ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS

1. INTRODUCTION Fuzzy systems and evolutionary computing .

Artificial Intelligence (AI), is a one
of the branch of computer science which
deals with intelligence of machines where an
intelligent agent is a system that takes the
actions which maximize its chances of
success. It is the study of ideas which enable
computers to do that things that make people
seems intelligent. The central principles of
AI includes such as reasoning, knowledge,
planning, learning, communication,
perception and ability to move
manipulate objects. It is the science and
engineering of making intelligent machines
especially intelligent computer programs.
1.1 ARTIFICIAL
A very brief introduction to the AI methods
is given below and each method is discussed
more detailed in different sections of this
circular.
1.1.1 KNOWLEGDE-BASED
SYSTEMS (KBS) :
A KBS can be defined as a computer
system capable of giving advice ina
particular domain, utilizing knowledge
provided by a human expert. A distinguish
and
feature of KBS lies in the separation behind
the knowledge, which can be represented in
a number of ways such as rules, frames or
cases and the inference engine or algorithm
which uses the knowledge based to arrive at

INTELLIGENCE METHODS: a conclusion.

AI methods can be divided into two 1.1.2 NEURAL NETWORKS (NN):

broad categories :
NNs are biologically inspired

a) Symbolic AI systems consisting of a massive connected

b) Computational networks of computational neurons

Intelligence. organized in layers. By adjusting the

weights of networks, NNs can be “trained “
Symbolic AI is which focuses in the
to approximate virtually any nonlinear
development of knowledge based
function to a required degree of accuracy.
systems(KBS).
NNs typically provided with asset of input
Computational intelligence which includes and output exemplars. A learning algorithm
such methods as neural networks(NN), (such as back propagation) would then be
used to adjust the weights in a network so

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that the network would give the desired 2. HISTORY

output, in a type of learning called
supervised learning. The modern history of AI can traced
back to the year 1956. When John
1.2 DEFINITIONS OF AI : McCarthy proposed the term as the topic for
a conference held at Dartmouth college.
Computers with the ability to mimic
The initial goals for the field were too
or duplicate the functions of the huan brain.
ambitious and the first few AI systems failed
Artificial Intelligence (AI) is the study of to deliver what was promised. After a few of
how computer systems can simulate these early failures, AI researchers started
intelligent process such as learning, setting some more realistic goals for
reasoning, and understanding symbolic themselves. In 1960s and 1970s, the focus of
information in context. AI research was primiarily on the

It is the science and engineering of making development of KBS or expert systems.

intelligent machines, especially intelligent

computer program. It is related to the similar
task of using computers to understand
human intelligent.

“ It is the branch of computer science that is

concerned with the automation of intelligent
behavior” (Luger and Stubblefield, 1993).

Fig- 1 : John McCarthy

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 ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS
The late 19802 and the 1990s saw a
renewed interest in NN research when
several different researchers reinvented the
back propagation learning algorithm
(although the algorithm was really first
discovered in 1969.). The back propagation
algorithm was soon applied to many
learning problems causing great excitement
within the AI community. There is also a
move towards the development of hybrid
intelligent systems(i.e, systems that use
more than one AI method).
3. APPLICATIONS OF
AI
3.1 FINANCE :
3.1.1 Banking :-
Organize operations, invest in
stocks, and manage properties. In August
2001,robots beat humans in a simulated
financial trading competition. Some other
applications in this section include loan
investigation ,ATM design, safe and fast
banking etc….
Simularity is among the few companies
worldwide doing distributed deep learning
ideally suited to multi-location global BFSC
(Banking and Financial Services
Companies). It captures multivariate time
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series patterns representing the patterns to
predict anomalies and sends alerts 50%
more accurately than machine learning
algorithms that can be annotated and are
explainable. With Huge ROI Gains,
Financial Services Industry is Spearheading
Diverse AI Applications As much as a 40%
rise in productivity was reported by banks
coming from diverse Artificial Intelligence
(AI) applications including productive
assistants. A survey of 424 senior executives
from financial services and fintech
companies released in March 2016 by law
firm Baker McKenzie found that 49% of
respondents expected their organization to
use AI as part of its risk assessment process
within the next three years. While 29%
expected AI use in know-your-customer and
anti-money laundering monitoring, those
citing regulation, risk and compliance
constituted 26% of the survey respondents.
Darren Williams, Executive VP and Chief
Risk Officer at United Bankshares expects
AI to help reduce inefficiency in its
monitoring processes from 95% to 50% or
less with the trial of new technology leading
to 30%-40% cost savings. The seemingly
wide range of emerging AI solutions in the
financial sector are now expected to be
triggered by new capabilities to process high
speed and high volume data aided by cloud
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computing with advanced deep learning
techniques. AI leverages a set of
technologies rather than one single product
or system. The most popular proposition is
that of teaching machines to learn and
interact to solve cognitive tasks normally
done by humans. The implications extend to
computers resolving problems, reasoning,
processing natural language and much more.
The Drivers Identified for Simularity AI
This progress in technology is also propelled
by the enormous volume of data from
customers and market players with the
automation as well as digitalization of
financial services – banking, insurance and
trading. Data explosion is clearly the key
enabler. One can now dive into more than
10 years of banking, insurance, mortgages
and financial trading history for every single
of the million transactions that take place
daily. This data could then be applied to
deep learning to train and construct
applicable algorithms to offer insight,
improve decisions, mitigate risk and detect
minor to major anomalies to prevent frauds
or disasters. AI technologies are currently
being applied by the banking industry in the
realm of knowledge management, identity
authentication, market analysis, CRM, anti-
money laundering and risk control.
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Here is a listing of AI application needs (not
necessarily in that order of priority) captured
from a Global bank, based on an interactive
session conducted by Simularity with the
bank’s Executive Director at San Francisco,
who is scouting for technology solution.
Money laundering – very involved cross
border data tracking and intelligence on
transactions Fraud detection – anomaly
detection and predictive analytics (ready
pilot) Compliance - help in recovering layers
of bank documentation/data to meet
regulatory policies (evolving) Correlating
and linking multivariate transaction data -
individual and business accounts (ready
pilot) Analyzing behavioral data captured
from all online activities and those from
digital devices including smart watches for
personalization based on spending and other
preference patterns (some form in use)
International Trade – web and digital space
crawling to map buyers/suppliers’ data to
generate leads for contacting potential
clients. Network analysis of trade
transaction databases to find details of
connectedness of companies (ready pilot)
Financial markets – tracking to detect
anomalies in the behavior of key players
(some form in use) Marketing and lead
generation AI products are gaining
acceptance. Goldman Sachs, Amex and Citi
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Ventures funded Persado software. This
software uses AI and a massive database of
marketing performance metrics to suggest
language that can elicit certain emotional
responses to advertising and email subject
lines. It can also warn marketing teams
about cultural sensitivities to certain words
and timing of campaigns. The software is
used by 80 global brands including financial
services firms Citi and AmEx as well as
software giant Microsoft and retailers
Neiman Marcus and Sears. The software can
be used to fine tune email campaigns,
Facebook messages, websites, display ads,
and text messages. Simularity Positioning
and Scoping To leverage AI, banks are also
aggressively recruiting statisticians and data
scientists, who dabble with new uses of data
across the banking and financial services
sector, aiming to significantly better services
and enhance profits. The market space is
getting crowded by AI companies engaged
in bot messaging/support, document
discovery, simple machine learning, voice
analytics, crawling techniques and generic
algorithm based trading. Deep learning and
real time data analytics are gradually on the
rise. Simularity can leverage its proprietary
platform to capture real time as well as
historical time series data for deep learning
and predictive analytics to improve
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stakeholder relationship and mitigate risk. It
has the capability of self-configuring and
adaptive spatio-temporal reasoning to make
predictions based on multivariate patterns it
discovers. This opens up the scope for cost
savings as well as higher returns for banks,
insurance and trading companies.
Simularity’s high speed self-learning
process actually dispenses the need for
costly data scientists at several stages.
Rather, such professionals could delve on
last mile decision making on cost benefit
analysis and aligning insights with the short
and long term goals. Deep Learning,
Insights and Recommendation Engine From
the client’s data center or cloud, Simularity
accesses data to construct application based
algorithms through deep learning for
predictive analytics and recommendation
engines. Alerts are sent after anomaly
detection or deviation from the deduced
signature pattern. The technology platform
could be seamlessly integrated with
proximity as well as remote sensing
technologies for data capture. Simularity’s
data processing capabilities range from
structured and unstructured data to camera
images including low resolution satellite
imaging. So, with the proliferation of AI
applications in the financial sector,
Simularity is well positioned with its impact
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generating uses cases offering further others with sophisticated algorithmic

