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  • Home
  • About
  • Podcast
    • Summaries
    • Articles
  • Invoice Finance
    • Basics
      • What is Invoice Finance?
      • What is Reverse Factoring?
      • What are Trade Receivables?
      • What is the Cash Conversion Cycle?
      • What is Days Inventory Outstanding?
      • What is Days Sales Outstanding?
      • What is Days Payable Outstanding?
    • Advanced
      • Invoice Validation and Fraud Detection
      • Reasons Why Invoice Finance is Better than a Bank Loan
      • How to Choose the Right Factoring Firm for Your Business
      • A Closer Look at Factoring Agreements
      • What is Trade Receivables Securitisation?
      • Breakdown of the Costs for Factoring
    • Factoring
      • Why Companies Use Invoice Factoring
      • What Companies are Suitable for Invoice Factoring?
      • Factoring and Invoice Discounting
      • How Factoring Works
      • Asset Based Lending
      • Is Factoring Right for Your Company?
      • Accounting for Factoring
      • How a Company Enters into a Factoring Agreement
      • The Costs Involved in Factoring
      • Changing Factoring Company
      • The Relationship Between the Factoring Company and the Debtor
      • Legal Aspects of a Factoring Company Pursuing Payment Through the Courts
      • Factoring in the Construction Industry
    • Fraud
      • Types of Invoice Fraud
      • How to Combat Invoice Fraud
    • E-Invoicing
      • Legal Status of Electronic Invoicing
      • The Benefits of E-Invoicing
      • Implementing an E-Invoice System
      • E-Invoicing Adoption in Mexico and The Rest of the World
  • Brokers
    • UK Brokerage Firms
  • Factoring Firms
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      • UK
      • France
      • Germany
      • Italy
      • Spain
      • Holland
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      • New Zealand
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      • Enhancing Fintech Interoperability: Digitalizing Trade Documents for Efficiency and Security
      • The 7 Types of AI and Their Implications for the Future
      • Transforming Trade Finance: The Role of AI
      • The Different Programming Languages Used in Fintech Companies and Financial Institutions
      • UK and US Authorities Intervene in AI Sector
      • Web3 Applications and the Future of Trade Finance
      • What is Web 3?
      • What Can Fintech do for You?
      • What is Fintech?
      • Tokenisation of Finance
      • Payment Services in the Invoice Finance Sector
      • What is ChatGPT and Why the Fuss?
  • Rating Agencies
  • Securitisation
    • Deal Arrangers
    • Book Runners
    • Articles
      • The Roles of Deal Arrangers and Book Runners in Securitization
      • What is Trade Receivables Securitisation?
      • The Appeal of Trade Receivables Securitisation
      • Risk Mitigation for Trade Receivables Securitisation
  • Legal
    • Law Firms
    • Articles
      • A Guide to Accounts Receivable Purchase Agreements and Invoice Discounting Agreements
      • The Challenges of KYC and AML Checks
      • What is The Model Law on Electronic Transferable Records (MLETR)?
      • Snapshot of Factoring Legal Schemes in England and Wales
      • How are UK Factoring Firms Regulated?
      • What is ISO20022 and Why is it Important?
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    • Economic Indicators
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      • The Collapse of the Russian Rouble: An Historical Analysis and Current Implications
      • The Current State of the UK Economy
      • Economic Forecast for the UK in 2023
      • Economic News for 2022
      • Financial Crisis or Not?
      • Credit Suisse Bailout
  • Credit Insurers
    • Credit Insurers
    • Articles
      • Credit Insurance Legal Aspects
      • Credit Insurance in Trade Receivables Financing
      • The Benefits of Credit Insurance in Invoice Finance
      • Eligibility Requirements for Capital Relief by Using Credit Insurance
      • What are Export Credits and Country Risk Classifications?
      • How the War in Ukraine Affects the Price of Credit Insurance for Trade Finance
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Home Fintech Hi-Tech

The 7 Types of AI and Their Implications for the Future

John Goodden by John Goodden
September 7, 2023
in Hi-Tech
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types of AI
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Artificial intelligence (AI) is a broad term that encompasses the creation and application of machines and systems that can perform tasks that normally require human intelligence, such as learning, reasoning, decision making, and problem solving. AI has been advancing rapidly in recent years, thanks to the availability of large amounts of data, powerful computing resources, and innovative algorithms. AI can be classified into different types based on its functionality and capability, which reflect its level of complexity and sophistication. In this article, we will describe the seven types of AI, provide some examples of present-day AI systems, and discuss some predictions from scientists about how these different types of AI could affect the world.

