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Unit-2

Artificial Intelligence refers to software technologies that make a

computer or robot to perform tasks and act and think like a human. It
is simulation of human intelligence by machines, especially computer
systems. It refers to developing systems endowed with intellectual
characteristics of humans, such as the ability to think, to reason (using
rules to reach approximate or definite conclusions), discover meaning
or learn from past experiences. AI is development of computer
systems that can perform tasks that normally require human
intelligence. Speech recognition, decision making, visual perception,
language translation are the features of human intelligence that
artificial intelligence may possess. AI contrasts with natural
intelligence. AI technologies have a wide range of applications across
various industries including healthcare, finance, transportation,
entertainment and more.
AI programming focuses on following cognitive skills:

 Learning: This aspect of AI programming focuses on acquiring data

and creating rules/ algorithms for how to turn it into information.
These algorithms provide step-by-step instructions for how to
complete a specific task.
 Reasoning: This aspect of AI programming focuses on choosing the
right algorithm to reach a desired outcome.
 Self-correction: This aspect of AI programming is designed to fine-
tune any data and ensure the possibility of most accurate results.
 Creativity: This aspect of AI focuses on generating new images,
text, music and ideas.
Types of AI:
Narrow AI (weak AI): It is designed to complete a specific task.
Examples include smart virtual assistants like Siri or Alexa or image
recognition software, chatbots, email spam filters, self-driving cars,
GPS and navigation apps like Google Maps, autocorrect features in
apple or Samsung products, spotify shuffle.
Siri and Alexa are able to set reminders, search for online information,
collect users’ information, learn their preferences and improve their
experiences based on prior interactions. Self-driving cars use weak AI
to detect objects around them, determine their distance from other
cars, identify traffic signals and much more.
Strong AI: also known as artificial general intelligence (AGI),
describes programming that can replicate the cognitive abilities of the
human brain. It thinks and behaves with the same agility of humans.
When presented with an unfamiliar task, a strong AI system can apply
knowledge from one domain to another and find a solution
autonomously. Strong AI is capable of learning, thinking and adapting
like humans do. Strong AI systems don’t actually exist yet.
Super intelligent AI: This refers to AI that surpasses human
intelligence across all domains and is completely self-aware. It is often
depicted in science fiction.
AI can be implemented using various techniques including machine
learning or deep learning. The field of AI continues to evolve rapidly
with ongoing research and advancements aiming to create more
capable, efficient and beneficial AI systems.
Machine learning is a subset of artificial intelligence (AI) that
focuses on the development of algorithms and models that allow
computers to learn from and make predictions or decisions based on
data. The choice of algorithm depends on the specific task, the nature
of the data and the desired performance. In machine learning, the
computer learns patterns and relationships directly from data without
being explicitly programmed for each task.
Techniques/ methods of machine learning:
 Supervised learning: The computer is presented with inputs and
their desired outputs (labeled data) and the goal is to learn a
general rule that maps inputs to outputs, eg. Spam detection,
prediction of stock prices.
  Unsupervised learning: There is no predefined output (unlabeled
data). The algorithm learns to find patterns or structure in the
data.
 Semi-supervised Learning: Semi-supervised learning combines
elements of both supervised and unsupervised learning. It
involves training the algorithm on a small amount of labeled
data and a large amount of unlabeled data.
 Reinforcement learning: A computer program interacts with the
dynamic environment to perform a goal. Program learns through
trial and error method. Reinforcement learning is used in
applications such as game playing and autonomous vehicle
control.

Deep learning is a subset of ML that uses multi-layered neural

networks called as deep neural networks (DNN) to simulate the
complex decision-making power of the human brain. DNN is a neural
network with three or more layers. DNNs are trained on large
amounts of data to identify and classify phenomena, recognize
patterns and relationships, evaluate possibilities and make predictions
and decisions. While a single-layer neural network can make useful,
approximate predictions and decisions, the additional layers can help
in accuracy. It lies behind everyday products and services—e.g.
digital assistants, voice-enabled TV remotes and credit card fraud
detection.

Singularity or technological singularity describes a future era or

event when computer intelligence and advances in technology will
result in changes in human society. Technology growth will be out
of control and irreversible. The intelligent and powerful technologies
will radically and unpredictably transform our lives. This intelligence
explosion would significantly impact human civilization. First, AI
would reach human levels of consciousness, intelligence and
capabilities, known as artificial general intelligence. Currently, there
are no real-world examples of AGI. After reaching AGI, computer
programs and AI will turn into super intelligent machines with
cognitive capacities beyond that of humans. At this point human
beings would no longer have control over them. Significant
innovations in genetics, nanotechnology, automation and robotics will
lay the foundation for singularity during the first half of the 21st
century. Entrepreneurs and public figures like Elon Musk and Stephen
Hawking have expressed concerns over advances in AI leading to
human extinction. In 2023, Musk and other AI professionals signed
an open letter urging a six-month pause on AI research until
regulations and responsible AI have been established.

