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This document provides an extensive overview of Artificial Intelligence (AI), including its definitions, historical milestones, types, and applications. It discusses the differences between human and artificial intelligence, the goals of AI, its advantages and disadvantages, and the foundational principles necessary for understanding AI. Additionally, it outlines various AI technologies and examples, emphasizing the importance of AI in modern technology and its potential future developments.
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0% found this document useful (0 votes)
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This document provides an extensive overview of Artificial Intelligence (AI), including its definitions, historical milestones, types, and applications. It discusses the differences between human and artificial intelligence, the goals of AI, its advantages and disadvantages, and the foundational principles necessary for understanding AI. Additionally, it outlines various AI technologies and examples, emphasizing the importance of AI in modern technology and its potential future developments.
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UNIT I INTRODUCTION TO ARTIFICIAL INTELLIGENCE

Definitions of Artificial Intelligence-Historical Overview and Key Milestones


of Artificial Intelligence-The Types of Artificial Intelligence-The Scopes of
Artificial Intelligence-Intelligence in AI-Differentiating AI from human
intelligence.

INTRODUCTION
INTELLIGENCE ARTIFICIAL INTELLIGENCE
It is a natural process. It is programmed by humans.
It is actually hereditary. It is not hereditary.
Knowledge is required for intelligence. KB and electricity are required to
generate output.
No human is an expert. We may get Expert systems are made which
better solutions from other humans. aggregate many person’s experience and
ideas.

DEFINITION

The study of how to make computers do things at which at the moment, people are
better.
“Artificial Intelligence is the ability of a computer to act like a human being”.

 Systems that think like humans


 Systems that act like humans
 Systems that think rationally.
 Systems that act rationally.

(a) Intelligence - Ability to apply knowledge in order to perform better in an environment.

(b) Artificial Intelligence - Study and construction of agent programs that perform well in
a given environment, for a given agent architecture.
(c) Agent - An entity that takes action in response to precepts from an environment.

(d) Rationality - property of a system which does the “right thing” given what it knows.

(e) Logical Reasoning - A process of deriving new sentences from old, such that the new
sentences are necessarily true if the old ones are true.
Figure 1.1 Some definitions of artificial intelligence, organized into four categories
DEFINITION OF ARTIFICIAL INTELLEGENCE

Four Approaches of Artificial Intelligence:


 Acting humanly: The Turing test approach.
 Thinking humanly: The cognitive modelling approach.
 Thinking rationally: The laws of thought approach.
 Acting rationally: The rational agent approach.

In today's world, technology is growing very fast, and we are getting in touch with different
new technologies day by day.

Here, one of the booming technologies of computer science is Artificial Intelligence which is
ready to create a new revolution in the world by making intelligent machines.The Artificial
Intelligence is now all around us. It is currently working with a variety of subfields, ranging from
general to specific, such as self-driving cars, playing chess, proving theorems, playing music,
Painting, etc.

AI is one of the fascinating and universal fields of Computer science which has a great scope in
future. AI holds a tendency to cause a machine to work as a human.

Artificial Intelligence is composed of two words Artificial and Intelligence, where Artificial
defines "man- made," and intelligence defines "thinking power", hence AI means "a man-made
thinking power."

So, we can define AI as:

"It is a branch of computer science by which we can create intelligent machines which can behave
like a human, think like humans, and able to make decisions."

Artificial Intelligence exists when a machine can have human based skills such as learning,
reasoning, and solving problems

With Artificial Intelligence you do not need to preprogram a machine to do some work, despite
that you can create a machine with programmed algorithms which can work with own
intelligence, and that is the awesomeness of AI.

It is believed that AI is not a new technology, and some people says that as per Greek myth, there
were Mechanical men in early days which can work and behave like humans.
What is AI?

AI stands for Artificial Intelligence, which is a field of study that focuses on creating computer
systems that can performtasks that normally require human intelligence.

Types of artificial intelligence:

 Narrow AI (Weak AI) – Designed for specific tasks (e.g., Siri, Google Assistant,
ChatGPT).
 General AI (Strong AI) – Aims to perform any intellectual task a human can (still
theoretical).
 Super AI – Hypothetical AI surpassing human intelligence.
Artificial intelligence can be organized in several ways, depending on stages of
development or actions being performed.
For instance, four stages of AI development are commonly recognized.
1. Reactive machines: Limited AI that only reacts to different kinds of stimuli based on
preprogrammed rules. Does not use memory and thus cannot learn with new data. IBM’s
Deep Blue that beat chess champion Garry Kasparov in 1997 was an example of a
reactive machine.
2. Limited memory: Most modern AI is considered to be limited memory. It can use
memory to improve over time by being trained with new data, typically through an
artificial neural network or other training model. Deep learning, a subset of machine
learning, is considered limited memory artificial intelligence.
3. Theory of mind: Theory of mind AI does not currently exist, but research is ongoing into
its possibilities. It describes AI that can emulate the human mind and has decision-
making capabilities equal to that of a human, including recognizing and remembering
emotions and reacting in social situations as a human would.
4. Self aware: A step above theory of mind AI, self-aware AI describes a mythical machine
that is aware of its own existence and has the intellectual and emotional capabilities of a
human. Like theory of mind AI, self-aware AI does not currently exist.
A more useful way of broadly categorizing types of artificial intelligence is by what the
machine can do. All of what we currently call artificial intelligence is considered artificial
“narrow” intelligence, in that it can perform only narrow sets of actions based on its
programming and training. For instance, an AI algorithm that is used for object
classification won’t be able to perform natural language processing. Google Search is a
form of narrow AI, as is predictive analytics, or virtual assistants.
Artificial general intelligence (AGI) would be the ability for a machine to “sense, think,
and act” just like a human. AGI does not currently exist. The next level would be
artificial superintelligence (ASI), in which the machine would be able to function in all
ways superior to a human.
AI Technologies:
 Machine Learning (ML) – AI learns from data to improve over time.
 Deep Learning – Uses neural networks to process complex patterns.
 Natural Language Processing (NLP) – Enables AI to understand human language (e.g.,
chatbots).
 Computer Vision – Helps AI interpret and analyze images/videos.
 Robotics – AI-powered robots perform tasks like manufacturing and self-driving.
Applications and use cases for artificial intelligence”
Speech recognition
 Automatically convert spoken speech into written text.
Image recognition
 Identify and categorize various aspects of an image.
Translation
 Translate written or spoken words from one language into another.
Predictive modeling
 Mine data to forecast specific outcomes with high degrees of granularity.
Data analytics
 Find patterns and relationships in data for business intelligence.
Cybersecurity
 Autonomously scan networks for cyber attacks and threats.

Why Artificial Intelligence?

Before Learning about Artificial Intelligence, we should know that what is the
importance of AI and
why should we learn it. Following are some main reasons to learn about AI:

o With the help of AI, you can create such software or devices which can solve real-
world problems very easily and with accuracy such as health issues, marketing, traffic
issues, etc.
o With the help of AI, you can create your personal virtual Assistant, such as Cortana,
Google Assistant, Siri, etc.
o With the help of AI, you can build such Robots which can work in an environment
where survival of humans can be at risk.
o AI opens a path for other new technologies, new devices, and new Opportunities.

Goals of Artificial Intelligence

Following are the main goals of Artificial Intelligence:

1. Replicate human intelligence


2. Solve Knowledge-intensive tasks
3. An intelligent connection of perception and action
4. Building a machine which can perform tasks that requires human intelligence such as:
o Proving a theorem
o Playing chess
o Plan some surgical operation
o Driving a car in traffic
5. Creating some system which can exhibit intelligent behavior, learn new things by
itself, demonstrate, explain, and can advise to its user.

What Comprises to Artificial Intelligence?

Artificial Intelligence is not just a part of computer science even it's so vast and
requires lots of other factors which can contribute to it. To create the AI first we should
know that how intelligence is composed, so the Intelligence is an intangible part of our
brain which is a combination of Reasoning, learning, problem- solving perception,
language understanding, etc.

To achieve the above factors for a machine or software Artificial Intelligence requires
the following discipline:

o Mathematics
o Biology
o Psychology
o Sociology
o Computer Science
o Neurons Study
o Statistics

Advantages of Artificial Intelligence

Following are some main advantages of Artificial Intelligence:

o High Accuracy with less errors: AI machines or systems are prone to less errors
and high accuracy as it takes decisions as per pre-experience or information.
o High-Speed: AI systems can be of very high-speed and fast-decision making,
because of that AI systems can beat a chess champion in the Chess game.
o High reliability: AI machines are highly reliable and can perform the same action
multiple times with high accuracy.
o Useful for risky areas: AI machines can be helpful in situations such as defusing
a bomb, exploring the ocean floor, where to employ a human can be risky.
o Digital Assistant: AI can be very useful to provide digital assistant to the users
such as AI technology is currently used by various E-commerce websites to show
the products as per customer requirement.
o Useful as a public utility: AI can be very useful for public utilities such as a self-
driving car which can make our journey safer and hassle-free, facial recognition
for security purpose, Natural language processing to communicate with the human
in human-language, etc.

