UEMH4723 Assignment PartABCD G1

UEMH4723 Applications of Artificial Intelligence
UEMH4723
Applications of Artificial Intelligence
Assignment:
Identify the Applications of
Artificial Intelligence in Various Fields
Group Members:
No. Name and Email Address Student ID Programme Role
Ong Jun Wu
1 2202930 CL Leader
ong.junwu0709@1utar.my
2 Lui Xu Yuan 2103227 CL Member

2103227@1utar.my
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Daniel Lee Yue Chen
3 2101877 CL Member
danielleeychen@1utar.my
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Eric Tan Jingqing
4 2104520 3E Member
eric85228@1utar.my
5 Phua Chuen Ren pcrvb07@1utar.my 2202348 PH Member
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Executive Summary
The application of artificial intelligence (AI) in genetic algorithms, fuzzy logic, neural
networks, and clustering represents a wide range of transformative possibilities.
Genetic algorithms demonstrate their versatility through the application of machine learning,
allowing systems to learn and adapt to new information. Furthermore, in the field of
entertainment and problem solving, genetic algorithms have demonstrated their capabilities in
optimizing strategies and decisions in games and dynamic gaming environments.
The application of fuzzy logic is extended to real-world scenarios, especially in driving modes
where imprecise and uncertain data are effectively managed to improve decision-making under
different driving conditions. Furthermore, fuzzy logic is also applied to traffic control systems,
contributing to the efficiency of transportation networks by making real-time decisions based
on inaccurate data, ultimately reducing congestion and improving traffic flow.
Neural networks play a central role in the medical field, revolutionizing diagnosis and treatment.
Applications range from disease identification to personalized treatment plans and use deep
learning to interpret complex medical data. At the same time, neural networks are also good at
image recognition, enabling systems that can accurately identify and classify images in
computer vision applications.
Clustering algorithms can prove invaluable in computer vision through image segmentation,
allowing systems to identify and classify objects in images. Moreover, these algorithms greatly
contribute to marketing strategies by facilitating customer segmentation. This allows businesses
to adapt their approach and deliver personalized experiences based on the different preferences
and behaviours of different customer groups.
In summary, these applications highlight the diverse and impactful ways in which AI
technologies are reshaping industries and solving complex challenges.
Table of Content
No. Content Page
1 Exclusive Summary 2
2 1.0 Part A: Genetic Algorithm
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1.1 Introduction of Genetic Algorithm 5-6
1.2 Application of artificial intelligence in genetic 6-7

algorithms: Machine learning
1.3 Application of artificial intelligence in genetic 7-9

algorithms: Game playing
1.4 Summary of genetic algorithms in artificial 9-10

intelligence
3 2.0 Part B: Fuzzy Logic
2.1 Introduction to Fuzzy Logic 11
2.2 Understanding Fuzzy logic and its history 11-12
2.3 Application of artificial intelligence in Fuzzy 12-13

Logic: Understanding driving modes in real road
environment
2.4 Application of artificial intelligence in Fuzzy 13-14

Logic: Traffic Control System
2.5 Summary of Fuzzy Logic in artificial intelligence 14-15
4 3.0 Part C: Neural Network
3.1 Introduction to Neural Network 15-16
3.2 Application of artificial intelligence in Neural 16-17

Network: Medical field
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3.3 Application of artificial intelligence in Neural 17-18
Network: Stock Prediction
3.4: Limitation of Neural Network 18-19
3.5 Summary of Neural Network in artificial 19

intelligence
5 4.0 Part D: Clustering
4.1 Introduction of Clustering 20-21
4.2 Application of artificial intelligence in Clustering: 21-23

Customer Segmentation in Marketing
4.3 Application of artificial intelligence in Clustering: 23-24

Image Segmentation in Computer Vision
4.4 Summary of Clustering in artificial intelligence 25
6 Conclusion 26-28
1.0 Part A: Genetic Algorithm (Lui Xu Yuan)
1.1 Introduction of Genetic Algorithm
Genetic algorithms were invented by John Holland and his colleagues in the 1960s and
1970s. This model is primarily concerned with the biological evolution of species on Earth
using Charles Darwin's concept of natural selection (Sie, 2014). Genetic algorithms are methods
for solving both constrained and unconstrained optimization problems based on natural
selection, the process that drives biological evolution. Genetic algorithms repeatedly modify
the population of individual solutions through natural selection by creating an initial population,
selecting elites from that population as parents, and then crossing over to generate the next
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generation. During this process, the generations constantly evolve to arrive at the optimal
solution.
This natural selection in genetic algorithms can be summarized into five phases: initial
population, fitness function, selection, crossover, and mutation. First, each individual in the
population represents a solution with different genes, which are then evaluated based on ability
and assigned a score. The higher the score, the more likely they are to be chosen as parents to
breed the next generation. Crossover is the most important phase in genetic algorithms.
Intragenic crossover points are randomly selected for each crossed parent pair.
(Mallawaarachchi, 2017) This causes mutations in the genes that prevent premature
convergence and produce better offspring.
In the field of artificial intelligence, genetic algorithms also been used complex
problems with large numbers of variables and possible outcomes/solutions. A combination of
different solutions is passed to a Darwin-based algorithm to find the best solution. Bad solutions
are then replaced by descendants of good solutions. The working of genetic algorithms in
artificial intelligence also similar to the biological way where we need to define what is the
problem.
The components, or elements, of a population are called genes in AI genetic algorithms.

