it445 Decision Support Systems

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Decision Support Systems
College of Computing and Informatics
1
Contents
o 1.2 – Changing Business Environments and Evolving Needs for Decision
Support and Analytics
o 1.3 – Decision-Making Processes and Computer Decision Support
Framework
o 1.4 – Evolution of Computerized Decision Support to Business
Intelligence/Analytics/Data Science
o 1.5 – Analytics Overview
o 1.6 – Artificial Intelligence Overview
o 1.7 – Convergence of Analytics and AI
o 1.8 – Overview of the Analytics Ecosystem
3
Weekly Learning Outcomes
1. Understand the need for computerized support of managerial decision
making
2. Understand the development of systems for providing decision-making
support
3. Recognize the evolution of such computerized support to the current
state of analytics/data science and artificial intelligence
4. Describe the business intelligence (BI) methodology and concepts
5. Understand the different types of analytics and review selected
applications
6. Understand the basic concepts of artificial intelligence (AI) and see
selected applications
4
7. Understand the analytics ecosystem to identify various key players and
Required Reading
 Chapter 1: “An overview of Decision Support system,
Business Intelligence, Analysis, and AI” from “Analytics,
Data Science, & Artificial Intelligence: Systems for Decision
Support”.
Recommended Video
 Understanding Decision Support Systems

 What is Business Intelligence (BI)?

5
1.2 Changing Business Environments and Evolving
Needs for Decision Support and Analytics
• The Decision Making Process
• The Influence of the External and Internal Environments on the Process
• Data and Its Analysis in Decision Making
• Technologies for Data Analysis and Decision Support
6
The Decision Making Process
• The business world is full of uncertainties and rapid changes.
• Thus, the decision making process can determine the success or failure
of an organization, and how well it performs.
• In the past decision making was based on creativity, instinct, and
experience.
• Now, decision making is more grounded in scientific approach, and
utilizes systematic quantitative methods.
7
The Decision Making Process (cont.)
Managers usually undergo the decision making process using the following
steps:
1. Understand the decision you have to make
2. Collect all the information (Define the problem)
3. Identify the alternatives (Construct a model & Identify possible solutions)
4. Evaluate the pros and cons
5. Select the best alternative (Compare, choose and recommend the best solution)
6. Make the decision
7. Evaluate the impact of your decision
8
The Influence of External & Internal Environments
•
Predicting the consequences and the future of any given decisions is
complex. This is due to the uncertainty that can arise from multiple factors
including:
1.
2.
3.
4.
•
Political Factors (E.g. government policies, political instability)
Economic Factors (E.g. competition, changing demand)
Sociological and psychological factors
Environment Factors
Because of these constant changes, the trial-and-error approach to
management is unreliable and unsustainable. Managers must begin to use the
new tools and techniques of their fields.
9
Data and Its Analysis in Decision Making
10
•
The amount of data doubles every two years.
•
Decision making process requires an organization to collect and analyze
vast stores of data.
•
Computer applications have moved from
transaction-processing and monitoring activities => to
problem analysis and solution applications.
•
These activities are done with cloud-based technologies, mostly accessed
through mobile devices.
Data and Its Analysis in Decision Making (cont.)
• The foundation of modern management lies in
1. analytics and BI tools such as data warehousing, data mining,
online analytical processing (OLAP), dashboards, and
2. the use of cloud-based systems for decision support.
11
Technologies for Data Analysis and Decision Support
•
The following developments have contributed to the growth of decision
support and analytics technologies:
1.
2.
3.
4.
5.
6.
7.
8.
Group communication and collaboration
Improved data management
Managing giant data warehouses & Big Data
Analytical Support
Overcoming cognitive limits in processing and storing information
Knowledge Management
Anywhere, anytime support
Innovation and artificial intelligence
12
1.3 Decision-Making Processes and
Computer Decision Support Framework
• Simon’s Process: Intelligence, Design, Choice, and Implementation Phases
• The Classical Decision Support System Framework
• DSS Application
• Characteristics of DSS
• Components of a Decision Support System
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Simon’s Process: Intelligence, Design, and Choice
•
Decision-making process phases:
1. Intelligence: The decision maker examines reality, identifies and defines the
problem.
