DSS: Decision Support Systems and AI: Artificial Intelligence

In Business

AI in Business

Some Commercial Applications• Decision Support• Expert Systems• Information Retrieval• Virtual Reality• Robotics

I’m ready to do some business

Overview of AI

• Goal of AI– develop computer systems that exhibit

intelligence or simulate the ability to think

• AI pioneered by Computer Science• But, AI involves a combination of

– Computer Science, Biology, Psychology, Linguistics, Mathematics,Engineering

What really is Intelligence?

• Specifically, what are the signs of Intelligent Behavior?

• Think about it for a while

Which of the following is the best example of intelligent behavior?

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1. Ability to add numbers2. Ability to see and

recognize objects3. Ability to adapt to

surroundings4. Ability to learn for

mistakes

What really is Intelligence?

• You are about to start an online chat (IM) with two entities:– One entity is a human– The other is a computer

• After hours of conversation, you can not tell which entity is a computer.

• Does this mean the computer is Intelligent?

Intelligent Behavior

• What are some of the signs, attributes, or characteristics of Intelligent Behavior

Characteristics of Intelligent Behavior

1. Learn from experience & apply the knowledge

Computer can automatically improve performance based on Experience

Machine Learning Computational Learning

Characteristics of Intelligent Behavior

2. Handle complex situations Computer Systems can often

handle complexity better than humans

Consider a process control system that must simultaneous track 100 different system variables.

Characteristics of Intelligent Behavior

3. Solve problems when important information is missing

Computer Systems can find patterns and deal with all sorts of missing information

Characteristics of Intelligent Behavior

4. React quickly & correctly to new situations; Acquire & Apply Knowledge

Here is where computers start to fail. Adapting to completely new situations

is a problem for computer systems. Its very difficult to design a computer

system that can combine, connect, and acquire knowledge to solve completely new problems

Characteristics of Intelligent Behavior

5. Determine what is important.6. Exhibit creativity and imagination7. Process visual information efficiently8. Use reason to solve problems

These are some other Characteristics that humans possess.

Computer systems have a lot of catching up to do.

Which of the following do computer need to catch up on?

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1. Determine what is important.

2. Exhibit creativity and imagination

3. Process visual information efficiently

4. Use reason to solve problems

AI in Business

• AI continues to improve and evolve.• Scientists and Engineers are pushing

the envelope of what is possible.• In Business, there is a better

understanding of the capabilities of Intelligent Computer Systems

• It is important to know which types of problems are suited for humans, and which are suited for Computers.

Human Intelligence vs. AI

Attribute HumanIntelligence

ArtificialIntelligence

Use a variety of information sources

High High

Ability to acquire large amounts of external info.

Medium High

Ability to do rapid, accurate, and complex calculations

Low High

Ability to transfer information rapidly

Low High

Human Intelligence vs. AI

Attribute HumanIntelligence

ArtificialIntelligence

Ability to use sensors or senses

High Medium

Creativity or imagination High Low

Ability to learn from experience

High Medium

Ability of be adaptive High Medium

AI: Application Domains

AI: Commercial Domains

• Decision Support– Integrating the advantages of AI

with Human Intelligence.– More intelligent Interfaces– More intelligent processing for

massive data

AI: Commercial Domains

• Information Retrieval– Automatic simplification for

massive data– Natural language technology:

computer can speak our language.

AI: Commercial Domains• Virtual Reality

– Better training environment from pilots to doctors

• Robotics– Bringing the precision and speed of

computers into the physical world– Goes beyond manufacturing and

assembly lines; Baggage Inspection, Bomb Removal, Replacement Limbs.

Expert Systems

• The idea is to inject expert knowledge in to a computer system.

• The primary purpose is to automate decision making.

• The decision environments have structure

• The alternatives and goals are often established in advance.

Expert Systems vs. DSS

Expert System• Inject expert knowledge

in to a computer system.• Automate decision

making.• The decision

environments have structure

• The alternatives and goals are often established in advance.

• The expert system can eventually replace the human decision maker.

Decision Support System• Extract or gain knowledge

from a computer system• Facilitates decision

making• Unstructured environment• Alternatives may not be

fully realized yet• Use goals and the system

data to establish alternatives and outcomes, so a good decision can be made

What is the biggest difference between a Decision Support System and an MIS

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1. DSS’s are interactive and ad hoc

2. DSS’s focus on transforming information into knowledge

3. MIS’s focus on transforming data into information

4. All of the above

What is the biggest difference between an MIS and TPS

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1. in a TPS there is no analysis

2. an MIS focuses on reports

3. an TPS focuses on updating a database

4. All of the above

How is the analysis different for a MIS vs. DSS

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1. MIS: Analysis involves computing aggregates

2. MIS: Analysis involves creating useful charts and graphs

3. DSS: Connects information with decisions

4. DSS: Builds scenarios

Some Interesting Applications of Expert

Systems• Triage – Medical Diagnosis (Medical Expert

System)– User enters symptoms– System makes diagnosis– Doctors collective expertise is captured in the system

• Patriot Missile Guidance System– Radar identifies Scud missile– System steers Patriot missile to it intercepts Scud

missile– Laws of physics, expert knowledge about missile

trajectory is captured in the system

• Financial Decision Making – Currency Trading

Expert System Categories

• Decision Making– buy/sell– risk/no risk– rain/ no rain

• Trouble Shooting / Diagnosis– Hello welcome to

Dell; how can I help you?

– Suddenly an idiot seems like an expert.

• Selection/Classification– Tell me what you see,

expert system figures out what it really is...

• Process Monitoring and Control– Robot control, assembly-

line control, missile control

• Design/Configuration– Specify what you want,

expert system figures out specifically how to do it.

Expert System Components

Knowledge base

user

Expert System Software

UserInterface

Engine

Expert System Components

Knowledge base

user

Expert System Software

UserInterface

Engine

Raw Data or Facts

Expert or Knowledge Engineer

Knowledge Acquisition Program

Expert System Development Process

Expert System Components

Knowledge base

Non-expert

Robot

Missile

Expert System Software

Interface

Engine

Raw Data or Facts

Expert or Knowledge Engineer

Knowledge Acquisition Program

Expert System Development Process

Expert System vs. DSS

Model Base

Analytical & Statistical Models

Someone with Knowledge

Decision Maker

DSS Software

UserInterface

Engine

Raw Data or Facts

Data Management Extraction, Generation, Validation, etc.

DSS Processes