ISM Chapter 2 Review

Artificial intelligence (AI)

The subfield of computer science concerned with symbolic reasoning and problem solving.

Augmented intelligence

The AI technology that augments computer tasks to extend human cognitive abilities, resulting in high performance.

Autonomous car

A sensor and AI enhanced car that can drive itself without a driver.

Autonomy

Being self-sufficient to carry out tasks, not needing the help of a human.

Chatbots

A AI-based computer program that simulates and processes human conversation.

Computer vision

An interdisciplinary field that deals with how computers can create high-level understanding of digital images or videos.

Deep learning

An open-source deep learning framework for Java and the JVM, designed for building, training, and deploying neural networks in enterprise applications with support for distributed computing and integration with big data tools

Generative AI

A branch of artificial intelligence focused on creating new content such as text, images, music, or code by learning patterns from existing data and generating novel outputs

Hallucinations

A key issue in using GenAI tools has been the possibility of getting answers that are inaccurate, false, and totally made up. This happens because these tools are simply constructing responses from their databases and models. Such made up answers have been termed "hallucinations".

Machine learning

A branch of artificial intelligence which focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy.

Natural language processing (NLP)

Using a natural language processor to interface with a computer-based system.

Prompt engineering**

RAG

An approach that enhances the capacity of large language models (LLMs) by coupling them with external sources, generate content based on their trained parameters only; enables models to retrieve the right documents or facts from an external source or search index in real-time referred to as a vector database and incorporate them into the generation process. This results in more accurate, grounded, and timely outputs.

Robot

A machine or a physical device or software that with the cooperation of AI can accomplish a responsibility autonomously.

Sensor

A variety of devices that detect and respond to some type of input from the physical environment.

Social robot

A robot capable of interacting with humans and other robots.

Speech (voice) understanding

Computer systems that can understand human speech and voice.

Turing Test

A test for intelligence in a computer, requiring that a human being should be unable to distinguish the machine from another human being by using the replies to questions put to both.

What are the major aims and goals of AI?

-Create intelligent machines that can perform tasks done by people

-Enable machines to reason, think abstractly, plan, solve problems, and learn

-Perceive and react to changes in the environment

-Introduce creativity into business processes and decision-making

List some AI drivers.

-Interest in smart machines and artificial brains

-Lower cost of AI compared to manual labor

-Competitive advantage and market share

-Pressure to increase productivity and speed

-Availability of quality data

-Advances in computer technology and cognitive computing

-Development of cloud computing and new computing chips

List some examples of AI applications.

-Contract digitization and processing

-Recruitment and candidate screening

-Job-to-candidate matching

-Routine administrative tasks

-Management decision support

-People-machine collaboration

-Environmental monitoring using satellite imagery

-Loan underwriting and creditworthiness prediction

-Predicting customer expectations

-Supporting business decision-making

List some AI limitations.

-Lack human touch and feel

-Lack awareness of surroundings

-Can cause overreliance on AI

-Can be programmed for harmful purposes

-May cause job loss

-May act independently and cause damage

-Depend on accurate and accessible data

-Require skilled and expensive AI experts

-Can be costly to implement

What is intelligence?

The ability to reason, learn, understand, solve problems, perceive the environment, and use language.

What are the major capabilities of human intelligence?

-Learning from experience

-Handling ambiguity & incomplete information

-Adapting to new situations

-Reasoning & problem-solving

-Applying knowledge to situations

-Recognizing what is important

-Imagination & creativity

-Flexibility

-Innovative thinking

-Pattern recognition / perception

-Using common sense & human senses

Of the major capabilities of human intelligence, which are superior to that of AI machines?(*)

-General intelligence

-Creativity

-Flexibility

-Reasoning

-Perception

-Emotions & consciousness

What is the Turing Test and what are its limitations?

A test of AI intelligence where a human interviewer asks questions to an unseen human and an unseen computer and cannot tell which is which.

Limits:

-Limited to question-and-answer interactions.

-Advanced chatbots have made the test less reliable as a measure of true machine intelligence.

-Measures whether a machine can appear human, not whether it truly understands.

-A machine could potentially imitate human behavior without actually thinking or understanding.

-Human intelligence involves more than conversation.

How could one measure the intelligence level of a vacuum cleaner?

-Measure how well it performs specific tasks

-Test its ability to perceive and react to its environment

-Measure its ability to learn from experience

-Test its ability to adapt to new situations

-Measure its ability to solve problems and make decisions

-Use specific performance metrics based on the vacuum cleaner's purpose

By evaluating how well it can perceive its environment, learn from experience, make decisions, adapt, and accomplish its cleaning goal.

