Artificial intelligence (AI), sometimes called machine intelligence, is intelligence demonstrated by machines,

in contrast to the natural intelligence displayed by humans and other animals. In computer science AI research
is defined as the study of "intelligent agents": any device that perceives its environment and takes actions that
maximize its chance of successfully achieving its goals.[1] Colloquially, the term "artificial intelligence" is applied
when a machine mimics "cognitive" functions that humans associate with other human minds, such as "learning"
and "problem solving".[2]

Applications of AI
AI is important because it can help solve immensely difficult issues in various industries,
such as entertainment, education, health, commerce, transport, and utilities. AI applications
can be grouped into five categories:

 Reasoning: The ability to solve problems through logical deduction.

e.g. financial asset management, legal assessment, financial
application processing, autonomous weapons systems, games

 Knowledge: The ability to present knowledge about the world. e.g.

financial market trading, purchase prediction, fraud prevention, drug
creation, medical diagnosis, media recommendation

 Planning: The ability to set and achieve goals. e.g. inventory

management, demand forecasting, predictive maintenance, physical
and digital network optimization, navigation, scheduling, logistics

 Communication: The ability to understand spoken and written

language. e.g. real-time translation of spoken and written languages,
real-time transcription, intelligent assistants, voice control

 Perception: The ability to infer things about the world via sounds,
images, and other sensory inputs. e.g. medical diagnosis,
autonomous vehicles, surveillance
Here is an infographic by Mckinsey that shows the extent to which AI can
be used end-to-end in the retail industry from identifying customers to
personalizing promotion to inventory management

AI trends in various sectors

1. Healthcare
AI and ML technology has been particularly useful in the healthcare
industry because it generates massive amounts of data to train with and
enables algorithms to spot patterns faster than human analysts.

 Medecision developed an algorithm that detects 8 variables in

diabetes patients to determine if hospitalization is required.

 An app called BiliScreen utilizes a smartphone camera, ML tools, and

computer vision algorithms to detect increased levels of bilirubin in
the sclera (white portion) of a person’s eye, which is used to screen
 people for pancreatic cancer. This cancer has no telltale symptoms,
hence it has one of the worst prognoses of all cancers.

 NuMedii, a biopharma company, has developed a platform called

Artificial Intelligence for Drug Discovery (AIDD), which uses big data
and AI to detect the link between diseases and drugs at the systems
level.

 GNS Healthcare uses ML algorithms to match patients with the most

effective treatments for them.

2. Entertainment
A familiar application of AI in everyday life is seen with services like Netflix
or Amazon, wherein ML algorithms analyze the user’s activity and compare
it with that of other users to determine which shows or products to
recommend. The algorithms are becoming intelligent with time—to the
extent of understanding that a user may want to buy a product as a gift
and not for himself/herself, or that different family members have different
watching preferences.

3. Finance
 Financial services companies use AI-based natural language
processing tools to analyze brand sentiment from social media
platforms and provide actionable advice.

 Investment companies like Aidya and Nomura Securities use AI

algorithms to conduct trading autonomously and robo-traders to
conduct high-frequency trading for greater profits, respectively.

 Fintech firms like Kensho and ForwardLane use AI-powered B2C robo-
advisors to augment rebalancing decisions and portfolio
management performed by human analysts. Wealthfront uses AI
algorithms to track account activity and help financial advisors
customize their advice.

 Chatbots, powered by natural language processing, can serve

banking customers quickly and efficiently by answering common
queries and providing information promptly.

 Fraud detection is an important application of AI in financial services.

For example, Mastercard uses Decision Intelligence technology to
analyze various data points to detect fraudulent transactions,
improve real-time approval accuracy, and reduce false declines.

