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Not for the technologically faint-ofheart, this article delves into the "nuts and bolts" of artificial intelligence and its place in the business world. A description is given of how present-day AI is patterned after the human neurological system and how this can allow your computer to "learn" from its mistakes.
Artificial intelligence (AI) is a multidisciplinary field. It encompasses such diverse fields as computer science, philosophy, and psychology. The aim of AI is to replicate human reasoning and brain activity. The use of AI can improve decision making by enhancing consistency. It helps distribute expertise to nonexpert staff. The company retains that expertise even when staff members leave the organization. This article discusses how the accountant can benefit from AI.
A wide variety of applications are available in AI. Accountants and auditors use AI for everything from tax planning and preparation to preparing audit programs to evaluating internal controls. AI consists of several tools and techniques, including expert systems, case-based reasoning, constraint programming, and neural networks. An explanation will be provided here of the various AI tools, especially expert systems and neural networks, as well as several AI applications.
EXPERT SYSTEMS
Expert systems are used fairly extensively in business. Rules in the form of"If . . . Then" statements are extracted from experts, stored in the computer and applied to a wide variety of highly specialized business problems. Expert systems can explain the reasoning behind a conclusion and this capability is critical in validating the results. In fact, the expert system can ultimately become more knowledgeable over time. The expert system keeps learning and applies that knowledge to formulate better decisions.
The inference engine of the expert system processes user input data and matches it with the knowledge and experience base. The user interface provides communication between the user and the software. The explanation facility explains to the user how and on what basis (rationale) the decision was made by the expert system.
More advanced technology allows intelligent software to "learn" knowledge from different problem domains. The decisions made based upon the knowledge learned by computer software is more accurate and reliable compared with that from human experts.
The knowledge base is comprised of two types of knowledge representations: rule based (deductive knowledge), and...