Example: A more intelligent vacuum could recognize obstacles, map rooms, learn where dirt is commonly found, and adjust its behavior.

Define intelligent agents and list some of their capabilities.

An expert or knowledge-based system embedded in computer-based information systems (or their components) to make them smarter.

List:

-Observes and responds to environmental changes

-Performs tasks autonomously

-Can learn and expand knowledge

-Searches for products

-Provides recommendations

-Determines product pricing

-Plans marketing activities

-Improves computer security

-Manages auctions

-Facilitates payments

-Improves inventory management

-Increases speed and efficiency

-Reduces costs and errors

-Improves customer service

Prepare a list of applications of intelligent agents.

-Personal assistants

-Chatbots

-Recommendation systems

-E-commerce shopping agents

-Fraud detection

-Cybersecurity

-Financial trading

-Customer service

-Information search/filtering

-Autonomous vehicles

-Smart-home systems

What is machine learning? How can it be used in business?

A branch of artificial intelligence which focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy.

Use:

-Predict customer behavior and expectations

-Detect fraud and unusual patterns

-Identify objects, products, or people using images

-Automate inspection and quality control

-Improve security and surveillance

-Predict outcomes and support decision-making

-Automate repetitive tasks

-Reduce costs and human errors

-Improve operational efficiency

What is NLP? What are its two major formats?

Using a natural language processor to interface with a computer-based system.

Formats:

1.) Natural Language Understanding

2.) Natural Language Generation

Identify at least three key components of generative AI technologies.

-Machine Learning Models

-Neural Networks

-Training Data

Name two advantages of using Copilot with PowerBI for developers and analysts respectively.

Developers:

1.) Writes complex DAX queries quickly

2.) Optimizes code and explains it, helping developers solve problems faster.

Analysts:

1.) Uses natural-language questions to find insights and trends•

2.) Summarizes reports/visuals and identifies outliers, reducing manual effort

Explain the unique contributions of agentic AI. Give examples.

Operates autonomously, taking multiple steps to accomplish a goal rather than simply responding to one prompt.

Examples:

-Retail: Walmart uses AI agents for inventory management and software systems

-Healthcare: AI agents assist with clinical-trial enrollment and patient information

-Supply chain: Predicts bottlenecks and adjusts inventory based on demand

-Insurance: Automates claims processing from inspection to payout

Distinguish between fully automated and supported decision making.

Fully automated decision making: AI makes the decision without human involvement. (Ex: Loan approvals, product pricing, restocking, product recommendations)

vs.

Supported decision making: AI assists a human, but the human makes the final decision. (Ex: Problem identification, generating solutions, predicting outcomes, evaluating solutions)

List the benefits of AI for decision support.

-Solves complex problems

-Makes faster decisions

-Finds relevant information quickly

-Performs complex calculations

-Conducts complex comparisons and evaluations

-Helps identify problems and generate alternatives

-Supports solution selection and implementation

What factors influence the use of AI for decision support?

-Complexity of the decision

-Amount of human involvement required

-Availability and quality of data

-Whether the decision is routine or nonroutine

-Cost and feasibility of automating the decision

Relate AI to the steps in the classical decision-making process.

1. Problem identification → AI helps identify and define problems.

2. Generate alternatives → AI finds or generates possible solutions.

3. Evaluate alternatives → AI compares and evaluates possible solutions.

4. Select a solution → AI can recommend the best solution, while a human may make the final choice.

5. Implement the solution → AI can help carry out the selected solution.

What are the major reasons for using AI in accounting?

-Increase accuracy and reduce human error

-Improve efficiency by automating repetitive tasks

-Save time on manual data entry, document review, and processing

-Speed up auditing and financial analysis

-Improve fraud detection and reduce compliance risk

-Handle large amounts of financial data quickly

-Support higher-value, strategic work by reducing routine tasks

-Solve complex accounting and billing problems

-Improve decision-making through faster analysis and better information

How is AI being used in drug development process?

-Speeds up drug discovery by analyzing large datasets quickly

-Improves accuracy in identifying potential drugs and treatments

-Identifies new uses for existing drugs by finding patterns in biological data

-Designs and identifies new molecules much faster

-Streamlines clinical trials, including trial recruitment

-Processes large amounts of clinical-study data

-Improves precision in drug design

-Reduces development time and costs compared with traditional approaches

How can AI be used to improve CRM?

-Improve customer service using conversational bots that provide information, advice, and guidance

-Personalize customer experiences based on customer data and behavior

-Increase customer loyalty by recognizing and personalizing interactions with regular customers

-Generate sales leads by analyzing customer data and predicting potential customers

-Improve the sales pipeline by identifying prospects and converting them into customers

-Provide product recommendations based on customer information and preferences

Identify some of the key milestones in the history of manufacturing that have led to the current interest in robotics.