insight. Its helping an insurance major to
derive intelligence and make
recommendations from customer online
behavior. The horizontal nature of
Simularity applications with low switch cost
and time across diverse banking
applications, make its solutions amenable
and attractive. It could also tap the
burgeoning Financial Services sector in
multiple ways investors is expected to
expand AI usage in global financial markets.
A report from the US Commodity Futures
Trading Commission cited that algorithmic
trading systems were responsible for nearly
80% of foreign exchange futures trading
volume, 67% of interest rate futures volume,
62% of equity futures volume, 47% of
metals and energy futures volume, Why do
Banks and Financial Services use AI? In the
Baker and McKenzie survey carried out with
Euromoney, three main problem areas for
banks to apply AI include risk management,
financial analytics and investment/portfolio
management. It’s all about decision making
- internally by the banks and externally on
the client side. These could range from
decision on branch office location, loan
optimizing, customer preferences and
investment advice. AI is impacting the
Financial Services sector more than the
trading, posing a serious challenge for
traders as well as regulators. Demand for
non-equity trading algorithms serving
institutional asset managers and retail and
38% of agricultural product futures volume
between October 2012 and October 2014.
Algorithms were deployed to manage risk
and exposure. Thomson Reuters’ recent
report estimates algorithmic trading systems
to be handling 75% of the volume of global
trade and industry insiders predict steady
future growth. Three prime reasons cited for
Algorithmic Products are: 1. Futures and
institutional investment market trigger
demand for innovation in wide ranging
algorithms. 2. New regulations and
compliance in institutional investment
markets compel extensive automation of
trading in assets that were traditionally not
digitalized. One instance is the anticipated
shift from telephone to electronic trading in
fixed income markets.
3. As the retail trading market continues to
expand globally, it opens up algorithmic
trading to new areas pushing for enhanced
tech applications driven by AI The focus is
now more on speed and correlating multiple
variables thus opens up extensive
opportunities for Simularity. Market players
are now looking for the ability to chase

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short-lived opportunities across different predict and classify information to make

venues, asset classes and geographies. data-driven decisions much like the
Simularity goes Deeper, beyond Algorithms solutions Simularity offers. Banks and
to Machine Learning Technology Markets fintech companies use machine learning to
recognize the significance of machine detect fraud by flagging unusual transactions
learning, whereby the algorithms learn from and other trends. This is more efficient than
their mistakes to ensure greater accuracy of human monitoring to become the norm in
predictive analytics. Some investment banking and finance.
management houses are now employing risk
Championing Transformation in Banks
premia or smart beta strategies. Its argued
Consumers, particularly millennials, prefer
that with improvements in back-testing,
digital servicing channels over branch office
execution and liquidity, it is possible to
visits or calling in. With digital voice
account for the slippage factors and margin
assistants like Siri, Google Voice, Alexa and
requirements. Trading algorithms would
Cortana, machine learning based AI applied
assess the best liquidity providers during
to customer servicing is another big
execution. With more sophisticated machine
opportunity for retail banks and help
learning and algorithms, regulators are better
reducing cost of serving customers. This
equipped to prevent major accidental market
again throws up rich data for Simularity AI
movements. Tony Virdi, banking and
solutions to offer further insights by
financial services head in the UK and
capturing customer data from digital
Ireland of Cognizant says - as machine
assistants for anomaly detection and
learning improves, further growth of
predictive analytics. Just to draw an analogy,
algorithmic trading is expected. Machine
the enterprise digital assistant needs to
learning advanced rapidly over past 10 years
combine a Siri-like speech interface, a
with more flexible and cost-effective
Google-like knowledge of stakeholder
solutions that banks could implement, even
interests and an IBM Watson-like ability to
with their traditional IT systems. Computers
reason. With such integration, Simularity
analyze new information and compares it
can solve more complex problems through
with existing data to look for patterns,
predictive analytics and anomaly detection.
similarities and differences. With repetitive
Many vendors in the enterprise search space
process, the machine improves its ability to
are working toward unified information