2. Design: A model representing the system is constructed by and then
validated.
1. making assumptions to simplify reality and
2. identifying relationships between variables.
3. Choice: Selection of a proposed solution to the model . This solution is
tested to determine its viability.
4. Implementation: Successful implementation results in solving the real
problem. Failure leads to a return to an earlier phase of the process.
14
15
The Classical Decision Support System Framework
• The framework for computerized decision support can be represented in a 3×3
matrix with two dimensions:
1. Type of decisions:
o Structured: Routine/repetitive problems for which standard solution methods exist
o Semi structured: Fall between structured and unstructured problems
o Unstructured: Complex problems where there are no clear, standard solution
methods
2. Types of controls:
o Strategic planning: Defining long-range goals/policies for resource allocation
o Management control: The efficient use of resources in the accomplishment of
organizational goals
o Operational control: the efficient and effective execution of specific tasks
16
17
DSS Application
Decision support
• Key difference between DSS and BI applications:
1. Business intelligence (BI) systems monitor situations and identify problems
and/or opportunities using analytic methods.
2. DSS is a methodology for supporting decision making:o It uses an interactive, adaptable computer-based information system
(CBIS) developed for supporting the solution to a specific unstructured
management problem.
o It uses data, provides a user-friendly interface, and incorporates the
decision maker’s insights.
o It includes models that developed through an interactive and iterative
process.
18
Characteristics of
DSS
19
Components of a Decision Support System
• A DSS can be composed of:
1. Data management subsystem
2. Model management
subsystem
3. User interface subsystem
4. Knowledge-based
management subsystem
20
1. Data Management Subsystem
•
The data management subsystem is
composed of the following elements:
1. DSS database
2. Database management system
3. Data directory
4. Query facility
•
It can be interconnected with the
corporate data warehouse (a repository
for corporate relevant decision-making
data)
21
2. Model Management Subsystem
•
The model management subsystem is a
component that includes quantitative models
that provide the
o system’s analytical capabilities and
o appropriate software management.
• The model management subsystem of a DSS
is composed of the following elements:
1.
2.
3.
4.
5.
22
Model base
MBMS (Model Base Management System)
Modeling language
Model directory
Model
execution,
integration,
and
command processor
3. The User Interface Subsystem
• The user is considered part of the system.
• The user communicates with and commands
the DSS through the user interface subsystem.
• The Web browser has been recognized as an
effective DSS GUI because it is
o flexible,
o user-friendly, and a
o gateway to almost all sources of necessary
information and data.
• Web browsers have led to the development
of portals and dashboards (front end of many
DSS).
23
4. The Knowledge-Based Management Subsystem
•
The knowledge-based management
subsystem provides intelligence
o to augment the decision maker’s own
intelligence
o to help understand a user’s query and
provide a consistent answer.
•
Interconnected with the organization’s
knowledge repository or connected to
thousands of external knowledge sources.
• User interface developments are closely
tied to the major new advances in their
knowledge-based systems.
24
1.4 Evolution of Computerized Decision Support to
Business Intelligence/Analytics/Data Science
• Evolution Of Computerized Decision Support
• Framework for Business Intelligence
• Architecture of BI
• The Origins and Drivers of BI
• Data Warehouse as a Foundation for Business Intelligence
• Transaction Processing versus Analytic Processing
• A Multimedia Exercise in Business Intelligence
25
Evolution Of Computerized Decision Support
26
Evolution Of Computerized Decision Support (cont.)
1. Management Information Systems (MIS): a variety of reports used to
understand and address the changing business needs and challenges.
2. Decision Support Systems (DSS): combination of individuals intellectual
resources with the capabilities of the computer to improve the quality of
decisions.
o DSS designed and developed specifically for executives and their decisionmaking needs
3. Executive Information Systems (EIS): the need for more versatile reporting
leads to the development of EISs;
o These systems were designed as graphical dashboards that allow decision
makers to keep track of the key performance indicators.