Disadvantages of Artificial Intelligence

Every technology has some disadvantages, and thesame goes for Artificial
intelligence. Being so advantageous technology still, it has some disadvantages
which we need to keep in our mind while creating an AI system. Following are the
disadvantages of AI:

o High Cost: The hardware and software requirement of AI is very costly as it


requires lots of maintenance to meet current world requirements.
o Can't think out of the box: Even we are making smarter machines with AI, but
still they cannot work out of the box, as the robot will only do that work for which
they are trained, or programmed.
o No feelings and emotions: AI machines can be an outstanding performer, but still
it does not have the feeling so it cannot make any kind of emotional attachment
with human, and may sometime be harmful for users if the proper care is not
taken.
o Increase dependency on machines: With the increment of technology, people are
getting more dependent on devices and hence they are losing their mental
capabilities.
No Original Creativity: As humans are so creative and can imagine some new
ideas but still AI machines cannot beat this power of human intelligence and
cannot be creative and imaginative.
Prerequisite

Before learning about Artificial Intelligence, you must have the fundamental
knowledge of following so that you can understand the concepts easily:

o Any computer language such as C, C++, Java, Python, etc.(knowledge of Python will
be an advantage)
o Knowledge of essential Mathematics such as derivatives, probability theory, etc.

Artificial Intelligence Examples


Specific examples of AI include:
Generative AI Tools
Generative AI tools, sometimes referred to as AI chatbots —
including ChatGPT, Gemini, Claude and Grok — use artificial intelligence to
produce written content in a range of formats, from essays to code and answers to
simple questions.
Smart Assista
nts
Personal AI assistants, like Alexa and Siri, use natural language processing to receive
instructions from users to perform a variety of “smart tasks.” They can carry out
commands like setting reminders, searching for online information or turning off
your kitchen lights.
Self-Driving Cars
Self-driving cars are a recognizable example of deep learning, since they use deep
neural networks to detect objects around them, determine their distance from other
cars, identify traffic signals and much more.
Wearables
Many wearable sensors and devices used in the healthcare industry apply deep
learning to assess the health condition of patients, including their blood sugar levels,
blood pressure and heart rate. They can also derive patterns from a patient’s prior
medical data and use that to anticipate any future health conditions.
Visual Filters
Filters used on social media platforms like TikTok and Snapchat rely on algorithms
to distinguish between an image’s subject and the background, track facial
movements and adjust the image on the screen based on what the user is doing.

The Foundation of AI: Core Principles and Components


1.Mathematics & Statistics
Mathematics provides the theoretical backbone for AI, while statistics helps in data-
driven decision-making.
 Linear Algebra – Essential for machine learning models (e.g., vectors, matrices,
tensors).
 Probability & Statistics – Used in Bayesian networks, uncertainty modeling, and
decision-making.
 Calculus – Supports optimization algorithms and backpropagation in deep
learning.
 Graph Theory – Fundamental in search algorithms, neural networks, and
knowledge representation.
2. Computer Science & Algorithms
AI relies on efficient algorithms and computational techniques for problem-
solving.
 Search Algorithms – Used in pathfinding, game AI, and decision-making (e.g.,
A*, Minimax).
 Sorting & Optimization – Improves the efficiency of AI models.
 Data Structures – Trees, graphs, hash tables, and queues help in knowledge
representation and retrieval.
 Complexity Theory – Determines the feasibility of AI solutions (e.g., NP-hard
problems).

3. Machine Learning & Deep Learning


 Supervised Learning – Models learn from labeled data (e.g., classification,
regression).
 Unsupervised Learning – AI finds patterns in unlabeled data (e.g., clustering,
dimensionality reduction).
 Reinforcement Learning – Agents learn through trial and error (e.g., AlphaGo,
robotics).
 Neural Networks & Deep Learning – Used in image recognition, NLP, and
generative models.

4. Logic & Reasoning


AI must reason and make decisions based on given facts and rules.
 Propositional & Predicate Logic – Used in expert systems and automated
reasoning.
 Fuzzy Logic – Helps AI handle uncertainty and approximate reasoning.
 Bayesian Inference – Supports probabilistic reasoning under uncertainty.

5. Cognitive Science & Neuroscience


Understanding human intelligence helps in designing AI models that mimic
human behavior.
 Cognitive Psychology – Studies human perception, memory, and learning to
inspire AI models.
 Neuroscience – Neural networks are inspired by the workings of the human brain.
 Behavioral Science – Used in AI-human interaction and ethical AI design.

6. Natural Language Processing (NLP)


AI interacts with human language through speech and text.
 Syntax & Semantics – Understanding sentence structure and meaning.
 Speech Recognition – Converts spoken words into text (e.g., Alexa, Siri).
 Language Models – GPT-4, BERT, and similar models improve AI-driven
communication.
7. Robotics & Control Systems
AI is used in robotics for automation and autonomous decision-making.
 Kinematics & Dynamics – Governs robot movement and interaction.
 Perception & Vision – Enables robots to understand their environment (e.g.,
computer vision).
 Autonomous Decision-Making – Used in self-driving cars, drones, and smart
assistants.

8. Ethics & Philosophy of AI


AI must be developed with ethical considerations to prevent bias and harm.
 AI Ethics – Focuses on fairness, accountability, and transparency.
 Explainable AI (XAI) – Ensures AI models are interpretable and trustworthy.
 AI and Society – Examines the social and economic impact of AI adoption.

The History of Artificial Intelligence

The idea of “artificial intelligence” goes back thousands of years, to ancient


philosophers considering questions of life and death. In ancient times, inventors made
things called “automatons” which were mechanical and moved independently of human
intervention. The word “automaton” comes from ancient Greek, and means “acting of
one’s own will.” One of the earliest records of an automaton comes from 400 BCE and
refers to a mechanical pigeon created by a friend of the philosopher Plato. Many years
later, one of the most famous automatons was created by Leonardo da Vinci around the
year 1495.
So while the idea of a machine being able to function on its own is ancient, for the
purposes of this article, we’re going to focus on the 20th century, when engineers and
scientists began to make strides toward our modern-day AI.
Groundwork for AI:
1900-1950In the early 1900s, there was a lot of media created that centered around the
idea of artificial humans. So much so that scientists of all sorts started asking the
question: is it possible to create an artificial brain? Some creators even made some
versions of what we now call “robots” (and the word was coined in a Czech play in
1921) though most of them were relatively simple. These were steam-powered for the
most part, and some could make facial expressions and even walk.
Dates of note:
 1921: Czech playwright Karel Čapek released a science fiction play “Rossum’s
Universal Robots” which introduced the idea of “artificial people” which he named
robots. This was the first known use of the word.
 1929: Japanese professor Makoto Nishimura built the first Japanese robot,
named Gakutensoku.
 1949: Computer scientist Edmund Callis Berkley published the book “Giant Brains,
or Machines that Think” which compared the newer models of computers to human
brains.
Birth of AI: 1950-1956
This range of time was when the interest in AI really came to a head. Alan Turing
published his work “Computer Machinery and Intelligence” which eventually became
The Turing Test, which experts used to measure computer intelligence. The term
“artificial intelligence” was coined and came into popular use.
Dates of note:
 1950: Alan Turing published “Computer Machinery and Intelligence” which
proposed a test of machine intelligence called The Imitation Game.
 1952: A computer scientist named Arthur Samuel developed a program to play
checkers, which is the first to ever learn the game independently.
 1955: John McCarthy held a workshop at Dartmouth on “artificial intelligence”
which is the first use of the word, and how it came into popular usage.

AI maturation: 1957-1979
The time between when the phrase “artificial intelligence” was created, and the 1980s
was a period of both rapid growth and struggle for AI research. The late 1950s through
the 1960s was a time of creation. From programming languages that are still in use to
this day to books and films that explored the idea of robots, AI became a mainstream
idea quickly.
The 1970s showed similar improvements, such as the first anthropomorphic robot
being built in Japan, to the first example of an autonomous vehicle being built by an
engineering grad student. However, it was also a time of struggle for AI research, as the
U.S. government showed little interest in continuing to fund AI research.

Notable dates include:


 1958: John McCarthy created LISP (acronym for List Processing), the first
programming language for AI research, which is still in popular use to this day.
 1959: Arthur Samuel created the term “machine learning” when doing a speech
about teaching machines to play chess better than the humans who programmed them.
 1961: The first industrial robot Unimate started working on an assembly line at
General Motors in New Jersey, tasked with transporting die casings and welding parts
on cars (which was deemed too dangerous for humans).
 1965: Edward Feigenbaum and Joshua Lederberg created the first “expert
system” which was a form of AI programmed to replicate the thinking and decision-
making abilities of human experts.
 1966: Joseph Weizenbaum created the first “chatterbot” (later shortened to
chatbot), ELIZA, a mock psychotherapist, that used natural language processing (NLP)
to converse with humans.1968: Soviet mathematician Alexey Ivakhnenko published
“Group Method of Data Handling” in the journal “Avtomatika,” which proposed a new
approach to AI that would later become what we now know as “Deep Learning.”
 1973: An applied mathematician named James Lighthill gave a report to the British
Science Council, underlining that strides were not as impressive as those that had been
promised by scientists, which led to much-reduced support and funding for AI research
from the British government.
 1979: James L. Adams created The Standford Cart in 1961, which became one of
the first examples of an autonomous vehicle. In ‘79, it successfully navigated a room
full of chairs without human interference.
 1979: The American Association of Artificial Intelligence which is now known as
the Association for the Advancement of Artificial Intelligence (AAAI) was founded.
AI boom: 1980-1987
Most of the 1980s showed a period of rapid growth and interest in AI, now labeled as
the “AI boom.” This came from both breakthroughs in research, and additional
government funding to support the researchers. Deep Learning techniques and the use
of Expert System became more popular, both of which allowed computers to learn from
their mistakes and make independent decisions.

Notable dates in this time period include:


 1980: First conference of the AAAI was held at Stanford.

