Expert Systems Boom

In the early 1980s, AI experienced a commercial renaissance through expert systems — programs that used "if-then" rules to encode the decision-making knowledge of human specialists. Systems like MYCIN (medical diagnosis), XCON (computer configuration), and DENDRAL (chemical analysis) demonstrated practical value. By 1985, companies were spending over $1 billion annually on AI, Japan launched its ambitious Fifth Generation Computer Project, and the UK funded the Alvey Programme. Specialized hardware (Lisp machines) and AI startups proliferated. However, the systems were brittle, expensive to maintain, and couldn't learn from new data. By the late 1980s, the Lisp machine market collapsed, the Japanese project underdelivered, and a second AI winter set in — lasting until the mid-1990s.