Artificial

Intelligence
In
Business
Lecture By

Manoj Paweria
AI in Business
AI in Business
 AI in Business

SUGGESTED READINGS:

1.Russell &Norvig's (2009) “Artificial Intelligence: A

Modern Approach” 3rd edition.

2.Mitchell, “Machine Learning”, latest edition.

 AI in Business
Artificial Intelligence (AI) has significantly transformed the way
businesses operate and make decisions. It offers a wide range of
opportunities across various industries and functions. Here are some
key ways AI is being used in business

Data Analysis and Insights

Predictive Analytics
Process Automation Personalization and Customer
Experience
Supply Chain Management
Fraud Detection and Security
Natural Language Processing (NLP)
Market Research and Competitive
Analysis Healthcare Diagnosis and Treatment

Financial Services Manufacturing and Quality Control

Human Resources
 AI in Business
Unit-I Artificial Intelligence Basics

1. Introduction to Artificial Intelligence,

2. various definitions of AI,
3. AI Applications and Techniques,
4. Turing Test and Reasoning - forward & backward
chaining.
 AI in Business
Introduction to Artificial Intelligence

Artificial Intelligence (AI) is a transformative technology that

aims to mimic and simulate human-like intelligence in
machines.
 AI in Business
Introduction to Artificial Intelligence

It encompasses a diverse range of techniques and

approaches that enable computers to perform tasks that
typically require human cognitive abilities, such as learning,
reasoning, problem-solving, perception, and language
understanding. The overarching goal of AI is to create
systems that can autonomously analyze data, adapt to new
situations, and make intelligent decisions, often
outperforming human capabilities in certain domains
 AI in Business
AI is built upon several foundational concepts
and subfields, including:

Neural Networks
Machine Learning

Deep Learning
Natural Language Processing (NLP)
Computer Vision
Expert Systems
Robotics
Reinforcement Learning

AI Ethics and Responsible AI

 AI in Business
Various definitions of AI
Artificial Intelligence (AI) can be defined in various ways, reflecting its
multidisciplinary nature and the diverse perspectives of experts in the
field. Here are several definitions of AI from different sources:

Merriam-Webster Dictionary: "The capability of a machine to imitate

intelligent human behavior."
The science and engineering of
making intelligent machines,
especially intelligent computer
programs
Artificial Intelligence is the study of
how to make computers do things
at which, at the moment, people are
better.
 AI in Business
AI Applications and Techniques,

Applications Techniques,
 AI in Business
Turing Test and Reasoning - forward &
backward chaining.
Turing Test, proposed by Alan Turing (1950)
The Turing Test and reasoning are two important concepts in the field of
artificial intelligence, both of which relate to the evaluation of a machine's
intelligence and its ability to emulate human-like cognitive processes.
Test provides a way to assess a machine's ability to simulate human
conversation and, to some extent, reasoning, it is just one aspect of evaluating
AI

Two methods of reasoning when using inference rules are

•Forward chaining and
•Backward chaining.
 AI in Business
Unit-II Types of AI Agents

Agents can be grouped into five classes based on their degree of perceived
intelligence and capability. All these agents can improve their performance and
generate better action over the time

•Simple Reflex Agent

•Model-based reflex agent
•Goal-based agents
•Utility-based agent
•Learning agent
 AI in Business
Unit-II Introduction to Agents

An agent can be anything that perceiveits environment through sensors and act
upon that environment through actuators. An Agent runs in the cycle
of perceiving, thinking, and acting. An agent can be:
• Human
• Robotic
• Software
An intelligent agent is an autonomous entity which act upon an environment
using sensors and actuators for achieving goals. An intelligent agent may learn
from the environment to achieve their goals. A thermostat is an example of an
intelligent agent.
A rational agent is an agent which has clear preference, models uncertainty,
and acts in a way to maximize its performance measure with all possible
actions.
 AI in Business
Unit-II Agent Environment in AI

The environment is where agent lives, operate and provide the agent with
something to sense and act upon it.

Features of Environment

•Fully observable vs Partially Observable

•Static vs Dynamic •Deterministic vs Stochastic
•Discrete vs Continuous •Single-agent vs Multi-agent
•Deterministic vs Stochastic •Episodic vs sequential
•Known vs Unknown
•Accessible vs Inaccessible
 AI in Business
Unit-II Specifying the task environment

we must think about task environments, which are essentially the problems
to which rational agents are the “solutions.”

we had to specify the performance measure, the environment, and the

agent’s actuators and sensors.
We group all these under the heading of the task environment. For the
acronymically minded, we call this the

PEAS (Performance, Environment, Actuators, Sensors)

In designing an agent, the first step must always be to specify the task
environment as fully as possible
 AI in Business
Unit-II Specifying the task environment

PEAS description for the taxi’s task environment. We discuss each element in
more detail in the following paragraphs.
 AI in Business
Unit-III Problem Solving and Search
Techniques
Problem iterative deepening uniform cost
Characteristics search
Control Strategies
Production Systems,
Heuristics Search genetic algorithm
Hill climbing
Techniques search DepthFirst Search
and its Variations
simulatedannealing, Minmax & game Breadth
Constraint Alpha Beta pruning, trees, First
Satisfaction refining minmax, Search
Problem, Best First Search,
AO algorithm Means-End
A algorithm
Analysis
Thanks