 1980: The first expert system came into the commercial market, known as XCON
(expert configurer). It was designed to assist in the ordering of computer systems by
automatically picking components based on the customer’s needs.
 1981: The Japanese government allocated $850 million (over $2 billion dollars in
today’s money) to the Fifth Generation Computer project. Their aim was to create
computers that could translate, converse in human language, and express reasoning on a
human level.
 1984: The AAAI warns of an incoming “AI Winter” where funding and interest
would decrease, and make research significantly more difficult.
 1985: An autonomous drawing program known as AARON is demonstrated at the
AAAI conference.
 1986: Ernst Dickmann and his team at Bundeswehr University of Munich created
and demonstrated the first driverless car (or robot car). It could drive up to 55 mph on
roads that didn’t have other obstacles or human drivers.
 1987: Commercial launch of Alacrity by Alactrious Inc. Alacrity was the first
strategy managerial advisory system, and used a complex expert system with 3,000+
rules.
AI winter: 1987-1993
As the AAAI warned, an AI Winter came. The term describes a period of low
consumer, public, and private interest in AI which leads to decreased research funding,
which, in turn, leads to few breakthroughs. Both private investors and the government
lost interest in AI and halted their funding due to high cost versus seemingly low return.
This AI Winter came about because of some setbacks in the machine market and expert
systems, including the end of the Fifth Generation project, cutbacks in strategic
computing initiatives, and a slowdown in the deployment of expert systems.
Notable dates include:

 1987: The market for specialized LISP-based hardware collapsed due to cheaper
and more accessible competitors that could run LISP software, including those offered
by IBM and Apple. This caused many specialized LISP companies to fail as the
technology was now easily accessible.
 1988: A computer programmer named Rollo Carpenter invented the chatbot
Jabberwacky, which he programmed to provide interesting and entertaining
conversation to humans.
AI agents: 1993-2011
Despite the lack of funding during the AI Winter, the early 90s showed some
impressive strides forward in AI research, including the introduction of the first AI
system that could beat a reigning world champion chess player. This era also introduced
AI into everyday life via innovations such as the first Roomba and the first
commercially-available speech recognition software on Windows computers.
The surge in interest was followed by a surge in funding for research, which allowed
even more progress to be made.
Notable dates include:

 1997: Deep Blue (developed by IBM) beat the world chess champion, Gary
Kasparov, in a highly-publicized match, becoming the first program to beat a human
chess champion.
 1997: Windows released a speech recognition software (developed by Dragon
Systems).
 2000: Professor Cynthia Breazeal developed the first robot that could simulate
human emotions with its face,which included eyes, eyebrows, ears, and a mouth. It was
called Kismet.
 2002: The first Roomba was released.
 2003: Nasa landed two rovers onto Mars (Spirit and Opportunity) and they
navigated the surface of the planet without human intervention.
 2006: Companies such as Twitter, Facebook, and Netflix started utilizing AI as a
part of their advertising and user experience (UX) algorithms.
 2010: Microsoft launched the Xbox 360 Kinect, the first gaming hardware designed
to track body movement and translate it into gaming directions.
 2011: An NLP computer programmed to answer questions named Watson (created
by IBM) won Jeopardy against two former champions in a televised game.
 2011: Apple released Siri, the first popular virtual assistant.
Artificial General Intelligence: 2012-present
That brings us to the most recent developments in AI, up to the present day. We’ve
seen a surge in common-use AI tools, such as virtual assistants, search engines, etc. This
time period also popularized Deep Learning and Big Data..
Notable dates include:
 2012: Two researchers from Google (Jeff Dean and Andrew Ng) trained a neural
network to recognize cats by showing it unlabeled images and no background
information.
 2015: Elon Musk, Stephen Hawking, and Steve Wozniak (and over 3,000 others)
signed an open letter to the worlds’ government systems banning the development of
(and later, use of) autonomous weapons for purposes of war.
 2016: Hanson Robotics created a humanoid robot named Sophia, who became
known as the first “robot citizen” and was the first robot created with a realistic human
appearance and the ability to see and replicate emotions, as well as to communicate.
 2017: Facebook programmed two AI chatbots to converse and learn how to
negotiate, but as they went back and forth they ended up forgoing English and
developing their own language, completely autonomously.
 2018: A Chinese tech group called Alibaba’s language-processing AI beat human
intellect on a Stanford reading and comprehension test.
 2019: Google’s AlphaStar reached Grandmaster on the video game StarCraft 2,
outperforming all but 0.2% of human players.
 2020: OpenAI started beta testing GPT-3, a model that uses Deep Learning to
create code, poetry, and other such language and writing tasks. While not the first of its
kind, it is the first that creates content almost indistinguishable from those created by
humans.
 2021: OpenAI developed DALL-E, which can process and understand images
enough to produce accurate captions, moving AI one step closer to understanding the
visual world.

ACTING HUMANLY: THE TURING TEST APPROACH

The Turing Test, proposed by Alan Turing (1950), was designed to provide a
satisfactory operational definition of intelligence. A computer passes the test if a
human interrogator, after posing some written questions, cannot tell whether the
written responses come from a person or from a computer.

Figure 1.2 Turing Test

 natural language processing to enable it to communicate


successfully in English;
 knowledge representation to store what it knows or hears;
 automated reasoning to use the stored information to answer
questions and to draw new conclusions
machine learning to adapt to new circumstances and to detect and extrapolate patterns.
Total Turing Test includes a video signal so that the interrogator can test the
subject’s perceptual abilities, as well as the opportunity for the interrogator to pass
physical objects “through the hatch.” To pass the total Turing Test, the computer
will need

computer vision to perceive objects, and robotics to manipulate objects and move
about.
Thinking humanly: The cognitive modelling approach

Analyse how a given program thinks like a human, we must have some way of
determining how humans think. The interdisciplinary field of cognitive science
brings together computer models from AI and experimental techniques from
psychology to try to construct precise and testable theories of the workings of the
human mind.

Although cognitive science is a fascinating field in itself, we are not going to be


discussing it all that much in this book. We will occasionally comment on
similarities or differences between AI techniques and human cognition. Real
cognitive science, however, is necessarily based on experimental investigation of
actual humans or animals, and we assume that the reader only has access to a
computer for experimentation. We will simply note that AI and cognitive science
continue to fertilize each other, especially in the areas of vision, natural language,
and learning.

Thinking rationally: The “laws of thought” approach

The Greek philosopher Aristotle was one of the first to attempt to codify ``right
thinking,'' that is, irrefutable reasoning processes. His famous syllogisms provided
patterns for argument structures that always gave correct conclusions given correct
premises.

For example, ``Socrates is a man; all men are mortal; therefore Socrates is mortal.''

These laws of thought were supposed to govern the operation of the mind, and
initiated the field of logic.

Acting rationally: The rational agent approach

Acting rationally means acting so as to achieve one's goals, given one's beliefs. An
agent is just something that perceives and acts.

The right thing: that which is expected to maximize goal achievement, given the
available information

Does not necessary involve thinking.

For Example - blinking reflex- but should be in the service of rational action.
THE STATE OF THE ART:

Artificial Intelligence (AI) is an interdisciplinary field drawing from several core disciplines, including
computer science, economics, psychology, neuroscience, mathematics, linguistics, philosophy,
control theory, and cybernetics. Each of these areas contributes uniquely to the development and
advancement of AI.

1. Computer Science & AI


AI is fundamentally driven by computer science, which provides the algorithms, data structures, and
computational power to build intelligent systems.

Key Developments:
 Deep Learning & Neural Networks – AI models like GPT-4, DALL·E, and AlphaFold rely on deep
learning techniques.
 Quantum Computing & AI – Emerging research on quantum-enhanced machine learning.
 AI & Edge Computing – AI processing on edge devices for real-time decision-making.
Applications:
 Autonomous systems (self-driving cars, drones).
 AI-powered cybersecurity (threat detection & prevention).
 AI-driven software development (Copilot, AlphaCode).
2. Economics & AI
AI is transforming economics through market predictions, automated trading, and economic
modeling.
Key Innovations:
 Algorithmic Trading – AI-driven trading strategies optimize financial markets.
 AI-driven Economic Forecasting – Predicting inflation, GDP growth, and market crashes.
 Game Theory & AI – Used in reinforcement learning for AI decision-making in uncertain
environments.
Applications:
 AI-powered fintech (fraud detection, credit scoring).
 Supply chain optimization with predictive AI.
 AI-driven economic policies and market regulation.

3. Psychology & AI
Understanding human cognition, emotions, and decision-making helps improve AI systems that
interact with people.
Key Innovations:
 Affective Computing (Emotion AI) – AI models that detect and respond to human emotions.
 Cognitive AI – Simulating human-like reasoning in AI (e.g., IBM Watson).
 AI-based Behavioral Analysis – AI-driven analysis of consumer behavior and mental health patterns.
Applications:
 AI-powered mental health chatbots (Wysa, Woebot).
 Human-AI collaboration in workplaces (AI as a cognitive assistant).
 AI-driven personalized learning (adaptive AI tutors).

4. Neuroscience & AI
AI development is inspired by how the human brain processes information and learns.
Key Innovations:
 Neuromorphic Computing – AI models that mimic brain neurons for energy-efficient computing.
 Brain-Computer Interfaces (BCI) – AI-powered interfaces that allow direct brain-machine
communication (e.g., Neuralink).
 Memory-Augmented Neural Networks (MANNs) – AI that mimics human memory and learning
processes.
Applications:
 AI-assisted prosthetics and neurorehabilitation.
 Brain-inspired deep learning models for advanced reasoning.
 AI-driven medical diagnosis for neurological disorders.
5. Mathematics & AI
Mathematics underpins AI through statistics, probability, algebra, and optimization techniques.
Key Innovations:
 Bayesian Inference & Probabilistic AI – AI models that handle uncertainty effectively.
 Graph Neural Networks (GNNs) – Used in social network analysis and molecular research.
 Mathematical Optimization in AI – Improving AI performance using advanced calculus and linear
algebra.
Applications:
 AI in scientific research (protein folding, physics simulations).
 AI-driven logistics and route optimization.
 Improved AI explainability through mathematical models.