4. Data security
Cyber attacks are becoming a growing reality with the move to a digital
world. There are also concerns about AI programs themselves turning
against systems.
  Automatic exploit generation (AEG) is a bot that can determine
whether a software bug, which may cause security issues, is
exploitable. If a vulnerability is found, the bot automatically secures
it. AEG systems help develop automated signature generation
algorithms that can predict the likelihood of cyberattacks.

 PatternEx and MIT’s Computer Science and Artificial Intelligence

Laboratory (CSAIL) have developed an AI platform called AI2 which
claims to predict cyber attacks better than existing systems. The
platform uses Active Contextual Modeling, a continuous feedback
loop between a human analyst and the AI system, to provide an
attack detection rate that is better than ML-only solutions by a factor
of 10.

 Deep Instinct, an institutional intelligence company, says that

malware code varies between 2%-10% in every iteration and that its
AI model is able to handle the variations and accurately predict
which files are malware.

5. Manufacturing
 Landing.ai claims to have created machine-vision tools to find
microscopic defects in objects like circuit boards using an ML
algorithm trained using tiny volumes of sample images. In the future,
self-driving robots may be created which can move finished goods
around without endangering anyone or anything around.

 Robots in factories are often stationary but are still in danger of

crashing into objects around it. A new concept called collaborative
robots or “cobots , enabled by AI, can take instructions from humans,
including instructions that the robot has not been previously exposed
to, and work productively with them.

 AI algorithms can influence the manufacturing supply chain by

detecting the patterns of demand for products across geographies,
socioeconomic segments, and time, and predicting market
demand. This, in turn, will affect inventory, raw material sourcing,
financing decisions, human staffing, energy consumption, and
maintenance of equipment.

 AI tools help in predicting malfunctions and breakdown of

equipment and taking or recommending preemptive actions as well
as tracking operating conditions and performance of factory tooling.

6. Automotive industry
 Tesla introduced TeslaBot, an intelligent virtual assistant integrated
with Tesla models S and X, allows users to interact with their car
from their phone or desktop.
  Uber AI Labs is working on developing self-driven cars with the
help of the best engineers and scientists. Uber has already tested a
batch of self-driving cars in 2016.

 Nvidia has partnered with Volkswagen to develop “intelligent co-

pilot systems” in cars that will enable safety warnings, gesture
control, and voice and facial recognition.

 Ericsson predicts that 5G technology will improve vehicle-to-vehicle

communication wherein sensors will be implanted in airport runways,
railways, and roads.

Conclusion
Jack Ma, the founder of Alibaba, warned the audience at the World
Economic Forum 2018 at Davos that AI and big data were a threat to
humans and would disable people instead of empowering them. However,
given the sweeping real-world applications of AI and ML and the constant
advancements in the field, it is more likely that the technology will
transform the way we work—enabling faster, more informed decisions,
increasing operational efficiency, and innovating new products and s

Disadvantages of Artificial Intelligence:

1. High Cost:

Creation of artificial intelligence requires huge costs as they are very complex machines.
Their repair and maintenance require huge costs.

They have software programs which need frequent up gradation to cater to the needs of
the changing environment and the need for the machines to be smarter by the day.

In the case of severe breakdowns, the procedure to recover lost codes and reinstating the
system might require huge time and cost.

2. No Replicating Humans:

Intelligence is believed to be a gift of nature. An ethical argument continues, whether

human intelligence is to be replicated or not.

Machines do not have any emotions and moral values. They perform what is
programmed and cannot make the judgment of right or wrong. Even cannot take
decisions if they encounter a situation unfamiliar to them. They either perform
incorrectly or breakdown in such situations.
3. No Improvement with Experience:

Unlike humans, artificial intelligence cannot be improved with experience. With time, it
can lead to wear and tear. It stores a lot of data but the way it can be accessed and used
is very different from human intelligence.

Machines are unable to alter their responses to changing environments. We are

constantly bombarded by the question whether it is really exciting to replace humans
with machines.