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access - prerequisite for deriving insights by
correlating information. The attempt by
banks would be to get beyond silos and
correlate disparate pieces of information.
Key to making use of correlated data is the
interface between the user and the data that
Simularity platform could suitably address.
AI to become more Ubiquitous As evident,
AI is already impacting the financial sector
and being used daily within payment
systems, money management and for robo-
advice. As already cited, intelligent digital
assistants cope with regular customer
service enquiries and tasks. It can process
big data far more efficiently than humans
and recognize speech, images, text, patterns
of online behavior. These technologies help
to detect fraud and support appropriate
advertisements for upselling. With the likes
of Persado, there is also immense scope for
AI to drive customer loyalty for banks.
Large Financial Services organizations are
already using AI to deliver personalized
advice to their wealthy clients. Several
others invested in AI to answer complex
financial questions posed by customers.
Voice banking and selfie pay to gain
popularity in near future. Robo advisers as
AI applications are getting robust over time.
Digitalization and automation with the use
of smart tools for customer support services
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are pushing AI solutions. The objective is to
develop systems and platforms that not only
resolve customer queries but also drive sales
through recommendations engines. Nguyen
Trieu, Fintech Resident Expert, Oxford
University and CEO of The Disruptive
Group, says the deployment of robo advisers
depends on how effectively the banks are
able to manage customer data. Santander
bank in London offers secure transactions
using voice recognition through its banking
app whereas, Royal Bank of Scotland is
trying out its’s AI customer service
assistance tool Luvo to interact with staff to
serve future customers. Swedbank’s Nina
Web assistant hit an average of 30,000
conversations per month and its first-contact
resolution of 78% during the first three
months. Nina can handle over 350 different
customer questions and answers. Several
other banks in US and elsewhere are putting
in place such AI tools and platforms with
active trials. Ally Bank launched Ally
Assist, which displays on the smartphone
screen answers to texted or voice queries on
bill payment initiation, recent transactions or
routing numbers. These suggests what the
customer like to do next. Other banks
offering virtual assistants include USAA,
Tangerine in Canada and Garanti Bank in
Turkey. Kensho in Cambridge,
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Massachusetts, is pioneering scalable Personalization is high on the agenda of

analytics and machine intelligence systems - banks. As several of them are deploying
deploying them across the most critical innovative ways to match products and
government and commercial institutions in services to the consumer. For the customer,
the world. This extends to complex indices the technology can simplify the money
driving industry verticals. The Wall Street management process and offer suggestions
Journal says Kensho is building a Siri for the and recommendations for upgrades and new
Financial industry services by matching algorithms. There are
agile companies leveraging personal
These organizations, alongside new
financial management (PFM) benefits like
challenger banks and payment providers, are
the San Francisco startup Wallet.AI – an app
leading the way in intelligent banking, with
to empowering consumers to make efficient
other traditional banks and financial
purchase decisions, manage finances and
institutions following them. Financial
enable cost savings leveraging smart tools.
services, as a whole, will save billions
For marketing and promotion of banks, AI
annually when AI and robotic banking
applications could identify the
technologies that are more efficient and less
characteristics of high-yield customers by
expensive than humans, are used to provide
mining existing data. “With their ability to
services to customers. AI and robotic
fully understand the market, customers, and
banking could be game-changer in locating
regulatory changes through data, banks are
and recovering assets from foreign nationals
in the best position to apply these
who defrauded banks in Asia and fled to
technologiesin risk control, credit analysis,
other countries. AI could predict where
market tracking and customer demographic
certain foreign nationals escaped and which
mining,” says Hua Zhang, an analyst with
global banks may be assisting them to move
Celent - a research and consulting firm
money internationally. Predicting both the
focused on IT applications in the global
activities of foreigners and of the banks
financial services industry. Multiple
could help swift and efficient recovery of
regulations since the 2008 financial crisis,
assets. The same AI tech can be used for
banks recruited numerous compliance
predicting terrorist financing activities and
officers, who are now relying on AI to
preventing fraud.
grapple with the persistently transforming

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regulatory scenario. Ranging from must compile information from many

antimoney laundering programs, know-your- different sources. Each bank also needs to
customer checks, sanctions list monitoring, have theirsystem that provides total
billing fraud auditability to track who did what, and
when. AI has to be very context specific
oversight or other general compliance
here to address the systems adopted by the
functions, AI could be deployed to improve
banks. The systems need to be configurable,
efficiency, eliminate erroneous results, slash
intuitive and logic-driven to quickly switch
costs and raise productivity with optimal use
from anti-money laundering monitoring to a
of employee time and resources. NextAngles
know-your-customer investigation and be
uses AI to help banks with compliance
scalable for types of banks. Distributed deep
monitoring. Its natural language processing
learning technologies like that of Simularity
system reads through regulations to
are in demand for compliance alerts using
reassemble the words into a set of computer-
structured data, semi-structured data and
understandable rules. Its Chief Executive
unstructured data. In the realm of wealth
Mallinath Sengupta says that large banks are
management, OpenFinance takes data from
required to scan over 300,000 cash
multiple sources, analyzes and aggregates to
transactions of $10,000 or more every
distribute to banks and financial institutions.
month as part of their anti-money laundering
The technology deployed allows the
programs. While several of these could be
company to access information from
false-positives, that still leaves around 1,000
numerous institutions, put it into a “common
cases to be investigated. Each such
language” so it can be worked on, then
investigation takes a couple of hours of
return it to each institution in the form they
wasteful time spent. AI-driven programs
want, says Edward Loughran, the MD. This
determine those requiring investigation so as
allows OpenFinance to handle investment
to allow compliance professionals to tap
portfolio, asset management and various
their expertise and swiftly resolve the cases.
transactions data. With common
Rage Frameworks, which provides
nomenclature, it allows bank compliance
knowledge-based document interpretation
departments to access larger data to detect
services, said banks deal with several
those most likely to be affected by new rules
hundreds of regulatory changes each month
that need to be adopted immediately and