6. Linguistics & AI
AI in natural language processing (NLP) helps machines understand, generate, and interact in human
language.
Key Innovations:
 Large Language Models (LLMs) – AI models like GPT-4, LLaMA, and Claude understand and
generate human-like text.
 Speech Recognition & Synthesis – AI-powered text-to-speech (TTS) and automatic speech
recognition (ASR).
 Multilingual AI – AI that understands and translates multiple languages with high accuracy.
Applications:
 AI-driven customer support chatbots.
 Real-time AI translators and transcription services.
 AI-generated content for creative industries (music, writing, and storytelling).
7. Philosophy & AI
Philosophy helps define AI ethics, consciousness, and the nature of intelligence.
Key Innovations:
 Ethical AI (Fairness, Bias Reduction) – Ensuring AI is unbiased and responsible.
 Explainable AI (XAI) – Making AI decisions interpretable for humans.
 AI & Consciousness – Research into whether AI can achieve self-awareness or reasoning beyond
human capability.

Applications:
 AI-driven ethical decision-making in automation.
 AI in law and governance (legal AI for case analysis).
 AI for philosophical research in ethics and morality.
8. Control Theory & AI
Control theory ensures AI systems remain stable, efficient, and adaptive in dynamic environments.
Key Innovations:
 Reinforcement Learning (RL) – AI that learns optimal actions based on feedback (e.g., AlphaGo,
OpenAI Five).
 Adaptive AI Systems – AI that adjusts parameters dynamically in real-time.
 AI-powered Control Systems – Used in industrial automation and robotics.
Applications:
 Self-driving cars using AI-based control algorithms.
 AI-driven robotic arms in manufacturing.
 Autonomous drone control systems.

9. Cybernetics & AI
Cybernetics studies how AI systems interact with biological and mechanical systems.
Key Innovations:
 Human-AI Augmentation – AI-powered prosthetics, wearables, and neural implants.
 Biohybrid AI – AI integrated with biological elements for enhanced computing.
 Autonomous Learning Systems – AI that adapts in real-time like living organisms.
Applications:
 AI-powered exoskeletons for mobility assistance.
 Neural AI interfaces for controlling machines with thoughts.
 AI-driven feedback loops in smart environments (smart cities, IoT).

RISKS AND BENEFITS OF AI


 Benefits of AI:
 1. Increased Efficiency & Automation
 AI can perform repetitive and complex tasks faster and more accurately than humans.
✅ Example: AI-powered robotic process automation (RPA) automates business operations, reducing
human workload.
 2. Improved Decision-Making
 AI analyzes vast amounts of data to provide better insights and predictions.
✅ Example: AI-driven healthcare diagnostics detect diseases like cancer earlier and with higher
accuracy.
 3. Enhanced Creativity & Innovation
 Generative AI helps in art, music, writing, and software development.
✅ Example: AI tools like DALL·E, MidJourney, and GitHub Copilot assist in creative and coding
tasks.
 4. Personalized User Experiences
 AI customizes experiences based on user preferences.
✅ Example: Netflix and Spotify recommend personalized movies and music using AI algorithms.
 5. Scientific & Medical Advancements
 AI accelerates research in genetics, drug discovery, and climate modeling.
✅ Example: AlphaFold (DeepMind) predicts protein structures, revolutionizing drug development.
 6. Financial & Economic Growth
 AI optimizes stock trading, fraud detection, and risk management.
✅ Example: AI-powered algorithmic trading makes real-time investment decisions in milliseconds.
 7. Autonomous Systems & Robotics
 AI enables self-driving cars, drones, and robotic automation.
✅ Example: Tesla’s Autopilot & Waymo’s self-driving taxis reduce accidents caused by human errors.
 8. Accessibility & Assistive Technology
 AI helps people with disabilities through speech recognition and vision assistance.
✅ Example: AI-powered prosthetics and screen readers improve accessibility for visually impaired
users.
 9. Cybersecurity & Fraud Prevention
 AI detects cyber threats and fraudulent activities faster than traditional methods.
✅ Example: AI-driven threat detection systems identify hacking attempts in real-time.
 10. Environmental & Sustainability Solutions
 AI optimizes energy use, waste management, and climate monitoring.
✅ Example: AI-powered smart grids improve energy efficiency in cities.

RISKS OF AI

1. Job

Displacement & Economic Disruptions


AI automation may replace human jobs, causing economic inequality.
❌ Example: AI-driven chatbots and robots replace customer service and factory workers.
2. Bias, Discrimination & Ethical Concerns
AI can inherit biases from training data, leading to unfair decisions.
❌ Example: AI-powered hiring systems may discriminate based on gender or race.
3. Security Threats & Cyber Risks
Hackers can use AI for deepfakes, automated cyberattacks, and identity theft.
❌ Example: AI-generated deepfake videos spread misinformation.
4. Privacy Violations & Surveillance
AI-powered facial recognition and data collection raise concerns about surveillance.
❌ Example: Governments using AI for mass surveillance without privacy protections.
5. Dependence on AI & Lack of Human Control
Over-reliance on AI can make systems vulnerable to failure or manipulation.
❌ Example: AI autonomous weapons operating without human oversight.
6. AI Misuse & Malicious Applications
AI can be weaponized for cyberwarfare, misinformation, and autonomous weapons.
❌ Example: AI-generated fake news and propaganda manipulate public opinion.
7. Existential Risks & AGI (Artificial General Intelligence)
Highly advanced AI could surpass human intelligence and become uncontrollable.
❌ Example: Superintelligent AI making decisions beyond human understanding.
8. Unemployment & Economic Inequality
Wealth from AI-driven industries may widen economic gaps.
❌ Example: Large corporations benefit, while low-skill workers struggle to find jobs.
9. AI Hallucinations & Incorrect Information
AI may generate false, misleading, or nonsensical information.
❌ Example: AI chatbots like ChatGPT and Bard sometimes provide inaccurate answers.
10. Lack of Transparency & Explainability
Some AI decisions are complex and difficult to interpret.
❌ Example: AI-driven credit scoring denying loans without explanation.

Exploring the Scope of Artificial Intelligence in Depth


1. AI in Various Industries
1. Healthcare
AI helps surgeons use precise tools to support operations and identify ailments early. By analyzing patient
data, artificial intelligence (AI) in healthcare may make choices more quickly and intelligently while also
greatly enhancing patient outcomes.
Benefits: AI speeds up diagnosis and improves surgical precision, enabling physicians to act more quickly and
confidently. Better treatment results and more individualized healthcare solutions are the results of improved
patient data analysis.
2. Finance
AI handles investment management, fraud detection, and chatbot client service. In financial services, it may
quickly identify anomalous activity, boosting security and improving client experiences.
Benefits: By identifying fraud immediately, AI improves security and provides clients with peace of mind.
Respondent chatbots and automated investment management simplify financial services, providing customers
with more streamlined and dependable experiences.
3. Education
AI adapts lessons to each student's progress, personalizing learning for them. Teachers gain from AI in
education because it automates repetitive chores like grading, freeing up more time for instruction.
Benefits: AI adapts teachings to improve each learner's unique path. The Scope of Artificial Intelligence makes
it possible for teachers to profit from automated grading, which saves time and makes the classroom more
interesting.

4. Transportation
AI is used by self-driving vehicles to navigate safely and by AI to control trains and air traffic, increasing the
effectiveness of transportation systems and lowering human error on the road.
Benefits: By lowering human error in self-driving automobiles and public transportation networks, artificial
intelligence improves transportation safety. With an extended Scope of Artificial Intelligence, this efficiency
results in safer travels and a smoother travel experience.
5. Retail
AI predicts client demands based on previous purchases, enabling tailored shopping experiences. By keeping
popular commodities supplied, it controls inventories, improving efficiency and convenience.
Benefits: AI provides a more individualized purchasing experience by anticipating client demands. Popular
goods are kept available through effective inventory management, which facilitates shopping and raises overall
consumer satisfaction.
6. Manufacturing
AI-powered robots do monotonous jobs and anticipate equipment malfunctions before they occur. With
increased productivity and lower production costs, this capacity demonstrates the growing Scope of Artificial
Intelligence.
Benefits: AI-powered robots increase productivity by precisely completing monotonous jobs. Estimating the
requirement for equipment maintenance helps to avoid expensive delays, minimize downtime, and maintain
efficient and economical production lines.
AI’s Impact on Job Markets and Workforce Transformation
1. Job Automation
AI changes the demands on the workforce by automating repetitive labor in fields like data input and
manufacturing. In this instance, the Scope of Artificial Intelligence changes responsibilities, boosting
productivity while simultaneously altering employment requirements.
2. Demand for New Skills
Skills like data analysis, machine learning, and AI management are becoming more and more necessary as
mundane activities are replaced by AI. This change places an emphasis on workers' ongoing education and
adaptability.
3. Emergence of New Roles
AI generates jobs such as data scientists, ethical officers, and AI trainers. These positions provide dynamic
career pathways requiring specific knowledge and skills and represent the growing Scope of Artificial
Intelligence.
4. Hybrid Work Environments
AI technologies make remote and flexible work choices possible, facilitating productive employee collaboration.
AI's adaptability in a variety of work environments is demonstrated by this flexibility, which transforms
conventional office tasks.
5. Impact on Job Security
Although AI creates opportunity, certain jobs may become automated, which is a problem. To adjust to
changes within the Scope of Artificial Intelligence, people will need to reskill.
6. Increased Productivity
Workers may concentrate on more strategic and creative initiatives by using AI to handle monotonous jobs,
which eventually increases productivity. This change reinterprets high-impact positions, promoting company
innovation.

