Artificial

Intelligenc
e
Module 3
 What is Artificial Intelligence?

Artificial Intelligence (AI) is a field of computer

science focused on creating systems and machines
that can perform tasks requiring human-like
intelligence. These tasks include understanding
natural language, recognizing patterns, making
decisions, learning from experience, and adapting to
new situations. AI aims to replicate and automate
human cognitive functions through computational
processes.
 History Of Artificial Intelligence
Birth of AI: 1950-1956
Alan Turing is usually referred to as the Father of “Artificial Intelligence”
1950:Alan Turing published his work “Computer Machinery and
Intelligence” which eventually became The Turing Test, which experts
used to measure computer intelligence and called it as The Imitation
Game.
1952: A computer scientist named Arthur Samuel developed a program
to play checkers, which is the first to ever learn the game
independently.
1955: John McCarthy held a workshop at Dartmouth on “artificial
intelligence” which is the first use of the word, and how it came into
popular usage.
 AI Maturation 1957-1979

The time between when the phrase “artificial intelligence” was created, and the
1980s was a period of both rapid growth and struggle for AI research.
1958: John McCarthy created LISP (acronym for List Processing), the first
programming language for AI research, which is still in popular use to this day.
1959: Arthur Samuel created the term “machine learning” when doing a speech
about teaching machines to play chess better than the humans who programmed
them.
1961- First Industrial robot “Unimate” performed tasks that was considered
dangerous for humans.
1966- First chatbot ELIZA.
1970s- First Autonomous vehicle.
1979: The American Association of Artificial Intelligence which is now known as the
Association for the Advancement of Artificial Intelligence (AAAI) was founded.
 AI boom: 1980-1987

Most of the 1980s showed a period of rapid growth and interest in AI, now labeled as
the “AI boom.” This came from both breakthroughs in research, and additional
government funding to support the researchers. Deep Learning techniques and the use
of Expert System became more popular, both of which allowed computers to learn from
their mistakes and make independent decisions.
1980: First AAAI conference at Stanford, XCON, the first expert system in the market.
1981: The Japanese government allocated $850 million (over $2 billion dollars in
today’s money) to the Fifth Generation Computer project.
1985: AARON autonomous drawing program demonstrated at AAAI.
1986: First driverless car was created which could drive upto 55mph when there were
no obstacles or human drivers.
 AI winter: 1987-1993

The term describes a period of low consumer, public, and private interest in AI
which leads to decreased research funding, which, in turn, leads to few
breakthroughs. Both private investors and the government lost interest in AI
and halted their funding due to high cost versus seemingly low return. This AI
Winter came about because of some setbacks in the machine market and
expert systems, including the end of the Fifth Generation project, cutbacks in
strategic computing initiatives, and a slowdown in the deployment of expert
systems.
 AI agents: 1993-2011

The introduction of the first AI system that could beat a reigning world champion chess
player. This era also introduced AI into everyday life via innovations such as the first
Roomba and the first commercially-available speech recognition software on Windows
computers. Companies such as twitter,facebook,Instagram,Netflix started utilizing AI as
the part of their ads and user experience(algorithms).
Microsoft launched the Xbox 360 Kinect, the first gaming hardware designed to track
body movement and translate it into gaming directions.
2011: Apple released Siri, the first popular virtual assistant.
Artificial General Intelligence: 2012-present

2016: Hanson Robotics created a humanoid robot named Sophia, who became
known as the first “robot citizen” and was the first robot created with a realistic
human appearance and the ability to see and replicate emotions, as well as to
communicate.
2020: OpenAI started beta testing GPT-3, a model that uses Deep Learning to
create code, poetry, and other such language and writing tasks.
2021: OpenAI developed DALL-E, which can process and understand images
enough to produce accurate captions, moving AI one step closer to
understanding the visual world.
 Types of AI Environment
1. Fully Observable vs Partially Observable
An "agent" refers to the
● A situation is considered fully observable when the agent has entity or system that is
access to complete and accurate information about the current interacting with and
state of the environment. This means the agent can directly making decisions within a
given environment. The
perceive all aspects of the environment relevant to its decision- agent can be a computer
making process. program, a robot, a
human, or any entity
● Partially Observable: A situation is considered partially capable of perceiving its
observable when the agent has limited or incomplete information surroundings and taking
about the current state of the environment. The agent must rely on actions based on that
its observations and past experiences to make decisions. perception.
● Examples:
● Chess – the board is fully observable, and so are the
opponent’s moves.
● Driving – the environment is partially observable because
what’s around the corner is not known.
2. Deterministic vs Stochastic