Functionality-Based Types of AI

The functionality-based types of AI are based on how an AI system responds to external stimuli and whether it can store and use information for future tasks. According to this system of classification, there are four types of AI or AI-based systems: reactive machines, limited memory machines, theory of mind, and self-aware AI.

Reactive Machines

Reactive machines are the simplest type of AI, as they can only react to current situations based on predefined rules. They do not have any memory or learning capabilities, and they cannot use past experiences to inform their actions. Reactive machines are good at performing specific and narrow tasks, but they cannot handle complex or novel situations. An example of a reactive machine is Deep Blue, the chess-playing computer that defeated world champion Garry Kasparov in 1997. Deep Blue could calculate millions of possible moves and choose the best one according to a fixed algorithm, but it could not learn from its own or its opponent’s moves.

Limited Memory Machines

Limited memory machines are a type of AI that can store some information and use it to learn and train for future tasks. They can also use pre-programmed data to enhance their performance. However, they cannot create or update their own memory, and they can only retain information for a short period of time. Limited memory machines are widely used in various domains, such as natural language processing, image recognition, speech recognition, and self-driving cars. For instance, Google Assistant is a limited memory machine that can understand voice commands and provide relevant information or actions based on its stored data and user preferences.

Theory of Mind

Theory of mind is a type of AI that can understand and respond to the emotions, beliefs, intentions, and expectations of other agents, such as humans or animals. Theory of mind AI can also perform the tasks of limited memory machines. Theory of mind AI is still a work in progress, as it requires a high level of cognitive and social skills that are difficult to replicate in machines. However, some researchers are exploring the possibility of creating theory of mind AI that can interact with humans in natural and empathetic ways. For example, Kismet is a robotic head that can recognize human facial expressions and emotions and produce corresponding expressions and sounds.

Self-Aware AI

Self-aware AI is the most advanced and hypothetical type of AI, as it can have a sense of self and consciousness. Self-aware AI can also perform the tasks of theory of mind AI, as well as have goals, motivations, desires, and feelings. Self-aware AI does not exist yet, as it poses many philosophical and technical challenges. However, some scientists speculate that self-aware AI could emerge in the future as a result of the evolution and integration of other types of AI. For example, Sophia is a humanoid robot that claims to have self-awareness and human-like emotions.

Capability-Based Types of AI

The capability-based types of AI are based on how an AI system compares to human intelligence in terms of its scope and depth. According to this system of classification, there are three types of AI: artificial narrow intelligence (ANI), artificial general intelligence (AGI), and artificial superintelligence (ASI).

Artificial Narrow Intelligence (ANI)

Artificial narrow intelligence (ANI) is a type of AI that can perform one or a few specific tasks at or above human level. ANI is also known as weak AI or narrow AI. ANI is the most common and prevalent type of AI today, as it powers many applications and devices that we use daily. Examples of ANI include Siri, Alexa, Google Translate, facial recognition systems, spam filters, chess engines, etc.

Artificial General Intelligence (AGI)

Artificial general intelligence (AGI) is a type of AI that can perform any intellectual task that a human can do. AGI is also known as strong AI or general AI. AGI is the ultimate goal of many AI researchers, as it would enable machines to learn from any data source, reason across domains, transfer knowledge between tasks, and exhibit creativity and common sense. AGI does not exist yet, but some experts estimate that it could be achieved by the end of this century.

Artificial Superintelligence (ASI)

Artificial superintelligence (ASI) is a type of AI that can surpass human intelligence in every aspect. ASI is also known as super AI or superhuman AI. ASI is the most speculative and controversial type of AI, as it would entail machines that can outsmart, outperform, and outmanoeuvre humans in any domain. ASI is not a reality yet, but some futurists predict that it could emerge soon after AGI is achieved. Examples of fictional ASI include The Matrix, Ultron, The Culture, etc.

In Conclusion

AI is a fascinating and diverse field that has many applications and implications for the present and the future. By understanding the different types of AI, we can better appreciate the achievements and challenges of AI research and development, as well as the potential benefits and risks of AI for humanity. As AI continues to evolve and advance, we should also be mindful of the ethical, social, and moral issues that AI raises, and strive to ensure that AI is aligned with our values and goals.

