The Financial Crimes Enforcement Network (FIN-CEN) AI system (FAIS) links and evaluates reports of large cash transactions to identify potential money laundering. The objective of FAIS is to discover previously unknown, potentially high-value leads for possible investigation. FAIS integrates intelligent human and software agents in a cooperative discovery task on a very large data space. It is a complex system incorporating several aspects of AI technology, including rule-based reasoning and a blackboard. FAIS consists of an underlying database (that functions as a black-board), a graphic user interface, and several preprocessing and analysis modules. FAIS has been in operation at FINCEN since March 1993; a dedicated group of analysts process approximately 200,000 transactions a week, during which time over 400 investigative support reports corresponding to over $1 billion in potential laundered funds were developed. FAIS's unique analytic power arises primarily from a change in view of the underlying data from a transaction-oriented perspective to a subject-oriented (that is, person or organization) perspective.

We describe a machine learning method for predicting the value of a real-valued function, given the values of multiple input variables. The method induces solutions from samples in the form of ordered disjunctive normal form (DNF) decision rules. A central objective of the method and representation is the induction of compact, easily interpretable solutions. This rule-based decision model can be extended to search efficiently for similar cases prior to approximating function values. Experimental results on real-world data demonstrate that the new techniques are competitive with existing machine learning and statistical methods and can sometimes yield superior regression performance.

Learning and reasoning are both aspects of what is considered to be intelligence. Their studies within AI have been separated historically, learning being the topic of machine learning and neural networks, and reasoning falling under classical (or symbolic) AI. However, learning and reasoning are in many ways interdependent. This paper discusses the nature of some of these interdependencies and proposes a general framework called FLARE, that combines inductive learning using prior knowledge together with reasoning in a propositional setting. Several examples that test the framework are presented, including classical induction, many important reasoning protocols and two simple expert systems.

Countrywide loan-underwriting expert system (clues) is an advanced, automated mortgage-underwriting rule-based expert system. The system was developed to increase the production capacity and productivity of Countrywide branches, improve the consistency of underwriting, and reduce the cost of originating a loan. The system receives selected information from the loan application, credit report, and appraisal. It then decides whether the loan should be approved or whether it requires further review by a human underwriter. If the system approves the loan, no further review is required, and the application is funded. clues has been in operation since February 1993 and is currently processing more than 8500 loans each month in over 300 decentralized branches around the country.

Scope This workshop reviewed and classified the various models which have emerged from the general concept of selective attention and context dependency, and sought to identify their commonalities. It was concluded that the motivation and mechanism of these functional models are "efficiency" and ''factoring'', respectively. The workshop focused on computational models of selective attention and context dependency within the realm of neural networks. We treated only ''functional'' models; computational models of biological neural systems, and symbolic or rule-based systems were omitted from the discussion. Presentations Thomas H. Hildebrandt presented the results of his recent survey of the literature on functional models of selective attention and context dependency.

Given such a classification task in most cases it is not too difficult to devise a network architecture that is capable of learning the input-output relation as represented by a number of training examples.

Scope This workshop reviewed and classified the various models which have emerged from the general concept of selective attention and context dependency, and sought to identify their commonalities. It was concluded that the motivation and mechanism of these functional models are "efficiency" and ''factoring'', respectively. The workshop focused on computational models of selective attention and context dependency within the realm of neural networks. We treated only ''functional'' models; computational models of biological neural systems, and symbolic or rule-based systems were omitted from the discussion. Presentations Thomas H. Hildebrandt presented the results of his recent survey of the literature on functional models of selective attention and context dependency.

Given such a classification task in most cases it is not too difficult to devise a network architecture that is capable of learning the input-output relation as represented by a number of training examples.

Scope This workshop reviewed and classified the various models which have emerged from the general concept of selective attention and context dependency, and sought to identify their commonalities. It was concluded that the motivation and mechanism ofthese functional models are "efficiency" and ''factoring'', respectively. The workshop focused on computational models of selective attention and context dependency withinthe realm of neural networks. We treated only ''functional'' models; computational models of biological neural systems, and symbolic or rule-based systems were omitted from the discussion. Presentations Thomas H. Hildebrandt presented the results of his recent survey of the literature onfunctional models of selective attention and context dependency.

Given such a classification task in most cases it is not too difficult to devise a network architecture that is capable of learning the input-output relation as represented by a number of training examples.