These genes make up the individuals within a population. A search space is created where all
people can be brought together which refer to population in biology. All individuals are encoded
within a finite length in the search space. Each person in the search space is given a fitness
value that indicates their ability to compete with others. All individuals with respective fitness
values are searched and retained by a genetic algorithm, and individuals with high fitness values
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are given a chance to reproduce. The new offspring has a better "partial solution" compared to
the parent. Genetic algorithms also keep the search space dynamic to accumulate new solutions
just like the offspring. This process repeats until the offspring have no new attributes/traits that
differ from the parents. Eventually, the population converges and only the most appropriate
solutions and their descendants remain. Fitness values for new individuals within the population
are also calculated. In short, we can understand genetic algorithms work when the best solution
is selected to replicate.
1.2 Application of artificial intelligence in genetic algorithms: Machine learning
Machine learning is seamlessly integrated with the aid of genetic algorithms. Understanding
how genetic algorithms contribute to the functioning of machine learning requires a
foundational knowledge of machine learning itself. Initially, machine learning is instrumental
in constructing comprehensive computer systems through data utilization. The continuous
updating of data in machine learning is a pivotal feature, enhancing applications' performance
over time.
In addressing search and optimization challenges within machine learning, genetic algorithms
serve as adaptive heuristic or search engine algorithms. These approaches are grounded in
natural selection principles and are applied to solve optimization problems, both confined and
unconstrained. Notably, evolutionary algorithms support the adjustment of hyperparameters in
machine learning, ensuring the modification of models until optimal performance is achieved.
The optimization builds for to achieve most appropriate model performance within financial
constraints by adjusting hyperparameters.
Mathematical formulations provide the expression of the machine learning specialized way's
operation function and performance criteria. Model performance is measured using a variety of
metrics, including accuracy, RMSE, F1 score, and false alarm rate. However, there are practical
limits that make hyperparameter optimization models difficult to improve, like time constraints. It
frequently takes a significant amount of time to maximize the objective function of an ML model
with the right number of hyperparameter settings (aNumak & Company, 2022).
Hyperparameters can be expressed as genetic material and their numerical merit indicates the
insert of the hyperparameter under evaluation. This allows for the optimization of
hyperparameters using genetic algorithms. There are several binary genes on each genetic
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chromosome, and crossovers and mutations take place. The fitness function defines the
parameter evaluation metric, and the population encompasses all possible values falling inside
the initialized genetic material range. High-performance chromosomes undergo additional
procedures including selection, crossover, and mutation to identify the ideal parameter values
because spontaneous variable values may not always contain the optimal values. High fitness
function genetic material is preferred for preservation in the next interval through genetic
material selection. This approach, which is common in genetic algorithms and draws inspiration
from nature and natural selection, works especially well for optimizing parameters that
minimize the loss function. Evolutionary algorithms that are grounded in natural principles
include genetic algorithms.
In the initial step of applying genetic algorithms to hyperparameter tuning, a machine learning
model is generated with randomly assigned hyperparameters, constituting the initial population.
The subsequent step involves calculating a loss function, such as log-loss, for the model. The
model with the lowest error is chosen to produce offspring, wherein the hyperparameters of the
next generation differ from their parent generation. This iterative process is repeated to
progressively refine the hyperparameters for improved model performance.
1.3 Application of artificial intelligence in genetic algorithms: Game playing
Nowadays, gaming has become a trend in our world. It can be seen from game is designed not
only for sell to modern society but also has become competitive sport such as there are more
than 100 games major hold every year in all around the world. As an example, 19th Asian Games
that held in Hangzhou, China has newly added esport as one of the sport events and the result
of the performance and popularity was surprisingly good which express society has high
acceptance of it. (Lukman, 2023)
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Figure 1: Daily average viewers of esports titles on official Huya channel during the 19th
Asian Games Hangzhou (Lukman, 2023)
Therefore, artificial intelligence is applied in gaming field to improve gamer comfort. Genetic
algorithms is important for the deveploment of gaming field. Every iteration for solving the
problems will leads to variability that can be used as content. If there is a content that is closer
to the final goal and score high mark in fitness function, complete goal is achieved. By using
this properties, genetic algorithms is consider as an ideal approach for the vast search spaces
found in procedural game content.
Another than that, how to design an interesting content for game is the most challenging part
for game design. Genetic algorithms provide best solution by adjusting the fitness function.
By pre-testing your content before presenting it to players, you can ensure that certain criteria
are within your target margin of error. Although this approach to procedural content can have
unintended consequences, a carefully designed fitness function can ensure that only usable
content is displayed.
For the first step of genetic algorithms in game deveploment, it just similar to general procedure
for normal genetic algorithms which is create an initial population. However, in the world of
the game, a random monsters is created that refer to the real world by using genetic string . This
system generates procedural creatures using two methods of exploration space
manipulation.First, each child has two parents, each of whom receives a genetic string that
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provides half of the genetic data. This string is modified by a variable amount. This means that
this huge block of text actually contains two copies of all the data points needed to generate
the creature, and each data point is inherited from a different parent. The last bit of the string
indicates which side of the chromosome pair is dominant for each of these data points.
In the starting period, base fitness function is to check the creature is complete and does not
broken so it can presented to the player. Each data include 4 characters which define each
chromosome which contribute 15 data points. For a game to start, we need atleast 2 or more
character to be generated, hence 2 steps above. After that, we can produce the offspring from
the 2 character that we generate at start. Once the resulting progeny is derived, mutations can
be applied to it based on a set of rules to enable further genomic drift. Finally, we compare this
to the fitness function to ensure that the creature is not broken by our work. If desired, this
breeding process can be repeated using the new creature as one of her two parent units. (Kelly,
2018)
Lastly, we need to achieve mutation in our potential breeding pool to get chromosomal values
that do not already exist. From a search algorithm's point of view, not finding an essential part
of the correct answer is a serious error. In general, tuning the mutation rate is one of the most
important parts of optimizing the efficiency of genetic algorithms. For simplicity, we use a 10%
mutation rate as an example. Since there are 24 pairs (or letters) in the sequence, we get the
lowest of the total that needs to be mutated. (Kelly, 2018)
1.4 Summary of genetic algorithms in artificial intelligence
In short, genetic algorithms is useful in artificial intelligence to solve complex problems

