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A world of intelligent agents

A world of intelligent agents

2021/22 SBL syllabus area E4 section 3 considers artificial

intelligence, machine learning and robotics. This article
looks at how developments in these areas are being utilised
and considers the ethical issues associated with artificial
intelligence.

Artificial intelligence
Artificial intelligence (AI) is intelligence demonstrated by machines. One definition of
artificial intelligence relates computers developing cognitive functions such as learning and
problem solving, but other definitions focus on the perceptions that the AI systems gain
from the environment and the actions they take to fulfil their objectives. AI has also been
defined in terms of systems actively making decisions rather than just responding
mechanically, showing intelligence by use of data analysis and recognition of what is
relevant to solve problems, and having the ability to learn and adapt as they process
information and make decisions. Practical definitions of AI focus on the tasks that can be
undertaken using AI.

Algorithms are a vital element of AI. Algorithms can be defined as processes or sequences
of steps to be used in problem-solving operations or for accomplishing tasks.

The scope of AI is being extended as technology advances. However, at the same time,
simpler abilities, such as optical character recognition, are no longer strictly considered to
be AI, as these abilities are now generally inherent in computers.

Uses of AI
Retail industry
There are many ways in which AI is being used in retail, most often to enhance the
customer experience:

Creation of environment – AI helps retail businesses to learn from each interaction

with customers and improve the digital and physical environment they offer, adapting
in-store displays in line with customer profiles and evolving the digital displays offered
to customers.

Changed relationship with customer – AI enables a continuously-developing

relationship with customers to be established, so that what is offered to customers on
their home page reflects developments in their shopping behaviour. AI can also help
facilitate two-way conversation with customers, answering questions and using the
information to build customer profiles. The data available about customers may not
just take the form of purchase and query records, but also facial or audio responses
that reflect what customers are thinking.

Guiding purchasing decisions – Automated assistants can build on the information

stored about customers to help them make appropriate purchasing decisions.

Systems development – AI can build on customer information, using it along with

competitor and market information, to develop supply chain planning, and pricing and
 promotional strategies.

Product development – the data obtained about customers, not just purchasing but
also feedback and sentiments expressed, can be used to develop future product and
service designs that fulfil current customer requirements and anticipate future
customer needs.

Other sectors
Many other sectors are making increasing use of AI:

Medicine and healthcare – AI can analyse huge quantities of patient data in order
to help prevent illness, by identifying people who are particularly at risk and
prompting intervention to reduce the risk of disease developing. Medical diagnosis AI
technology can use information about a person’s history and genetic make-up to
personalise medical treatment.

Transportation – AI-based features are now part of many cars, including automatic
parking systems. More advanced AI is used in self-driving cars. AI can also assist in
route planning, avoiding areas of heavy traffic or poor road conditions.

Agriculture – algorithms designed for crop and soil monitoring can be used to track
the health of crops. AI can also consider climate and other environmental conditions
and, as a result, predict when crops will ripen, assisting planning.

Cybersecurity – AI can help defend against hacking by analysing data to detect

anomalies and allow focus on areas of greatest threat. It can also help by sorting
data into high and low risk information.

Human resources – AI can be used to distinguish candidates by how qualified they

are for a particular job. Job matching platforms provide prediction for hirers of how
successful candidates will be in particular roles, whilst allowing candidates to create
profiles that facilitate their being matched with the right opportunities.

Financial investment and trading – AI is used by large financial institutions to

support their investment practices. AI systems use algorithms in high-speed trading,
making decisions many times quicker than humans can. Some investment portfolios
are managed purely by AI.
Machine learning
Machine learning involves using algorithms to gain experience through using data (known
as training data) and harnessing this knowledge to establish relationships or learn how to
do particular tasks without being programmed to do so. At a more advanced level, computer
systems may be more effective in developing the algorithms needed to complete the tasks
than humans would be.

The relationship between artificial intelligence and machine learning is not straightforward.
Some see machine learning as wholly a part of AI, others believe that only some forms of
more advanced machine learning can be called AI.

A key output in machine learning is prediction, where an algorithm has gained experience
on a historical data-set and used the experience to make a prediction, based on new data,
which is a prompt for action. Machine learning can also provide guidance on actions to take
to achieve objectives.

One classification of machine learning is into three types:

Supervised learning – this is based on training data and human feedback. It

involves establishing the relationships between specified inputs and outputs.
Regression analysis is a form of supervised learning. Supervised learning has been
used in the fields of bioinformatics (for mapping biological processes) and developing
speech recognition by computers. It also has applications in personalised marketing
of products or services, based on information held in databases.

Unsupervised learning – this involves establishing patterns between, or structures

in, the specified inputs and therefore being able to classify the input data. Again there
are marketing applications in being able to link customers who have similar buying
histories with attributes that they have in common, for example age.

Reinforcement learning – this is a learning process involving the maximisation of

rewards for the actions taken. It can be most useful in situations where the input
training data is limited or the output (target) cannot be clearly specified. This means
that, in order to learn, the system has to gain experience through interaction with the
environment. If it turns out that the system has not maximised its rewards, it learns
from this. It is therefore possible that actions may need to be taken that are sub-
optimal in the short-term, in order to gain the knowledge required to achieve longer-
term maximisation of rewards. Reinforcement learning has been important in areas
including investment portfolio management and robot control, as well as increasing
 the standard of play of machines programmed to play strategy games such as chess
and backgammon.

There are other ways in which machine learning is classified. Self-learning is where there
are no rewards for actions taken and no human guidance on what is optimal. The self-
learning algorithm computes decisions about what to do and also takes into account
‘emotions’ (which it is programmed with initially) that respond to the consequences of the
actions that it decides. As a result, it develops behaviour that will best achieve its objectives
whilst also fulfilling its ‘emotional needs’.