● When a uniqueness in the agent’s current state completely determines

the next state of the agent, the environment is said to be deterministic.
● The stochastic environment is random in nature which is not unique and
cannot be completely determined by the agent.
● Examples:
● Chess – there would be only a few possible moves for a coin at the
current state and these moves can be determined.
● Self-Driving Cars- the actions of a self-driving car are not unique, it varies
time to time.
3. Competitive vs Collaborative

● An agent is said to be in a competitive environment when it competes

against another agent to optimize the output.
● The game of chess is competitive as the agents compete with each other
to win the game which is the output.
● An agent is said to be in a collaborative environment when multiple agents
cooperate to produce the desired output.
● When multiple self-driving cars are found on the roads, they cooperate
with each other to avoid collisions and reach their destination which is the
output desired.
4. Single-agent vs Multi-agent
● An environment consisting of only one agent is said to be a single-agent
environment.
● A person left alone in a maze is an example of the single-agent system.
● An environment involving more than one agent is a multi-agent
environment.
● The game of football is multi-agent as it involves 11 players in each team.
5. Dynamic vs Static
● An environment that keeps constantly changing itself when the agent is up
with some action is said to be dynamic.
● A roller coaster ride is dynamic as it is set in motion and the environment
keeps changing every instant.
● An idle environment with no change in its state is called a static
environment.
● An empty house is static as there’s no change in the surroundings when an
agent enters.
6. Discrete vs Continuous
● If an environment consists of a finite number of actions that can be deliberated
in the environment to obtain the output, it is said to be a discrete environment.
● The game of chess is discrete as it has only a finite number of moves. The
number of moves might vary with every game, but still, it’s finite.
● The environment in which the actions are performed cannot be numbered i.e. is
not discrete, is said to be continuous.
● Self-driving cars are an example of continuous environments as their actions
are driving, parking, etc. which cannot be numbered.
8. Known vs Unknown
● In a known environment, the output for all probable actions is
given. Obviously, in case of unknown environment, for an
agent to make a decision, it has to gain knowledge about how
the environment works.
● 7.Episodic vs Sequential
● In an Episodic task environment, each of the agent’s actions is divided into atomic
incidents or episodes. There is no dependency between current and previous incidents.
In each incident, an agent receives input from the environment and then performs the
corresponding action.
● Example: Consider an example of Pick and Place robot, which is used to detect
defective parts from the conveyor belts. Here, every time robot(agent) will make the
decision on the current part i.e. there is no dependency between current and previous
decisions.
● In a Sequential environment, the previous decisions can affect all future decisions.
The next action of the agent depends on what action he has taken previously and what
action he is supposed to take in the future.
● Example:
○ Checkers- Where the previous move can affect all the following moves.
 Proposing and Evaluating AI applications
1. Identify the Problem: Start by clearly defining the problem or task that you want to
address with AI. What specific problem will your application solve, and who will benefit
from it?

2. Data Acquisition: Identify the data needed to train and run your AI application, gather it,
and then meticulously clean and preprocess it to make it compatible with AI algorithms.

3. Select AI Techniques: Choose the appropriate AI techniques for your application. This
could involve machine learning, deep learning, natural language processing, computer
vision, or a combination of these.

4. Development and prototyping: Develop the Application, create a prototype to test its
functionality and usability, helps to uncover early issues if any.
5. Evaluation Metrics: Define metrics to evaluate the AI application's performance.
Common metrics include accuracy, precision, recall, F1-score, and user satisfaction
ratings.

6. Ethical Considerations: Assess the ethical implications of your AI application, including

bias, fairness, privacy, and transparency. Mitigate any potential biases and ensure
compliance with relevant regulations.