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and also which section of the business gets and recommendations for upgrades with
impacted. new services by matching algorithms. We
have interesting examples of companies
Lavastorm software offers analytic data
exploring personal financial management
processes to help bridge the gap between an
(PFM) like the San Francisco based start-up
organization’s technology people and
Wallet.AI - a new app to help consumers
business people is leveraging AI to eliminate
make smarter purchase decisions, manage
project bottlenecks. Its VP, Dan Donovan
finances and make savings while on the
emphasizes the need as it makes the process
move. Google’s Rat Kurzweil predicts
more agile, reducing the use of traditional
robots will reach human levels of
“waterfall approach” where the business
intelligence by 2029 if they can overcome
people document the regulatory
current limitations – the point termed as
requirements and sent them to a
Singularity.
disconnected tech team to develop some
functionality toward those requirements that Advent of Robots Mizuho Financial Group
they may not understand. Thus, in addition bank introduced Pepper (the world’s first
to being faster and more accurate, AI should humanoid robot with human emotions,
make compliance easier. Banks spend much developed by Softbank, one of Japan’s
time and effort on comprehensive capital biggest telecommunications companies, in
analysis and review, conduct stress tests collaboration with Paris-based robotics
thereby duplicating the work for the next experts, Aldebaran) to its flagship branch in
reporting period. This kind of approach Tokyo after mid 2015 to address customer
works better than operating with separate enquiries. Whereas, Mitsubishi UFJ
analyses and silos that have to unroll and Financial Group trialed “Nao”, a humanoid
then roll back to converse with regulators. robot to interact with customers. Robotics
Advanced Technologies, Robotics and are already being used for back office tasks,
Customer Benefits Personalization is but Pepper and Nao are pushing the
priority for banks and many are dabbling boundaries of what an autonomous, AI robot
with smarter ways to match products and can do within a banking setting. Pepper is
services to the consumer. For the customer being used in customer services as
the technology can simplify the money replacement to information booth or
management process and offer suggestions welcome desk. A partnership with IBM

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implies the Watson-powered version offers a solutions directly with clients as well as
service that developers can build into their strategic partners. It’s also critical to work
apps or devices to make them smarter by with leading banks and their partners on
analyzing data, making personal major projects to combat cyberattacks and
recommendations and even understanding cybercrimes. Retail Case – the Simularity
human language and emotion. The Watson- ROIthat could be readily deployed in banks
powered Pepper will be able to tap into data and financial services companies Simularity
such as social media, video, images and text Code In Production Since 2012 “Simularity
with more types of jobs in development. gives us an edge that other recommendation
Cognitive Computing and AI Applications services just can’t offer: better and faster
in Financial Services Financial services recommendations, powered by all our data,
organizations are aggressively tracking AI on a single inexpensive server.” Casey
technologies to plan future initiatives. Carey, VP of Marketing, Alibris - Simularity
Businesses are discovering and Uses High Performance Correlation Engine
implementing innovation with venture for recommendations o Product
capital and captive incubators to groom and recommendations for alibris.com and
deploy new technologies. With the growth halfpricebooks.com o Personalized
of automated services, AI and robotics are recommendations for marketing emails - 18
compelling traditional banks, financial million products, 45 million actions - Better
services and payment providers to work (more complex) algorithm - Custom
closely with proposition designers, coders, business rules: no self-help books -
developers and marketers to identify new Measurable Results o Proven in live A/B
concepts and astutely commercialize them. test Repeat rate up 5.8 Revenue Per Visitor
Simularity solutions are aligned in servicing up 8.9% Average Order Value up 7.5%
clients directly, through partners and system Orders/session up 13.2% o Speed of
integrators. As Financial Services recommendation generation improved
companies declare war on hackers investing dramatically Simularity is already into
millions of dollars towards AI integration to project mode with insurance and banking
offer security against fraud and theft to build companies. With few iterations and
sustained and transparent relationship with deployments, it could offer packaged
customers, Simularity needs to co-create products by co-creating with players in the

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Financial Services sector. Through the
integration of its deep learning AI platform,
Simularity’s predictive analytics with
recommendation engines are well positioned
to solve big ticket and complex problems
like customer behavior, fraud detection,
managing risk in compliance, financial
exposure and investment portfolios.
3.2 Heavy industries:
Huge machines involve risk in their
manual maintenance and working. So in
becomes necessary part to have an efficient
and safe operation agent in their operation.
Fig – 2: AI in Heavy Industry
The general vision behind the subject of the
present chapter is the same that underlies the
entire Topic Artificial Intelligence and
Expert Systems in Energy Systems
Analysis: at the present state of technology,
designers and energy planners alike have
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realized that the real possibility exists of
freeing technical workers (blue- and white
collars alike) from what is perceived as the
“drudgery of labor”. There is common
agreement on the fact that the concrete
possibility exists of building machines that
perform “human-like” tasks, mimicked and
organized after the physical and intellectual
activities a human worker would perform on
his/her own. Such a vision has of course
been widely publicized in science fiction
books and movies: what we attempt to
describe here is obviously not fiction, but
real applied science. The enormous
advances in AI techniques and applications
in the latest years have been supported and
indeed made possible by the ever
accelerating pace of the development of
modern computational facilities (in this
context meant as both hardware and
software), which have allowed the allocation
of hitherto unforeseen amounts of computer
resources (in terms of both CPU and
computational speed) to industrial users: this
has been the fall-out of a previous scientific
work, witnessed by the almost incredible
number of high-level publications in
theoretical and applied AI work. We are
reaching a level at which scientists begin to
ask questions like “how intelligent can
machines be?”, whereas only few years ago
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the problem was still open whether
“machines could think”. Obviously, there
are well defined limits to the intrinsic ability
of a man-made “machine” to “think”, and
some of the basic problems are discussed in
Artificial Intelligence and Energy Systems:
Scope and Definition: what is now clear is
that some of the analytical qualities of
human thinking can be captured by suitable
artificial systems. Obviously, machines can
(and are expected to) do only specifically
defined and highly specialized work,
perhaps complex, but definitely limited in
scope: the fact is, the complexity of the tasks
AI codes can perform is ever increasing, and
the limits of their applications are being
continuously shifted to “higher” levels. At
the same time, the “intelligence” these codes
possess is now recognized as a mere mirror
and application of its human counterpart:
even the most “intelligent” programs are, in
fact, only as intelligent as their creators can
(and want!) to make them. After an initial
euphoric state of affairs, which led to an
attitude that “machines can perform all tasks
humans can perform”, a more sober view is
now gaining ground. The relatively
disappointing high number of unfulfilled
promises and the inherent difficulties
encountered in the transition from “paper
paradigms” to “machine shop tools” has led
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to a present state of affairs in which man has
recognized that, while there is in effect no
theoretical limit to the amount of knowledge
an artificial system may possess, its ability
to successfully perform even relatively
simple tasks with the flexibility, the non-
linearity and the inherent complexity of
human mind is substantially limited by a
series of factors that include reliability,
transparency, ease of access and feedback-
control of the outcome. The field is still, if
not in its infancy, at least in its adolescence,
and some of the excesses and failures of
these systems are strikingly similar to the
“mistakes” an adolescent makes while
learning new and more complex tasks. Our
goal here is to report on present applications
and outline their merits and limits, and to
stimulate researchers and users to “think
ahead” and to look for possibilities of
enhancing the breadth and the depth of
practical applications, with the final goal of
improving the resource effectiveness of
industrial systems and, in the present
context, specifically of energy systems.
2. Possible Applications In line of principle,
there are very few activities in the
Engineering field that cannot be performed
by an “automated” tool working under the
paradigms of Artificial Intelligence (for a
better definition both of the meaning of AI
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and of its tools, see Artificial Intelligence alternative configurations; process