Timeline:

 Prediction for the Singularity / Super Intelligence (SI) till 2045

 Another prediction- SI inside this decade (by the end of 2029)
Implications:

 Merger of human race and SI

 Benevolent SI
 Unfriendly SI

Augmented reality (AR) is a technology that blends digital

information with the real world. It is different from virtual reality
(VR), which creates a completely artificial environment. AR overlay
digital content onto the real world through devices such as
smartphones, tablets or AR glasses. This digital content can include
images, videos, 3D models or text and it appears to coexist with the
physical environment around the user. AR technology typically uses
sensors, cameras and algorithms to detect and interpret the real-world
environment, allowing the digital content to interact with and respond
to the real world. AR has various applications offering immersive and
interactive experiences that enhance the way user perceives and
interact with the world. AR technology has its roots in the early 1960s
when Ivan Sutherland developed the first head-mounted display
system. Since then, AR technology has undergone significant
development with various forms of AR becoming available to
consumers. The evolution of AR technology has led to the creation of
products like Google Glass, HoloLens, and Pokemon Go.

Applications:

 Business: Augmented Reality (AR) is transforming the

way businesses operate by offering a new level of interactivity,
engagement and convenience. AR technology overlays digital
information onto the real-world environment providing users
with a new way of experiencing and interacting with the world.
In the business world, AR has numerous applications including
employee training, marketing campaigns and customer
engagement. AR solutions can help businesses improve their
customer experience, reduce costs and increase revenue. By
integrating AR technology into their operations, businesses can
stay ahead of the competition and offer unique and innovative
services to their customers.

 Manufacturing industry: AR has several applications in the

manufacturing industry. It can be used to guide technicians by
providing them real-time instructions and visual aids. AR can
also assist in complex assembly procedures, ensuring accuracy
and efficiency while aiding in quality control by quickly
identifying defects and allowing for immediate adjustments.
Additionally, AR can be used for immersive training
experiences for workers, providing a safe and controlled
environment to practice procedures and processes. AR can also
help designers to visualize and test new products in real-world
environment.

 Archaeology: AR has been used to aid archaeological research.

By augmenting archaeological features onto the modern
landscape, AR allows archaeologists to formulate possible site
configurations.
  Architecture: AR can aid in visualizing building projects.
Computer-generated images of a structure can be superimposed
onto a real-life local view of a property before the physical
building is constructed.

Virtual reality (VR): It is a set of images and sound, collectively a

3D environment produced by computer, that seem to represent a place
or situation that a person can take part in. This 3D environment is
simulation of real world. The person can step into this environment
with the help of VR oculus and can have the illusion of being there.
Users immerse themselves in a specifically designed/simulated
environment for a specific purpose. for ex. medical training, games,
etc.

Applications:
 Training: VR makes it possible to train employees safely,
efficiently and cost-effectively. It can be especially beneficial to
those in high-risk or highly specialized positions such as fire-
fighters, emergency medical responders, police officers, soldiers,
surgeons or other medical personnel.
 Healthcare: VR has the potential to benefit individuals across the
healthcare industry including patients, practitioners and researchers.
for ex. VR shows promise in treating disorders such as anorexia,
anxiety or post-traumatic stress disorder. On the other hand, doctors
might be able to use VR when working with patients to explain
treatment options.
 Retail: VR is now used in retail also. Many applications now let
customers virtually try on clothes, decorate their homes, experiment
with hairstyles, test eyeglasses and in general make more suitable
decision about products and services.
 Real estate: VR benefits real estate in several ways. for ex.
architects can show detailed plans in 3D, home buyers can tour
 homes virtually, building engineers can tour ventilation and air
conditioning systems.
 Architecture and design: VR lets architects and designers conduct
virtual tours of structures and places before they are built and
enables clients to see and feel the design in a more immersive and
realistic way. for ex. if someone wants to add an extension to their
home, they might visualize the room and how it will appear before
it's built and then make modifications in real time. This saves time
and money for both the customer and the architect while also
improving project satisfaction.
 Sports: VR is transforming the sports industry and revolutionizing
the way people experience sporting events. for ex. fans can now
watch basketball, football and other games without being actually
there.

Mixed reality (MR): Mixed Reality combines both real and virtual
entities to produce new simulated environment and visuals where
physical and digital objects interact in real-time. It is a blend of
augmented reality and virtual reality. Mixed reality is based on
advancements in computer vision, graphical processing, display
technologies, input systems and cloud computing. Mixed Reality
allows user to immerse himself in the simulated world around him
to interact with a virtual environment.

Applications:
 Sports and entertainment: Users can have immersive
experience of concerts where their favorite performers interact
with digital props and the action seems to be taking place in
their living room.

