Genetic algorithms are a class of probabilistic optimization techniques that have proved useful in a wide variety of problem domains. This paper offers an introduction and overview to genetic algorithms and examines some of the finance-related applications to which the technique has been applied.optimization, genetic algorithms, evolutionary algorithms, evolutionary computing, finance,

Neural networks are an established class of non-linear modelling technique. This paper offers an introduction and overview to neural nets with particular emphasis on financial applications. We present a brief history of the subject and provide details on two of the more popular models. In addition we survey some of the recent research issues and algorithms used in applying neural nets to real-world problems, and discuss some of the specific finance applications to which they have been applied.neural networks, multi-layer perceptrons, Kohonen networks, backpropagation, finance,

As electronic communication, media and commerce increasingly permeate every aspect of modern life, real-time personalization of consumer experience through data-mining becomes practical. Effective classification, prediction and change modeling of consumer interests, behaviors and purchasing habits using machine learning and statistical methods drives efficiency, insights and consumer relevance that were never before possible.

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Business sectors ranging from banking and insurance to retail, are benefiting from a whole new generation of 'intelligent' computing techniques. Successful applications include asset forecasting, credit evaluation, fraud detection, portfolio optimization, customer profiling, risk assessment, economic modelling, sales forecasting and retail outlet location. The techniques include expert systems, rule induction, fuzzy logic, neural networks and genetic algorithms, which in many cases are outperforming traditional statistical approaches. Their key features include the ability to recognize and classify patterns, learning from examples, generalization, logical reasoning from premises, adaptability and the ability to handle data which is incomplete, imprecise and noisy. This paper is the first in a series to appear in Applied Mathematical Finance;here we introduce the reader to the basic concepts of intelligent systems, describe their mode of operation and identify applications of the techniques in real world problem domains. Subsequent papers will concentrate on neural networks, genetic algorithms, fuzzy logic and hybrid systems, and will investigate their history and operation more rigorously.intelligent systems, neural networks, genetic algorithms, fuzzy logic, hybrid systems,