Future Scope and Potential


 Advanced Learning: AI may become more like humans as it develops, leading to advances in creativity
and problem-solving. This might change the way AI approaches difficult problems and comprehends subtle
difficulties.
 Sustainability and the Environment: AI can help with environmental problems by minimizing waste,
forecasting harsh weather, and optimizing energy consumption. Significant progress in resource
management and climate action may result from these developments.
 Scientific Discovery: By rapidly analyzing data, assisting with drug development, space exploration, and
sophisticated problem-solving, artificial intelligence (AI) advances science and pushes the frontiers of
knowledge in a variety of sectors.
 Healthcare Advancements: Future AI has the potential to improve healthcare quality and accessibility
globally by assisting in the early detection of illnesses, customizing therapies for each patient, and even
helping to uncover novel cures.
 Smart Cities: AI-powered solutions can control energy, transportation, and public safety in cities, making
them safer and more effective places to live that enhance the quality of life for locals and encourage
sustainable development.
 Agriculture Innovations: AI can forecast harvest yields, optimize water usage, and monitor crop health,
enabling more intelligent and sustainable agricultural methods that promote food security and adjust to
changing environmental conditions.

AGENTS IN ARTIFICIAL INTELLIGENCE

In artificial intelligence, an agent is a computer program or system that is designed to perceive its
environment, make decisions and take actions to achieve a specific goal or set of goals. The agent
operates autonomously, meaning it is not directly controlled by a human operator.
Agents can be classified into different types based on their characteristics, such as whether they
are reactive or proactive, whether they have a fixed or dynamic environment, and whether they
are single or multi-agent systems.
 Reactive agents are those that respond to immediate stimuli from their environment and take
actions based on those stimuli. Proactive agents, on the other hand, take initiative and plan
ahead to achieve their goals. The environment in which an agent operates can also be fixed or
dynamic. Fixed environments have a static set of rules that do not change, while dynamic
environments are constantly changing and require agents to adapt to new situations.
 Multi-agent systems involve multiple agents working together to achieve a common goal.
These agents may have to coordinate their actions and communicate with each other to achieve
their objectives. Agents are used in a variety of applications, including robotics, gaming, and
intelligent systems. They can be implemented using different programming languages and
techniques, including machine learning and natural language processing.
Artificial intelligence is defined as the study of rational agents. A rational agent could be
anything that makes decisions, such as a person, firm, machine, or software. It carries out an
action with the best outcome after considering past and current percepts(agent’s perceptual
inputs at a given instance). An AI system is composed of an agent and its environment. The
agents act in their environment. The environment may contain other agents.
An agent is anything that can be viewed as:
 Perceiving its environment through sensors and
 Acting upon that environment through actuators

AGENTS AND ITS TYPES

Figure 1.3 Agent types

An agent is anything that can be viewed as perceiving its environment through sensors
and acting upon that environment through actuators.

 Human Sensors:
 Eyes, ears, and other organs for sensors.
 Human Actuators:
 Hands, legs, mouth, and other body parts.
 Robotic Sensors:
 Mic, cameras and infrared range finders for sensors
 Robotic Actuators:
 Motors, Display, speakers etc An agent can be:
Human-Agent: A human agent has eyes, ears, and other organs which work for sensors
and hand, legs, vocal tract work for actuator

Robotic Agent: A robotic agent can have cameras, infrared range finder, NLP for sensors and
various motors for actuators.
Software Agent: Software agent can have keystrokes, file contents as sensory input and
act on those inputs and display output on the screen.

Hence the world around us is full of agents such as thermostat, cell phone, camera, and
even we are also agents. Before moving forward, we should first know about sensors, effectors,
and actuators.

Sensor: Sensor is a device which detects the change in the environment and sends the
information to other electronic devices. An agent observes its environment through sensors.
Actuators: Actuators are the component of machines that converts energy into
motion. The actuators are only responsible for moving and controlling a system. An actuator
can be an electric motor, gears, rails, etc.

Effectors: Effectors are the devices which affect the environment. Effectors can be
legs, wheels, arms, fingers, wings, fins, and display screen.

Figure 1.4 Effectors

PROPERTIES OF ENVIRONMENT
An environment is everything in the world which surrounds the agent, but it is not a part of an
agent itself. An environment can be described as a situation in which an agent is present.
The environment is where agent lives, operate and provide the agent with something to sense
and act upon it.
Fully observable vs Partially Observable:
If an agent sensor can sense or access the complete state of an environment at each point of
time then it is a fully observable environment, else it is partially observable.
A fully observable environment is easy as there is no need to maintain the internal state to keep
track history of the world.
An agent with no sensors in all environments then such an environment is called as
unobservable.
Example: chess – the board is fully observable, as are opponent’s moves. Driving – what is
around the next bend is not observable and hence partially observable.
1. Deterministic vs Stochastic
 If an agent's current state and selected action can completely determine the next
state of the environment, then such environment is called a deterministic
environment.
 stochastic environment is random in nature and cannot be determined
completely by an agent.
 In a deterministic, fully observable environment, agent does not need to worry
about uncertainty.
2. Episodic vs Sequential
 In an episodic environment, there is a series of one-shot actions, and only the
current percept is required for the action.
 However, in Sequential environment, an agent requires memory of past actions
to determine the next best actions.
3. Single-agent vs Multi-agent
 If only one agent is involved in an environment, and operating by itself then
such an environment is called single agent environment.
 However, if multiple agents are operating in an environment, then such an
environment is called a multi-agent environment.
 The agent design problems in the multi-agent environment are different from
single agent environment.
4. Static vs Dynamic
 If the environment can change itself while an agent is deliberating then such
environment is called a dynamic environment else it is called a static
environment.
 Static environments are easy to deal because an agent does not need to continue
looking at the world while deciding for an action.
 However for dynamic environment, agents need to keep looking at the world at
each action.
 Taxi driving is an example of a dynamic environment whereas Crossword
puzzles are an example of a static environment.
5. Discrete vs Continuous
 If in an environment there are a finite number of precepts and actions that can be
performed within it, then such an environment is called a discrete environment
else it is called continuous environment.
 A chess game comes under discrete environment as there is a finite number of
moves that can be performed.
 A self-driving car is an example of a continuous environment.

6. Known vs Unknown
 Known and unknown are not actually a feature of an environment, but it is an
agent's state of knowledge to perform an action.
 In a known environment, the results for all actions are known to the agent.
While in unknown environment, agent needs to learn how it works in order to
perform an action.
 It is quite possible that a known environment to be partially observable and an
Unknown environment to be fully observable.
7. Accessible vs. Inaccessible
 If an agent can obtain complete and accurate information about the state's
environment, then such an environment is called an Accessible environment
else it is called inaccessible.
 An empty room whose state can be defined by its temperature is an example of
an accessible environment.
 Information about an event on earth is an example of Inaccessible environment.
Task environments, which are essentially the "problems" to which rational agents are the
"solutions."
PEAS: Performance Measure, Environment, Actuators, Sensors
Performance
The output which we get from the agent. All the necessary results that an agent gives after
processing comes under its performance.
Environment
All the surrounding things and conditions of an agent fall in this section. It basically consists of
all the things under which the agents work.
Actuators
The devices, hardware or software through which the agent performs any actions or processes
any information to produce a result are the actuators of the agent.
Sensors
The devices through which the agent observes and perceives its environment are the sensors of
the agent.
Figure 1.5 Examples of agent types and their PEAS descriptions
Rational Agent - A system is rational if it does the “right thing”. Given what it knows.
Characteristic of Rational Agent
 The agent's prior knowledge of the environment.
 The performance measure that defines the criterion of success.
 The actions that the agent can perform.
 The agent's percept sequence to date.
For every possible percept sequence, a rational agent should select an action that is
expected to maximize its performance measure, given the evidence provided by the
percept sequence and whatever built-in knowledge the agent has.
 An omniscient agent knows the actual outcome of its actions and can act accordingly; but
omniscience is impossible in reality.
 Ideal Rational Agent precepts and does things. It has a greater performance measure.
Eg. Crossing road. Here first perception occurs on both sides and then only action. No
perception occurs in Degenerate Agent.
Eg. Clock. It does not view the surroundings. No matter what happens outside. The clock
works based on inbuilt program.
 Ideal Agent describes by ideal mappings. “Specifying which action an agent ought to take
in response to any given percept sequence provides a design for ideal agent”.
 Eg. SQRT function calculation in calculator.
 Doing actions in order to modify future precepts-sometimes called information
gathering- is an important part of rationality.
 A rational agent should be autonomous-it should learn from its own prior knowledge
The Structure of Intelligent Agents
Agent = Architecture + Agent Program
Architecture = the machinery that an agent executes on. (Hardware)
Agent Program = an implementation of an agent
function. (Algorithm, Logic – Software)
CHARACTERISTICS OF INTELLIGENT AGENTS
Situatedness
The agent receives some form of sensory input from its environment, and it performs some action that
changes its environment in some way.
Examples of environments: the physical world and the Internet.
 Autonomy
The agent can act without direct intervention by humans or other agents and that it has control over its
own actions and internal state.
 Adaptivity
The agent is capable of
(1) reacting flexibly to changes in its environment;
(2) taking goal-directed initiative (i.e., is pro-active), when appropriate; and
(3) Learning from its own experience, its environment, and interactions with others.
• Sociability
The agent is capable of interacting in a peer-to-peer manner with other agents or humans.
TYPES OF AGENTS
Agents can be grouped into four classes based on their degree of perceived intelligence and
capability:
 Simple Reflex Agents
 Model-Based Reflex Agents
 Goal-Based Agents
 Utility-Based Agents
 Learning Agent
THE SIMPLE REFLEX AGENTS
 The Simple reflex agents are the simplest agents. These agents take decisions on the basis of the
current percepts and ignore the rest of the percept history (past State).
 These agents only succeed in the fully observable environment.
 The Simple reflex agent does not consider any part of percepts history during their decision and
action process.
 The Simple reflex agent works on Condition-action rule, which means it maps the current state
to action. Such as a Room Cleaner agent, it works only if there is dirt in the room.
 Problems for the simple reflex agent design approach:
o They have very limited intelligence
o They do not have knowledge of non-perceptual parts of the current state
o Mostly too big to generate and to store.
o Not adaptive to changes in the environment.
Condition-Action Rule − It is a rule that maps a state (condition) to an action.
Ex: if car-in-front-is-braking then initiate- braking.
Figure. A simple reflex agent
MODEL BASED REFLEX AGENTS
 The Model-based agent can work in a partially observable environment, and track
the situation.
 A model-based agent has two important factors:
o Model: It is knowledge about "how things happen in the world," so it is called
a Model-based agent.
o Internal State: It is a representation of the current state based on percept
history.
 These agents have the model, "which is knowledge of the world" and based on the
model they perform actions.
 Updating the agent state requires information about:
o How the world evolves
o How the agent's action affects the world.