and Energy Systems: Scope and Definition). optimization.
In the specific area of Energy Systems,
3.3 Music :
possible AI applications can be classified as
follows: a) Process Monitoring & Control ƒ Scientists are trying to make the
Low level control: intelligent mass- and computer emulate the activities of the
power control; temperature, pressure and skillful musician. Composition,
phase composition control; ƒ Fault detection performance, music theory, sound
and alarming; sensors diagnostics; processing are some of the major areas on
which research in Music and Artificial
ƒ Process Diagnosis: implementation of
Intelligence are focus on.
complex control decisions based on flexible,
non-deterministic strategies. ƒ High-level 3.3.1 Orb Composer

control: access and clarification of A program developed by Hexachords and

information about process parameters; ƒ directed by Richard Portelli, mainly focused
Analysis of crucial events; ƒ On-line on orchestral music.
decision support; training. b) Scheduling and 3.3.2 EMI
Planning ƒ Production planning, cost
A program developed by David Cope which
accounting (via material and energy
composes classical music. See Experiments
accounting); high-level reasoning about
in Musical Intelligence. Emily Howellis an
process dynamics; handling of conflicting
interactive augmentation of EMI. (As a
constraints. c) Fault Diagnostics and
popular example, the background music of
Maintenance ƒ Systematic analysis of
the viral video Humans Need Not
equipment- and process status; proper
Apply was created by "her", as revealed in
handling of process response to faults;
the video to illustrate the likely fate of
systematic analysis of equipment failures;
creative jobs.)
optimal dynamic load scheduling. d) Design
3.3.3 Orchestra
ƒ Generation of alternative designs;
integration of existing process This program was designed to provide
configurations; comparative analysis of small-budget productions with
instrumentation for all instruments usually

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present in the full-fledged orchestra. If there piece follows the soloist (user) despite
is a small orchestra playing, the program can tempo changes and/or mistakes.
play the part for missing instruments. High Demo:
school and community theaters wanting to
3.3.5 SmartMusic
produce a musical can now benefit from the
virtual orchestra and realize a full Broadway SmartMusic is an interactive, computer-
score. This software is able to follow the based practice tool for musicians. It offers
fluctuations in tempo and musical exercises, instant feedback tools, and
expression. Musicians enjoy the thrill of accompaniments meant to aid musicians.
playing with a full orchestra, while the The product is targeted at teachers and
audience enjoys the rich sound that comes students alike and offers five categories of
from the combination of the virtual orchestra accompaniments: solo, skill development,
with the musicians. method books, jazz, and ensemble. Teachers
can give students pre-defined assignments
Demo:
via email and scan in sheet music that is not
3.3.4 Computer Accompaniment yet in the SmartMusic catalog. Students can
(Carnegie Mellon University) choose the difficulty level they want to play
The Computer Music Project at CMU at, slow down or speed up the tempo, or
develops computer music and interactive change the key in which to play the
performance technology to enhance human piece. SmartMusic also compares students'
musical experience and creativity. This playing with digital template, which allows
interdisciplinary effort draws on Music it to detect mistakes and mark them on a
Theory, Cognitive Science, Artificial score. It also simulates the rapport between
Intelligenceand Machine Learning, Human musicians by sensing and reacting to tempo
Computer Interaction, Real-Time changes.
Systems, Computer Graphics and
3.3.6 StarPlayIt
Animation, Multimedia, Programming
StarPlay is also a music education software
Languages, and Signal Processing. One of
that allows the user to practice by
their project is similar to SmartMusic. It
performing with professional musicians,
provides accompaniment for the chosen
bands and orchestras. They can choose their
spot and watch the video from that spot.

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They can hear the other musicians playing. 3.3.9 REAPER's TabEditor
Again, the program listens to the user's MIDI to string instrument (guitar, violin,
performance and helps them improve their dombra, etc.) tablature conversion is a
performance by providing constructive nontrivial task, as the same note can reside
feedback as they rehearse. StarPlay was on different strings of the instrument. And
developed by StarPlayIt (formerly In The the creation of good fingering is sometimes
Chair), a music technology company that a challenge even for real musicians,
has won many awards for its platforms for especially when translating a two handed
online musical performance and piano composition on a string instrument. So
participation. in TabEditor (the tiny plugin
3.3.7 ChucK for REAPER DAW), an AI was used that
Main article: ChucK solves this puzzle the same way as a
musician would: trying to keep all the notes
Developed at Princeton University by Ge
close to each other (to be possible to play)
Wang and Perry Cook, ChucK is a text-
while trying to fit all the piano notes into a
based, cross-platform language that allows
range that can be played simultaneously on
real-time synthesis, composition,
the instrument. When direct translation is
performance and analysis of music. It is
impossible (piano part has more notes than
used by SLOrk (Stanford Laptop
are possible on the guitar) the AI tries to
Orchestra) and PLOrk (Princeton Laptop
find an acceptable solution, removing as few
Orchestra).
notes as possible from the original
Demo
composition. The Prolog programming
3.3.8 Impromptu language was used to create this AI.