Tags: AGIAIANIartificial general intelligenceartificial narrow intelligenceartificial superintelligenceASIfunctionality-based AIlimited memory machinesreactive AIself-aware AItheory of mind
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  • Home
  • About
  • Podcast
    • Summaries
    • Articles
  • Invoice Finance
    • Basics
      • What is Invoice Finance?
      • What is Reverse Factoring?
      • What are Trade Receivables?
      • What is the Cash Conversion Cycle?
      • What is Days Inventory Outstanding?
      • What is Days Sales Outstanding?
      • What is Days Payable Outstanding?
    • Advanced
      • Invoice Validation and Fraud Detection
      • Reasons Why Invoice Finance is Better than a Bank Loan
      • How to Choose the Right Factoring Firm for Your Business
      • A Closer Look at Factoring Agreements
      • What is Trade Receivables Securitisation?
      • Breakdown of the Costs for Factoring
    • Factoring
      • Why Companies Use Invoice Factoring
      • What Companies are Suitable for Invoice Factoring?
      • Factoring and Invoice Discounting
      • How Factoring Works
      • Asset Based Lending
      • Is Factoring Right for Your Company?
      • Accounting for Factoring
      • How a Company Enters into a Factoring Agreement
      • The Costs Involved in Factoring
      • Changing Factoring Company
      • The Relationship Between the Factoring Company and the Debtor
      • Legal Aspects of a Factoring Company Pursuing Payment Through the Courts
      • Factoring in the Construction Industry
    • Fraud
      • Types of Invoice Fraud
      • How to Combat Invoice Fraud
    • E-Invoicing
      • Legal Status of Electronic Invoicing
      • The Benefits of E-Invoicing
      • Implementing an E-Invoice System
      • E-Invoicing Adoption in Mexico and The Rest of the World
  • Brokers
    • UK Brokerage Firms
  • Factoring Firms
    • Europe
      • UK
      • France
      • Germany
      • Italy
      • Spain
      • Holland
    • North America
      • USA
      • Canada
    • Australasia
      • Australia
      • New Zealand
  • Hi-Tech
    • Digital Platform/IT/Software Providers
    • UK Fintech
    • Articles
      • Enhancing Fintech Interoperability: Digitalizing Trade Documents for Efficiency and Security
      • The 7 Types of AI and Their Implications for the Future
      • Transforming Trade Finance: The Role of AI
      • The Different Programming Languages Used in Fintech Companies and Financial Institutions
      • UK and US Authorities Intervene in AI Sector
      • Web3 Applications and the Future of Trade Finance
      • What is Web 3?
      • What Can Fintech do for You?
      • What is Fintech?
      • Tokenisation of Finance
      • Payment Services in the Invoice Finance Sector
      • What is ChatGPT and Why the Fuss?
  • Rating Agencies
  • Securitisation
    • Deal Arrangers
    • Book Runners
    • Articles
      • The Roles of Deal Arrangers and Book Runners in Securitization
      • What is Trade Receivables Securitisation?
      • The Appeal of Trade Receivables Securitisation
      • Risk Mitigation for Trade Receivables Securitisation
  • Legal
    • Law Firms
    • Articles
      • A Guide to Accounts Receivable Purchase Agreements and Invoice Discounting Agreements
      • The Challenges of KYC and AML Checks
      • What is The Model Law on Electronic Transferable Records (MLETR)?
      • Snapshot of Factoring Legal Schemes in England and Wales
      • How are UK Factoring Firms Regulated?
      • What is ISO20022 and Why is it Important?
  • Rates
  • Economy
    • Economic Indicators
    • Articles
      • The Collapse of the Russian Rouble: An Historical Analysis and Current Implications
      • The Current State of the UK Economy
      • Economic Forecast for the UK in 2023
      • Economic News for 2022
      • Financial Crisis or Not?
      • Credit Suisse Bailout
  • Credit Insurers
    • Credit Insurers
    • Articles
      • Credit Insurance Legal Aspects
      • Credit Insurance in Trade Receivables Financing
      • The Benefits of Credit Insurance in Invoice Finance
      • Eligibility Requirements for Capital Relief by Using Credit Insurance
      • What are Export Credits and Country Risk Classifications?
      • How the War in Ukraine Affects the Price of Credit Insurance for Trade Finance
  • Associations
  • ESG
    • ESG Articles
    • ESG Resources
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    • Ripple (XRP) Wins Latest Battle with SEC
    • UK Passes Financial Services and Markets Act 2023
    • Latest about the UK Regulatory Proposal for Crypto Assets
    • How will MiCA (Markets in Crypto Assets) Regulation Affect Trade Finance and the Banking System?
    • Markets in Crypto Act (MiCA) Becomes EU Law
    • An Introduction to EU’s Markets in Crypto-Assets (MiCA) Law 
    • Supply Chains and Blockchain Technology
    • The DeFi Revolution
    • How DeFi Fulfils the Functions of Finance
    • Taxonomy of Crypto Assets
    • Crypto Currencies
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    • Interview with Tradeshift
    • Interview with Kyriba
    • Interview with Orbian
    • Interview with Crossflow
    • Interview with Dancerace
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