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Optimization is mathematical speak for finding the maximum or minimum value of some function. For instance, one of the most discussed concepts in business is that of maximizing profit. A mathematical formula can be created that incorporates all costs, materials, production, distribution, overhead, and more, as well as price. The formula can then be used to calculate a maximum profit for a given set of costs and a chosen price.
While a significant innovation in itself, AI only produces optimizations for existing practice. It detects patterns, but does not comprehend the physical world. AI can inform and inspire, but does not produce innovation per se. Algorithms that automatically recommend media, place advertisements and detect fraud are all built upon explicit assumptions —that the training data is sufficient, and that the state of things will remain the same.