Figure . model-based reflex agent

GOAL BASED AGENTS


o The knowledge of the current state environment is not always sufficient to decide
for an agent to what to do.
o The agent needs to know its goal which describes desirable situations.
o Goal-based agents expand the capabilities of the model-based agent by having the
"goal" information.
o They choose an action, so that they can achieve the goal.
o These agents may have to consider a long sequence of possible actions before
deciding whether the goal is achieved or not. Such considerations of different
scenario are called searching and planning, which makes an agent proactive.
Figure 1.8 A goal-based agent

UTILITY BASED AGENTS


o These agents are similar to the goal-based agent but provide an extra component
of utility measurement (“Level of Happiness”) which makes them different by
providing a measure of success at a given state.
o Utility-based agent act based not only goals but also the best way to achieve the
goal.
o The Utility-based agent is useful when there are multiple possible alternatives, and
an agent has to choose in order to perform the best action.
o The utility function maps each state to a real number to check how efficiently each
action achieves the goals.

Figure .utility-based agent

LEARNING AGENTS
o A learning agent in AI is the type of agent which can learn from its past
experiences, or it has learning capabilities.
o It starts to act with basic knowledge and then able to act and adapt automatically
through learning.
o A learning agent has mainly four conceptual components, which are:
a. Learning element: It is responsible for making improvements by learning
from environment
b. Critic: Learning element takes feedback from critic which describes that how
well the agent is doing with respect to a fixed performance standard.
c. Performance element: It is responsible for selecting external action

d. Problem generator: This component is responsible for suggesting actions that


will lead to new and informative experiences.
o Hence, learning agents are able to learn, analyze performance, and look for new
ways to improve the performance.

Figure 1.10 Learning Agents

a. Problem generator: This component is responsible for suggesting actions that


will lead to new and informative experiences.
o Hence, learning agents are able to learn, analyze performance, and look for new
ways to improve the performance.
Learning Agent
Multi-Agent Systems
These agents interact with other agents to achieve a common goal. They may have to
coordinate their actions and communicate with each other to achieve their objective.
A multi-agent system (MAS) is a system composed of multiple interacting agents that are
designed to work together to achieve a common goal. These agents may be autonomous or
semi-autonomous and are capable of perceiving their environment, making decisions, and
taking action to achieve the common objective.
MAS can be used in a variety of applications, including transportation systems, robotics,
and social networks. They can help improve efficiency, reduce costs, and increase
flexibility in complex systems. MAS can be classified into different types based on their
characteristics, such as whether the agents have the same or different goals, whether the
agents are cooperative or competitive, and whether the agents are homogeneous or
heterogeneous.
 In a homogeneous MAS, all the agents have the same capabilities, goals, and behaviors.
 In contrast, in a heterogeneous MAS, the agents have different capabilities, goals, and behaviors.
This can make coordination more challenging but can also lead to more flexible and robust
systems.
Cooperative MAS involves agents working together to achieve a common goal, while
competitive MAS involves agents working against each other to achieve their own goals.
In some cases, MAS can also involve both cooperative and competitive behavior, where
agents must balance their own interests with the interests of the group.
MAS can be implemented using different techniques, such as game theory, machine
learning, and agent-based modeling. Game theory is used to analyze strategic interactions
between agents and predict their behavior. Machine learning is used to train agents to
improve their decision-making capabilities over time. Agent-based modeling is used to
simulate complex systems and study the interactions between agents.
Overall, multi-agent systems are a powerful tool in artificial intelligence that can help
solve complex problems and improve efficiency in a variety of applications.
Hierarchical Agents
These agents are organized into a hierarchy, with high-level agents overseeing the
behavior of lower-level agents. The high-level agents provide goals and constraints, while
the low-level agents carry out specific tasks. Hierarchical agents are useful in complex
environments with many tasks and sub-tasks.
 Hierarchical agents are agents that are organized into a hierarchy, with high-level agents
overseeing the behavior of lower-level agents. The high-level agents provide goals and
constraints, while the low-level agents carry out specific tasks. This structure allows for more
efficient and organized decision-making in complex environments.
 Hierarchical agents can be implemented in a variety of applications, including robotics,
manufacturing, and transportation systems. They are particularly useful in environments where
there are many tasks and sub-tasks that need to be coordinated and prioritized.
 In a hierarchical agent system, the high-level agents are responsible for setting goals and
constraints for the lower-level agents. These goals and constraints are typically based on the
overall objective of the system. For example, in a manufacturing system, the high-level agents
might set production targets for the lower-level agents based on customer demand.
 The low-level agents are responsible for carrying out specific tasks to achieve the goals set by the
high-level agents. These tasks may be relatively simple or more complex, depending on the
specific application. For example, in a transportation system, low-level agents might be
responsible for managing traffic flow at specific intersections.
 Hierarchical agents can be organized into different levels, depending on the complexity of the
system. In a simple system, there may be only two levels: high-level agents and low-level agents.
In a more complex system, there may be multiple levels, with intermediate-level agents
responsible for coordinating the activities of lower-level agents.
 One advantage of hierarchical agents is that they allow for more efficient use of resources. By
organizing agents into a hierarchy, it is possible to allocate tasks to the agents that are best suited
to carry them out, while avoiding duplication of effort. This can lead to faster, more efficient
decision-making and better overall performance of the system.
Overall, hierarchical agents are a powerful tool in artificial intelligence that can help solve
complex problems and improve efficiency in a variety of applications.
Uses of Agents
Agents are used in a wide range of applications in artificial intelligence, including:
 Robotics: Agents can be used to control robots and automate tasks in manufacturing,
transportation, and other industries.
 Smart homes and buildings: Agents can be used to control heating, lighting, and other systems in
smart homes and buildings, optimizing energy use and improving comfort.
 Transportation systems: Agents can be used to manage traffic flow, optimize routes for
autonomous vehicles, and improve logistics and supply chain management.
 Healthcare: Agents can be used to monitor patients, provide personalized treatment plans, and
optimize healthcare resource allocation.
 Finance: Agents can be used for automated trading, fraud detection, and risk management in the
financial industry.
 Games: Agents can be used to create intelligent opponents in games and simulations, providing a
more challenging and realistic experience for players.
 Natural language processing: Agents can be used for language translation, question answering,
and chatbots that can communicate with users in natural language.
 Cybersecurity: Agents can be used for intrusion detection, malware analysis, and network
security.
 Environmental monitoring: Agents can be used to monitor and manage natural resources, track
climate change, and improve environmental sustainability.
 Social media: Agents can be used to analyze social media data, identify trends and patterns, and
provide personalized recommendations to users.
Good Behavior:
An agent should act as a Rational Agent. A rational agent is one that does the right
thing that is the right actions will cause the agent to be most successful in the
environment.
Performance measures
A performance measures embodies the criterion for success of an agent‘s behavior. As a
general rule, it is better to design performance measures according to what one actually
wants in the environment, rather than according to how one thinks the agent should
behave.
Rationality
What is rational at any given time depends on four things:
The performance measure that defines the criterion of success.
The agent‘s prior knowledge of the environment.
The actions that the agent can perform.
The agent‘s percept sequence to date.
This leads to a definition of a rational agent (ideal rational agent)
“For each possible percept sequence, a rational agent should select an action that is
expected to maximize its performance measure, given the evidence provided by the
percept sequence and whatever built-in knowledge the agent has, that is the task of rational
agent is to improve the performance measure depends on percept sequence”

Figure 1.10 Learning Agents

DIFFERENCE BETWEEN ARTIFICIAL INTELLIGENCE AND HUMAN


INTELLIGENCE
Artificial Intelligence:
Artificial Intelligence is based on human insights that can be decided in a way that can machine can effortlessly
actualize the tasks, from the basic to those that are indeed more complex. The reason for manufactured insights
is learning, problem-solving, reasoning, and perception.
This term may be connected to any machines which show related to a human intellect such as examination and
decision-making and increments the efficiency.
AI covers assignments like robotics, control systems, face recognition, scheduling, data mining, and numerous
others.
Advantages of Artificial Intelligence (AI):
 AI can process vast amounts of data much faster than humans.
 AI can work around the clock without needing breaks or rest.
 AI can perform tasks that are too dangerous or difficult for humans.