27
A Framework for Business Intelligence (BI)
• BI is an umbrella term that combines architectures, tools, databases, analytical
tools, applications, and methodologies.
• BI process is based on the transformation of data -> information -> decisions ->
actions
• BI’s major objective is to enable
1. interactive access to data (in real time),
2. data manipulation,
3. appropriate analyses.
• By analyzing historical and current data,
situations, and performances, decision
makers able to make more informed and
better decisions.
28
Architecture of BI
• BI has four major components:
1. Data Warehouse (DW) (with its source data)
2. Business Analytics (a collection of tools for manipulating, mining, and analyzing the
data in the DW)
3. BPM (for monitoring &
analyzing performance)
4. User Interface
29
The Origins and Drivers of BI
• Business cycle times are extremely compressed; faster, and more informed.
• Managers need the right information at the right time and in the right place (core
of the modern approaches to BI).
• Organizations are being driven to capture, understand, and harness their data to
support decision making and improve business operations.
• Legislation/regulations require leaders to document their business processes and
sign off on the validity of the information they report to stakeholders.
30
Data Warehouse (DW) as a Foundation for BI
• BI systems rely on DWs as the information source for creating insight and
supporting managerial decisions.
• DW is a subject-oriented, integrated, time-variant, nonvolatile collection of data
in support of management’s decision-making process.
• The three main types of data warehouses are:
o Data Marts (DM): a subset of a DW, typically consisting of a single subject area
o Operational Data Stores (ODS): provides a form of customer information file
whose contents are updated throughout the course of business operations.
o Enterprise Data Warehouses (EDW): a large-scale data warehouse used across
the enterprise for decision support.
31
Data Warehouse (DW) as a Foundation for BI (cont.)
• Data from many different sources can be extracted, transformed, and loaded into
a DW for further access and analytics for decision support.
• Data is structured to
be available in a form
ready for analytical
processing activities:
o OLAP,
o data mining,
o querying,
o reporting,
o decision support
applications
32
Transaction Processing versus Analytic Processing
• Transaction processing systems are constantly involved in handling updates
to what may be known as operational databases.
• OLTP (OnLine Transaction Processing) systems handle a company’s routine
ongoing business, where the computer responds immediately to user
requests.
• The OLTP system is efficient for transaction processing, but inefficient for enduser ad hoc reports, queries, and analysis.
• In contrast, a DW is typically a distinct system that provides storage for data
that will be used for analysis by OLAP (OnLine Analytical Processing) systems.
33
Multimedia Exercise in Business Intelligence
• The fundamental reasons for investing in BI must be aligned with the
company’s business strategy.
• BI improve company business processes and transforming it to be more data
driven.
• BI tools are sometimes integrated among themselves, resulting in six key
trends:
1.
2.
3.
4.
5.
6.
34
Big Data
Focus on customer experience as opposed to just operational efficiency.
Mobile and even newer user interfaces—visual, voice, mobile.
Predictive and prescriptive analytics, machine learning, artificial intelligence.
Migration to cloud.
Much greater focus on security and privacy protection.
1.5 Analytics Overview
• Overview
• Descriptive, Predictive, Prescriptive Analytics
• Big Data
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Analytics Overview
• Analytics is the process of developing actionable/recommendations for actions
based on insights generated from historical data.
• To solve real problems analytics represents the combination of
o computer technology +
o management science techniques +
o statistics.
36
Descriptive, Predictive, Prescriptive Analytics
• Three types of analytics:
1. Descriptive
2. Predictive
3. Prescriptive
37
Big Data
• Big Data refers to data that cannot be stored in a single storage unit.
• Different forms:
o structured
o unstructured
• Characteristics of big data:
o volume
o velocity
o variety
• These are evolving quickly to encompass stream analytics, IoT, cloud
computing, and deep learning– enabled AI.
