Business Intelligence

Unit 5

Automated Decision systems

Automation refers to the utilization of machines with minimal human monitor and input to
achieve the tasks in more efficient ways. Notably, ADM focuses on technological applications to
develop efficient systems surpassing human ability in speed and accuracy. Automatic Teller
Machine ATM which is a global success in the service industry rely on ADM. Automated systems
may not be left to work entirely on their own. The automation is based on clear decision-
making paths. Besides, it guides the user in information gathering.

Automated Decision System Models

Today, various automated decisions models are in use varying with the intended goals. They
include custom drivers, enterprise-precise, mathematical algorithms, workflow, and company
programs. Condition-oriented method, define a set of firm rules which utilize declarations.
Statistical is also referred as numerical algorithms focus on quantitative data processing to get
an optimal choice

Automated Decision System Tools

First, there is statistical decision theory that makes use of statistical knowledge to make a
decision. It makes use of sample information through data from statistical investigation while
making inferences regarding their use. Consequently, decision-making combines sample
information and other relevant aspects of the problem in order to make the best decision.

The second tools used for decision systems is the expert systems and the rule-based decision
modules.

Automated decision systems (ADS) are computerized tools designed to make decisions
without direct human intervention. These systems use algorithms and data analysis to
process information and reach conclusions, often in areas such as finance, healthcare,
employment, and more.

Data Input: ADS relies on input data, which can include a wide range of information
such as user profiles, historical data, and real-time data streams.

1. Algorithms: Decision-making in automated systems is driven by algorithms, which are

sets of instructions that determine how the system processes and analyzes the input
data.
2. Decision Output: Based on the analysis, the system generates decisions or
recommendations. These decisions can range from approving a loan application to
determining personalized content recommendations.
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3. Transparency: One challenge with ADS is the lack of transparency in some systems. The
complexity of algorithms can make it difficult for users to understand how specific
decisions are reached.
4. Bias and Fairness: There is a concern about bias in automated decision systems, as they
may inadvertently reflect and perpetuate existing biases present in the training data.
Efforts are being made to address and mitigate bias to ensure fair outcomes.
5. Accountability: Determining accountability for decisions made by automated systems
can be challenging. When things go wrong, it may be unclear who is responsible,
whether it's the developers, operators, or the system itself.
6. Ethical Considerations: ADS raises ethical concerns related to privacy, consent, and the
potential impact on individuals' lives. Striking a balance between efficiency and ethical
considerations is an ongoing challenge.
7. Regulation: Governments and organizations are working on regulations to govern the
use of automated decision systems, aiming to ensure transparency, fairness, and
accountability.

Artificial Intelligence (AI)

Artificial Intelligence (AI)

In today's world, technology is growing very fast, and we are getting in touch with different new
technologies day by day.
Here, one of the booming technologies of computer science is Artificial Intelligence which is
ready to create a new revolution in the world by making intelligent machines. The Artificial
Intelligence is now all around us. It is currently working with a variety of subfields, ranging from
general to specific, such as self-driving cars, playing chess, proving theorems, playing music,
Painting, etc.
AI holds a tendency to cause a machine to work as a human.
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Artificial Intelligence is composed of two words Artificial and Intelligence,, where Artificial
defines "man-made," and intelligence defines "thinking power", hence AI means "a man-made
thinking power."
So, we can define AI as:

"It is a branch of computer science by which we can create intelligent machines which can
behave like a human, think like humans, and able to make decisions."
Artificial Intelligence exists when a machine can have human based skills such as learning,
reasoning, and solving problems
With Artificial Intelligence you do not nee
needd to preprogram a machine to do some work, despite
that you can create a machine with programmed algorithms which can work with own
intelligence, and that is the awesomeness of AI.

