found a home in financial services and is recognized as a valuable addition to
numerous business applications. Sophisticated technologies encompassing neural networks
and business rules along with AI-based techniques are yielding positive results in transaction-
oriented scenarios for financial services. AI has been widely adopted in such areas of risk
management, compliance, and securities trading and monitoring, with an extension into
customer relationship management (CRM). Tangible benefits of AI adoption include reduced
risk of fraud, increased revenues from existing customers due to newer opportunities,
avoidance of fines stemming from non-compliance and averted securities trade exceptions
that could result in delayed settlement, if not detected.
Warren Buffet is known as the ultimate investor in this age. So good is he, in fact, that
artificial intelligence software developed in Carnegie Mellon that predicts stock movements
was named after him by. But can machines really take the place of human traders, much less
surpass them? When Deep Blue defeated Chess Grandmaster Kasparov in 1997, AI was
propelled into the limelight. Indeed, if a machine can whiz through the intricacies of the
ultimate game of strategy, why not beat man in other fields as well – thereby facilitating
work, decreasing costs and errors and increasing productivity and quality. This study focuses
on applying AI in Finance, particularly in stock trading. In the field of Finance, artificial
intelligence has long been used. Some applications of Artificial Intelligence are
Artificial intelligence types used in finance include neural networks, fuzzy logic, genetic
algorithms, expert systems and intelligent agents. They are often used in combination with
each other.
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Artificial Intelligence in Marketing
Artificial intelligence functions are made possible by computerized neural networks that
simulate the same types of connections that are made in the human brain to generate thought.
Currently, the technology is used mostly to analyze data for genetics, pharmaceutical and
other scientific research. It's seeing little use in CRM right now, though it has tremendous
potential in the future.
For example, customer patterns are analyzed to learn ways to extend the life of light bulbs or
to help decide the correct dosage for medications.
High-tech data mining can give companies a precise view of how particular segments of the
customer base react to a product or service and propose changes consistent with those
findings. In addition to further exploring customers" buying patterns, analytics could help
companies react much more quickly to the marketplace.
According to Meta Group vice president Liz Shahnam, intelligent agents could let companies
make real-time changes to marketing campaigns. "New technologies would have the model
refreshed on the fly based on each new incoming piece of customer information -- reaction to
the campaign -- for a more targeted offer,"
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Artificial Intelligence in HR
It is widely believed that the role of managers is becoming a key determinant for enterprises'
competitiveness in today's knowledge economy era. Owing to fast development of
information technologies (ITs), corporations are employed to enhance the capability of
human resource management, which is called human resource information system (HRIS).
Recently, due to promising results of artificial neural networks (ANNs) and fuzzy theory in
engineering, they have also become candidates for HRIS. The artificial intelligence (AT)
field can play a role in this, especially; in assuring that the fuzzy neural network has the
characteristics and functions of training, learning, and simulation to make an optimal and
accurate judgment according to the human thinking model.
The main purposes of the study are to discuss the appointment of managers in enterprises
through fuzzy neural network, to construct a new model for evaluation of managerial talent,
and accordingly to develop a decision support system in human resource selection.
Therefore, the research methods of reviewing literature, in-depth interview, questionnaire
survey, and fuzzy neural network are used in the study. The fuzzy neural network is used to
train the concrete database, based on 191 questionnaires from experts, for getting the best
network model in different training conditions. In order to let decision-makers adjust
weighted values and obtain decisive results of each phase's scores, we adopted the simple
additive weighting (SAW) and fuzzy analytic hierarchy process (FAHP) methods in the
study.
Finally, the human resource selection system of Java user interface has been constructed by
FNN in the study.
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ARTIFICIAL INTELLIGENCE TECHNIQUES
1. EXPERT SYSTEMS
An expert system is software that uses a knowledge base of human expertise for problem
solving, or clarify uncertainties where normally one or more human experts would need to be
consulted. Expert systems are most common in a specific problem domain, and are a
traditional application and/or subfield of artificial intelligence (AI).