through heuristics optimization methods inspired by the process of natural selection. However,
it also consists of both advantages and disadvantages. For advantages of genetic algorithms, it
helps us in exploration of search space and adaptability. In the other hand, genetic algorithms
is still limited too understanding of results and risk of premature convergence. (AspiringYouths,
n.d.)
2.0 Part B : Fuzzy Logic
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2.1 Introduction to fuzzy logic
Fuzzy logic represents a paradigm shift in the realm of variable processing, offering a nuanced
and flexible approach to decision-making in the face of imprecise data. Departing from the
binary constraints of standard logic, where statements are either true or false, fuzzy logic
introduces a spectrum of truth values. This heuristic methodology allows for a more
sophisticated analysis of information, paving the way for advanced decision-tree processing
and seamless integration with rules-based programming.
In essence, fuzzy logic acknowledges the complexity of real-world scenarios where absolutes
are rare, and instead embraces partial truths. Statements can now possess values like 0.9 or 0.5,
reflecting the shades of uncertainty inherent in many situations. By considering all available
information, fuzzy logic aims to derive accurate conclusions, mirroring the intricacies of
decision-making in dynamic and uncertain environments.
This approach proves particularly beneficial for quantitative analysts seeking to enhance
algorithmic execution. The departure from rigid truth values enables fuzzy logic algorithms to
mimic and adapt to real-life circumstances more effectively. Despite the apparent simplicity of
coding fuzzy algorithms, their implementation demands thorough verification and testing due
to their sensitivity to the intricacies of human language and the inherent uncertainties they aim
to address. In essence, fuzzy logic stands as a powerful tool, offering a more holistic and
adaptable decision-making framework in the face of complexity and ambiguity (Scott, 2023).
2.2 Understanding fuzzy logic and its history
Fuzzy logic originates from the mathematical exploration of multivalued logic, diverging from
conventional logic that deals with absolute truth statements. Unlike ordinary logic's binary
nature, fuzzy logic adeptly handles sets with subjective or relative definitions, such as "tall,"
"large," or "beautiful," mirroring human decision-making processes that rely on imprecise
values rather than rigid truths. This paradigm allows for partial truth values between zero and
one, providing algorithms the flexibility to make decisions based on ranges of data rather than
singular points. Widely applicable today, fuzzy logic finds utility in diverse fields such as
aerospace engineering, automotive traffic control, business decision-making, industrial
processes, and the realms of artificial intelligence and machine learning.
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Originating from Lotfi Zadeh's groundbreaking 1965 paper, "Fuzzy Sets," fuzzy logic emerged
as an innovative approach to information processing, challenging the binary constraints of
traditional logic. Zadeh aimed to capture the nuances of real-world data, recognizing that
classes of objects often lack precisely defined membership criteria. In the realm of human
cognition, imprecise classes play pivotal roles in areas such as pattern recognition, information
communication, and abstraction. Over time, fuzzy logic has found success in diverse
applications, including machine control systems, image processing, and artificial intelligence,
thriving in fields where signals demand interpretation in the face of ambiguity (Scott, 2023).
2.3 Applications of artificial intelligence in fuzzy logic: Understanding driving modes in real
road environments
In the dynamic realm of real road environments, the integration of artificial intelligence (AI)
and fuzzy logic has emerged as a transformative force, particularly in understanding and
adapting to various driving modes. The multifaceted challenges of driving encompass a
spectrum of tasks, ranging from assessing road conditions to predicting the behavior of fellow
drivers, each laden with inherent uncertainties. Fuzzy logic, rooted in the mathematical study
of multivalued logic, stands out as a crucial tool in handling imprecise and subjective data, a
hallmark of the unpredictable nature of real-world driving scenarios.
The task difficulty in driving is underscored by the need for nuanced decision-making in
response to a myriad of factors, including weather conditions, traffic density, and unexpected
events. Fuzzy logic, building on Lotfi Zadeh's seminal work in "Fuzzy Sets," enables the
modeling of vague concepts central to driving safety, such as "safe following distance" and
"appropriate speed." Traditional binary logic struggles to encapsulate the subtle and
contextdependent nature of these variables, whereas fuzzy logic excels in representing them as
continuous and flexible ranges, aligning more closely with human-like reasoning.
A pivotal application of AI and fuzzy logic lies in the reduction of usual task demand through
the implementation of driver-assistance systems. Driving demands a high degree of attention
and cognitive resources from individuals, and the integration of AI, guided by fuzzy logic
principles, alleviates this cognitive load. For instance, adaptive cruise control systems
employing fuzzy logic can dynamically adjust the following distance based on changing traffic
conditions. Fuzzy logic models, with their ability to process and act upon imprecise inputs,
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contribute to smoother, more efficient driving experiences by collaboratively navigating the
complexities of the road with the human driver.
The essence of fuzzy logic in understanding driving behavior lies in its capacity to interpret and
analyze a wide spectrum of inputs. Steering patterns, acceleration, and braking maneuvers,
often laden with nuances and subjectivity, become comprehensible through fuzzy logic
algorithms. By assigning degrees of membership to various driving behaviors, fuzzy logic
allows for a more nuanced understanding of the driver's actions. For instance, fuzzy logic can
distinguish between gradual and abrupt steering inputs, providing insights into the driver's
intentions and level of alertness.
Moreover, the adaptive nature of fuzzy logic contributes to the development of intelligent
systems capable of anticipating and responding to the subtleties of real-world driving
environments. Through continuous learning and adjustment, AI systems with fuzzy logic
underpinnings can evolve their understanding of driving modes, adapting to individual driver
preferences and the idiosyncrasies of diverse road conditions. This adaptability enhances not
only the safety of driving but also the overall efficiency and comfort of the driving experience.
In conclusion, the symbiotic integration of artificial intelligence and fuzzy logic represents a
paradigm shift in addressing the challenges posed by real road environments. Fuzzy logic's
ability to handle imprecise and subjective data aligns seamlessly with the intricate nature of
driving tasks. Whether in reducing task demand through driver-assistance systems or
deciphering and adapting to driving behavior, the application of AI and fuzzy logic signifies a
transformative leap toward safer, more intelligent, and adaptive road navigation (Sato, T.,
Akamatsu, M., & Dadios, E., 2015).
2.4 Applications of artificial intelligence in fuzzy logic: Traffic control systems
The integration of artificial intelligence with fuzzy logic has proven to be a powerful
combination in the realm of traffic control systems. Fuzzy logic, with its ability to handle
imprecise and uncertain data, offers a sophisticated approach to managing the complexities of
urban traffic. In this context, the application of AI and fuzzy logic is prominently featured in
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the design and operation of traffic signal control systems, revolutionizing how we optimize
traffic flow in congested urban environments.
A key application lies in the utilization of fuzzy logic to control traffic signals. Traditional traffic
signal control systems typically rely on predefined, fixed timing plans that may not effectively
adapt to the dynamic nature of traffic patterns. Fuzzy logic, on the other hand, allows for the
incorporation of real-time data and the modelling of imprecise concepts, such as traffic density
and flow. By representing these variables as fuzzy sets with degrees of membership, the traffic
signal control system can dynamically adjust signal timings based on the current traffic
conditions.
The deployment of a fuzzy traffic signal controller exemplifies the practical implementation of
AI and fuzzy logic in traffic management. Fuzzy controllers take inputs, often in the form of
sensor data from the intersection, and process this information using fuzzy logic rules to
determine optimal signal timings. For instance, if the traffic density is high, the fuzzy controller
may prioritize longer green times for the main road to facilitate the flow of traffic. Conversely,
during periods of low traffic density, the controller may allocate more time to the side roads or
initiate phase changes to enhance overall efficiency.
Assumptions play a crucial role in designing an effective fuzzy signal control system. One
fundamental assumption is that traffic conditions can be adequately represented by fuzzy sets.
These sets encapsulate variables such as traffic density, vehicle speed, and queue lengths,
acknowledging the inherent imprecision and variability in real-world traffic data. Fuzzy rules,
which define the relationships between these fuzzy sets, are established based on expert
knowledge and empirical data, forming the basis for decision-making within the fuzzy
controller.
Another key assumption is the availability of accurate and timely sensor data. Fuzzy signal
control systems heavily rely on input from various sensors, such as cameras, radar, or inductive
loops embedded in the road. The assumption here is that these sensors provide reliable
information about the current state of the intersection, allowing the fuzzy controller to make
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informed decisions. However, the system must account for potential sensor inaccuracies or
failures and implement measures to mitigate their impact on signal control.
Furthermore, the fuzzy signal control system assumes a certain level of adaptability and
responsiveness to changes in traffic conditions. Fuzzy logic allows for real-time adjustments,
but the assumption is that the system can effectively react to sudden shifts in traffic patterns or
unexpected events. This adaptability is crucial in ensuring that the traffic signal timings remain
optimized for efficiency and safety.
In conclusion, the application of artificial intelligence in conjunction with fuzzy logic has
reshaped the landscape of traffic signal control systems. The use of fuzzy logic enables a more
dynamic and adaptive approach to traffic management, considering the inherent uncertainties
and variability in real-world traffic conditions. As fuzzy controllers become increasingly
prevalent, the assumptions made in their design, including the representation of traffic variables
as fuzzy sets and the availability of reliable sensor data, play an important role in ensuring the
effectiveness and reliability of these intelligent traffic signal control systems (Mohanaselvi, S.,
& Shanpriya, B. 2019).
Figure 2.0 Example of fuzzy traffic signal controller system (Mohanaselvi, S., & Shanpriya, B.
2019)
2.5 Conclusion
Fuzzy logic offers a revolutionary approach to decision-making by embracing partial truths in