38
Big Data (cont.)
• There are two aspects to managing data on this scale:
1.
Storing:
o an extremely expensive storage solution vs. store data in chunks on
different machines connected by a network.
o Hadoop Distributed File System (HDFS): store a copy or two of this chunk in
different locations on the network, both logically and physically.
2.
Processing:
o To process vast amounts of data computation done by one powerful
computer vs. processing data sets with a parallel distributed algorithm on a
cluster
o MapReduce programming paradigm
39
1.7 Artificial Intelligence Overview
• What Is Artificial Intelligence?
• The Major Benefits of AI
• The Landscape of AI
• The Three Flavors of AI Decisions
• Technology Insights 1.1
40
What Is Artificial Intelligence (AI)?
• The major goal of AI is to create intelligent machines that can do tasks
currently done by people.
• AI tasks include
o reasoning,
o thinking,
o learning, and
o problem solving.
• AI can also be defined as:
o Technology that can learn to do things better over time.
o Technology that can understand human language.
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o Technology that can answer questions.
The Major Benefits of AI
• Significant reduction in the cost of performing work. This reduction continues
over time while the cost of doing the same work manually increases with
time.
• Work can be performed much faster.
• Work is consistent in general, more consistent than human work.
• Increased productivity and profitability as well as a competitive advantage
are the major drivers of AI.
42
The Landscape of AI
• We defined the landscape/ecosystem of AI into 5 categories:
1. Major Technologies: machine learning, deep learning, intelligent agents
2. Knowledge-Based Technologies: expert systems, recommendation engines, chatbots.
3. Biometric-Related Technologies: natural language processing, image recognition
4. Support Theories, Tools, & Platforms:
computer science, cognitive science,
mathematics, statistics, sensors, augmented
reality, neural networks, APIs, knowledge
management.
5. AI Applications: smart cities, smart homes,
automatic decisions, translation, robotics,
fraud detection.
43
The Landscape of AI (cont.)
• AI Applications are in area like
o business,
o medicine & healthcare
o transportation
o education
• AI field divided into two major categories of applications:
1. Narrow (Weak): Focuses on one narrow field (Domain). Examples
include SIRI and Alexa that operate in limited, predefined areas.
2. General (Strong): To exhibit real intelligence, machines need to perform
the full range of human cognitive capabilities (e.g. reasoning and
problem solving).
44
The Three Levels of AI Systems
• The capabilities of AI systems can be divided into three levels:
1. Assisted Intelligence: equivalent mostly to the weak AI, which works only in
narrow domains. It requires clearly defined inputs and outputs such as
monitoring systems.
2. Autonomous AI: in the realm of the strong AI but in a narrow domain.
Eventually, the computer will take over as very narrow expert and have absolute
decision-making power.
3. Augmented Intelligence: between assisted and autonomous. The technology
focuses on augmenting computer abilities to extend human cognitive abilities,
resulting in high performance. Examples: Cybercrime fighting, E-Commerce
decisions, High-frequency stock market trading.
45
Technology Insights
•
Differences between traditional and augmented AI:
1. Augmented machines extend rather than replace human decision making
2. Augmentation excels in solving complex human and industry problems in
specific domains in contrast with strong, general AI.
3. In contrast with a “black box” model of some AI and analytics, augmented
intelligence provides insights and recommendations, including
explanations.
46
1.7 Convergence of Analytics and AI
• Major Differences between Analytics and AI
• Why Combine Intelligent Systems?
• How Convergence Can Help?
• Big Data Is Empowering AI Technologies
• The Convergence of AI and the IoT
• The Convergence with Blockchain and Other Technologies
47
Major Differences between Analytics and AI
• Analytics processes historical data using statistical, management science and
other computational tools to describe situations, predict results, and propose
recommendations for solutions to problems.
• AI’s major objective is to mimic the manner in which people think, learn,
reason, make decisions, and solve problems.
• The emphasis in AI is on knowledge and intelligence as major tools for solving
problems rather than relying on computation, which we do in analysis.
