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Introduction to Information Technology
2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
Intelligent Systems in Business
Prepared by:
Roberta M. Roth, Ph.D.
University of Northern Iowa
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-1
Chapter Preview
 In this chapter, we will study:
What is meant by artificial intelligence
How expert systems are developed and how
they perform
How AI has been applied to other arenas, such
as natural language processing and neural
computing
The concept and usefulness of intelligent
agents
Ethical and legal issues posed by AI
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-2
‘Intelligent’ Systems?
 Conventional computer systems do not
possess ‘intelligence.’ They simply follow
step-by-step instructions to complete a
task
 If a computer system had ‘intelligence,’ it
would…
 Deal successfully with complex situations
 Learn from experience
 Adapt to new situations quickly
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-3
Why do we want ‘Intelligent’ Systems?
 To capture and represent human
knowledge permanently
 To perform tasks requiring intelligence
repetitively, consistently, and capably
 To document the performance of a task
 To conveniently disseminate knowledge
and expertise to others
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-4
Artificial Intelligence
 Branch of computer science that
 Studies human intelligent behavior
 Attempts to replicate that human intelligent
behavior in a computer system
 Employs symbolic processing of knowledge
and heuristics
 Does not really enable computers to ‘think’
 Does enable creation of systems with some
human-like behaviors
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-5
Applications of Artificial Intelligence
 Expert Systems
 Natural language
technology
 Speech
understanding
 Robotics
 Computer vision
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
 Intelligent computer-
assisted instruction
 Machine learning
 Handwriting
recognition
 Intelligent agents
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What is an Expert System?
 Computer system that solves a problem as
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successfully as a human expert
Incorporates human expertise
Acquires facts about the problem
Applies its stored knowledge and expertise
to the problem facts to derive a solution
Makes recommendations
Can explain its reasoning and logic
Successful commercial application of AI
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-7
Key Expert System Terms
 Knowledge acquisition – the process of
obtaining knowledge and expertise from human
experts
 Knowledge representation – the method
used to represent human knowledge and
expertise in the computer system
 Knowledge inferencing – the process of
applying stored expertise to the facts about the
problem to draw conclusions
 Knowledge transfer and use – the
communication of the problem solution and its
justification to the system user
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-8
More Expert System Terms
 Knowledge base – stored facts and methods of how to
solve a problem
 Heuristic – rule of thumb that can be applied in a
problem solution
 Inference engine – processing logic stored in the system
that correctly applies the stored knowledge to the
problem to develop a solution
 Domain expert – one or more humans who have
achieved a high level of expertise in solving a problem
 Knowledge engineer – person who develops expert
systems
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-9
How is an Expert System Created?
 Knowledge engineer works with domain expert
to extract domain knowledge
 Knowledge engineer encodes domain knowledge
in knowledge base using appropriate knowledge
representation
 Knowledge engineer tests system on sample
problems and refines system knowledge with
help from domain engineer
 Refinement continues until system is solving
problems with human expert capability
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-10
How Does an Expert System Perform?
 System asks user a series of questions to gather
facts about the problem
 System uses inference engine to form conclusions
from the facts, including a measure of certainty
about the conclusions
 System displays its recommendation or solution
to the problem
 If asked, the system can display its reasoning and
logic as to how it arrived at the conclusion
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-11
Expert System Structure
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-12
More on Expert Systems
 Strengths
 Rapid, consistent
problem solutions
 Ability to justify and
explain reasoning
 Easy to replicate and
distribute to nonexpert users
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
 Limitations
 Can only solve
problems in a narrow
domain
 Can only be applied to
certain problem types
 Cannot learn from its
experience
 Hard to acquire
knowledge from
human expert
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Other Intelligent Systems
 Natural Language Processing
 The ability to communicate with a computer
in your natural language
• Voice (speech) recognition and speech
understanding – system recognizes spoken words
and understands their meaning
• Voice synthesis – computer produces natural
language voice output that sounds ‘human’
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-14
Other Intelligent Systems
 Neural Computing
 A computer model that uses architecture that
mimics certain brain functions
 Performs pattern recognition well
 Can analyse large data sets and discover
patterns where rules were previously
unknown
 Can ‘learn’ by analysing new cases and
updating itself
 Many potential business applications
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-15
Other Intelligent Systems
 Case-Based Reasoning
 Uses solutions from similar problems and
adapts them to new problems
 Useful in solving very complex cases
 Fuzzy Logic
 Enables systems to effectively deal with
uncertainty
 Often use in combination with other
technologies to improve productivity
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-16
Intelligent Agents
 Software agent that autonomously
performs tasks on behalf of a user with
certain goals or objectives
 Can tirelessly perform repetitive tasks over a
network
 Includes knowledge base and ability to learn
 Can be static (on the client only) or mobile
(move throughout a network)
 Often used to facilitate search and retrieval
on the Internet and to assist in e-commerce
tasks
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-17
Virtual Reality
 Simulation of a physical environment in a
highly realistic way
 Useful for communication and learning
 Many potential business applications,
especially marketing
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-18
Intelligent Systems Concerns
 Potential to use the power of intelligent
systems in unethical ways
 Who will be accountable for decisions
made by intelligent systems?
 Who ‘owns’ knowledge and expertise?
Can an expert be ‘forced’ to reveal his/her
expertise?
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
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Chapter Summary
 Artificial intelligence has produced a variety of
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approaches to simulating some aspect of human
behavior
Expert systems have been most successful in
business applications
Natural language processing capability is
improving
Intelligent agents are very powerful tools in
many of today’s systems
AI brings many ethical and legal concerns
Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-20
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Introduction to Information Technology, 2nd Edition
Turban, Rainer & Potter
© 2003 John Wiley & Sons, Inc.
11-21