the face of imprecise data, departing from binary constraints. Applied in understanding driving
modes, it interprets diverse inputs to enhance road safety. Integrated with artificial intelligence,
fuzzy logic adapts algorithms effectively to real-life circumstances. In traffic system control,
fuzzy logic dynamically adjusts signals, optimizing traffic flow and marking a transformative
leap in urban navigation. Overall, fuzzy logic's versatility and adaptability, coupled with AI
integration, make it a powerful tool for decision-making in complex and ambiguous scenarios.
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3.0 Part C: Neural Network 3.1 Introduction to Neural Network

Neural networks, inspired by the human brain, have emerged as a powerful field of
machine learning. These computational models are designed to mimic the way brain operate,
enabling machines to learn from datas and make intelligent decisions. It is the backbone of deep
learning, a subset of machine learning that has achieved remarkable success in various
applications.
It consists of an input layer, one or more hidden layers, and an output layer. These layers
are made of nodes that are connected to nodes of other layers with their own weight and
threshold associated with them so that data can be send across. The threshold is the minimum
output value of a node to activate the next node while the weight is used to fine tune the accuracy
of the algorithm.
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The learning process, known as training, involves providing the neural network with a
set of input data with expected output and adjusting the weights to minimize the difference
between the predicted output and the actual output using back propagation and gradient descent.
Neural networks exhibit a remarkable ability to learn complex patterns and

representations of data, making them suitable for a wide range of tasks. There are multiple types
of neural networks that serves different purposes such as Convolution Neural Networks (CNNs)
that excel in image and pattern recognition, or the Recurrent Neural Network (RNNs) that is
able to make predictions about future outcomes, such as stock market predictions or sales
forecasting.
Neural networks depends on their training data to learn and improve their accuracy over time.
Once the algorithm is fined tune for accuracy, they will be a powerful tools in allowing us to
classify and cluster more efficiently. (IBM, n.d.)
3.2 Application of artificial intelligence in Neural Network: medical field for radiology
One of the area where neural networks are used is in medical field for radiology such as
classification, segmentation and detection.
Neural networks plays a pivotal role in the classification of medical images, particularly in
distinguishing target lesions into different categories. For instance, in the context of lung
nodules on CT images, neural networks is employed to classify these nodules as either benign
or malignant. This process necessitates the preparation of extensive training data, consisting of
labelled CT images of lung nodules. Once trained, Convolutional Neural Networks (CNNs) can
accurately classify these lesions during deployment, providing valuable assistance to medical
professionals or computer-aided detection (CADe) systems.
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Figure 3.2.1
Next is, Segmentation, a fundamental technique in medical image analysis that involves the
delineation of organs or anatomical structures. Traditionally a manual process, segmentation
can be automated using CNNs. In contrast to classification, segmentation requires capturing the
global spatial context of the entire image for efficient delineation. The U-net architecture has
proven effective in segmentation tasks, outperforming other methods in challenges such as the
ISBI for neuronal structure segmentation. Its ability to incorporate multi scale spatial context
allows it to be trained efficiently with a limited amount of data.
Figure 3.2.2
Lastly is detection. The task of detecting abnormalities within medical images is crucial for
radiologists. Abnormalities, often rare, must be identified among numerous normal cases.
Neural networks, particularly 2D-CNNs, has shown success in this area. Studies demonstrate
the effectiveness of ensemble models of different 2D-CNNs in detecting conditions like
pulmonary tuberculosis on chest radiographs (Lakhani and Sundaram, 2017). In mammography,
a CNN-based CADe system surpasses a reference system relying on handcrafted features,
particularly at low sensitivity. The application of deep learning extends to improving low-dose
CT, a critical aspect of lung cancer screening, through techniques such as denoising noisy CT
images.
Hence, the integration of neural network in medical image analysis has brought about
transformative advancements in classification, segmentation and detection. The adaptability of
neural network’s models to diverse imaging scenarios and data types illustrates their potential
to revolutionize diagnostic processes in the field of medical imaging (Yamashita et al., 2018).
3.3 Application of artificial intelligence in Neural Network: Stock Prediction
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Another application of neural network is it uses in stock prediction. Different ANN
configurations, such as Multilayer Perceptron (MLP) and specific learning algorithms like
Levenberg–Marquardt (L.M.) and Scaled Conjugate Gradient (SCG), have been tested for their
effectiveness in predicting stock prices. Studies emphasize the versatility of ANNs, highlighting
their ability to adapt to dynamic data and outperform traditional methods like Auto Regression
(A.R.) and ARIMA.
Experiments conducted on various stock indices, including NASDAQ and National
Stock Exchange (NSE, India), showcase the promising results of ANN models. The adaptability
of ANN to diverse financial devices and its accuracy in predicting price movements are
emphasized. Additionally, studies underscore the importance of factors such as input selection,
data pre-processing, and network structure in influencing the accuracy of ANN predictions.
In summary, the research on ANN for stock market prediction demonstrates its
effectiveness in handling volatile and dynamic financial data. The versatility of ANN, coupled
with innovative approaches and hybrid models, positions it as a powerful tool for forecasting
stock prices across different markets and scenarios. (Chaajer, Shah and Kshirsagar, 2021)
3.4 Limitation of Neural Network