48
Why Combine Intelligent Systems?
• Analytics, AI and their different technologies have limitations, resulting in only a
small chance that they can be used to reach organizational excellence.
• There are several reasons for this situation including:
1. Predictive models have unintended effects
2. The results of analytics may be good for some applications but not for others
3. Models are as good as their input data and assumptions
4. Data could be incomplete/inaccurate.
5. Data collected from different sources can vary in format and quality.
• A major reason for the high failure rate of AI is that some of its technologies
need a large amount of data (Big Data). Without this continuous flow of data,
there would not be good learning in AI.
49
How Convergence Can Help?
• BI and its analytics answer most of the why and what questions regarding the
sufficiency of problem solving.
• The next generation of business intelligence platforms will use AI to
automatically locate, visualize, and narrate important things. This can also be
used to create automatic alerts and notifications.
• Machine learning and deep learning can support analytics by conducting
pattern recognition and more accurate predictions. AI will help to compare
actual performance with the predicted one.
50
Big Data Is Empowering AI Technologies
• Technologies and methods that enable capturing, cleaning, and analyzing Big
Data, can also enable companies to make real-time decisions.
• The availability of new Big Data analytics enables new capabilities in AI
technologies that were not possible until recently.
• Big Data can empower AI due to:
o The new capabilities of processing Big Data at a much reduced cost.
o The availability of large data sets online.
o The scale up of algorithms, including deep learning, is enabling powerful
AI capabilities.
51
The Convergence of AI and the IoT
• The IoT collects a large amount of data from sensors and other “things.”
These data need to be processed for decision support.
• Combining AI and IoT can
o lead to the “next-level solutions and experiences.” The emphasis in such
combination is on learning more about customers and their needs.
o facilitate competitive analysis and business operation.
• Three examples of combining AI and IoT:
o The smart thermostat of Nest Labs
o Automated vacuum cleaners
o Self-driving vehicles
52
The Convergence with Blockchain & Other
Technologies
• Several experts raise the possibility of the convergence of AI, analytics, and
blockchain. This convergence also can include the IoT.
• The blockchain technology can add security to data shared by all parties in a
distributed network, where transaction data can be recorded.
• This combination can be very useful in complex applications such as
autonomous vehicles.
53
1.8 Overview of the Analytics Ecosystem
• Analytics Ecosystem
54
Analytics Ecosystem
• Purpose of analytics
ecosystem is to be aware of
organizations, new offerings,
and opportunities in sectors
allied with analytics.
• The components of the
ecosystem are represented
by the petals of an analytics
flower.
55
• Grouped into categories:
o inner petals
o outer petals
o seed
Main Reference
 Chapter 1: “An overview of Decision Support system, Business
Intelligence, Analysis, and AI” from “Analytics, Data Science, & Artificial
Intelligence: Systems for Decision Support”.
Week self-review exercises
 Application Case 1.1 to Application Case 1.10 from “Analytics, Data Science, &
Artificial Intelligence: Systems for Decision Support”
56
Decision Support Systems
College of Computing and Informatics
1
Contents
o 2.2 – Introduction to Artificial Intelligence
o 2.3 – Human and Computer Intelligence
o 2.4 – Major AI Technologies and Some Derivatives
o 2.5 – AI Support for Decision Making
o 2.6 – AI Applications in Accounting
o 2.7 – AI in Human Resource Management (HRM)
o 2.8 – AI in Marketing, Advertising, and CRM
o 2.9 – AI Applications in Financial Services
o 2.10 – AI Applications in Production-Operation Management (POM)
3
Weekly Learning Outcomes
1. Understand the concepts of artificial intelligence (AI)
2. Become familiar with the drivers, capabilities, and benefits of AI
3. Describe human and machine intelligence
4. Describe the major AI technologies and some derivatives
5. Discuss the manner in which AI supports decision making
6. Describe AI applications in accounting, human resource management,
marketing, financial Services and in Production-Operation
Management (POM)
4
Required Reading

Chapter 2: “Analytics, Data Science, & Artificial Intelligence: Systems for
Decision Support” from “Analytics, Data Science, & Artificial Intelligence:
Systems for Decision Support”.
