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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CIM To perform manufacturing firm's functions related to design and production the CAD/CAM technology, for computer-aided design and computer-aided manufacturing, was developed. Today it is widely recognized that the scope of computer applications must extend beyond design and production to include the business functions of the firm. The name given to this more comprehensive use of computers is computer-integrated manufacturing (CIM).

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