The application of neural networks in medical imaging has seen remarkable progress,
but challenges persist. One significant concern is the "black box" nature of deep learning, as it
lacks transparency in explaining its decision-making process. To address this, researchers have
proposed techniques like feature visualization and attribution. Feature visualization involves
understanding the identified features in feature maps, while attribution focuses on determining
the input components responsible for predictions. Class activation maps (CAMs) and Grad-
CAM are examples of visualization methods. (Zeiler and Fergus, 2014)
Additionally, the vulnerability of deep neural networks to adversarial examples,
carefully crafted inputs causing unexpected outputs, has been observed. This vulnerability
raises concerns about the robustness of deep learning in medical applications, emphasizing the
need for extensive research to ensure reliability in clinical settings (Su, Vargas and Sakurai,
2019). For example in figure 3.3.1 demonstrated by Goodfellow where by by adding a very
small amount of carefully constructed noise, the network misclassified the object as a “gibbon”
with 99.3% confidence without a visible change from a human point of view. (Goodfellow,
Shlens and Szegedy, 2015)
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Figure 3.3.1
There are also some limitation when applying neural networks in stock prediction. One of the
limitation is the availability of data. This limitation exists for problems that do not have much
previous data, e.g. new founded companies. Secondly, determining the optimal network
architecture or topology remains an unsolved challenge. Despite extensive testing of various
topologies and data models, the results are still heavily reliant on specific cases. The third
limitation pertains to the decrease in reliability for more complicated networks, necessitating
further experiments with different architectures. This issue is closely tied to the fourth limitation,
which emphasizes the need for a more complex statistical assessment of results. Lastly, the
diversity in data models indicates a lack of systematic analysis in data design, with each author
often employing a different model without a standardized approach. Additionally, there are
other limitations related to the evaluation and implementation of NNs that warrant discussion
for the improvement of NN applications. (Zekic, 1998)
3.5 Conclusion
In conclusion, neural networks (NNs) have become pivotal in medical imaging and stock
prediction, showcasing their efficacy in tasks such as lung nodule classification, segmentation
using models like U-net, and abnormality detection for medical images, as well as dynamic
stock price predictions with models like Multilayer Perceptrons (MLPs). However, challenges
like the "black box" nature of NNs in medical applications and data availability constraints in
stock prediction persist. Addressing these limitations, including enhancing transparency in
decision-making processes and fortifying against adversarial attacks, is crucial for maximizing
NNs' potential in these domains. Ongoing research endeavors hold the promise of overcoming
these challenges and further advancing the applications of NNs in medical and financial fields.
4.0 Part D: Clustering
4.1 Introduction of Clustering
Clustering, a key component of unsupervised learning, seeks to discover inherent patterns in

data without the use of predefined labels. Its foundation is built on a variety of algorithms that
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partition data points into clusters with the goal of achieving intra-cluster similarity and
intercluster dissimilarity. The process usually starts with properly representing data and
randomly initialising clusters. Following that, points are assigned to clusters based on specific
criteria, and iterative updates are performed to refine cluster representations. This iterative
process continues until a stopping criterion, such as cluster centroids convergence, is met.
(Surya,2023)
Figure show example of clustering (Surya,2023)
Evaluation metrics or visual inspection aid in determining clustering quality, allowing for easier
interpretation and comprehension of each cluster's characteristics. This method has applications
in a variety of domains such as customer segmentation, image analysis, anomaly detection, and
more, with its effectiveness influenced by the nature of the data and the desired analysis goals.
Clustering is also a technique used in machine learning and data analysis to group together
similar data points based on certain characteristics or features they possess. The goal of
clustering is to partition a dataset into subsets or clusters in such a way that items within the
same cluster are more like each other compared to those in other clusters. It's an unsupervised
learning method where the algorithm identifies patterns or structures within the data without
prior knowledge of specific categories or labels. Clustering is commonly used in various fields
like data mining, pattern recognition, image analysis, and more to uncover hidden structures or
relationships within data.(Satoru, 2021)
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4.2 Applications of Artificial Intelligence in clustering: Customer Segmentation in Marketing
Customer segmentation is an important marketing strategy that businesses use to

effectively understand and connect with their diverse customer base. It entails categorising and
segmenting this large audience based on shared characteristics and behaviours. This
segmentation process begins with the collection of comprehensive data from various sources,
which includes demographics, purchasing patterns, geographic location, psychographics, and
other factors. (Kristen,2023)
After gathering the data, the next step is to determine the most relevant segmentation
variables. These could include basic demographic factors like age, gender, and income, as well
as more nuanced parameters like lifestyle preferences, interests, and behavioural patterns.
Businesses use these variables to conduct in-depth analyses that group customers into segments
with similar traits or behaviours, employing methodologies such as demographic,
psychographic, behavioural, and geographic segmentation.
After gathering the data, the next step is to determine the most relevant segmentation
variables. These could include basic demographic factors like age, gender, and income, as well
as more nuanced parameters like lifestyle preferences, interests, and behavioural patterns.
Businesses use these variables to conduct in-depth analyses that group customers into segments
with similar traits or behaviours, employing methodologies such as demographic,
psychographic, behavioural, and geographic segmentation.
Following segmentation, the development of customer personas begins. These personas