In the world of artificial intelligence, there is nothing like working with a whole heart or
passionately. Care or concerns are not present in the machine intelligence dictionary.
There is no sense of belonging or togetherness or a human touch. They fail to distinguish
between a hardworking individual and an inefficient individual.

4. No Original Creativity:

Do you want creativity or imagination?

These are not the forte of artificial intelligence. While they can help you design and
create, they are no match for the power of thinking that the human brain has or even the
originality of a creative mind.

Human beings are highly sensitive and emotional intellectuals. They see, hear, think and
feel. Their thoughts are guided by the feelings which completely lacks in machines. The
inherent intuitive abilities of the human brain cannot be replicated.

5. Unemployment:

Replacement of humans with machines can lead to large-scale unemployment.

Unemployment is a socially undesirable phenomenon. People with nothing to do can

lead to the destructive use of their creative minds.

Humans can unnecessarily be highly dependent on the machines if the use of artificial
intelligence becomes rampant. They will lose their creative power and will become lazy.
Also, if humans start thinking in a destructive way, they can create havoc with these
machines.
Artificial intelligence in wrong hands is a serious threat to mankind in general. It may
lead to mass destruction. Also, there is a constant fear of machines taking over or
superseding the humans.

Based on the above discussion, the Association for the advancement of artificial
intelligence has two objectives – to develop and advance the science of artificial
intelligence and to promote and educate about the responsible usage of artificial
intelligence.

Identifying and studying the risk of artificial intelligence is a very important task at
hand. This can help in resolving the issues at hand. Programming errors or cyber
attacks need more dedicated and careful research. Technology companies and
technology industry as a whole needs to pay more attention to the quality of the
software. Everything that has been created in this world and in our individual societies
is the continuous result of intelligence.

Artificial intelligence augments and empowers human intelligence. So as long we are

successful in keeping technology beneficial, we will be able to help this human
civilization.

Everything that has been created in this world and in our individual societies is the
continuous result of intelligence. Artificial intelligence augments and empowers human
intelligence. So as long we are successful in keeping technology beneficial, we will be
able to help this human civilization.

AI Safety Research:
In the recent times and in the near future, the need of having beneficial effects of
artificial intelligence on the society has motivated research in many areas like security or
control to nontechnical topics like economics and law.

While laptop crash might be a little trouble, but this is a highly undesirable event if it is
an aeroplane autopilot software malfunction or a lapse on your trading terminal or even
your power grid monitoring.

Lethal autonomous weapons are also a product of artificial intelligence and the near
future challenge is to control the same.
Creating artificial intelligence is perhaps the biggest event for mankind. If used and
developed constructively, we can use artificial intelligence to eradicate poverty and
hunger from the human race.

The argument that will we ever achieve that supreme level of artificial ever is on.The
creators and perpetrators of artificial intelligence insist that machine intelligence is
beneficial and has been created to help the human race.

The power of artificial intelligence that unintentionally causes destruction and damage
cannot be ignored. What will help us control it better is research and in-depth study of
the importance of artificial intelligence.

Research alone can control the potentially harmful consequences of AI and help us enjoy
the fruit of this innovation. Computer scientist Peter

Computer scientist Peter Abbael of the University of California says “that robots will be
able to keep us much safer from destruction in near future”. It will help us in taking care of
the old without tiring out and hence human beings will enjoy independence for a longer
period. He predicts that AI can help us in drastically reducing traffic accidents. It can
bring such incidents to zero if developed properly.

Shimon Whiteson believes that man and computer are not separate; they are in fact a
single cognitive unit.

Yoky Matsuoka has a unique example of AI benefit. Suppose a human being loses a
limb. Now he has been given an artificial limb. Just imagine the wonders AI can do to
the person if the limb can be operated through machine intelligence. Things that the
human being is not able to perform on his own anymore are performed by the machine
intelligence and he is able to enjoy the fruits as if he is performing the act. Wonderful,
isn’t it?

