Expert System and Artificial Intelligence

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Expert Systems and Artificial Intelligence IT has dramatically improved business decision making. Expert systems and artificial intelligence are now taking this decision making to a higher level. An expert system is an advanced IT system that can (1) reason through the information captured by a company’s TP and KM systems; (2) recognize and diagnose patterns, problems, or issues related to that information; and (3) suggest solutions for those problems and issues. It is this third component of expert systems—the ability to suggest solutions to problems—that distinguishes them from ordinary KM systems. This ability is called “artificial intelligence.” Artificial intelligence allows computers to learn, and refine, their reasoning over time, much like a human being does. Let’s look at VF Jeans again. An expert system might have the ability to use information about customers’ current buying preferences to predict future changes in customer demand. By analyzing detailed information on operating costs, the expert system might be able to suggest ways to change the company’s purchasing or manufacturing operations to reduce costs 12 or 18 months in the future. Expert systems can be designed to perform similar kinds of high-level information processing for all of a company’s functions. They can also provide top managers with a set of sophisticated analytic procedures that explain the fit, or misfit, between a company’s business model and its environment. Recall that in addition to the pharmaceutical industry, IBM consultants are working to develop expert systems for 16 other industries. Hewlett-Packard, Oracle, and Honda are some of the other companies developing systems using artificial intelligence. Honda has even developed a child-sized robot called “Asimo.” Asimo taught itself to climb stairs and jog using artificial intelligence software. Honda is hoping the robot will

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