are detailed profiles that highlight each segment's unique characteristics, preferences, and needs.
These personas are invaluable tools for guiding marketing strategies because they provide
insights into how to effectively communicate and engage with each distinct group.The essence
of customer segmentation is its ability to tailor marketing strategies and campaigns to each
identified segment's specific needs and preferences. Businesses can significantly improve the
effectiveness of their marketing efforts by tailoring messaging, offers, and channels to the
distinct characteristics of each group.
Implementing customer segmentation has several advantages. It not only improves

marketing ROI by more precisely targeting campaigns, but it also improves the overall customer
experience. Personalised messages and offerings tend to increase customer satisfaction, leading
to increased brand loyalty and retention rates. Businesses frequently rely on tools and
technologies such as Customer Relationship Management (CRM) systems to manage customer
data and analytics software to analyse and segment this data efficiently to carry out customer
Page 24 of 38
segmentation effectively. As customer preferences and behaviours change, it is critical to
evaluate and refine segmentation strategies based on customer feedback and campaign
performance on a regular basis.
In essence, customer segmentation is a continuous process that allows businesses to stay

in tune with their customers' changing needs and preferences, resulting in deeper connections
and more meaningful interactions with their diverse customer base.
4.3 Applications of Artificial Intelligence in clustering: Customer Segmentation in Marketing
Image segmentation is a fundamental task in computer vision that is required for

dividing an image into distinct regions or segments. This method attempts to simplify image
representation by delineating individual objects or areas, allowing for more focused analysis
and comprehension. Image segmentation, as opposed to image classification, which assigns a
single label to an entire image, delves deeper, identifying specific boundaries and characteristics
within the image.
There are several types of image segmentation, each serving a different purpose. Semantic
segmentation, for example, assigns a class to each pixel in an image, effectively dividing the
image into regions representing different objects or classes. Instance segmentation takes this a
step further by distinguishing not only between objects but also between individual instances
of those objects, providing precise boundaries for each. Meanwhile, edge detection detects
significant changes in pixel intensity or colour, outlining object boundaries, and clusteringbased
segmentation groups pixels based on similarities in different features.
Image segmentation is powered by a variety of techniques and algorithms, including

thresholding, region-based segmentation, edge detection, and machine learning-based methods
such as convolutional neural networks (CNNs). These algorithms excel in a variety of scenarios,
with CNN-based architectures such as U-Net and Mask R-CNN demonstrating exceptional
accuracy in segmenting objects within images.
Image segmentation has a wide range of applications. It aids in identifying and

segmenting organs or anomalies in scans, which aids in diagnosis. It aids in the precise
identification and localization of objects within images or videos, which is critical for robotics,
surveillance, and other applications. Furthermore, in autonomous vehicles and scene
understanding, segmentation is critical in recognising roads, pedestrians, vehicles, and other
environmental elements, contributing to safe and reliable navigation. (Klinger, 2018)
Page 25 of 38
However, image segmentation remains difficult. Over-segmentation, which occurs
when an image is divided excessively, and under-segmentation, which results in insufficient
partitioning, are both common problems. Handling complex backgrounds or scenes, as well as
managing computational complexity, pose significant challenges, particularly in real-time
applications.
Nonetheless, advances in algorithms and technologies continue to improve image

segmentation methods' accuracy and efficiency. These advancements make a significant
contribution to a variety of fields by allowing for improved object recognition, scene
understanding, and the extraction of meaningful information from visual data, paving the way
for innovative applications and solutions across industries.
4.4 Summary of clustering in artificial intelligence
Clustering in artificial intelligence is a technique used to group similar data points together
based on certain features or characteristics. The goal is to identify patterns or relationships
within the data without prior knowledge of group labels. Algorithms like K-means, hierarchical
clustering, and DBSCAN are commonly used for this task. Clustering helps in data analysis,
pattern recognition, and can aid in tasks like customer segmentation, anomaly detection, and
image recognition by organizing data into meaningful groups. (Rajan, 2020)
Conclusion
In conclusion, the multifaceted applications of Artificial Intelligence (AI) within Genetic

Algorithms, Fuzzy Logic, Neural Networks, and Clustering showcase the adaptability and
transformative potential of AI technologies across diverse domains. In the domain of Genetic
Algorithms, the integration of machine learning not only enhances systems' ability to learn from
data but also empowers them to adapt and evolve, marking a significant stride in intelligent
problem-solving. The application of Genetic Algorithms in game playing reflects their
Page 26 of 38
versatility in optimizing strategies and decision-making, demonstrating their relevance in both
entertainment and complex problem-solving scenarios.
Fuzzy Logic, with its capacity to handle imprecise and uncertain data, emerges as a critical
player in real-world applications. The implementation of Fuzzy Logic in driving modes within
real-world environments highlights its role in enhancing decision-making under varying
conditions, contributing to the development of intelligent transportation systems. Furthermore,
its role in traffic control systems emphasizes its significance in optimizing traffic flow, reducing
congestion, and ultimately improving the efficiency of urban transportation networks.
Neural Networks, being at the forefront of AI advancements, exhibit profound impacts in the
medical field. Their applications, ranging from disease identification to the formulation of
personalized treatment plans, underscore their capacity to interpret complex medical data and
significantly enhance diagnostic accuracy and patient care. Simultaneously, their prowess in
image recognition represents a milestone in computer vision, enabling systems to accurately
identify and categorize images, with implications across various industries.
Lastly, Clustering algorithms demonstrate their utility in both image segmentation and customer
segmentation within computer vision applications. In image segmentation, they play a pivotal
role in identifying and categorizing objects within images, contributing to the advancement of
computer vision technologies. Meanwhile, their application in customer segmentation
facilitates targeted marketing strategies, allowing businesses to tailor their approaches based on
the unique preferences and behaviors of distinct customer groups.
In essence, the culmination of these applications across Genetic Algorithms, Fuzzy Logic,
Neural Networks, and Clustering not only reflects the current state of AI's impact but also points
toward a future where intelligent systems continue to redefine the boundaries of innovation,
problem-solving, and efficiency across a spectrum of industries.
Page 27 of 38
References
®, aNumak & C. (2022) How to use a genetic algorithm for hyperparameter tuning of ML
models?, LinkedIn. Available at: https://www.linkedin.com/pulse/how-
usegeneticalgorithm-hyperparameter-tuning-ml-models-/ (Accessed: 20 November
2023).
AspiringYouths (2023) Advantages and disadvantages of genetic algorithm, AspiringYouths.