Recommended Reading
 AI-powered decision support systems, what are they?
https://blog.pwc.lu/ai-powered-decision-support-systems-what-are-they/
Recommended Videos
 Artificial intelligence and decision-making (by Thorbjørn
Knudsen)

5
2.2 Introduction To Artificial Intelligence
• Definition of AI
• Major Characteristics of AI Machines
• Major Elements of AI
• AI Applications
• Major Goals of AI
• Drivers of AI
• Benefits of AI
• Some Limitations of AI Machines
• Three Flavors of AI Decisions
• Artificial Brain
6
Definition of AI
• Artificial intelligence has several definitions that is concerned with two basic
ideas:
o The study of human thought processes (to understand what intelligence
is)
o The representation and duplication of those thought processes in
machines (e.g., computers, robots)
• Another definition of AI is “the capabilities of a machine to imitate intelligent
human behavior”
7
Major Characteristics of AI Machines
• There is an increasing trend to make computers “smarter”.
o Web 3.0 enables computerized systems that exhibit more intelligence than
Web 2.0.
• Several applications are already based on multiple AI techniques.
o Machine translation of languages is helping people who speak different
languages to collaborate in real time as well as to buy online products that
are advertised in different languages.
8
Major Elements of AI
• AI components can be divided into two groups: Foundations, and Technologies &
Applications.
9
AI Applications
Smart or intelligent applications include:
• Machines to answer customers’ questions asked in natural languages
• Knowledge-based systems which can provide advice, assist people to make
decisions, and even make decisions on their own
• Automatic generating of online purchasing orders and arranging fulfillment of
orders placed online.
• Shipping prices are determined automatically based on the dimensions,
weight, and packaging.
10
Major Goals of AI
• The overall goal of AI is to create intelligent machines that are capable of
executing a variety of tasks currently done by people.
• AI machines should be able to reason, think abstractly, plan, solve problems,
and learn.
• Some specific goals are to:
o Perceive and properly react to changes in the environment that influence
specific business processes and operations
o Introduce creativity in business processes and decision making
11
Drivers of AI
• The use of AI has been driven by the following:
o People’s interest in smart machines and artificial brains
o The low cost of AI applications versus the high cost of manual labor (doing the
same work)
o The desire of large tech companies to capture competitive advantage and
market share of the AI market and their willingness to invest billions of dollars
in AI
o The pressure on management to increase productivity and speed
o The availability of quality data contributing to the progress of AI
o The increasing functionalities and reduced cost of computers in general
o The development of new technologies, particularly cloud computing
12
Benefits of AI
o AI has the ability to complete certain tasks faster than humans.
o The consistency of AI work. AI machines do not stop, or sleep.
o AI systems allow for continuous improvement projects.
o AI can be used for predictive analysis via its capability of pattern recognition.
o AI can manage delays and blockages in business processes.
o AI machines can work autonomously or be assistants to humans.
o AI machines can learn, improve its performance, and work in hazardous environments.
o AI machines can facilitate innovations by human (i.e., support research and development)
o AI excels in fraud detection and in security facilitations.
o AI can free employees to work on more complex and productive jobs.
o AI can solve difficult problems that previously were unsolved.
13
Some Limitations of AI Machines
• The following are the major limitations of AI machines:
o Lack human touch and feel
o Lack attention to non-task surroundings
o Can lead people to rely on AI machines (e.g., people may stop to think on
their own)
o Can be programmed to create destruction
o Can cause many people to lose their jobs
o Can start to think by themselves, diminishing with time. However, risks
exist. Therefore, it is necessary to properly causing significant damage
• Some of the limitations are diminishing with time. However, risks exist.
Therefore, it is necessary to improve AI development and minimize the risks.
14
Artificial Brain
• The artificial brain is a machine that is desired to be as intelligent, creative,
and self-aware as humans. To date, no one has created such a machine.