The Impromptu media programming

environment was developed by Andrew
Sorensen for exploring 'intelligent'
3.3.10 Ludwig
interactive music and visual systems.
Impromptu is used for live coding Ludwig is an automated composition

performances and research including software based on tree search algorithms.

generative orchestral music and Ludwig generates melodies according to

computational models of music perception. principles of classical music theory. The

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 ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS
software arranges its melodies with pop-
automation patterns or in four-part choral
writing. Ludwig can react in real-time on an
eight-bar theme played on a keyboard. The
theme will be analysed for key, harmonic
content and rhythm while it is being
performed by a human. The program then
without delay repeats the theme arranged
e.g. for orchestra. It subsequently varies the
melody to create a little piece as interactive
answer to the human input.
3.3.11 OMax
OMax is a software environment which
learns in real-time typical features of a
musician's style and plays along with him
interactively, giving the flavor of a machine
co-improvisation. OMax uses OpenMusic
and Max. It is based on researches on
stylistic modeling carried out by Gerard
Assayag and Shlomo Dubnov and on
researches on improvisation with the
computer by G. Assayag, M. Chemillier and
G. Bloch (Aka the OMax Brothers) in the
Ircam Music Representations group.
3.3.12 Melomics
Melomics is a proprietary computational
system for the automatic (without human
intervention) composition of music, based
on bioinspired methods and produced by
Melomics Media. Composing a wide variety
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of genres, all music composed by Melomics
algorithms are available in MP3, MIDI,
MusicXML, and PDF (of sheet music), after
purchase. Music composed by this algorithm
was organized into an album named Iamus
(album), which was hailed by New Scientist
as "The first complete album to be
composed solely by a computer and
recorded by human musicians.”
3.3.13 MorpheuS
MorpheuS is a research project by Dorien
Herremans and Elaine Chew at Queen Mary
University of London, funded by a Marie
Skłodowská-Curie EU project. The system
uses an optimization approach based on a
variable neighborhood search algorithm to
morph existing template pieces into novel
pieces with a set level of tonal tension that
changes dynamically throughout the piece.
This optimization approach allows for the
integration of a pattern detection technique
in order to enforce long term structure and
recurring themes in the generated music.
Pieces composed by MorpheuS have been
performed at concerts in both Stanford and
London.
3.3.14 Flow Machines
Flow Machines is a research project funded
by the European Research Council (ERC)
and led by François Pachet. Flow Machines
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 ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS

aims at transforming musical style into a world. Robots can be put into three main
computational object to apply to AI- categories:
generated melodies and harmonies. Flow
a) Manipulators
Machines has composed two fully-fledged
b) Mobile robots
pop songs, issued from a collaboration
c) Humanoid
between the AI software and pop composer
Benoît Carré: Daddy's Car and Mister
Shadow. Flow Machines also produced
DeepBach, a neural network system which
produces harmonisation in Bach style
indiscernible from original Bach's
harmonisations.

3.3.15 AIVA

Created in February 2016, AIVA specializes

in classical and symphonic music
composition. It became the world’s first
virtual composer to be recognized by a
music society (SACEM). By reading a large
collection of existing works of classical
Fig -3: Robot
music (written by human composers such as
Bach, Beethoven, Mozart) AIVA is capable The base object is the agent who is the
of understanding concepts of music theory “actor”. It is realized in software. Robots are
and composing on its own. The algorithm manufactured as hardware. The connection
AIVA is based on deep learning and between those two is that the control of the
reinforcement learning architectures robot is a software agent that reads data
from the sensor decides what to do next and
Eg: chucks , Orchestra, smart music etc..
then directs the effectors to act in the
3.4 Robotics : physical world.

Robots are physical agents that 3.5 Antivirus:

perform tasks by manipulating the physical

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 ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS

Artificial intelligence (AI) Eg: sudoko, fear, fallout etc..

techniques have played increasingly
important role in antivirus detection. At
present, some principal artificial intelligence
techniques applied in antivirus detection.

It improves the performance of

antivirus detection systems, and promotes
the production of new artificial intelligence
algorithm and the application in antivirus
detection to integrate antivirus detection
with artificial intelligence.

3.6 Robotics and AI:

Artificial Intelligence is a theory the

base object is the agent who is the “actor” it
is realized in software. Robots are Fig -4: AI in Gaming
manufactured as hardware. The connection
3.8 Medicine :
between those two is that the control of the
robot is a software agent that reads data A medical clinic can use AI system

from these sensors decides what to do next to organize bed schedules, make a staff

and then and then directs the effectors to rotation, and provide medical information.

acts in the physical world. AI has also application in fields of

cardiology(CRG), neurology (MRI),
3.7 Gaming:
embryology (sonography), complex

In the earlier days gaming operations organs etc.

technology was not broadend physicist

Willy Higinbotham created the first video
game in 1958. It was called “Tennis For
Two” and was plan oscilloscope. But now
AI technology has became vast and standard
has also been increased .