Available at: https://aspiringyouths.com/advantages-disadvantages/genetic-algorithm/
(Accessed: 21 November 2023).
Page 28 of 38
Chaajer, P., Shah, M. and Kshirsagar, A. (2021). The applications of artificial neural
networks, support vector machines, and long-short term memory for stock market
prediction. Decision Analytics Journal, p.100015.
doi:https://doi.org/10.1016/j.dajour.2021.100015.
Goodfellow, I., Shlens, J. and Szegedy, C. (2015). Published as a conference paper at
ICLR 2015 EXPLAINING AND HARNESSING ADVERSARIAL EXAMPLES.
[online] Available at: https://arxiv.org/pdf/1412.6572.pdf.
IBM (n.d.). What Are Neural Networks? | IBM. [online] www.ibm.com. Available at:
https://www.ibm.com/topics/neural-networks.
Kelly, P. (2018) Genetic algorithms in games (part 1), Game Developer. Available at:
https://www.gamedeveloper.com/design/genetic-algorithms-in-games-part-1- (Accessed:
21 November 2023).
Kristen Baker(2023)Introduction of Customer segmentation. Available at:

https://blog.hubspot.com/service/customer-segmentation (Accessed: 23
November 2023).
Lakhani, P. and Sundaram, B. (2017). Deep Learning at Chest Radiography: Automated

Classification of Pulmonary Tuberculosis by Using Convolutional Neural Networks.
Lukman, J. (2023) Asian Games Go Digital: Esports’ Unforgettable debut in Hangzhou, Niko
Partners. Available at: https://nikopartners.com/asian-games-go-
digitalesportsunforgettable-debut-in-hangzhou/ (Accessed: 21 November 2023).
Mallawaarachchi, V. (2017) Introduction to genetic algorithms - including example code,

Medium. Available at: https://towardsdatascience.com/introduction-
togeneticalgorithms-including-example-code-e396e98d8bf3 (Accessed: 20 November
2023).
Mohanaselvi, S., & Shanpriya, B. (2019, June). Application of fuzzy logic to control traffic
signals. In AIP Conference Proceedings (Vol. 2112, No. 1). AIP Publishing.
Nico Klinger(2018)Applications of image segmentation. Available at:

https://viso.ai/deeplearning/image-segmentation-using-deep-learning/ (Accessed: 23
November 2023).
Radiology, 284(2), pp.574–582. doi:https://doi.org/10.1148/radiol.2017162326.

Page 29 of 38
Sato, T., Akamatsu, M., & Dadios, E. (2015). Applying fuzzy logic to understanding driving
modes in real road environments. In Fuzzy Logic: Tool for Getting Accurate Solutions
(pp. 27-47). InTech.
Satoru Hayasaka (2021) How Clustering works? Available at:

https://www.knime.com/blog/what-is-clustering-how-does-it-work (Accessed: 23
November 2023).
Scott, G. (2023). Fuzzy logic: Definition, meaning, examples, and history. Investopedia.
https://www.investopedia.com/terms/f/fuzzylogic.asp#:~:text=Fuzzy%20logic%20is%2
0an%20approach,an%20array%20of%20acc urate%20conclusions
She, Y.X. (2014) Genetic algorithm, Genetic Algorithm - an overview | ScienceDirect Topics.
Available at: https://www.sciencedirect.com/topics/computer-science/genetic-algorithm
(Accessed: 20 November 2023).
Srivignesh Rajan (2020) Summary of clustering. Available at:

https://towardsdatascience.com/overview-of-clustering-algorithms-27e979e3724d
(Accessed:23 November 2023)
Su, J., Vargas, D.V. and Sakurai, K. (2019). One Pixel Attack for Fooling Deep Neural
Networks. IEEE Transactions on Evolutionary Computation, [online] 23(5), pp.828–
841. doi:https://doi.org/10.1109/tevc.2019.2890858.
Surya. Priy. (2023) Introduction to clustering. Available at:

https://www.geeksforgeeks.org/clustering-in-machine-learning/ (Accessed: 23
November 2023).
Yamashita, R., Nishio, M., Do, R.K.G. and Togashi, K. (2018). Convolutional neural
networks: an overview and application in radiology. Insights into Imaging, 9(4),
pp.611–629. doi:https://doi.org/10.1007/s13244-018-0639-9.
Zeiler, M.D. and Fergus, R. (2014). Visualizing and Understanding Convolutional
Networks. Computer Vision – ECCV 2014, 8689, pp.818–833.
doi:https://doi.org/10.1007/978-3-319-10590-1_53.
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methodology analysis. In proceedings of the 9th International Conference on
Information and Intelligent Systems (Vol. 98, No. 1, pp. 255-263). Citeseer.
Page 30 of 38
Marking Scheme for Report
Total score = 80 marks
Score
Maximum
No. Criteria
Marks
Part A Part B Part C Part D
1 Critical thinking 4
2 Literature review 4
3 Citations of various sources 4
4 Format 4
5 Language 4
Penalty Mark
Total (Maximum 20 marks for each part)
Final Score (Maximum 80 marks)
Marking Scheme for Assignment Presentation
Total score = 20 marks
No. Criteria Maximum Marks Score
1 Body language and confidence 5

Presentation structure and level of
2 5
attractiveness
Page 31 of 38
3 Quality of provided answers 5
4 Attitude and composure 5
Final Score (Maximum 20 marks)
Page 32 of 38
Marking Rubric for Report
Unacceptable Poor Average Good Excellent Maximum

Criteria
(0) (1) (2) (3) (4) Marks
Various sources are
Good level of reviewed in depth.
No analysis of Acceptable level of
Poor analysis. Show analysis and show Expert's opinion is
information and the analysis on the topic and
Critical little attempt in show good attempt in good attempt in analysed. Good attempt
content is obviously a 4
thinking interpretation of the discussing interesting discussing in discussing least
direct copy from single
application. applications. interesting discussed but very
source.
applications. interesting applications.
The structure and logical

Poor structure. No
Well-structured and order of the review is
Literature clear relationship Clear structure but not all
No noticeable structure. sections are well very clear which expands 4
review between sections follow a logical order.
connected. a reader insight of the
of review. topic.
Citations of No citation. All citations and

