Chapter 13 Artificial Intelligence and Expert Systems

Management Information Systems, 3rd Edition Effy Oz

Learning Objectives
When you finish this chapter, you will:
Know the basic concepts of artificial intelligence. Know examples of how technology has been used in business and other professional domains, and how it can be further used in the future. Understand expertise, the purpose of expert systems in business and other professional domains, and why expert systems are so helpful in solving unstructured problems.
Management Information Systems, 3rd Edition Effy Oz

Learning Objectives
Recognize the major methods of representing knowledge in software. Understand the challenges involved in garnering knowledge for the construction of knowledge bases. Be able to explain the concept of knowledge engineering.

Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Figure 13.1 The various research efforts in artificial intelligence

Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Artificial Intelligence
Attempt to emulate the human mind in machines

Robotics
Robots used to replace human laborers

Artificial Vision
Allows robots that move in space sense obstacles Used in machines for sorting and identification

Natural Language Process Expert Systems Neural Networks

Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Natural Language Process
Programs that recognize human commands

Expert Systems
Programs that simulate human expertise

Neural Networks
Programs built to solve problems while learning and refining their knowledge
Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Figure 13.2 Neural nets simulate the association and inference that take place in a network of neurons in the human brain. Instead of a network of neurons, a network of nodes is developed.

Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Fuzzy Logic
Based on rules that have no discrete boundaries More closely mimics human problem solving Used in appliances, locomotives, managerial decision making
Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Figure 13.3 The function, young

Management Information Systems, 3rd Edition Effy Oz

Artificial Intelligence in Business

Figure 13.4 The functions young, middle-aged, and old

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Artificial Intelligence in Business

Genetic Algorithms
Mathematical functions that use Darwinian principals to improve an application

Intelligent Agents
Automatically wade through massive amounts of data to select and deliver the most suitable information
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Artificial Intelligence in Business

Figure 13.5 Genetic algorithms are used to produce a combination of factors that combine to provide an optimal result. In this figure, spheres represent factors and their weights, and the combination with the darkest shading is the fittest solution.

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Contribution of Expert Systems

Areas where ESs can help in business
Planning Decision making Monitoring Diagnosis Training Incidental learning Replication of expertise Timely response Consistent solutions
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Management Information Systems, 3rd Edition Effy Oz

Development of Expert Systems

What is Expertise?
Skill and knowledge whose input into a process results in performance high above the norm.

Components of Expert Systems

The interface or dialog The knowledge base The interface engine
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Development of Expert Systems

Figure 13.6 Components of an expert system; numbers indicate the order of the processes
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Knowledge Representation Methods

IF-THEN Rules
Most popular method of knowledge representation Also called production rules Systems hold facts in the form of IFTHEN statements

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Knowledge Representation Methods

Figure 13.7 In IF-THEN rules, different combinations of conditions lead to different conclusions.
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Knowledge Representation Methods

Frames
Knowledge organized as facts in tables

Semantic Nets
Knowledge stored as objects and the relationships among them

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Knowledge Representation Methods

A semantic net

Figure 13.9 A semantic net that determines if an animal is a cat or a dog

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 Knowledge Engineering

Knowledge Representation Methods

Asking experts appropriate questions and translating into a knowledge base Some ESs take years Knowledge engineer: programmer who specializes in developing ESs

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Knowledge Representation Methods

Expert System Shells
Expert System that has been emptied of its knowledge Used to build new ES

Forward Chaining
Result-driven process

Backward Chaining
Goal-driven process
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Knowledge Representation Methods

Factors Justifying the Acquisition of Expert Systems

Figure 13.12 What justifies the acquisition of an ES?

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Expert Systems in Action

Business areas using ESs
Telephone network maintenance Credit evaluation Tax planning Detection of insider securities trading Mineral exploration
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Expert Systems in Action

Irrigation and pest management Predicting failure of diesel engines Medical diagnosis Class selection for students

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Limitations of Expert Systems

Three limitations of ESs
Can handle only narrow domains Do not possess common sense Have a limited ability to learn

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Ethical and Societal Issues

Too Sophisticated Technology
Increasing dependence on machine intelligence raises legal and ethical issues.
Who is legally responsible for advice provided by a program? Is expert judgment needed to interpret program output? Does machine expertise replace or complement the real thing? How do we know if the experts behind expert systems are expert at all?
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Ethical and Societal Issues

Too Sophisticated Technology Malfunctions of an ES can be caused by anyone involved in the development.
Experts who contribute knowledge Knowledge engineer who builds the system Professional who uses the ES The person who is affected by the decision
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