7. Deployment and User Feedback: Launch the application and gather user feedback.

8. Continuous Improvement: Use feedback to refine and improve the AI application

iteratively.
 Importance of search for AI
● Search algorithms and techniques play a crucial role in various aspects of AI systems. Search algorithms
are used to find solutions to problems, discover patterns, retrieve information, and make decisions in many
AI applications. Here are some key roles of search in AI applications. It helps in

○ Information Retrieval – Search Engines like Google rely on sophisticated Search algorithms to
retrieve relevant information from vast amounts of data.
○ Natural Language Processing (NLP) – Search is used to find patterns in the text for information
extraction, sentiment analysis, topic modelling etc.
○ Recommendation Systems – e-commerce platforms use search to recommend products to users
based on their browsing and purchase history.
○ Optimizations – Search algorithms are used in optimization problems, where the goal is to find the
best solution among a set of possible solutions.
 Importance of search for AI
○ Expert Systems– Search algorithms are used to reason and make decisions based on knowledge
of rules and facts.
○ Pattern Recognition – In computer vision and image processing, search is used to recognize
objects or patterns in images and videos.
○ Data Mining– Search is used to discover interesting patterns, associations, and relationships in
large datasets. ]
○ Game Playing – Search algorithms such as minimax search to explore possible moves and
outcomes.
○ Robotics – Search is used in robotics for path planning and motion planning.

○ In summary, search algorithms and techniques are fundamental components of AI applications,

enabling these systems to find solutions, make decisions, retrieve information, and optimize
processes across a wide range of domains. They are essential for harnessing the power of AI to
solve complex real-world problems.
 Issues in knowledge representation
● Knowledge representation is a critical component of artificial intelligence (AI) systems
as it involves how information is structured and stored for reasoning and decision-
making. However, there are several challenges and issues associated with knowledge
representation in AI:
○ One of the primary challenges is representing complex and nuanced knowledge in
a way that can be misunderstood and manipulated by AI systems.
○ AI systems need to handle vast amounts of data and knowledge, and scalability
becomes a major issue.
○ AI systems must be able to represent and reason with uncertain or incomplete
information as real-world knowledge often contains ambiguity, uncertainty,
inconsistency and contradictions.
○ Context-sensitive knowledge can be complex, especially in a dynamic
environment.
○ Capturing common-sense knowledge is often challenging
 Issues in knowledge representation
○ Handling different vocabularies (semantic interoperability) and structures are
challenging
○ AI systems may tend to biased or unfair decisions.
○ Knowledge representations may have ethical concerns
 The Human element in experts system
● The human element plays a crucial role in various aspects of development, deployment, and
maintenance. Expert systems are designed to mimic the decision-making processes of human
experts in specific domains, and the human element is integral to their success.

○ Human experts possess specialized knowledge and expertise in specific domains which
cannot be substituted with AI processes.
○ AI systems can encounter ethical dilemmas and moral questions that require human judgment.
○ Humans are needed to validate the performance of AI systems.
○ Human-centered user interfaces are necessary for AI applications.
○ AI systems require continuous human monitoring and improvement.
○ Human experts are responsible for ensuring that AI systems adhere to these requirements.
○ AI applications may fail to solve novel problems and exhibit no creativity in exceptional cases.
○ AI applications may lack empathy and emotional intelligence.
○ AI applications wont assume accountability.
 Applications of AI in various business
1.Customer Service and Support:
function
I. Chatbots: AI-powered chatbots provide automated customer support by answering queries,
handling routine tasks, and offering 24/7 assistance.
II. Virtual Assistants: Virtual assistants like Siri and Alexa use AI to respond to user commands
and perform tasks such as setting reminders or providing information.

2. Marketing and Sales:

III. Personalization: AI analyzes customer data to deliver personalized marketing content and
product recommendations.
IV. Lead Scoring: AI algorithms assess leads and prioritize them based on their likelihood to
convert into customers.
V. Predictive Analytics: AI predicts customer behavior and market trends, helping companies
make informed marketing and sales decisions.
3. Supply Chain Management:
I. Demand Forecasting: AI analyzes historical data and market trends to improve demand
forecasting accuracy.
II. Inventory Optimization: AI optimizes inventory levels to reduce costs while ensuring products
are readily available.
III. Logistics and Routing: AI helps optimize delivery routes and schedules, minimizing
transportation costs.