1.) Ancient ideas of automation → Aristotle envisioned tools that could work on their own (320 BC)

2.) Early mechanical robots → Leonardo da Vinci designed a human-like robot concept (1495)

3.) Industrial Revolution → Steam power and electricity enabled machines to automate production

4.) Assembly-line manufacturing → Henry Ford introduced the moving conveyor belt assembly line (1913)

5.) First use of the term "robot" → Karel Čapek coined the term in 1920

6.) Industrial robotic arms → Robots began handling dangerous and repetitive manufacturing tasks in the 1930s-1950s

7.) Commercial robotic arms → Planetbot was developed in the mid-1950s and used by General Motors

8.) Unimate → Developed by George Devol and Joe Engelberger; used by GM for automated manufacturing tasks

9.) Mobile robots → Shakey (1963) could move, avoid obstacles, and solve problems using logic

10.) AI + robotics → Machine learning, computer vision, and sensors enabled robots to adapt rather than only perform preprogrammed tasks

11.) Modern robotics → Robots now perform specialized and autonomous tasks across manufacturing, healthcare, logistics, transportation, and other industries

How could a social support robot such as Pepper or MEDi be useful in healthcare?

-Provide social and emotional support to patients, helping them feel less isolated.

-Interact with patients through conversation and social engagement.

-Assist healthcare workers with routine patient-support tasks.

-Help patients stay engaged and motivated during treatment or recovery.

-Support children or elderly patients who may benefit from companionship and interaction.

-Improve the patient experience by providing consistent social interaction and assistance.

What are some of the key technology advancements that have enabled the growth of self-driving cars?

-Artificial intelligence (AI) → Helps cars make driving decisions.

-Machine learning → Allows cars to learn from data and improve their performance.

-Computer vision → Helps cars recognize roads, vehicles, pedestrians, signs, and obstacles.

-Sensors → Detect objects and understand the vehicle's surroundings.

-GPS and navigation systems → Help cars determine their location and plan routes.

-Faster computing technology → Allows cars to process large amounts of data quickly.

-Improved connectivity → Helps vehicles communicate with other systems and access real-time information

Define chatbots and describe their use.

An AI-based computer program that simulates and processes human conversation.

Used for:

Answering questions, retrieving information, providing advice, and supporting communication and collaboration. Businesses use chatbots for customer service, marketing, financial services, healthcare, and manufacturing.

Examples: ChatGPT, Alexa, Facebook Messenger bots, and WhatsApp bots.

List the major components of chatbots.

-Person (client)

-Computer, avatar, or robot (AI machine)

-Knowledge base — stored in the machine or connected through the cloud

-Human-computer interface — enables written or voice communication

-NLP (Natural Language Processing) — allows the machine to understand natural language

What are the major drivers of chatbot technology?

-Need to cut costs

-Advances in AI, especially NLP and voice technology

-Ability to communicate in different languages

-Improved quality and availability of knowledge/data

-Growth of virtual assistants and smart devices

-Demand for fast, low-cost customer service and market research

-Ability to recognize text and images

-Support for shopping

-Support for decision-making

AI machines can learn and improve their performance. (T or F)

True

AI cannot manage delays and blockages in business processes. (T or F)

False

AI cannot yet pass the Turing Test. (T or F)

False

Intelligence is composed of reasoning, learning, logic, problem-solving ability, perception, and linguisticability. (T or F)

True

Integration of digital information with the user environment in real time (mostly vision and sound) is often called augmented reality. (T or F)

True

Cognitive computing seeks to simulate aspects of human reasoning and learning to improve decision-making support in business contexts. (T or F)

True

Microsoft Copilot enhances productivity in data analysis by:

Providing AI-powered insights and recommendations.

Generative AI is considered a derivative of traditional machine learning and deep learning methods. (T or F)

True

Current AI systems demonstrate emotional understanding equivalent to that of human beings. (T or F)

False

Using AI agents can allow a company to reduce the number of workers hired. (T or F)

True

AI can support but not all phases of decision making. (T or F)

False

AI has been used in virtually every industry segment. (T or F)

True

AI-driven chatbots can provide customer support continuously. (T or F)

True

In human resource management, AI tools assist with recruitment, performance evaluation, and employee retention analysis. (T or F)

True

Davinci systems robots provide support in which industry?

Healthcare

Davinci systems provide robotic support in healthcare. (T or F)

True

Self-driving cars are examples of robots. (T or F)

True

Chatbots are becoming the most visible form of experiencing AI. (T or F)

True