 Working and collaborating from a remote location: Using

mixed reality, employees of any organization are able to work
with customers or other co-workers even if they are not in the
same area. Language barriers can be eliminated without
difficulty with the help of translation tools. For ex. NASA has
 collaborated with Microsoft to develop a program, which
enables scientists and engineers to be virtually present on Mars.

 Improving knowledge retention in e-learning: MR enhances

online learning by displaying 3D information. This can help
children in forming lasting memories and better comprehending
what they are learning. This concept may also be used to train
employees regarding safety, health and industrial maintenance.

 Delivering unique customer experiences: An online shopping

application can automatically recognize and add all the goods in
a store to the user’s shopping basket. The user will have the
option to buy these items, bookmark them for subsequent
purchases or even share them with friends. MR may also assist
users in quickly identifying and acquiring the items they require
from the store.
 Healthcare: The utilization of MR technology in medical
science has the potential to transform the healthcare industry
completely. With the combination of AR and VR technology,
surgeons will be able to treat their patients much more
effectively. They will be able to study Computed Tomography
(CT) or Magnetic Resonance Imaging (MRI) images of patients
in 3D using mixed reality technologies. This might aid surgeons
in locating the exact body part where the procedure is to be
conducted, allowing them to execute surgeries successfully.

Blockchain: A blockchain is a growing list of records, called blocks

that are linked together using cryptography. Each block contains a
cryptographic hash of the previous block, a timestamp and transaction
data. The timestamp proves that the transaction data existed when the
block was published in order to get into its hash. Each block contains
information about the block previous to it, so they form a chain, with
each additional block reinforcing the ones before it. Therefore,
blockchains are resistant to modification of their data because once
recorded, the data in any given block cannot be altered without
altering all subsequent blocks. A blockchain is a distributed database
or ledger. They are best known for their crucial role in
cryptocurrency system for maintaining a secure and decentralized
record of transactions but they are not limited to cryptocurrency uses.
Blockchains prevent the alteration of data.

Applications:

Asset Management: It is one of the biggest applications of

blockchain. Asset management involves the handling and exchange
of different assets that an individual may own such as fixed income,
real estate, equity, mutual funds, commodities and other alternative
investments. Normal trading processes in asset management can be
very expensive, especially if the trading involves multiple countries
and cross-border payments. In such situations, blockchain can be a
big help as it removes the need for intermediaries such as brokers,
custodians or settlement managers. Blockchain also provides a
simple and transparent process that removes the chances of error.

Cross-border payments: Cross-border payments in different

currencies can be a complicated process. Blockchain has helped in
simplifying these cross-border payments by providing end-to-end
remittance services without any intermediaries. There are many
remittance companies such as Circle, InstaRem, PlasmaPay that offer
blockchain services which can be used to make international
remittances within 24 hours.

Healthcare: Blockchain can have a big impact on healthcare using

smart contracts. These smart contracts mean that a contract is made
between 2 parties without needing any intermediary. All the parties
involved in the contract know the contract details and the contract is
implemented automatically when the contract conditions are met.
Personal health records of patients can be encoded via blockchain so
they are only accessible to primary healthcare providers with a key.
Blockchain ensures that patient information is confidential and not
accessible to everyone.

Cryptocurrency: One of the most popular applications of

blockchain is cryptocurrency as it has no geographical limitations.
Crypto coins can be used for transactions all over the world but
people may lose some money in this process due to exchange rates.
This option is much better than regional payment apps such as Paytm
in India which are only relevant in a particular country or
geographical region and cannot be used to pay money to people in
other countries.
Birth and Death Certificates: There are many people in the world
who do not have a birth certificate. And the problem is similar to
death certificates as well. Blockchain can help in solving this
problem by creating a secure repository of birth and death
certificates that are verified and can only be accessed by authorized
people.

Online Identity Verification: It is not possible to complete any

online financial transaction without verification and identification.
Blockchain can centralize the online identity verification process so
that users only need to verify their identity once using blockchain
and then they can share this identity with whichever service provider
they want.

Internet of Things: The Internet of Things is a network of

interconnected devices that can interact with others and collect data
that can be used for gaining useful insights. Any system of “things”
becomes IoT once it is connected. The most common example of
IoT is smart home where all the home appliances such as lights,
thermostats, air conditioners, smoke alarms etc. can be connected
together on a single platform. Blockchain is needed for providing
security to these interconnected devices. It ensures that the data
obtained by the IoT devices is secure and only visible to trusted
parties.

Copyright and Royalties: Applications of blockchain also extend to

the creative industry as well. Copyright and royalties are a big issue
in creative sectors like music, films etc. Blockchain ensures security
and transparency in the creative industries. There are many instances
when music, films, art is plagiarized and due credit is not given to
the original artists. This can be rectified using blockchain which has
a detailed ledger of artist rights. Blockchain is also transparent and
can provide a secure record of artist royalties and deals with big
production companies. The payment of royalties can also be
managed using digital currencies like Bitcoin.

