This chapter covers the basic principles of artificial intelligence (AI). It will introduce readers to the historical development and the different use cases for the technology. The chapter analyzes the different approaches, types of learning, and the mechanics of neural networks. Readers will be introduced to use cases of AI across different industries.

The chapter also looks at the datasets which can be encountered in the field. In certain cases, it is preferable to use traditional econometric methods, whereas text analysis or loan analysis might be better suited for AI-based models. The chapter concludes with a discussion of the ethical considerations and shortcomings.