Logistics and Supply Chain Management, 6th Edition

Artificial intelligence and machine learning

Artificial intelligence (AI) as an idea has been around since the mid-twentieth century. However, it is only latterly, with the advent of more powerful computing technology, that it has become a reality with a growing impact on all our lives.

At its simplest, AI is the use of rules or algorithms to process data – often huge amounts – to aid decision making or to provide insight and even predictions. There are two types of AI: rules-based and machine learning. Rules-based AI uses ‘if-then’ type of logic to solve problems such as vehicle routing and scheduling or to create ‘expert systems’ that can enable improved decision making. Machine learning relates to AI where the programs or algorithms that ...