This paper introduces a new algorithm for the induction of complex finite state automata from samples of behaviour. The algorithm is based on information theoretic principles. The algorithm reduces the search space by many orders of magnitude over what was previously thought possible. We compare the algorithm with some existing induction techniques for finite state automata and show that the algorithm is much superior in both run time and quality of inductions.

A new research area, Inductive Logic Programming, is presently emerging. While inheriting various positive characteristics of the parent subjects of Logic Programming and Machine Learning, it is hoped that the new area will overcome many of the limitations of its forebears. The background to present developments within this area is discussed and various goals and aspirations for the increasing body of researchers are identified. Inductive Logic Programming needs to be based on sound principles from both Logic and Statistics. In terms of logic we provide a unifying framework for Muggleton and Buntine's Inverse Resolution (IR) and Plotkin's Relative Least General Generalisation (RLGG) by rederiving RLGG in terms of IR.