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A wide variety of methods can be used to simulate the performance of the expert; however,
common to most or all are:
1) the creation of a knowledge base which uses some knowledge representation structure to
capture the knowledge of the Subject Matter Expert (SME);
2) a process of gathering that knowledge from the SME and codifying it according to the
structure, which is called knowledge engineering; and
3) once the system is developed, it is placed in the same real world problem solving situation
as the human SME, typically as an aid to human workers or as a supplement to some
information system.
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DISADVANTAGES OF EXPERT SYSTEM:
• An expert system or rule-based approach is not optimal for all problems,
and considerable knowledge is required so as to not misapply the
systems.
• Plant layout
• Loan analysis
• Virus detection
• Shipping
• Marketing
• Warehouse optimization
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2. NATURAL LANGUAGE PROCESSING (NLP)
NLP is a field of computer science and linguistics concerned with the interactions between
computers and human (natural) languages. In theory, natural-language processing is a very
attractive method of human-computer interaction. Natural language understanding is
sometimes referred to as an AI-complete problem, because natural-language recognition
seems to require extensive knowledge about the outside world and the ability to manipulate
it.
NLP has significant overlap with the field of computational linguistics, and is often
considered a sub-field of artificial intelligence.
Modern NLP algorithms are grounded in machine learning, especially statistical machine
learning. Research into modern statistical NLP algorithms requires an understanding of a
number of disparate fields, including linguistics, computer science, and statistics. For a
discussion of the types of algorithms currently used in NLP, see the article on pattern
recognition.
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3. SPEECH RECOGNITION (also known as automatic speech
recognition or computer speech recognition)
converts spoken words to text. The term "voice recognition" is sometimes used to refer to
recognition systems that must be trained to a particular speaker—as is the case for most
desktop recognition software. Recognizing the speaker can simplify the task of translating
speech.
Speech recognition is a broader solution which refers to technology that can recognize speech
without being targeted at single speaker—such as a call system that can recognize arbitrary
voices.
Speech recognition applications include voice user interfaces such as voice dialing (e.g.,
"Call home"), call routing (e.g., "I would like to make a collect call"), domotic appliance
control, search (e.g., find a podcast where particular words were spoken), simple data entry
(e.g., entering a credit card number), preparation of structured documents (e.g., a radiology
report), speech-to-text processing (e.g., word processors or emails), and aircraft (usually
termed Direct Voice Input).
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4. ROBOTICS
Is the branch of technology that deals with the design, construction, operation, structural
disposition, manufacture and application of robots. Robotics is related to the sciences of
electronics, engineering, mechanics, and software. The word "robot" was introduced to the
public by Czech writer Karel Čapek in his play R.U.R. (Rossum's Universal Robots),
published in 1920. The term "robotics" was coined by Isaac Asimov in his 1941 science
fiction short-story "Liar!"
The field of robotics is closely related to AI. Intelligence is required for robots to be able to
handle such tasks as object manipulation and navigation, with sub-problems of localization
(knowing where you are), mapping (learning what is around you) and motion planning
(figuring out how to get there).
5. MACHINE LEARNING
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A branch of artificial intelligence, is a scientific discipline concerned with the design and
development of algorithms that allow computers to evolve behaviors based on empirical data,
such as from sensor data or databases. A learner can take advantage of examples (data) to
capture characteristics of interest of their unknown underlying probability distribution. Data
can be seen as examples that illustrate relations between observed variables. A major focus of
machine learning research is to automatically learn to recognize complex patterns and make
intelligent decisions based on data; the difficulty lies in the fact that the set of all possible
behaviors given all possible inputs is too large to be covered by the set of observed examples
(training data). Machine learning, like all subjects in artificial intelligence, requires cross-
disciplinary proficiency in several areas, such as probability theory, statistics, pattern
recognition, cognitive science, data mining, adaptive control, computational neuroscience and
theoretical computer science.
