1960s - 1970s: Increased Research in Artificial Intelligence (AI) During the cold war the U.S. tried to ensure that it would stay ahead of the Soviet Union in technological advancements. Therefore in 1963 the Defense Advanced Research Projects Agency (DARPA) granted the Massachusetts Institute of Technology (MIT) U.S.$ 2.2 million for research in machine-aided cognition (artificial intelligence). The major effect of the project was an increase in the pace of AI research and a continuation of funding. In the 1960s and 1970s a multitude of AI programs were developed, most notably SHRDLU. Headed by Marvin Minsky the MIT's research team showed, that when confined to a small subject matter, computer programs could solve spatial and logic problems. Other progresses in the field of AI at the time were: the proposal of new theories about machine vision by David Marr, Marvin Minsky's frame theory, the PROLOGUE language (1972) and the development of expert systems.

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Automation Automation is concerned with the application of machines to tasks once performed by humans or, increasingly, to tasks that would otherwise be impossible. Although the term mechanization is often used to refer to the simple replacement of human labor by machines, automation generally implies the integration of machines into a self-governing system. Automation has revolutionized those areas in which it has been introduced, and there is scarcely an aspect of modern life that has been unaffected by it. Nearly all industrial installations of automation, and in particular robotics, involve a replacement of human labor by an automated system. Therefore, one of the direct effects of automation in factory operations is the dislocation of human labor from the workplace. The long-term effects of automation on employment and unemployment rates are debatable. Most studies in this area have been controversial and inconclusive. As of the early 1990s, there were fewer than 100,000 robots installed in American factories, compared with a total work force of more than 100 million persons, about 20 million of whom work in factories.

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