Numerous citation Most citations are Very few minor
various Use material without bibliography are shown 4
errors. correct. inaccuracies.
sources citation. exactly without errors.
Follow only
Does not follow all the Follow partly all the Follow mostly all Follow strictly all the
Format minority of the 4
instructions. instructions. the instructions. instructions.
instructions.
Many obvious Very few

Numerous grammatical grammatical or grammatical or
spelling errors are Some obvious spelling errors
errors that causes most of
grammatical or spelling
the report become found which greatly which does not No grammar or spelling
Language affect the report’ errors are found and affect the reports 4
incomprehensible. errors.
understandability. affect the report’s quality.
understandability.
Total Marks for each Part 20
Total Marks for 4 Parts 80
Page 32 of 34
Marking Rubric for Assignment Presentation
Unacceptable Poor Marginal Average Good Excellent Maximum

Criteria Marks
(0) (1) (2) (3) (4) (5)
Very confident
Presenter does not Presenter does not
Poor eye contact presenter who
make eye contact, make eye contact, Good interaction Presenter speaks
with audience, voice speaks and holds
mumbles or is hard to hear, or with audience, clear- with confidence in
Body language not very clearly himself/herself as a
presentation is constantly voiced presentation, clear loud voice and 5
and confidence heard, some minor professional,
interrupted in some interrupts the with no captures audience's
interruptions to the completely capturing
major way due to presentation interruptions. attention.
presentation. audience's attention.
lack of preparation. himself/herself.
An outstanding
presentation of
A clearly structured smooth
Well-structured
Presentation A disjointed Poorly structured presentation which unquestionable
presentation which
structure and No indication of any presentation which presentation with enhances structure and
provides good 5
level of structure. is out of logical erratic topical understanding of engaging content
understanding of
attractiveness order. shifts and jumps. the project and that captures
the project.
engages audience. audience.
Detailed straight to Thorough, well

Quality of Out-of-topic or Partly appropriate
Unable to answer Concise answers the point and yet elaborated and very
provided evasive answers to answers to 5
question(s). provided. succinct answers convincing answers
answers questions. questions.
provided. provided.
Attentive and Impressive
Calm, clear and
Visibly downcast, Attentive when adequately composure as of a
Loses composure confident when
Attitude and upset, or distracted taking and responsive when professional speaker
during the Q&A taking and 5
composure during the Q&A answering taking and when taking and
session. answering
session. questions. answering answering questions.
questions.
questions.
Total Marks 20
Page 33 of 34
Table
Page 34 of 34

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UEMH4723 Applications of Artificial Intelligence

No. Name and Email Address Student ID Programme Role

2 Lui Xu Yuan 2103227 CL Member

2 1.0 Part A: Genetic Algorithm

1.2 Application of artificial intelligence in genetic 6-7

1.3 Application of artificial intelligence in genetic 7-9

1.4 Summary of genetic algorithms in artificial 9-10

3 2.0 Part B: Fuzzy Logic

2.1 Introduction to Fuzzy Logic 11

2.2 Understanding Fuzzy logic and its history 11-12

2.3 Application of artificial intelligence in Fuzzy 12-13

2.4 Application of artificial intelligence in Fuzzy 13-14

2.5 Summary of Fuzzy Logic in artificial intelligence 14-15

4 3.0 Part C: Neural Network

3.1 Introduction to Neural Network 15-16

3.2 Application of artificial intelligence in Neural 16-17

3.4: Limitation of Neural Network 18-19

3.5 Summary of Neural Network in artificial 19

5 4.0 Part D: Clustering

4.1 Introduction of Clustering 20-21

4.2 Application of artificial intelligence in Clustering: 21-23

4.3 Application of artificial intelligence in Clustering: 23-24

4.4 Summary of Clustering in artificial intelligence 25

1.0 Part A: Genetic Algorithm (Lui Xu Yuan)

1.1 Introduction of Genetic Algorithm

The components, or elements, of a population are called genes in AI genetic algorithms.

1.2 Application of artificial intelligence in genetic algorithms: Machine learning

1.3 Application of artificial intelligence in genetic algorithms: Game playing

Asian Games Hangzhou (Lukman, 2023)

1.4 Summary of genetic algorithms in artificial intelligence

In short, genetic algorithms is useful in artificial intelligence to solve complex problems

2.0 Part B : Fuzzy Logic

2.2 Understanding fuzzy logic and its history

2.4 Applications of artificial intelligence in fuzzy logic: Traffic control systems

Fuzzy logic offers a revolutionary approach to decision-making by embracing partial truths in

3.0 Part C: Neural Network 3.1 Introduction to Neural Network

Neural networks exhibit a remarkable ability to learn complex patterns and

3.3 Application of artificial intelligence in Neural Network: Stock Prediction

3.4 Limitation of Neural Network

4.0 Part D: Clustering

4.1 Introduction of Clustering

Clustering, a key component of unsupervised learning, seeks to discover inherent patterns in

Figure show example of clustering (Surya,2023)

Customer segmentation is an important marketing strategy that businesses use to

Following segmentation, the development of customer personas begins. These personas

Implementing customer segmentation has several advantages. It not only improves

In essence, customer segmentation is a continuous process that allows businesses to stay

4.3 Applications of Artificial Intelligence in clustering: Customer Segmentation in Marketing

Image segmentation is a fundamental task in computer vision that is required for

Image segmentation is powered by a variety of techniques and algorithms, including

Image segmentation has a wide range of applications. It aids in identifying and

Nonetheless, advances in algorithms and technologies continue to improve image

4.4 Summary of clustering in artificial intelligence

In conclusion, the multifaceted applications of Artificial Intelligence (AI) within Genetic

AspiringYouths (2023) Advantages and disadvantages of genetic algorithm, AspiringYouths.

Kristen Baker(2023)Introduction of Customer segmentation. Available at:

Lakhani, P. and Sundaram, B. (2017). Deep Learning at Chest Radiography: Automated

Mallawaarachchi, V. (2017) Introduction to genetic algorithms - including example code,

Nico Klinger(2018)Applications of image segmentation. Available at:

Radiology, 284(2), pp.574–582. doi:https://doi.org/10.1148/radiol.2017162326.

Satoru Hayasaka (2021) How Clustering works? Available at:

Srivignesh Rajan (2020) Summary of clustering. Available at:

Surya. Priy. (2023) Introduction to clustering. Available at:

Marking Scheme for Report