APPLICATIONS
• Machine perception
• computer vision,
• natural language processing,
• syntactic pattern recognition,
• search engines,
• medical diagnosis,
• bioinformatics,
• brain-machine interfaces
• cheminformatics,
• detecting credit card fraud,
• stock market analysis,
• classifying DNA sequences,
• speech and handwriting recognition,
• object recognition in computer vision,
• game playing, software engineering,
• adaptive websites,
• robot locomotion,
• structural health monitoring.
Machine learning techniques helped win a major software competition: in 2006, the online
movie company Netflix held the first "Netflix Prize" competition to find a program to better
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predict user preferences and beat its existing Netflix movie recommendation system by at
least 10%.
The AT&T Research Team BellKor won over several other teams with their machine
learning program called Pragmatic Chaos. After winning several minor prizes, it won the
2009 grand prize competition for $1 million.
6. HANDWRITING RECOGNITION
Is the ability of a computer to receive and interpret intelligible handwritten input from
sources such as paper documents, photographs, touch-screens and other devices. The image
of the written text may be sensed "off line" from a piece of paper by optical scanning (optical
character recognition) or intelligent word recognition. Alternatively, the movements of the
pen tip may be sensed "on line", for example by a pen-based computer screen surface.
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7. ARTIFICIAL NEURAL NETWORK
A neural network is an interconnected group of nodes, akin to the vast network of neurons in
the human brain.The study of artificial neural networks began in the decade before the field
AI research was founded, in the work of Walter Pitts and Warren McCullough, It is a system
based on the operation of biological neural networks, in other words, is an emulation of
biological neural system.
The main categories of networks are acyclic or feedforward neural networks (where the
signal passes in only one direction) and recurrent neural networks (which allow feedback).
Among the most popular feedforward networks are perceptrons, multi-layer perceptrons and
radial basis networks. Among recurrent networks, the most famous is the Hopfield net, a
form of attractor network, which was first described by John Hopfield in 1982. Neural
networks can be applied to the problem of intelligent control (for robotics) or learning, using
such techniques as Hebbian learning and competitive learning.
Advantages:
• A neural network can perform tasks that a linear program can not.
• When an element of the neural network fails, it can continue without any
problem by their parallel nature.
• A neural network learns and does not need to be reprogrammed.
• It can be implemented in any application.
• It can be implemented without any problem.
Disadvantages:
8. FUZZY LOGIC
Fuzzy logic is a form of many-valued logic derived from fuzzy set theory to deal with
reasoning that is fluid or approximate rather than fixed and exact. In contrast with "crisp
logic", where binary sets have two-valued logic, fuzzy logic variables may have a truth value
that ranges in degree between 0 and 1. In simple words we can say fuzzy logic is a super set
of conventional (boolean) logic that has been extended to handle the concept of partial truth--
the truth values between completely true and completely false. Furthermore, when linguistic
variables are used, these degrees may be managed by specific functions.
Fuzzy logic emerged as a consequence of the 1965 proposal of fuzzy set theory by Lotfi
Zadeh. Though fuzzy logic has been applied to many fields, from control theory to artificial
intelligence, it still remains controversial among most statisticians, who prefer Bayesian
logic, and some control engineers, who prefer traditional two-valued logic.
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In the fuzzifier, crisp inputs are fuzzified into linguistic values to be associated to the
input linguistic variables. After fuzzification, the inference engine refers to the fuzzy rule
base containing fuzzy IF-THEN rules to derive the linguistic values for the intermediate and
output linguistic variables. Once the output linguistic values are available, the defuzzifier
produces the final crisp values from the output linguistic values.
9. INTELLIGENT AGENT
Intelligent agents are often described schematically as an abstract functional system similar to
a computer program. For this reason, intelligent agents are sometimes called abstract
intelligent agents (AIA) to distinguish them from their real world implementations as
computer systems, biological systems, or organizations.