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Fig- 5: AI in medicine
Artificial intelligence (AI) is defined as ‘a
field of science and engineering concerned
with the computational understanding of
what is commonly called intelligent
behaviour, and with the creation of artefacts
that exhibit such behaviour’.1 Aristotle
attempted to formalise ‘right thinking’
(logic) through his syllogisms (a three part
deductive reasoning). Much of the work in
the modern era was inspired by this and the
early studies on the operation of mind
helped to establish contemporary logical
thinking. Programs which enable computers
to function in the ways, that make people
seem intelligent are called artificial
intelligent systems. The British
mathematician Alan Turing (1950) was one
of the founders of modern computer science
and AI. He defined intelligent behaviour in a
computer as the ability to achieve human-
level performance in cognitive tasks, this
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later became popular as the ‘Turing test’.2
Since the middle of the last century,
researchers have explored the potential
applications of intelligent techniques in
every field of medicine.3,4 The application
of AI technology in the field of surgery was
first successively investigated by Gunn in
1976, when he explored the possibility of
diagnosing acute abdominal pain with
computer analysis.5 The last two decades
have seen a surge in the interest in medical
AI. Modern medicine is faced with the
challenge of acquiring, analysing and
applying the large amount of knowledge
necessary to solve complex clinical
problems. The development of medical
artificial intelligence has been related to the
development of AI programs intended
to help the clinician in the formulation of a
diagnosis, the making of therapeutic
decisions and the prediction of outcome.
They are designed to support healthcare
workers in their every day duties, assisting
with tasks that rely on the manipulation of
data and knowledge. Such systems include
Artificial neural networks (ANNs), fuzzy
expert systems, evolutionary computation
and hybrid intelligent systems. Artificial
neural networks Judging by the volume of
publication in the last two decades, ANN is
the most popular AI technique in medicine.6
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 ARTIFICIAL INTELLIGENCE AND ITS APLLICATIONS
ANNs are computational analytical tools
which are inspired by the biological nervous
system. They consist of networks of highly
interconnected computer processors called
‘neurons’ that are capable of performing
parallel computations for data processing
and knowledge representation. Their ability
to learn from historical examples, analyse
non-linear data, handle imprecise
information and generalise enabling
application of the model to independent data
has made them a very attractive analytical
tool in the field of medicine. McCulloch and
Pitts (1943) invented the first artificial
neurone using simple binary threshold
functions.7 The next important milestone
came when Frank Rosenblatt, a treatment and predicting outcome in many
psychologist, developed the Perceptron in
19588 as a practical model. Many variations
of the basic Perceptron network have been
proposed but the most popular model has
been multilayer feedforward Perceptron
(Fig. 1). These networks are made up of
layers of neurons, typically an input layer,
one or more middle or hidden layers and an
output layer, each of which are fully
connected to other layer. The neurons are
connected by links, and each link has a
numerical weight associated with it. A
neural network ‘learns’ through repeated
adjustments of these weights. One of the
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important characters of ANNs is that they
can learn from their experience in a training
environment. The use of multilayer feed
forward Perception was restricted by the
lack of a suitable learning algorithm until
Paul Werbos (1974) a PhD student
introduced ‘back propagation’ learning.9
Some of the other popular network designs
include Hopfield networks,10 Radial Basis
Function11 and the Self-Organizing Feature
Map.12 ANNs have already found a wide
variety of applications in the real world.
Their ability to classify and recognize
patterns accurately has attracted researchers
to apply them in solving many clinical
problems. As we realize that diagnosis,
clinical situations is dependent on a complex
interaction of many clinical, biological and
pathological variables there is a growing
need for analytical tools like ANNs which
can exploit the intricate relationships
between these variables. Baxt was one of the
first researchers to explore the clinical
potentials of ANNs.13 He developed a
neural network model which accurately
diagnosed acute myocardial infarction and
latter prospectively validated his work with
similar accuracy.14 Since then, ANNs have
been applied in almost every field of
medicine. Diagnosis ANNs have been used
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in the clinical diagnosis, image analysis in radiographs,27 ultrasound,28 CT,29 MRI,30

radiology and histopathology, data and radioisotope scans.31 ANNs pattern
interpretation in intensive care setting and recognition ability has been used to analyse
waveform analysis. Stamey et al. 15 various wave forms including the
developed a neural network derived interpretation of ECGs to diagnose
classification algorithm called ProstAsure myocardial infarction,32 atrial fibrillation,33
Index which can classify prostates as benign and ventricular arrythmias.34 Analysis of
or malignant. This model which was electro-enchalograms (EEG) by neural
subsequently validated in prospective networks has led to its application in the
studies had a diagnostic accuracy of 90%, diagnosis of epilepsy35 and sleep
with a sensitivity of 81% and specificity of disorders.36 They have also been trained to
92%. Some of the other surgically relevant analyse electromyographic (EMG)37 and
diagnostic applications of ANNs include Doppler ultrasound38 wave forms as well as
abdominal pain and appendicitis,16 retained haemodynamic patterns in intensive care
common bile duct stones,17 glaucoma,18 patients.39 Prognosis Prognostication is
and back pain.19 ANNs have also been used extremely important in planning appropriate
in diagnosing cytological and histological treatment strategies and follow-up. Accurate
specimens. PAPNET, a computerized identification of high-risk patients may
automated screening system based on neural facilitate targeted aggressive adjuvant
networks, has been developed to assist the therapy which may help cure the disease and
cytologist in cervical screening and is one of prolong survival. ANNs with their ability to
the few ANN models which was promoted exploit non-linear relations between
commercially.20 Breast,21 gastric,22 variables are particularly suitable to analyse
thyroid,23 oral epithelial cells,24 urothelial complex cancer data. It has been
cells,25 pleural and peritoneal effusion demonstrated that neural networks can
cytology26 have all been subjected to predict survival in patients with breast and
analysis by neural networks with varying colorectal cancer.40,41 ANNs have also
degree of success. In radiology, it is possible shown to perform better than consultant
to use both human observations and direct colorectal surgeons in predicting outcome in
digitized images as inputs to the networks. patients with colorectal cancer.42 The
ANNs have been used to interpret plain authors of this paper have demonstrated the