History of Artificial Intelligence

Artificial Intelligence is not a new wor
word d and not a new technology for researchers. This
technology is much older than you would imagine. Even there are the myths of Mechanical men
in Ancient Greek and Egyptian Myths
Myths.. Following are some milestones in the history of AI which
defines the journey from
rom the AI generation to till date development.
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Why Artificial Intelligence?

o With the help of AI, you can create such software or devices which can solve real-world
problems very easily and with accuracy such as health issues, marketing, traffic issues,
etc.

o With the help of AI, you can create your personal virtual Assistant, such as Cortana by
Microsoft, Google Assistant, Siri by Apple, etc.

o With the help of AI, you can build such Robots which can work in an environment where
survival of humans can be at risk.

o AI opens a path for other new technologies, new devices, and new Opportunities.
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Goals of Artificial Intelligence

Following are the main goals of Artificial Intelligence:

1. Replicate human intelligence

2. Solve Knowledge-intensive tasks

3. An intelligent connection of perception and action

4. Building a machine which can perform tasks that requires human intelligence such as:

o Proving a theorem

o Playing chess

o Plan some surgical operation

o Driving a car in traffic

5. Creating some system which can exhibit intelligent behavior, learn new things by itself,
demonstrate, explain, and can advise to its user.

What Comprises to Artificial Intelligence?

Artificial Intelligence is not just a part of computer science even it's so vast and requires lots of
other factors which can contribute to it. To create the AI first we should know that how
intelligence is composed, so the Intelligence is an intangible part of our brain which is a
combination of Reasoning, learning, problem-solving perception, language understanding,
etc.
To achieve the above factors for a machine or software Artificial Intelligence requires the
following discipline:

o Mathematics

o Biology

o Psychology

o Sociology

o Computer Science

o Neurons Study
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o Statistics

Advantages of Artificial Intelligence

Following are some main advantages of Artificial Intelligence:

o High Accuracy with less errors: AI machines or systems are prone to less errors and
high accuracy as it takes decisions as per pre-experience or information.

o High-Speed: AI systems can be of very high-speed and fast-decision making, because of

that AI systems can beat a chess champion in the Chess game.

o High reliability: AI machines are highly reliable and can perform the same action
multiple times with high accuracy.

o Useful for risky areas: AI machines can be helpful in situations such as defusing a
bomb, exploring the ocean floor, where to employ a human can be risky.
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o Digital Assistant: AI can be very useful to provide digital assistant to the users such as
AI technology is currently used by various E-commerce websites to show the products as
per customer requirement.

o Useful as a public utility: AI can be very useful for public utilities such as a self-driving
car which can make our journey safer and hassle-free, facial recognition for security
purpose, Natural language processing to communicate with the human in human-
language, etc.

Disadvantages of Artificial Intelligence

Every technology has some disadvantages, and the same goes for Artificial intelligence. Being so
advantageous technology still, it has some disadvantages which we need to keep in our mind
while creating an AI system. Following are the disadvantages of AI:

o High Cost: The hardware and software requirement of AI is very costly as it requires lots
of maintenance to meet current world requirements.

o Can't think out of the box: Even we are making smarter machines with AI, but still they
cannot work out of the box, as the robot will only do that work for which they are trained,
or programmed.

o No feelings and emotions: AI machines can be an outstanding performer, but still it does
not have the feeling so it cannot make any kind of emotional attachment with human, and
may sometime be harmful for users if the proper care is not taken.

o Increase dependency on machines: With the increment of technology, people are

getting more dependent on devices and hence they are losing their mental capabilities.

o No Original Creativity: As humans are so creative and can imagine some new ideas but
still AI machines cannot beat this power of human intelligence and cannot be creative and
imaginative.

Types of Artificial Intelligence:

Artificial Intelligence can be divided in various types, there are mainly two types of main
categorization which are based on capabilities and based on functionally of AI. Following is flow
diagram which explain the types of AI.
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AI type-1: Based on Capabilities

1. Weak AI or Narrow AI:

o Narrow AI is a type of AI which is able to perform a dedicated task with intelligence.The

most common and currently available AI is Narrow AI in the world of Artificial
Intelligence.

o Narrow AI cannot perform beyond its field or limitations, as it is only trained for one
specific task. Hence it is also termed as weak AI. Narrow AI can fail in unpredictable
ways if it goes beyond its limits.

o Apple Siri a good example of Narrow AI, but it operates with a limited pre-defined range
of functions.

o IBM's Watson supercomputer also comes under Narrow AI, as it uses an Expert system
approach combined with Machine learning and natural language processing.

o Some Examples of Narrow AI are playing chess, purchasing suggestions on e-commerce

site, self-driving cars, speech recognition, and image recognition.

