Why Expert Systems Fail

0 In more and more finance journals and magazines, the technical term expert system is appearing. These words are then accompanied by general remarks that such technology holds promise and should be investigated (for example [25, 34]). But specific information expressed in practical terms seems difficult to find. Worse yet, the information that is available naively oversells expert systems. According to the popular press, expert systems can do anything [7, p. 33]. It suggests powers, benefits, and successes that cannot be substantiated. The purpose of this article is to address the distinct handicaps inherent in the emerging field of expert systems. These problems severely dampen the premature enthusiasm that is swelling for the application of expert systems to financial management.

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