Disadvantages of Artificial Intelligence (AI):


 AI lacks the creativity and intuition that humans possess.
 AI is limited by its programming and may not be able to adapt to new or unexpected situations.
 AI may make errors if not programmed and trained properly.
Human Intelligence:
Human intelligence or the behavior of the human being has come from past experiences and the doings based
upon situation, and environment. And it is completely based upon the ability to change his/her surroundings
through knowledge which we gained.
It gives diverse sorts of information. It can provide data on things related to a particular aptitude and
knowledge, which can be another human subject, or, within the case of locators and spies, diplomatic data
which they had to get to. So, after concluding all it can give data on interpersonal connections and arrange of
interest.
Advantages of Human Intelligence (HI):
 HI has creativity, intuition, and emotional intelligence that AI lacks.
 HI can adapt to new and unexpected situations.
 HI can provide ethical and moral considerations in decision-making.

Disadvantages of Human Intelligence (HI):


 HI is limited by its physical and mental capabilities.
 HI is prone to biases and may make errors or poor decisions.
 HI requires rest and breaks, which can slow down processes.
Similarities between Artificial Intelligence (AI) and Human Intelligence (HI):
 Both AI and HI can learn and improve over time.
 Both AI and HI can be used to solve complex problems and make decisions.
 Both AI and HI can process and interpret information from the world around them.
Below is a table of differences between Artificial intelligence and Human intelligence:
S.
No. Feature Artificial Intelligence Human Intelligence

AI is an advancement made by
On the other hand, human
human insights; its early
creatures are made with the
1. Emergence improvement is credited to
intrinsic capacity to think,
Norbert Weiner who theorized
reason, review, etc.
on criticism mechanisms.

Artificial intelligence (AI) Human intelligence seeks to


strives to build machines that adapt to new situations by
2. Nature
can mimic human behavior and combining a variety of
carry out human-like tasks. cognitive processes.

The human brain is


3. State Machines are digital.
analogous.

Humans use their brains'


AI-powered machines rely on
4. Function memory, processing power,
input of data and instructions.
and cognitive abilities.

As compared to people,
computers can handle more data
at a speedier rate. For
In terms of speed, humans
Pace/Rate of occurrence, in the event that the
5. cannot beat the speed of AI
AI and human human intellect can solve a
or machines.
math problem in 5 minutes, AI
can solve 10 problems in a
minute.
S.
No. Feature Artificial Intelligence Human Intelligence

As machines are unable to


reason abstractly or draw
conclusions from the past. They Learning from various
Learning can only acquire knowledge events and prior experiences
6.
ability through information and is the foundation of human
frequent training, but they will intelligence.
never develop a human-specific
thinking process.

AI is profoundly objective in Human choices may be


Decision choice making because it affected by subjective
7.
Making analyzes based on absolutely components which are not
accumulated data. based on figures alone.

For human insights, there's


AI frequently produces precise more often than not room
comes about because its for “human error” as certain
8. Perfection
capacities are based on a set of subtle elements may be
modified rules. missed at one point or the
other.

Energy The modern computer generally On the other hand, human


9.
Consumption uses 2 watts of energy. brains uses about 25 watts

Human insights can be


adaptable in reaction to the
Modification changes in their
AI takes much more time to
10. of AI and environment. This makes
adjust to unused changes.
Human individuals able to
memorize and ace different
skills.

AI can as it were perform fewer The human judgment skills


assignments at the same time as underpin multitasking as
11. Versatility
a framework can as it were proven by differing and
learn duties one at a time. concurrent roles.

On the other hand, as social


creatures, people are much
AI has not aced the capacity to way better at social
Social
12. choose up on related social and interaction since they can
Networking
enthusiastic cues. prepare theoretical data,
have self-awareness, and are
delicate to others’ feelings.

It does optimization of the


system. It cannot be creative or
13. Task It is innovative or creative.
innovative as humans can only
think and machines cannot.
S.
No. Feature Artificial Intelligence Human Intelligence

Human Intelligence
Artificial Intelligence

Based on algorithms Based on cognitive processes and biological


Processing and mathematical structures
models

Based on data and Based on experience, intuition, and creativity


Learning
feedback loops

Can process data and Slower than AI in processing large amounts of


Speed perform tasks much data, but can make complex decisions quickly
faster than humans

Can adapt to new situations, learn from


Can quickly adapt to
experience, and make decisions based on
Adaptability new data and
context
situations

Lacks emotions and Capable of feeling emotions and empathy


Emotions
empathy

Limited ability to be Capable of creativity, imagination, and


Creativity creative or think innovation
outside of the box

Has a moral code and conscience that guides


Does not have a moral
Ethics decision-making
code or conscience

Does not have physical


Physical Limited by physical capabilities and requires
limitations, can operate
Limitations rest and maintenance
24/7
UNIT II AI SUBFIELDS AND TECHNOLOGIES
Machine Learning-Neural Network and Deep Learning-Natural Language Processing
(NLP) And Computer Vision. Case study: Smart speaker, Case study: Self-driving car.

Introduction

Definition of machine learning


Arthur Samuel, an early American leader in the field of computer gaming and artificial
intelligence, coined the term “Machine Learning” in 1959 while at IBM. He defined
machine learning as “the field of study that gives computers the ability to learn without
being explicitly programmed.” However, there is no universally accepted definition for
machine learning. Different authors define the term differently. We give below two more
definitions.
1. Machine learning is programming computers to optimize a performance criterion using exam- ple
data or past experience. We have a model defined up to some parameters, and learning is the
execution of a computer program to optimize the parameters of the model using the train- ing data or
past experience. The model may be predictive to make predictions in the future, or descriptive to gain
knowledge from data, or both.
2. The field of study known as machine learning is concerned with the question of how to con- struct
computer programs that automatically improve with experience .

Definition of learning
Definition
A computer program is said to learn from experience E with respect to some class of
tasks T and performance measure P , if its performance at tasks T , as measured by P ,
improves with experience E.
Examples
i) Handwriting recognition learning problem

• Task T : Recognising and classifying handwritten words within images


• Performance P : Percent of words correctly classified
• Training experience E: A dataset of handwritten words with given classifications
ii) A robot driving learning problem

• Task T : Driving on highways using vision sensors


• Performance measure P : Average distance traveled before an error
• training experience: A sequence of images and steering commands recorded while observing
a human driver
iii) A chess learning problem

• Task T : Playing chess


• Performance measure P : Percent of games won against opponents
• Training experience E: Playing practice games against itself

Definition
A computer program which learns from experience is called a machine learning program or simply a
learning program. Such a program is sometimes also referred to as a learner.
1.2 How machines learn
1.2.1 Basic components of learning process
The learning process, whether by a human or a machine, can be divided into four
components, namely, data storage, abstraction, generalization and evaluation. Figure 1.1
illustrates the various components and the steps involved in the learning process.
Data storage Abstraction Generalization Evaluation

Data Concepts Inferences

Figure 1.1: Components of learning process


1. Data storage
Facilities for storing and retrieving huge amounts of data are an important
component of the learning process. Humans and computers alike utilize data storage
as a foundation for advanced reasoning.
• In a human being, the data is stored in the brain and data is retrieved using electrochem- ical
signals.
• Computers use hard disk drives, flash memory, random access memory and similar de- vices to
store data and use cables and other technology to retrieve data.
2. Abstraction
The second component of the learning process is known as abstraction.
Abstraction is the process of extracting knowledge about stored data. This involves
creating general concepts about the data as a whole. The creation of knowledge
involves application of known models and creation of new models.
The process of fitting a model to a dataset is known as training. When the model has
been trained, the data is transformed into an abstract form that summarizes the
original information.
3. Generalization
The third component of the learning process is known as generalisation.
The term generalization describes the process of turning the knowledge about stored
data into a form that can be utilized for future action. These actions are to be carried
out on tasks that are similar, but not identical, to those what have been seen before.
In generalization, the goal is to discover those properties of the data that will be most
relevant to future tasks.
4. Evaluation
Evaluation is the last component of the learning process.
It is the process of giving feedback to the user to measure the utility of the learned
knowledge. This feedback is then utilised to effect improvements in the whole
learning process.

1.3 Applications of machine learning


Application of machine learning methods to large databases is called data mining. In data
mining, a large volume of data is processed to construct a simple model with valuable
use, for example, having high predictive accuracy.
The following is a list of some of the typical applications of machine learning.
1. In retail business, machine learning is used to study consumer behaviour.

2. In finance, banks analyze their past data to build models to use in credit applications, fraud detection,
and the stock market.
3. In manufacturing, learning models are used for optimization, control, and troubleshooting.
4. In medicine, learning programs are used for medical diagnosis.

5. In telecommunications, call patterns are analyzed for network optimization and maximizing the
quality of service.
6. In science, large amounts of data in physics, astronomy, and biology can only be analyzed fast
enough by computers. The World Wide Web is huge; it is constantly growing and searching for
relevant information cannot be done manually.
7. In artificial intelligence, it is used to teach a system to learn and adapt to changes so that the system
designer need not foresee and provide solutions for all possible situations.
8. It is used to find solutions to many problems in vision, speech recognition, and robotics.
9. Machine learning methods are applied in the design of computer-controlled vehicles to steer correctly
when driving on a variety of roads.
Machine learning methods have been used to develop programmes for playing games such as chess,
backgammon and Go.

1.4 Understanding data


Since an important component of the machine learning process is data storage, we briefly
consider in this section the different types and forms of data that are encountered in the
machine learning process.

1.4.1 Unit of observation


By a unit of observation we mean the smallest entity with measured properties of interest for a study.

Examples
• A person, an object or a thing
• A time point
• A geographic region
• A measurement

Sometimes, units of observation are combined to form units such as person-years.

