Features
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Neural Networks in Finance: The Importance of Methodology Over Technology
- The Authors examine what it means to have an effective methodology
to evaluate problems, and how neural networks are the answer of choice in
two real-world cases. |
Modeling Methodology 4: Localizing Global Models -- Most modeling
algorithms belong to one of two classes, local or global. In this segment
of his series, Will Dwinnell examines a method for localizing a multilayer
perceptron neural network using fuzzy clustering. |
Neural Networks for Monitoring, Control, and Optimization -- Paul
Van Buskirk gives an overview of model applications, highlighting neural
networks, that improve the profitability, quality, safety, and environmental
controls of a process. |
Neural Networks in the Process Industry - The authors take an in-depth
look at the manufacturing industry and discuss how neural networks can be
employed to generate an on-line prediction of product quality in a rubber
processing plant, and a neural network as a process model of a cement mill. |
AI@Work - Fuzzy logic and neural networks are intelligent solutions
in a variety of applications, from gauging consumer reactions to job shop
scheduling, from predicting profit and loss in futures trading to designing
polymers. We've invited Ward Systems Group, WizSoft Inc., Flixible Intelligence
Group, and The DASGroup to discuss recent customer success stories. |
Intelligent Process Control in Aviation - Intelligent technology
is an integral part of commercial airlines, and Lance Sherry examines the
benefits to pilots, flight safety, and economics of operation. |
Regulars |
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Editorial |
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Secret Agent Man - Excite Yourself By Shopping with
Jango |
by Don Barker |
Intelligence Files - Smile for the Computer |
by David Blanchard |
Product Updates ----------------------------> |
15 late breaking product announcements from
around the world in the fields of: |
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Announcements |
Data Mining |
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Expert System Development Tools |
Fuzzy Logic |
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Internet |
Languages |
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Neural Networks |
Process Control |
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Tools |
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PC AI Buyer's Guide -----------------------> |
Fuzzy Logic |
Intelligent Process Control |
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Neural Networks |
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Product Service Guide - Provides access to information
on an entire category of products |
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PC AI Blackboard - AI advertisers bulletin board |
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Advertiser List for 12.3
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AAAI |
Intelligent Systems Rpt. |
Primenet Inc. |
AAAI '98 |
KDD-98 |
Production Systems Technologies Inc. |
AI Developers Inc. |
KnowledgeBroker Inc. |
Prolog Development Center |
Amzi! Inc. |
Logic Programming Assoc Ltd |
Quality Monitoring & Control |
Applied Logic Systems |
MicroMath |
Rule Machines Corporation |
ATTAR Software USA |
MIT GmbH |
Salford Systems |
BioComp Systems Inc. |
Nestor |
Soft Warehouse Inc. |
BotSpot |
Neuron Data |
System Dynamics International Inc. |
California Scientific Software |
NeuroDimension |
The Haley Enterprise Inc. |
Churchill Systems |
OXKO Corporation |
The MathWorks |
DCI |
Palisade Corporation |
Ward Systems Group Inc. |
Flexible Intelligence Group |
PC AI |
WizSoft Inc. |
Franz Inc. . |
Pinnacle Data |
Xi Computer Corporation |
Hess Consulting |
Prentice Hall |
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Editorial:
The Process of Controlling Real World Applications
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I was amused by a recent CNN headline: "Swiss Scientists Warn of Robot
Armageddon." A reporter, covering a story on robots that learn from their
environment, predicted that within ten years "more advanced machines, equipped
with artificial intelligence, will be as clever as humans. Soon after, they
[the researchers] say, the man-made objects could become more intelligent
than their creators . . . and capable of taking over." It's troubling enough
that the media sets unreasonable expectations of the computer industry,
as we've just recovered from the last wave of media hype, and I'd hate to
see it overshadow the significant work being done using AI technology. |
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In this issue we examine Neural Networks, just one of the fields where
AI is applied to real problems and, in turn, is part of the industry mainstream.
Neural networks enable the real-time dynamic modeling of non-linear events
that are too complex or ill defined for traditional analytical methods or
empirical rules. For example, IBM uses this technology as part of its suite
of data minng applications and as an integral part of its new anti-virus
software. Neural networks are also used for image restoration, filtering,
diagnoses, quality control, adaptive process control, and pattern recognition.
Unfortunately, some of the best applications remain under wraps lest they
reveal company secrets. Neural nets have been a part of the financial world
for years in areas as diverse as credit approval to fraud detection. I've
noticed that it's a good indication of the importance of a technology when
traditional companies don't just buy the neural network products, but buy
the whole company. (See David Blanchard's "Intelligence Files" for a $200
million AI company acquisition.) |
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This issue looks at Neural Networks and Fuzzy Logic with an emphasis on
the process control industry. This is a conservative industry where a process
savings of a few percent on something as simple as boiling water can save
hundreds of millions of dollars per year. In the article "Neural Networks
in the Process Industry," Angstenberger and his colleagues discuss the use
of this technology to predict product quality in the rubber industry and
as a process model in a cement mill. Most manufacturing facilities can learn
from these examples. Paul Van Buskirk examines the use of neural network
modeling in areas such as fault detection, forecasting, and prediction in
his article "Neural Networks for Monitoring, Control, and Optimization."
Understanding the use of system models can improve quality, safety, and
profits in any business. To put your mind at ease the next time you fly,
read Lance Sherry's "Intelligent Process Control in Aviation," as he describes
intelligent process control in the complex systems that fly commercial airplanes.
His article also provides an interesting glimpse at the technology that
goes into these complex aircraft. Not forgetting the financial side of neural
networks, we feature "Neural Networks in Finance: The Importance of Methodology
Over Technology" by Vasan Dhar and Roger Stein. Will Dwinnell continues
his series with "Modeling Methodology 4: Localizing Global Models." If you've
been following this series, you should have a solid understanding of, and
be able to generate, neural networks. |
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Our columnists also file their latest updates in this issue. "Secret Agent
Man," by Don Barker meets up with an agent called Jango at a well known
web hangout www.excite.com. David Blanchard looks at the latest in
Biometrics, AI mergers, and Microsoft "intelligent" acquisitions. Don't
forget to check out our short application success stories in AI@Work for
some interesting - and unexpected - uses of AI. |
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Now isn't the real world much more interesting than some of the dire predictions
out there? |
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Terry Hengl |