Artificially Intelligent?

According to Wikipedia[1], the term “artificial intelligence” (AI) was coined in 1956 by John McCarthy, a renowned computer scientist, and defined as “the science and engineering of making intelligent machines.” AI software and programs enable machines to mimic human behavior and thinking, thereby allowing people to use the information they provide to make better decisions – though the machines can be programmed to make the decisions themselves. McCarthy[2], now a professor of Computer Science at Stanford University, explains that, with respect to AI, “intelligence” refers to “the computational part of the ability to achieve goals in the world.” While it typically refers to imitating human intelligence, AI is not limited to methods that are observable in nature. The ultimate goal of the technological advances made in AI is to achieve – or even surpass – human intelligence in machines, thus endowing them with the same (or more efficient) problem-solving capabilities as their creators.

Artificial intelligence has several important applications in today’s world of business, and many more are on the way. Expert systems, according to McCarthy, are ground-breaking in the sense that they enable computers to reason through a problem in order to reach a suggested decision. To do this, engineers interview experts in various fields and attempt to embody their expertise in the form of an “intelligent” computer program. According to Haag, Cummings, McCubbrey, Pinsonneault, and Donovan[3], expert systems are used in accounting (for auditing and tax planning), human resources management (to handle compliance with federal employment laws), financial management, production (to direct the manufacture or certain products), and in various other fields. Other types of AI systems are neural networks, which are used for pattern recognition (according to Ian McGugan[4], they’re being used by investment firms to beat the stock market and by creditors to recognize likely credit risks), genetic algorithms, which generate multiple solutions to problems and select the best ones, and intelligent agents, or independent systems that carry out specified, predictable tasks.

The implementation of AI systems has certain inherent advantages. For instance, a business with the necessary technology could dramatically reduce its costs by employing such systems in their decision-making processes because, since the computer is capable of reasoning through complex problems, the majority of workers could function with a less comprehensive understanding of the issue at hand – the software would navigate its subtleties with ease. For the same reason, AI could drastically reduce the costs of human error, as the technology simulates the human thinking process, but does not actually duplicate it (or its faults). Robots that operate using AI could perform the tasks that are dangerous for people, and could even eliminate a company’s need for unskilled labor (thereby reducing these costs, as well). However, this concept implies certain disadvantages. While ultimately efficient and cost-reducing, implementing AI systems can incur large initial expenses for a company in terms of the required management support and software. Also, the near-elimination of the human element in the decision-making process could cause people (both within the company and without) to question the businesses decisions and strategies, since, as the technology is still relatively new, they may find it difficult to completely entrust important decisions to a machine incapable of independent rational thought.

[1] Artificial Intelligence. Retrieved September 21, 2007, from http://en.wikipedia.org/wiki/Artificial_intelligence#Business

[2] McCarthy, J. What is artificial intelligence? Retrieved September 21, 2007, from http://www-formal.stanford.edu/jmc/whatisai/whatisai.html

[3] Haag, S., Cummings, M., McCubbrey, D., Pinsonneault A., & Donovan, R. (2006). Management information systems for the information age (3rd Canadian ed.). Toronto, ON: McGraw-Hill Ryerson

[4] McGugan, I. (1994). The machines from Mensa. Canadian Business, 63(3). Retrieved September 21, 2007, from ProQuest database.