Deep learning is an increasingly significant field of machine learning. It is based on artificial

neural networks (networks based on the biological networks of animal brains). Deep
learning takes a non-linear approach to analysing unstructured data. Applications of deep
learning have included consumer recommendation apps, drug design and medical image
analysis. Deep learning has also been used in developing language translation
applications.

Robotics
Robotics is concerned with the development of machines (robots) that reproduce human
actions and can be used instead of humans. All robots have certain basic features in
common – mechanical construction, electrical components and computer programming
code to guide their actions. One distinction is between robots that require human
intervention to operate and robots that can operate autonomously. Humanoid-like robots are
often seen in science fiction films, but robots can take other forms as well.

Uses of robotics
Broadly, robots are most useful where accuracy and repeatability are particularly important,
whereas humans are best employed in jobs involving creativity and flexibility. Robots are
often used in jobs which are undesirable for humans to do, for example because the jobs
are dangerous (such as radioactive testing or bomb disposal). They are also used in
environments where humans cannot function, for example underwater or in very high heat.

Reduced operating cost has been an important reason why robots are being used in
manufacturing for repetitive and monotonous tasks, though their ability to perform tasks
precisely is also important. Robots are also seen to be more reliable than humans and do
not tire.
Welding is a good example of a task well-suited to robots in manufacturing. Robot welders
can achieve higher productivity, lower usage of materials and higher yield (by avoiding
mistakes) than human welders. Advances in robotics mean that designs can be used that
require welds that cannot be made by a human welder. Welding also produces safety risks
to humans such as flashing, splatter and exposure to fumes that do not affect robots.

The machine vision that robots have has also helped in developing the use of robots for
quality control. Robots use AI to detect whether components are not fulfilling specifications
or have other defects. These can then be removed from the production process early on,
avoiding delays later or the components being part of finished goods.

Robots have also been used in the medical field. In operations, surgeons can control the
robotic arms that use surgical instruments on patients. This can be done by using
telemanipulators to control the arms directly, or by computer control, which can mean that
the surgeon does not have to be present for surgery. The advantages of robotic surgery are
precision and smaller incisions, resulting in less blood loss and pain than traditional
methods.

Current areas of development of robotics include home robotics, for example robotic
vacuum cleaners, to help with everyday tasks. How robots process and respond to their
environment, which is an important area generally for robotics, is particularly significant in
the home environment. There are also developments in robot learning, where algorithms
work through self-guided exploration and interaction with humans, with the objective that
the robots will acquire new skills.

Concerns about the use of robots include initial investment, the training costs needed for
human employees to work successfully with robots, and health and safety concerns relating
to humans interacting with large, powerful, robots.

Ethics
The World Economic Forum has addressed a number of ethical issues relating to AI.

Some of the issues addressed also relate to risk and control systems:

Mistakes – whilst computers may not make many sorts of mistakes that humans
would make, equally they may make mistakes of their own, for example seeing
patterns in randomly generated items.
 Bias – AI is created by humans and may therefore reflect the biases of its creators,
or inadvertent bias may be programmed into the criteria used to make decision.

Security – the increasing abilities of AI place a greater obligation on those who use it
to have effective cybersecurity to protect it from being used for illicit purposes.

Unintended adverse consequences – an AI system may produce the solution that it

was intended to produce, but the solution may have adverse consequences which
the system ignores because it was not programmed to think about them.

Ultimate control – this is the longer-term issues of whether computers will one day
be so intelligent that they will be able to counter any attempts to control them and/or
they will start making attempts to control humanity.

Another aspect of the debate about AI ethics is the economic and social consequences of
using AI:

Unemployment – replacing of humans by AI or robots may result in unemployment

and little prospect of re-employment, certainly for a similar sort of job, if AI’s use is
widespread. This raises wider questions of those made redundant having to find
different roles and society needing to be geared to support them.

Distribution of income – the question of dealing with unemployment is related to

how the benefits of AI should be distributed. There is the possibility that rewards will
be concentrated in the hands of the owners of businesses that use AI effectively,
businesses perhaps where there are few salary-earning workers.

Other, wider, ethical issues have also been raised:

Influencing behaviour – interaction between machines and humans carries the

possibility of human behaviour being influenced. AI can be created that focuses on
building relationships with humans. Video games, for example, contain algorithms
designed to capture the attention, but the consequence of this may be addiction.

Humane treatment of AI – the reward functions of AI are becoming increasingly

sophisticated, so the issue has been raised of whether giving negative rewards to a
system can be said to cause it suffering and whether this is an ethical concern.

Ethical framework
 The World Economic Framework suggests that businesses using AI need to give
consideration to developing an ethical framework for its use. This may include:

Definition of AI ethics – this should be consistent with the organisation’s general

ethical framework in areas such as respect for the law and commitment to society,
but with a focus on AI areas such as data protection principles.

Building AI ethics into product development – this involves consideration of areas

such as limiting the use of data, protecting the data that is used and adherence to
privacy.

Obtaining customer/stakeholder feedback – this is particularly important during

the development process.

Continuing awareness of bias – as systems develop, being alert for signs and
taking effective measures to deal with any bias that has developed.

Transparency – this area of ethical policy is particularly important to reassure

customers, with explanations being given of what data is being used, how it’s being
used, and for what purpose.

Conclusion
This article has given a general introduction into how AI and other developments are being
used and discussed the ethical issues that businesses may need to consider. Although
these subjects are in the syllabus, in the SBL exam exhibits will clearly explain the business
context in which AI could be, or is being, used. Answers will (as for other areas for the
syllabus) need to focus on what is important for the organisation to score well.

Written by a member of the Strategic Business Leader examining team

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