Independent Auditor's Report

The Board of Directors American Association For Artificial Intelligence Menlo Park, California We have audited the statement of financial position of American Association for Artificial Intelligence as of December 31, 1996 and the related statements of activities, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.