4. Human Resources:
IV. Recruitment: AI streamlines candidate screening and matches job applicants with job
descriptions.
V. Employee Engagement: AI-powered tools analyze employee sentiment and engagement
through surveys and feedback analysis.
VI. Workforce Planning: AI helps organizations plan staffing levels and resource allocation.
5. Finance and Accounting:
I. Fraud Detection: AI algorithms detect unusual financial transactions and patterns to
prevent fraud.
II. Expense Management: AI automates expense reporting and approval processes.
III. Financial Analysis: AI assists in financial modeling, risk assessment, and investment
analysis.
6. Product Development and R&D:
IV. Design Optimization: AI helps optimize product design through generative design
and simulation.
V. Natural Language Processing (NLP): NLP tools analyze customer feedback,
reviews, and surveys to gather insights for product improvements.
VI. Drug Discovery: AI accelerates drug discovery by analyzing vast datasets and
predicting potential drug candidates.
7. Operations and Manufacturing:
VII. Predictive Maintenance: AI monitors equipment health and predicts maintenance
needs to reduce downtime.
VIII. Quality Control: AI-powered computer vision systems inspect and ensure product
quality.
IX. Supply Chain Visibility: AI enhances visibility into the supply chain by tracking goods
and monitoring conditions in real-time.
8. Risk Management:
I. Credit Scoring: AI assesses credit risk for lending institutions by analyzing
customer data.
II. Cybersecurity: AI detects and responds to cybersecurity threats in real-time by
analysing network traffic and user behaviour.
9. Legal and Compliance:
III. Document Review: AI automates document review and contract analysis to
improve legal efficiency.
IV. Compliance Monitoring: AI monitors regulatory compliance by analysing
transaction data.
10. Strategic Planning:
V. Market Research: AI analysis market data and consumer sentiment to inform
strategic decisions.
VI. Scenario Planning: AI models help organizations simulate and assess various
strategic scenarios.
 Issues and ethical concerns surrounding AI

1. Transparency and Explainability:

Many AI models, especially deep learning neural networks, lack transparency, making it
difficult to understand how they arrive at specific decisions. This opacity can hinder
accountability and trust in AI systems.

2. Privacy:
AI systems often require access to sensitive personal data. Privacy concerns arise when
data is mishandled, shared without consent, or used for unauthorized purposes. Striking a
balance between data utility and privacy protection is crucial.

3. Job Displacement: This means that some jobs that people used to do may not be done
by people anymore. Instead, machines or computers, powered by AI, can do these jobs.
For example, if robots in a factory can build cars, some human workers who used to build
cars may not have jobs anymore because the robots are doing the work.
4. Autonomy and Control:
As AI systems become more autonomous, there are concerns about their decision-making
capabilities. Striking the right balance between human control and AI autonomy, especially
in critical applications like autonomous vehicles and healthcare, is essential.

5. Security Risks:
AI can be exploited for malicious purposes, such as cyberattacks, identity theft, and the
creation of deepfake content. Ensuring the security of AI systems and guarding against
vulnerabilities is a critical challenge.

6. Depersonalization of Interactions:
AI-powered customer service and virtual assistants can depersonalize interactions.
Ensuring that AI maintains a human touch and respects users' emotional needs is an
ethical challenge.

7. AI in Education:
The use of AI in education, such as for grading assignments or making recommendations,
raises ethical questions about student privacy, fairness, and the impact on the learning
experience.
8. Environmental Impact:
The energy consumption and environmental impact of training large AI models, particularly
in data centers, are substantial. Reducing AI's carbon footprint is a growing concern.

9. AI for Deepfakes and Misinformation:

AI technology can create convincing deepfake videos and generate fake news, posing
threats to truth, trust, and public discourse. Combating the spread of misinformation
generated by AI is an ongoing challenge.
 How is AI transforming businesses?
● AI in content creation
I. Automated text generation.
II. Content enhancement.

● Language translation:
● Sorting of products :
● Digital catalogue
● Improve the digital presence of the company.
● Online appointments.
● Waiter-less restaurants.