# George Polzer: What is AI?

This is the first article in a mini-series exploring the interconnection of Artificial Intelligence (AI) and Blockchain by our Strategic Alliances Manager, George Polzer. George is an AI Business Strategist and Chairman of

### What is AI?

The best starting point to learn about AI is to understand what an algorithm is. Given a list of positive numbers, identify the largest number in the list. The algorithm or procedure will determine if the 1st number in the list is larger than the second, if yes, number 2 is discarded and repeat. This is an algorithm! It is a mathematical recipe; a step-by-step procedure for solving a problem or accomplishing some end and typically by a computer.

The study or science of algorithms dates back to 2000

### The AI Algorithm

For example, given the data points in the below chart, find a line through the points so that the line minimizes the distance all the points are from that line. The AI algorithm that solves this is called “linear regression” and the more technical term that qualifies this as machine learning is “gradient descent” or “optimizing a cost function”. Linear regression is the simplest form of AI yet offers the most fundamental value as it automates the prediction process. This means that once the computer has learned the best fitting line based on a data set, the model trained by the linear regression algorithm can then predict, for example, the X value (

### Why are Machine Algorithms so Important?

Consider if company A has algorithms (software) that are manually improved by software engineers, and company B has AI algorithms (software that can self-improve, that is, learns from data) at an increasing rate, company B wins.

In the next post, George will explain how Blockchain is as transformational as AI and how they differ and complement each other.