1960s - 1970s: Expert Systems Gain Attendance The concept of expert systems dates back to the 1960s but first gained prominence in the 1970s. Conclusive for this development were the insights of the Stanford University professor Edward Feigenbaum, who in 1977 demonstrated that the problem-solving capacity of a computer program rather is a result of the knowledge it posses, than of the applied programming techniques and formalisms. Expert systems were designed to mimic the knowledge and reasoning capabilities of a human specialist in a given domain by using (top down) artificial intelligence techniques. Made possible by the large storage capacity of the computers at the time, expert systems had the potential to interpret statistics and formulate rules. An initial use of expert systems was to diagnose and treat human physical disorders, but as its applications in the market place were extensive over the course of the following years they were also employed in fields such as stock market forecast, taxation, chemistry, and geology.

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Late 1950s - Early 1960s: Second Generation Computers An important change in the development of computers occurred in 1948 with the invention of the transistor. It replaced the large, unwieldy vacuum tube and as a result led to a shrinking in size of electronic machinery. The transistor was first applied to a computer in 1956. Combined with the advances in magnetic-core memory, the use of transistors resulted in computers that were smaller, faster, more reliable and more energy-efficient than their predecessors. Stretch by IBM and LARC by Sperry-Rand (1959) were the first large-scale machines to take advantage of the transistor technology (and also used assembly language instead of the difficult machine language). Both developed for atomic energy laboratories could handle enormous amounts of data, but still were costly and too powerful for the business sector's needs. Therefore only two LARC's were ever installed. Throughout the early 1960s there were a number of commercially successful computers (for example the IBM 1401) used in business, universities, and government and by 1965 most large firms routinely processed financial information by using computers. Decisive for the success of computers in business was the stored program concept and the development of sophisticated high-level programming languages like FORTRAN (Formular Translator), 1956, and COBOL (Common Business-Oriented Language), 1960, that gave them the flexibility to be cost effective and productive. The invention of second generation computers also marked the beginning of an entire branch, the software industry, and the birth of a wide range of new types of careers.

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Alan Turing b. June 23, 1912, London, England d. June 7, 1954, Wilmslow, Cheshire English mathematician and logician who pioneered in the field of computer theory and who contributed important logical analyses of computer processes. Many mathematicians in the first decades of the 20th century had attempted to eliminate all possible error from mathematics by establishing a formal, or purely algorithmic, procedure for establishing truth. The mathematician Kurt Gödel threw up an obstacle to this effort with his incompleteness theorem. Turing was motivated by Gödel's work to seek an algorithmic method of determining whether any given propositions were undecidable, with the ultimate goal of eliminating them from mathematics. Instead, he proved in his seminal paper "On Computable Numbers, with an Application to the Entscheidungsproblem [Decision Problem]" (1936) that there cannot exist any such universal method of determination and, hence, that mathematics will always contain undecidable propositions. During World War II he served with the Government Code and Cypher School, at Bletchley, Buckinghamshire, where he played a significant role in breaking the codes of the German "Enigma Machine". He also championed the theory that computers eventually could be constructed that would be capable of human thought, and he proposed the Turing test, to assess this capability. Turing's papers on the subject are widely acknowledged as the foundation of research in artificial intelligence. In 1952 Alan M. Turing committed suicide, probably because of the depressing medical treatment that he had been forced to undergo (in lieu of prison) to "cure" him of homosexuality.

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Machine vision A branch of artificial intelligence and image processing concerned with the identification of graphic patterns or images that involves both cognition and abstraction. In such a system, a device linked to a computer scans, senses, and transforms images into digital patterns, which in turn are compared with patterns stored in the computer's memory. The computer processes the incoming patterns in rapid succession, isolating relevant features, filtering out unwanted signals, and adding to its memory new patterns that deviate beyond a specified threshold from the old and are thus perceived as new entities.

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