Thomas Dietterich is absolutely fascinated by the idea of the combination of human and
artificial intelligence. He believes that machine intelligence in future can give us
augmented sensory abilities like extended vision or ability to hear and he also coined a
term ‘exoskeleton’. As per him, this will help us to walk around even when our bones
are weak when we are old. Your eyes and ears fail you but AI helps you to continue to
hear and see.

Stuart Russell believes that all the problems that we encounter including that of climate
change can be addressed with the help of artificial intelligence. Artificial intelligence
 magnifies the human intelligence and it can only take this human civilization forward
and not backward. It can predict an environmental catastrophe and help us act fast, cure
a disease or even help us eliminate poverty.

“The sky is the limit” – says Oren Etzioni, CEO of Allen Institute of Artificial
Intelligence. Everything that human beings have contemplated starting from space
exploration to finding a solution to the deadly Ebola, could have been more documented
and tractable with the impact of artificial intelligence. AI will document the footprints of
human developments.

AI and robotics will not only improve the way we think or live our lives but also
explores new horizons, whether space or the ocean. As the age old saying goes, the need
is the mother of all innovations, so it is with AI also. Humans are getting increasingly
better in defining their wants and quickly transforming this want into reality. Things
will happen so fast that we will not notice the minor changes and will be easily
adaptable to the change it brings to us.

Steps of Decision Making Process

 Step 1: Identification of the purpose of the decision. ...

 Step 2: Information gathering. ...
 Step 3: Principles for judging the alternatives. ...
 Step 4: Brainstorm and analyse the different choices. ...
 Step 5: Evaluation of alternatives. ...
 Step 6: Select the best alternative. ...
 Step 7: Execute the decision.
DECISION MAKING ENVIRONMENT
1.CERTANITY

 In this type of decision making environment, there is only one type of event
that can take place. It is very difficult to find complete certainty in most of
the business decisions. However, in many routine type of decisions, almost
complete certainty can be noticed. These decisions, generally, are of very
little significance to the success of business.

 2. Uncertainty:

 In the environment of uncertainty, more than one type of event can take
place and the decision maker is completely in dark regarding the event that
is likely to take place. The decision maker is not in a position, even to
assign the probabilities of happening of the events.
 Such situations generally arise in cases where happening of the event is
determined by external factors. For example, demand for the product,
moves of competitors, etc. are the factors that involve uncertainty.

 3. Risk:

 ADVERTISEMENTS:

 Under the condition of risk, there are more than one possible events that
can take place. However, the decision maker has adequate information to
assign probability to the happening or non- happening of each possible
event. Such information is generally based on the past experience.

 Virtually, every decision in a modern business enterprise is based on

interplay of a number of factors. New tools of analysis of such decision
making situations are being developed. These tools include risk analysis,
decision trees and preference theory.

 Modern information systems help in using these techniques for decision

making under conditions of uncertainty and risk.

 A decision tree is a decision support tool that uses a tree-like model of decisions and their possible
consequences, including chance event outcomes, resource costs, and utility. It is one way to display
an algorithm that only contains conditional control statements.
 Decision trees are commonly used in operations research, specifically in decision analysis, to help
identify a strategy most likely to reach a goal, but are also a popular tool in machine learning.
 In statistics, a full factorial experiment is an experiment whose design consists of two or more factors,
each with discrete possible values or "levels", and whose experimental units take on all possible
combinations of these levels across all such factors. A full factorial design may also be called a fully
crossed design. Such an experiment allows the investigator to study the effect of each factor on
the response variable, as well as the effects of interactions between factors on the response variable.
 For the vast majority of factorial experiments, each factor has only two levels. For example, with two
factors each taking two levels, a factorial experiment would have four treatment combinations in total,
and is usually called a 2×2 factorial design.
 If the number of combinations in a full factorial design is too high to be logistically feasible, a fractional
factorial design may be done, in which some of the possible combinations (usually at least half) are
omitted.