Artificial intelligence in business II: Development, integration and organizational issues

Abstract

The purpose of this paper is to review the use of knowledge-based systems and artificial intelligence (AI) in business. Part I of this paper provided a broad survey of the use of AI in business, summarizing the application of AI in a number of business domains. In addition, it also provided a summary of the use of different forms of knowledge representation in business applications. Part I has a large set of references, including a number of survey papers, focusing on AI in business. Part II of this paper consists of more detailed analysis of particular systems or issues affecting AI in business. It examines technical issues which are central to the construction of business AI systems, and it also examines the commercial contribution made by methods for the development of AI systems. In addition, part II looks at integration between AI and more traditional information systems. AI can be used to add value to many existing information systems, such as database management systems. Particular attention is given to the integration of AI with operations research, which is the one of the primary “competitors” of AI, providing an alternative set of support tools for decision making.Business organizations are not concerned only with technology issues; there is also concern about the impact of AI on organizations. Further, the evaluation of AI often is based on an economic view of the world. Part II therefore investigates the organizational impact of AI, and the economics of AI, including issues such as value creation. The format of Part II is as follows: Section 8 analyses techniques for improving the performance of AI systems, thus maximizing economic return. Section 9 looks at different forms of uncertainty and ambiguity which must be dealt with by AI systems. It examines the contributions of fuzzy logic and numerical measures of certainty to handling these problems. Section 10 examines the usefulness of different approaches to knowledge acquisition in business situations, and investigates the benefits of methodological approaches to AI applications. It also looks at more recent AI programming techniques which eliminate the need for knowledge elicitation from an expert: neural networks, case-based reasoning and genetic algorithms are discussed. Sections 11 and 12 examine issues of integrating AI systems. Generally, the use of AI in business settings must ultimately be integrated with the broader base of corporate information systems. Section 11 looks at integration with information systems in general, and section 12 looks particularly at integration with operations research. Sections 13 and 14 review the organizational and economic impact of AI. Finally, section 15 provides a brief summary of part II.