• The following are some differences between traditional and augmented AI:
o Augmented machines extend rather than replace human decision making
o Augmentation excels in solving complex human and industry problems in
specific domains in contrast with strong, general AI.
o In contrast with a “black box” model of some AI and analytics, augmented
intelligence provides insights and recommendations, including
explanations.
15
2.3 Human and Computer Intelligence
• A. What Is Intelligence?
• B. How Intelligent Is AI?
• C. Measuring AI
16
What Is Intelligence?
• Intelligence is a broad term measured by an IQ test.
• To understand what artificial intelligence is, it is useful to first examine those
abilities that are considered signs of human intelligence:
o Learning or understanding from experience
o Making sense out of ambiguous, incomplete, or even contradictory
messages and information
o Responding quickly and successfully to a new situation
o Understanding/inferring in a rational way, and solving problems
o Applying knowledge to manipulate environments and situations
o Recognizing & judging the relative importance of elements in a situation
17
How Intelligent Is AI?
• AI machines have demonstrated superiority over humans in playing complex
games such as chess, Jeopardy!, and Go by defeating the world’s best players.
• Despite this many AI applications still show significantly less intelligence than
humans.
18
Measuring AI
• The Turing Test is a well-known attempt to measure the intelligence level of AI
machines.
• It aims to determine whether a computer exhibits intelligent behavior. A computer
can be considered smart only when a human interviewer asking the same questions
to both an unseen human and an unseen computer cannot determine which is
which.
• To pass the Turing Test, a computer needs
to be able to understand a human language
(NLP), to possess human intelligence (e.g.,
have a knowledge base), to reason using its
stored knowledge, and to be able to learn
from its experiences (machine learning).
19
2.4 Major AI Technologies And Some
Derivatives
• Intelligent Agents
• Machine Learning
• Deep Learning
• Machine and Computer Vision
• Robotic Systems
• Natural Language Processing
• Knowledge and Expert Systems
and Recommenders
• Chatbots
20
• Emerging AI Technologies
Intelligent Agents
• An intelligent agent (IA) is a small computer software program that observes
and acts upon changes in its environment by running specific tasks
autonomously.
• An IA directs an agent’s activities to achieve specific goals related to the changes
in the surrounding environment.
• IAs have the ability to learn by using their knowledge
Example 1: An example of an intelligent software agent is a virus detection program.
It resides in a computer, scans incoming data, and removes viruses automatically
while learning to detect new virus types and detection methods.
21
Example 2: Allstate Business Insurance uses an intelligent agent to reduce call center
traffic and provide human insurance agents during the rate-quoting process with
business customers
Machine Learning
• Machine Learning (ML) is a discipline concerned with design & development of
algorithms that allow computers to learn based on incoming data.
• ML allows computer systems to monitor and sense their environment, so that the
machines can adjust their behavior to deal with the changes
• ML scientists teach computers to identify patterns and make connections by showing
the machines a large volume of examples and related data.
• ML used for predicting, recognizing patterns, & supporting decision makers. An
example is computers detecting credit card fraud.
• ML applications are expanding due to the availability of Big Data sources, especially
those provided by the IoT.
22
Deep Learning
• One subset of machine learning is called deep learning; a technology tries to
mimic how the human brain works.
• Deep learning (DL) uses artificial neural technology and deals with complex
applications that regular machine learning and AI technologies can not handle.
• For example, DL is a key technology in autonomous vehicles by helping to
interpret road signs and road obstacles.
• DL is mostly useful in real-time interactive applications in the areas of
machine vision, scene recognition, robotics, and speech and voice processing.
23
Machine and Computer Vision
• Machine vision includes “technology and methods used to provide imagingbased automated inspection and analysis for applications such as robot
guidance, process control, autonomous vehicles, and inspection.”
• Computer vision “is an interdisciplinary field that deals with how computers
can be made for gaining high-level understanding from digital images or videos.
From the perspective of engineering, it seeks to a