2. General AI:

o General AI is a type of intelligence which could perform any intellectual task with
efficiency like a human.
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o The idea behind the general AI to make such a system which could be smarter and think
like a human by its own.

o Currently, there is no such system exist which could come under general AI and can
perform any task as perfect as a human.

o The worldwide researchers are now focused on developing machines with General AI.

o As systems with general AI are still under research, and it will take lots of efforts and
time to develop such systems.

3. Super AI:

o Super AI is a level of Intelligence of Systems at which machines could surpass human

intelligence, and can perform any task better than human with cognitive properties. It is
an outcome of general AI.

o Some key characteristics of strong AI include capability include the ability to think, to
reason,solve the puzzle, make judgments, plan, learn, and communicate by its own.

o Super AI is still a hypothetical concept of Artificial Intelligence. Development of such

systems in real is still world changing task.

Artificial Intelligence type-2: Based on functionality

1. Reactive Machines

o Purely reactive machines are the most basic types of Artificial Intelligence.
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o Such AI systems do not store memories or past experiences for future actions.

o These machines only focus on current scenarios and react on it as per possible best
action.

o IBM's Deep Blue system is an example of reactive machines.

o Google's AlphaGo is also an example of reactive machines.

2. Limited Memory

o Limited memory machines can store past experiences or some data for a short period of
time.

o These machines can use stored data for a limited time period only.

o Self-driving cars are one of the best examples of Limited Memory systems. These cars
can store recent speed of nearby cars, the distance of other cars, speed limit, and other
information to navigate the road.

3. Theory of Mind

o Theory of Mind AI should understand the human emotions, people, beliefs, and be able
to interact socially like humans.

o This type of AI machines are still not developed, but researchers are making lots of
efforts and improvement for developing such AI machines.

4. Self-Awareness

o Self-awareness AI is the future of Artificial Intelligence. These machines will be super

intelligent, and will have their own consciousness, sentiments, and self-awareness.

o These machines will be smarter than human mind.

o Self-Awareness AI does not exist in reality still and it is a hypothetical concept.

Top AI Companies by Industry
 Cloud AI Companies
 Health Care AI Companies
 Vehicle/Transportation AI Companies
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 Security AI Companies
 E-Commerce AI Companies
 Financial AI Companies
 Education AI Companies
 Manufacturing/Engineering AI Companies
 Energy/Environment AI Companies
 Robotics AI Companies
 Entertainment AI Companies

Expert System
An expert system is a computer program that is designed to solve complex problems and to
provide decision-making ability like a human expert.

It performs this by extracting knowledge from its knowledge base using the reasoning and
inference rules according to the user queries.

The expert system is a part of AI, and the first ES was developed in the year 1970, which was the
first successful approach of artificial intelligence. It solves the most complex issue as an expert
by extracting the knowledge stored in its knowledge base. The system helps in decision making
for complex problems using both facts and heuristics like a human expert. It is called so
because it contains the expert knowledge of a specific domain and can solve any complex
problem of that particular domain. These systems are designed for a specific domain, such
as medicine, science, accounting, coding, gaming etc.

The performance of an expert system is based on the expert's knowledge stored in its knowledge
base. The more knowledge stored in the KB, the more that system improves its performance.
One of the common examples of an ES is a suggestion of spelling errors while typing in the
Google search box.

Below is the block diagram that represents the working of an expert system:
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It is important to remember that an expert system is not used to replace the human experts;
instead, it is used to assist the human in making a complex decision. These systems do not have
human capabilities of thinking and work on the basis of the knowledge base of the particular
domain.

Characteristics of/ Expert System

o High Performance: The expert system provides high performance for solving any type
of complex problem of a specific domain with high efficiency and accuracy.
o Understandable: It responds in a way that can be easily understandable by the user. It
can take input in human language and provides the output in the same way.
o Reliable: It is much reliable for generating an efficient and accurate output.
o Highly responsive: ES provides the result for any complex query within a very short
period of time.