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generalisability of ANNs, once trained on a computationally effective manner. Zadeh

particular data, the networks were able to wrote in 1969 that: ‘the most likely area of
predict outcome for patients from an application for this theory lies in medical
independent institution with out retraining. diagnostics and, to a lesser extent, in the
ANNs have also been used to predict description of biological systems’.47 Fuzzy
outcome in lung43 and prostate cancers.44 expert systems have the structure of a series
They have been applied to predict outcome of ‘if – then’ rules for modelling (Fig. 2).
in intensive care unit and have performed The techniques of fuzzy logic have been
better than APACHE II severity of illness explored in many medical applications.
scoring system.45 Fuzzy expert systems Schneider et al. 48 showed that fuzzy logic
Fuzzy logic is the science of reasoning, performed better than multiple logistic
thinking and inference that recognizes and regression analysis in diagnosing lung
uses the real world phenomenon – that cancer using tumour marker profiles.
everything is a matter of degree. Instead of Similarly, the application of fuzzy logic has
assuming everything is black and white been explored in the diagnosis of acute
(conventional logic), fuzzy logic recognizes leukaemia,49 and breast50 and pancreatic51
that in reality most things would fall cancer. They have also been applied to
somewhere in between, that is varying characterise ultrasound images of the
shades of grey. It was popularized by Lofti breast,52 ultrasound53 and CT scan54
Zadeh (1965) an engineer from the images of liver lesions and MRI55 images
University of California.46 It uses of brain tumours. Fuzzy logic has also been
continuous set membership from 0 to 1 in used to predict survival in patients with
contrast to Boolean or conventional logic breast cancer.56 Fuzzy controllers have been
which uses sharp distinctions, i.e. 0 for false designed for the administration of
and 1 for true. Medicine is essentially a vasodilators to control blood pressure in the
continuous domain and most medical data is peri-operative period.57 They have also
inherently imprecise. Fuzzy logic is a data been used for the administration of
handling methodology that permits anaesthetics in the operating room.58
ambiguity and hence is particularly suited to Evolutionary computation Evolutionary
medical applications. It captures and uses computation is the general term for several
the concept of fuzziness in a computational techniques based on natural

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evolution process that imitates the prognosis, medical imaging and signal
mechanism of natural selection and survival processing, and planning and scheduling.
of the fittest in solving real-world problems. The principles of Genetic algorithms have
The most widely used form of evolutionary been used to predict outcome in critically ill
computation for medical applications are patients,45 lung cancer,60 melanoma61 and
‘Genetic Algorithms’. Proposed by John response to warfarin.62 They have also been
Holland (1975),59 they are a class of used in computerized analysis of
stochastic search and optimisation mammographic microcalcification,63 MRI
algorithms based on natural biological segmentation of brain tumours to measure
evolution. They work by creating many the efficacy of treatment strategies64 and for
random solutions to the problem at hand. analyzing computerized 2-D images to
This population of many solutions will then diagnose malignant melanomas.63,65
evolve from one generation to the next, Hybrid intelligent systems Each AI
ultimately arriving at a satisfactory solution technique has its own strengths and
to the problem. The best solutions are added weaknesses. Neural networks are mainly
to the population while the inferior ones are concerned with learning, fuzzy logic with
eliminated. By repeating this process among imprecision and evolutionary computation
the better elements, repeated improvements with search and optimisation. The
will occur in the population, survive and advantages of these technologies can be
generate new solutions. Most medical combined together to produce hybrid
decisions can be formulated as a search in a intelligent systems which can work in a
very large and complex space. For example: complementary manner. Their synergy
a cytologist analysing a cytological allows a hybrid system to accommodate
specimen to decide whether they are common sense, extract knowledge from raw
malignant or not, is searching in the space of data, use human-like reasoning mechanisms,
all possible cell features for a set of features deal with uncertainty and imprecision, and
permitting him to provide a clear diagnosis. learn to adapt to a rapidly changing and
Genetic algorithms exploit the mechanism unknown environment. There are many
of natural evolution to search efficiently in a different hybrid systems available and the
given space. They are applied to perform popular ones are ANNs for designing fuzzy
several types of tasks like diagnosis and systems, fuzzy systems for designing ANNs,

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and Genetic Algorithms for automatically
training and generating neural network
architectures. Once again, the application of
hybrid intelligent systems has been explored
in many diverse clinical scenarios. Some
examples include breast cancer diagnosis,66
analysis of microcalcification on digital
mammograms,67 diagnosis of coronary
artery stenosis,68 assessment of myocardial
viability,69 and control of the depth of
anaesthesia.
capacity of the human brain is probably of
the order of 10000 million binary digits.
Hence that we can say that as natural
intelligence is limited and volatile too world
may now depend upon computers for
smooth working
5. CONCLUSION
Till now we have discussed in brief
about artificial intelligence . we have
some of its principles its applications

3.9 Telecommunications: its achievements etc…. the ultimate

goal if institutions and scientists
Many telecommunications
working on the AI is to solve the
companies make use of heuristic search in
majority of the problems or to
the management of their workforces, for
achieve the tasks which we human
example BT Group has deployed heuristic
directly cannot accomplish . it is for
search in a scheduling application that
sure that development in this fields
provides the work schedules of 20000
of computer science will change the
engineers.
complete scenario of the world.

4. FEATURES OF AI

Looking at the features and its wide

application we may definitely, stick to
artificial intelligence. Biological intelligence
is fixed, because it is an old, mature
paradigm, but the new paradigm of non
biological computational and intelligence is
growing exponentially. The memory

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6. REFFERENCES

 Russell, Stuart J.; Norvig,

Peter (2003). Artificial Intelligence: A
Modern Approach (2nd ed.). Upper
Saddle River, New Jersey: Prentice
Hall. ISBN 0-13-790395-2.
 Kurzweil, Ray (2005). The Singularity
is Near: When Humans Transcend
Biology. New York: Viking. ISBN 978-
0-670-03384-3.
 National Research Council (1999).
"Developments in Artificial
Intelligence". Funding a Revolution:
Government Support for Computing
Research. National Academy
Press. ISBN 0-309-06278-
0. OCLC 246584055.
 Moghaddam, M. J., M. R. Soleymani,
and M. A. Farsi. "Sequence planning for
stamping operations in progressive
dies." Journal of Intelligent
Manufacturing(2013): 1-11.
 United States, National Science and
Technology Council – Committee on
Technology. Executive Office of the
President. (2016). Preparing for the
future of artificial intelligence.
 [http://aitopics.org/topic/applications AI
applications at aitopics.org]
 *
[http://www.buzzle.com/articles/applicat
ions-of-artificial-intelligence.html How
AI can be applied in many fields].

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