Intelligent agents in artificial intelligence are closely related to agents in economics, and
versions of the intelligent agent paradigm are studied in cognitive science, ethics, the
philosophy of practical reason, as well as in many interdisciplinary socio-cognitive modeling
and computer social simulations.
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Intelligent agents are also closely related to software agents (an autonomous software
program that carries out tasks on behalf of users).
In computer science, the term intelligent agent may be used to refer to a software agent that
has some intelligence, regardless if it is not a rational agent by Russell and Norvig's
definition. For example, autonomous programs used for operator assistance or data mining
(sometimes referred to as bots) are also called "intelligent agents".
Intelligent agents are task-oriented. Examples of intelligent agent tasks include data mining,
profile management, privacy management, rules management, and application management.
Russell & Norvig (2003) group agents into five classes based on their degree of perceived
intelligence and capability:[6]
1. simple reflex agents: Simple reflex agents act only on the basis of the current percept.
The agent function is based on the condition-action rule: if condition then action. This
agent function only succeeds when the environment is fully observable.
A model-based reflex agent keeps track of the current state of the world using an internal
model. It then chooses an action in the same way as the reflex agent.
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3. Goal-based agents: Goal-based agents are model-based agents which store
information regarding situations that are desirable. This allows the agent a way to
choose among multiple possibilities, selecting the one which reaches a goal state.
4. utility-based agents
5. learning agents: Learning has an advantage that it allows the agents to initially operate
in unknown environments and to become more competent than its initial knowledge
alone might allow.
According to other sources, some of the sub-agents that may be a part of an Intelligent Agent
or a complete Intelligent Agent in themselves are:
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• Temporal Agents - A temporal agent may use time based stored information to offer
instructions or data acts to a computer program or human being and takes program inputs
percepts to adjust its next behaviors.
10.SEMANTIC WEB
Semantic Web is a "web of data" that enables machines to understand the semantics, or
meaning, of information on the World Wide Web. It extends the network of hyperlinked
human-readable web pages by inserting machine-readable metadata about pages and how
they are related to each other, enabling automated agents to access the Web more intelligently
and perform tasks on behalf of users. The term was coined by Tim Berners-Lee, the inventor
of the World Wide Web and director of the World Wide Web Consortium, which oversees
the development of proposed Semantic Web standards. He defines the Semantic Web as "a
web of data that can be processed directly and indirectly by machines."
The term "Semantic Web" is often used more specifically to refer to the formats and
technologies that enable it. These technologies include the Resource Description Framework
(RDF), a variety of data interchange formats (e.g. RDF/XML, N3, Turtle, N-Triples), and
notations such as RDF Schema (RDFS) and the Web Ontology Language (OWL), all of
which are intended to provide a formal description of concepts, terms, and relationships
within a given knowledge domain.
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FEATURES NEURAL FUZZY GENETIC EXPERT SPEECH
NETWORKS LOGIC ALGORITHM SYSTEM RECOGNITION
AND
UNDERSTANDIN
G
COST High
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FEATURES NATURAL ROBOTICS MACHINE HANDWRITIN SEMANTIC
LANGUAGE LEARNING G RECONITION WEB
PROCESSING
FAULT No
TOLERANCE
USAGE High High High Low
GENERALIZATION
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ARTIFICIAL INTELLIGENCE & DECISION SUPPORT
SYSTEM
A decision support system (DSS) is a computer-based information system that supports
business or organizational decision-making activities. DSSs serve the management,
operations, and planning levels of an organization and help to make decisions, which may be
rapidly changing and not easily specified in advance.
Applications
As mentioned above, there are theoretical possibilities of building such systems in any
knowledge domain.One example is the clinical decision support system for medical
diagnosis. Other examples include a bank loan officer verifying the credit of a loan applicant
or an engineering firm that has bids on several projects and wants to know if they can be
competitive with their costs.
DSS is extensively used in business and management. Executive dashboard and other
business performance software allow faster decision making, identification of negative
trends, and better allocation of business resources.