Components of Expert System

An expert system mainly consists of three components:

o User Interface
o Inference Engine
o Knowledge Base
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1. User Interface

With the help of a user interface, the expert system interacts with the user, takes queries as an
input in a readable format, and passes it to the inference engine. After getting the response from
the inference engine, it displays the output to the user. In other words, it is an interface that
helps a non-expert
expert user to communicate with the expert system to find a solution.
solution

2. Inference Engine(Rules of Engine)

o The inference engine is known as the brain of the expert system as it is the main
processing unit of the system. It applies inference rules to the knowledge base to derive a
conclusion or deduce new information. It helps in deriving an error error--free solution of
queries asked by the user.
o With the help of an inference engine, the system extracts the knowledge from the
knowledge base.
o There are two types of inference engine:
o Deterministic Inference engine: The conclusions drawn from this type of inference
engine are assumed to be true. It is based on facts and rules.
o Probabilistic Inference engine: This type of inference engine contains uncertainty in
conclusions, and based on the probability.

Inference engine uses the below modes to derive the solutions:

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o Forward Chaining: It starts from the known facts and rules, and applies the inference
rules to add their conclusion to the known facts.
o Backward Chaining: It is a backward reasoning method that starts from the goal and
works backward to prove the known facts.

3. Knowledge Base
o The knowledgebase is a type of storage that stores knowledge acquired from the different
experts of the particular domain. It is considered as big storage of knowledge. The more
the knowledge base, the more precise will be the Expert System.
o It is similar to a database that contains information and rules of a particular domain or
subject.
o One can also view the knowledge base as collections of objects and their attributes. Such
as a Lion is an object and its attributes are it is a mammal, it is not a domestic animal, etc.

Components of Knowledge Base

o Factual Knowledge: The knowledge which is based on facts and accepted by knowledge
engineers comes under factual knowledge.

o Heuristic Knowledge: This knowledge is based on practice, the ability to guess,

evaluation, and experiences.

Knowledge Representation: It is used to formalize the knowledge stored in the knowledge base
using the If-else rules.

Knowledge Acquisitions: It is the process of extracting, organizing, and structuring the domain
knowledge, specifying the rules to acquire the knowledge from various experts, and store that
knowledge into the knowledge base.

Development of Expert System

Here, we will explain the working of an expert system by taking an example of MYCIN ES.
Below are some steps to build an MYCIN:

o Firstly, ES should be fed with expert knowledge. In the case of MYCIN, human experts
specialized in the medical field of bacterial infection, provide information about the
causes, symptoms, and other knowledge in that domain.
o The KB of the MYCIN is updated successfully. In order to test it, the doctor provides a
new problem to it. The problem is to identify the presence of the bacteria by inputting the
details of a patient, including the symptoms, current condition, and medical history.
o The ES will need a questionnaire to be filled by the patient to know the general
information about the patient, such as gender, age, etc.
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o Now the system has collected all the information, so it will find the solution for the
problem by applying if-then
then rules using the inferen
inference
ce engine and using the facts stored
within the KB.
o In the end, it will provide a response to the patient by using the user interface.

Participants in the development of Expert System

There are three primary participants in the building of Expert System:

1. Expert: The success of an ES much depends on the knowledge provided by human

experts. These experts are those persons who are specialized in that specific domain.
2. Knowledge Engineer: Knowledge engineer is the person who gathers the knowledge
from the domain experts and then codifies that knowledge to the system according to the
formalism.
3. End-User: This is a particular person or a group of people who may not be experts, and
working on the expert system needs the solution or advice for his queries, which are
complex.

Why Expert System?