1.4.2 Examples and features


Datasets that store the units of observation and their properties can be imagined as
collections of data consisting of the following:
• Examples
An “example” is an instance of the unit of observation for which properties have been
recorded. An “example” is also referred to as an “instance”, or “case” or “record.” (It
may be noted that the word “example” has been used here in a technical sense.)
• Features
A “feature” is a recorded property or a characteristic of examples. It is also referred
to as “attribute”, or “variable” or “feature.”
Examples for “examples” and “features”
1. Cancer detection
Consider the problem of developing an algorithm for detecting cancer. In this study
we note the following.
(a) The units of observation are the patients.
(b) The examples are members of a sample of cancer patients.
(c) The following attributes of the patients may be chosen as the features:
• gender
• age
• blood pressure
• the findings of the pathology report after a biopsy

2. Pet selection
Suppose we want to predict the type of pet a person will choose.
(a) The units are the persons.
(b) The examples are members of a sample of persons who own pets.

Figure 1.2: Example for “examples” and “features” collected in a matrix format (data
relates to automobiles and their features)

(c) The features might include age, home region, family income, etc. of persons who own pets.

3. Spam e-mail
Let it be required to build a learning algorithm to identify spam e-mail.
(a) The unit of observation could be an e-mail messages.
(b) The examples would be specific messages.
(c) The features might consist of the words used in the messages.

Examples and features are generally collected in a “matrix format”. Fig. 1.2 shows such a data
set.

1.4.3 Different forms of data


1. Numeric data
If a feature represents a characteristic measured in numbers, it is called a numeric feature.
2. Categorical or nominal
A categorical feature is an attribute that can take on one of a limited, and usually
fixed, number of possible values on the basis of some qualitative property. A
categorical feature is also called a nominal feature.
3. Ordinal data
This denotes a nominal variable with categories falling in an ordered list. Examples
include clothing sizes such as small, medium, and large, or a measurement of
customer satisfaction on a scale from “not at all happy” to “very happy.”

Examples
In the data given in Fig.1.2, the features “year”, “price” and “mileage” are numeric and the
features “model”, “color” and “transmission” are categorical.

General classes of machine learning problems


Learning associations
1. Association rule learning

Association rule learning is a machine learning method for discovering interesting


relations, called “association rules”, between variables in large databases using some
measures of “interestingness”.

2. Example

Consider a supermarket chain. The management of the chain is interested in


knowing whether there are any patterns in the purchases of products by customers
like the following:
“If a customer buys onions and potatoes together, then he/she is likely to also
buy hamburger.”
From the standpoint of customer behaviour, this defines an association between the
set of products {onion, potato} and the set {burger}. This association is represented
in the form of a rule as follows:
(onion, potato}=>(burger)
The measure of how likely a customer, who has bought onion and potato, to buy
burger also is given by the conditional probability
P ((onion, potato}|(burger}).
If this conditional probability is 0.8, then the rule may be stated more precisely as

follows: “80% of customers who buy onion and potato also buy burger.”

3. How association rules are made use of

Consider an association rule of the form


X ⇒ Y,
that is, if people buy X then they are also likely to buy Y .
Suppose there is a customer who buys X and does not buy Y . Then that customer is a potential Y
customer. Once we find such customers, we can target them for cross-selling. A knowledge of such
rules can be used for promotional pricing or product placements.
4. General case

In finding an association rule X ⇒ Y , we are interested in learning a conditional probability of


the form P (Y |X) where Y is the product the customer may buy and X is the
products thethe
product or customer
set of has already purchased.
( | )
If we may want to make a distinction among customers, we may estimate P Y X, D
where D is a set of customer attributes, like gender, age, marital status, and so on,
assuming that we have access to this information.

5. Algorithms

There are several algorithms for generating association rules. Some of the well-known
algorithms are listed below:
a) Apriori algorithm
b) Eclat algorithm
c) FP-Growth Algorithm (FP stands for Frequency Pattern)

1.4.4 Classification
1. Definition

In machine learning, classification is the problem of identifying to which of a set of


categories a new observation belongs, on the basis of a training set of data containing
observations (or instances) whose category membership is known.
2. Example
Consider the following data:

Score1 29 22 10 31 17 33 32 20
Score2 43 29 47 55 18 54 40 41
Result Pass Fail Fail Pass Fail Pass Pass Pass

Table 1.1: Example data for a classification problem

Data in Table 1.1 is the training set of data. There are two attributes “Score1” and “Score2”. The class
label is called “Result”. The class label has two possible values “Pass” and “Fail”. The data can be divided
into two categories or classes: The set of data for which the class label is “Pass” and the set of data for
which the class label is“Fail”.
Let us assume that we have no knowledge about the data other than what is given in the table. Now, the
problem can be posed as follows: If we have some new data, say “Score1 = 25” and “Score2 = 36”, what
value should be assigned to “Result” corresponding to the new data; in other words, to which of the two
categories or classes the new observation should be assigned? See Figure
1.3 for a graphical representation of the problem.

Score2
60

50

40
?
30

20

Score1
10 0 10 20 30 40
Figure 1.3: Graphical representation of data in Table 1.1. Solid dots represent data in
“Pass” class and hollow dots data in “Fail” class. The class label of the square dot is to be
determined.

To answer this question, using the given data alone we need to find the rule, or the formula, or the method that has
been used in assigning the values to the class label “Result”. The problem of finding this rule or formula or the
method is the classification problem. In general, even the general form of the rule or function or method will not
be known. So several different rules, etc. may have to be tested to obtain the correct rule or function or method
1. Real life examples
i) Optical character recognition
Optical character recognition problem, which is the problem of recognizing
character codes from their images, is an example of classification problem. This is
an example where there are multiple classes, as many as there are characters we
would like to recognize. Especially interesting is the case when the characters are
handwritten. People have different handwrit- ing styles; characters may be written
small or large, slanted, with a pen or pencil, and there are many possible images
corresponding to the same character.
ii) Face recognition
In the case of face recognition, the input is an image, the classes are people to be
recognized, and the learning program should learn to associate the face images to
identities. This prob- lem is more difficult than optical character recognition
because there are more classes, input image is larger, and a face is three-
dimensional and differences in pose and lighting cause significant changes in the
image.
iii) Speech recognition
In speech recognition, the input is acoustic and the classes are words that can be uttered.
iv) Medical diagnosis
In medical diagnosis, the inputs are the relevant information we have about the
patient and the classes are the illnesses. The inputs contain the patient’s age,
gender, past medical history, and current symptoms. Some tests may not have been
applied to the patient, and thus these inputs would be missing.
v) Knowledge extraction
Classification rules can also be used for knowledge extraction. The rule is a simple
model that explains the data, and looking at this model we have an explanation
about the process underlying the data.
vi) Compression
Classification rules can be used for compression. By fitting a rule to the data, we
get an explanation that is simpler than the data, requiring less memory to store and
less computation to process.
vii) More examples
Here are some further examples of classification problems.
(a) An emergency room in a hospital measures 17 variables like blood pressure, age, etc. of newly
admitted patients. A decision has to be made whether to put the patient in an ICU. Due to the
high cost of ICU, only patients who may survive a month or more are given higher priority.
Such patients are labeled as “low-risk patients” and others are labeled “high-risk patients”.
The problem is to device a rule to classify a patient as a “low-risk patient” or a “high-risk
patient”.
(b) A credit card company receives hundreds of thousands of applications for new cards. The
applications contain information regarding several attributes like annual salary, age, etc. The
problem is to devise a rule to classify the applicants to those who are credit-worthy, who are
not credit-worthy or to those who require further analysis.
(c) Astronomers have been cataloguing distant objects in the sky using digital images cre- ated
using special devices. The objects are to be labeled as star, galaxy, nebula, etc. The data is
highly noisy and are very faint. The problem is to device a rule using which a distant object
can be correctly labeled.
3. Discriminant

A discriminant of a classification problem is a rule or a function that is used to assign


labels to new observations.

Examples
i) Consider the data given in Table 1.1 and the associated classification problem. We may consider
the following rules for the classification of the new data:

IF Score1 + Score2 ≥ 60, THEN “Pass” ELSE “Fail”.


IF Score1 ≥ 20 AND Score2 ≥ 40 THEN “Pass” ELSE “Fail”.

Or, we may consider the following rules with unspecified values for M, m1, m2 and
then by some method estimate their values.
IF Score1 + Score2 ≥ M , THEN “Pass” ELSE “Fail”.
IF Score1 ≥ m1 AND Score2 ≥ m2 THEN “Pass” ELSE “Fail”.

i) Consider a finance company which lends money to customers. Before lending money, the company
would like to assess the risk associated with the loan. For simplicity, let us assume that the company
assesses the risk based on two variables, namely, the annual income and the annual savings of the
customers.
Let x1 be the annual income and x2 be the annual savings of a customer.
• After using the past data, a rule of the following form with suitable values for θ1 and
θ2 may be formulated:
IF x1 θ1 AND>x2 θ2 THEN “low-risk” ELSE “high-risk”.
This rule is an example of>a discriminant.
• Based on the past data, a rule of the following form may also be formulated: IF x2 –
0.2x1 > 0 THEN “low-risk” ELSE “high-risk”.
In this case the rule may be thought of as the discriminant. The function f (x1, x2) =
x2 – 0, 2x1 can also be considered as the discriminant.

1. Algorithms
There are several machine learning algorithms for classification. The following are some of the well-
known algorithms
a) Logistic regression
b) Naive Bayes algorithm

c) k-NN algorithm
d) Decision tree algorithm

e) Support vector machine algorithm


f) Random forest algorithm
Remarks
• A classification problem requires that examples be classified into one of two or more classes.
• A classification can have real-valued or discrete input variables.
• A problem with two classes is often called a two-class or binary classification problem.
• A problem with more than two classes is often called a multi-class classification problem.
• A problem where an example is assigned multiple classes is called a multi-label classification
problem.

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