Additive manufacturing: It is the process of creating an object by

building it one layer at a time. It is the opposite of traditional
subtractive manufacturing, in which an object is created by cutting
away material from a solid block to achieve the desired shape.
AM is about addition, not subtraction. It involves adding material,
layer by layer, based on a digital model, which serves as a blueprint
for the physical object. This method is better than traditional method
of manufacturing, which generates significant waste by removing
material. It is used by industry giants like Boeing and General
Electric. The process begins with the creation of a 3D model using
Computer-Aided Design (CAD) software. This digital model serves
as the blueprint for the object that will be brought into the physical
world. Then machine builds the object, one layer at a time. This
technology provides excellent result in terms of precision.

Techniques of additive manufacturing:

Sintering: It employs a laser to bind powdered material layers. This

method is particularly suitable for producing parts with complex
geometries and can utilize various materials including plastics and
metals.

Binder Jetting: In this process, a liquid binding agent is deposited to

bond powder particles. It is cost-effectiveness technique.

Advantages:
 Complex geometries: AM can produce complex structures that
are impossible with traditional methods. This capability is
especially advantageous in aerospace, where lightweight and
intricately designed parts can enhance fuel efficiency and
overall performance.
  Speed: The journey from digital model to object is very short.
This speed is invaluable in industries where time-to-market is a
critical factor.
 Customization: Additive manufacturing is ideal for creating
personalized products that are tailored to individual needs.
Healthcare is a prime example of an industry benefiting from
personalized solutions.
 Reduced waste: Unlike traditional methods, AM only uses the
necessary material, minimizing waste. This reduction in material
waste is a significant environmental advantage.
 Supply chain simplification: Direct production through
additive manufacturing can reduce the need for extensive
inventory and multiple manufacturing steps. This simplification
can lead to cost savings and improved efficiency.
 Legacy parts: AM enables companies to recreate the parts that
are no longer manufactured. for ex. restoration of classic cars
has greatly benefited from additive manufacturing technology.

Impact of additive manufacturing on supply chain management:

 Cost savings:
 eliminated the need for large inventory
 eliminated the need for high volume production facilities
 reduced transportation cost
 reduced labor inputs
 reduced requirement of tooling and machining centers
 economical mass customization
 reduced production waste

 Speed responsiveness:
 eliminated the time lag between design and product
 shorter lead time
 enabled on-demand manufacturing
 improved process flexibility
 hedge against disruptions
  Quality:
 improved quality
 more optimum products

 Environmental impact:
 improved sustainability
 reduced carbon footprint
 reduced the waste that accrue in traditional manufacturing

Mass customization: It refers to a business process of providing

customized goods and services that best meet individual customer’s
needs. It reaps the benefits of flexibility, integration and
personalization to produce custom-made products with low unit costs.
Mass customization is a business strategy that focuses
on customers and recognizes the need to provide outstanding products
according to their choice. Mass customization is the process of
delivering market goods and services that are modified to satisfy a
specific customer’s needs. Mass customization is a marketing and
manufacturing technique that combines the flexibility and
personalization of custom-made products with the low unit costs
associated with mass production. It is also called as made-to-order or
built-to-order. The process of mass customization entails an
interlinked set of activities to capture individual requirements and
translate them into a physical product to be produced and delivered to
the client. Mass customization attains its goal if the product is
developed and tailored to the user requirement at a reduced cost.

Customer experience: Customer experience (CX) is a totality of

cognitive, affective, sensory and behavioral consumer responses
during all stages of the consumption process including pre-purchase,
consumption and post-purchase stages. Customer experience involves
every way a customer interacts with a company, at all stages of the
customer journey. It also involves interactions that a customer has
with an organization over the life of the relationship with that
company or with that brand. A customer may have good or bad
experience. Good experience may be caused by high quality,
affordable price, durability etc. Bad experience may be caused by
long wait times, unsolved issues, too much automation/ not enough of
a human touch (chatbot), non-personalized service, rude employees
etc.

Introduction of neuroscience in business: Neuroscience is the

scientific study of the nervous system. It is a multidisciplinary science
that combines physiology, anatomy, molecular biology,
developmental biology and computer science to understand the
fundamental and emergent properties of neurons inside human brain
as brain defines who we are and what we do. They store our
memories and allow us to learn from them. Our brain cells and their
circuits create new thoughts, ideas and movements and reinforce old
ones. So, it is the study of biological basis of learning, memory,
behaviour and perception.

It is important for businessmen to understand the process of their

brain and how sensory information, emotions and thoughts impact
their behaviour and other’s behavior. This awareness of the brain and
how it functions can give a businessman an advantage in being a
better leader and creating a better workplace.