Before using any technology, we must have an idea about why to use that technology and hence
the same for the ES. Although we have human experts in every field, then what is the need to
develop a computer-based
based system. So below are the points that are describing the need of the ES:

1. No memory Limitations: It can store as much data as required and can memorize it at
the time of its application. But for human experts, there are some limitations to memorize
all things at every time.
2. High Efficiency: If the knowledge base is updated with the correct knowledge, then it
provides a highly efficient output, which may not be possible for a human.
3. Expertise in a domain: There are lots of human experts in each domain, and they all
have different skills, different experiences, and different skills, so it is not easy to get a
final output for the query. But if we put the knowledge gained from human experts into
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the expert system, then it provides an efficient output by mixing all the facts and
knowledge
4. Not affected by emotions: These systems are not affected by human emotions such as
fatigue, anger, depression, anxiety, etc.. Hence the performance remains constant.
5. High security: These systems provide high security to resolve any query.
6. Considers all the facts: To respond to any query, it checks and considers all the
available facts and provides the result accordingly. But it is possible that a human expert
may not consider some facts due to any reason.
7. Regular updates improve the performance: If there is an issue in the result provided
by the expert systems, we can improve the performance of the system by updating the
knowledge base.

Capabilities of the Expert System

Below are some capabilities of an Expert System:

 Advising
 Assistance in human decision making
 Demonstrations and instructions
 Deriving solutions
 Diagnosis
 Interpreting inputs and providing relevant outputs
 Predicting results
 Justification of conclusions
 Suggestions for alternative solutions to a problem.

Advantages of Expert System

o These systems are highly reproducible.
o They can be used for risky places where the human presence is not safe.
o Error possibilities are less if the KB contains correct knowledge.
o The performance of these systems remains steady as it is not affected by emotions,
tension, or fatigue.
o They provide a very high speed to respond to a particular query.

Limitations of Expert System

o The response of the expert system may get wrong if the knowledge base contains the
wrong information.
o Like a human being, it cannot produce a creative output for different scenarios.
o Its maintenance and development costs are very high.
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o Knowledge acquisition for designing is much difficult.

o For each domain, we require a specific ES, which is one of the big limitations.
o It cannot learn from itself and hence requires manual updates.

Applications of Expert System

o In designing and manufacturing domain
It can be broadly used for designing and manufacturing physical devices such as camera
lenses and automobiles.
o In the knowledge domain
These systems are primarily used for publishing the relevant knowledge to the users. The
two popular ES used for this domain is an advisor and a tax advisor.
o In the finance domain
In the finance industries, it is used to detect any type of possible fraud, suspicious
activity, and advise bankers that if they should provide loans for business or not.
o In the diagnosis and troubleshooting of devices
In medical diagnosis, the ES system is used, and it was the first area where these systems
were used.
o Planning and Scheduling
The expert systems can also be used for planning and scheduling some particular tasks
for achieving the goal of that task.

Knowledge engineering

Knowledge engineering is a field of artificial intelligence (AI) that creates rules to apply to data
to imitate the thought process of a human expert.
or
Knowledge engineering is a field of artificial intelligence (AI) that tries to emulate the judgment
and behavior of a human expert in a given field.
It looks at the structure of a task or a decision to identify how a conclusion is reached.

A library of problem-solving methods and the collateral knowledge used for each can then be
created and served up as problems to be diagnosed by the system. The resulting software could
then assist in diagnosis, trouble-shooting, and solving issues either on its own or in a support
role to a human agent.

 In its initial form, knowledge engineering focused on the transfer process; transferring
the expertise of a problem-solving human into a program that could take the same data
and make the same conclusions.
 It was determined that transfer processing had its limitations, as it did not accurately
reflect how humans make decisions. It did not consider intuition and gut feeling, known
as analogous reasoning and nonlinear thinking, that often may not be logical.
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 Today, knowledge engineering uses a modeling process that creates a system that
touches upon the same results as the expert without following the same path or using the
same information sources.
 The goal of knowledge engineering is for it to be implemented into software that will
make decisions that human experts would, such as financial advisors.

Knowledge engineering generally involves these five steps:

1. Knowledge is gathered from various sources, such as text, human experts, big
data repositories and sensors.

2. Knowledge is verified using test cases that human experts run to ensure they're correct.

3. Knowledge is organized, encoded and provided in a knowledge base.

4. Software makes inferences based on the organized and encoded knowledge.

5. An explanation is devised to explain the basis for a certain conclusion.

The most important step in the process is to ensure that the knowledge base is accurate and
timely. Another important aspect of the knowledge engineering process is to have a human agent
who ensures the system is doing its job. The engineer will develop rules for the system so it
functions like a human and reaches the same conclusions as a human expert.