DSS are also prevalent in forest management where the long planning time frame demands
specific requirements. All aspects of Forest management, from log transportation, harvest
scheduling to sustainability and ecosystem protection have been addressed by modern DSSs.
A comprehensive list and discussion of all available systems in forest management is being
compiled under the COST action Forsys
A specific example concerns the Canadian National Railway system, which tests its
equipment on a regular basis using a decision support system. A problem faced by any
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railroad is worn-out or defective rails, which can result in hundreds of derailments per year.
Under a DSS, CN managed to decrease the incidence of derailments at the same time other
companies were experiencing an increase.
Benefits
Future developments of DSSs will incorporat2 Artificial Intelligence (AI). The product will
be a system unhindered by the problem of new products without comparable counterparts on
the market. Systems will be able to analyze trends in the market and predict reliably product
demographics. The best system will be reusable and will fit Little's and Alter's models in that
it will be a framework that is reusable across multiple organizations / companies and it will fit
the before mentioned criteria of DSS (Power, 2003). Future DSS will include four criteria:
robustness, ease of control, simplicity, and completeness of relevant detail
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CONCLUSION
It is difficult for business to see general relevance from AI. This is probably one of the
reasons for the compartmentalization of AI into things like Knowledge Based Systems,
Neural Networks, and Genetic Algorithms etc. Some of these separate sub topics have been
shown to be very useful in solving certain difficult business and industrial problems and
consequently funding bodies influence research directions by encouraging work on these
more application based areas. This can have a positive effect for business benefit and has lead
to some very useful systems that have found their way into the heart of business activity.
Business should not lose sight of where AI could go because there are many potential
benefits to current and new businesses of future research. The idea of robotic domestic
workers is still far fetched but companies are making progress even here. There is already a
Robot Vacuum Cleaner marketed by Electrolux and doubtless improved systems with better
functionality will follow. .
Artificial intelligence in the future will churn out machines and computers, which are much
more sophisticated than the ones that we have today.
For example, the speech recognition systems that we see today, will become more
sophisticated and it is expected that they will reach the human performance levels in the
future. It is also believed that they will be able to communicate with human beings, using
both text and voice, in unstructured English in the coming few years. However, will artificial
intelligence be able to create machines that are self-aware and even more intelligent than
human beings - is a question that nobody has an answer to. Also, even if this is possible, how
much time it is going to take, cannot be predicted at present.
It is expected that in the future, such machines will be developed having basic common
sense, similar to human beings, although pertaining to specific areas only. It is also expected
that the human mind functions, such as learning by experience, learning by rehearsal,
cognition and perception will also be performed by future intelligent machines. In fact,
research and experiments are being conducted to recreate the human brain. CCortex , a
project by Artificial Development Inc., California, and Swiss government's IBM sponsored
Blue Brain Project, are two main ventures, whose goal is to simulate the human brain.
Whether this brain will have human consciousness incorporated in it - there is still no answer
for that..
It is expected that the robots in future, will take on everybody's work. Whether it is office
work or the work at home, robots will accomplish it even more faster and efficiently than
human beings. So if somebody's falling ill, they can obtain a robot nurse who will give
periodic medicines to them. How much care, concern and empathy the robot nurse will have
towards the patient is anybody's guess! Read more on disadvantages of artificial intelligence.
Thus, artificial intelligence is still in its infancy, and artificial intelligence's future depends
upon the capability of the scientists to crack the puzzle of the human mind. Will they be able
to solve "the problem of the mind" and incorporate all the human, mental, emotional qualities
in the machines? Let's wait and watch!
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REFERENCES
1. www.google.com
2. www.wikipedia.com
3. www.slide4share.com
4. www.scribd.com
5. http://www.articlesbase.com/management-
articles/scope-of-artificial-intelligence-in-business-
328608.html#ixzz1GDKp2nSa
6. http://en.wikipedia.org/wiki/Fuzzy_logic
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