AI is revolutionizing various sectors of the economy and our daily lives, and it is also changing the scope of what could be possible. But do you know that AI is not a single entity only? There are different types of AI each with their own specificities and peculiarities. In this blog, we will provide a detailed discussion of the four different types of AI: what they are, how they operate, and where you can expect to see them in reality. Therefore, whether you are a technology addict or just want to learn more about the future– stay with us because there are many interesting things ahead!
What Is AI?

Artificial Intelligence is the imitation of human cognitive processes by machines, especially computer systems. These processes are learning (getting information and rules for using the information), reasoning (using the rules for reaching approximate or definite conclusions), and self-correction.
AI can be something as simple as a spam filter on your email, to being something as complex as a self-driving car. However, what makes AI so interesting (and sometimes frightening) is the fact that they can get better at what they are doing. Systems like machine learning allow an AI to gain knowledge by recognizing patterns and analyzing statistics to make automated predictions or to do certain tasks that would normally require human intelligence.
Now that we have a basic understanding of what AI is, let us look at the four different types of AI.
Also Read: Mastering Generative AI: Your Roadmap to Getting Started
The 4 Types of AI
Artificial Intelligence is not one single technology, but rather a catch-all term for many different technologies, each at some point on an increasingly complex part of the performance spectrum of human intelligence.
1. Reactive Machines Type of AI
What Are Reactive Machines?
Reactive machines are the simplest type of AI systems. They do not have the ability to form memories or use past experiences to determine current actions. Such types of AI machines simply perceive and react; they don’t learn over time. That is, given a certain input, reactive machines will always respond with the same output. Reactive machines live in the present—they neither have the ability to recollect the past nor plan ahead for the future.
Example: Deep Blue
IBM’s Deep Blue, the chess-playing computer that beat world champion Garry Kasparov in 1997, is an example of a reactive machine. It could analyze many possible moves from the present position of a chessboard and determine the best next play—yet it had no “knowledge†of previous games played, nor did it learn from its mistakes. All decisions were based on what the board looked like at that moment.
Limitations of Reactive Machines
While such reactive machines can be very successful in narrowly defined domains, human interaction with AI systems requires a stronger capability for memory and learning. Moreover, reactive machines lack an important robotics feature—the ability to use knowledge of the world to reason about and model parts of the world they currently are not perceiving.
Where Are Reactive Machines Used?
Despite their limitations, reactive machine types of AI are widely used in industries where tasks are repetitive and require high accuracy. For instance, in manufacturing, robots that assemble products on an assembly line are often reactive machines. These robots perform the same tasks repeatedly, reacting to specific inputs (like the position of a component) without the need for memory or learning. Similarly, reactive AI is used in basic video game NPCs (non-player characters) that respond to player actions without any long-term planning.
2. Limited Memory Type of AI
What Is Limited Memory AI?
The next type of Ai is Limited Memory AI. These types of AI systems can actually have the memory of past experiences, but for only a finite amount of time, and this memory is not stored in order to learn about the world. Instead, it is only to make improved short term predictions. They also are capable of using historical data as part of their decision-making process, but they don’t build an internal model of the world from that data. Also read: Applied GenAI Explained, Benefits, Examples.
Also read: Applied GenAI Explained, Benefits, Examples
Limited Memory AI Example: Self-Driving Cars
Self-driving cars are a great limited memory AI example. They take in their environment using various sensors, such as cameras, radar, and LIDAR. Based on this information, the self-driving car makes decisions in real time (for instance, deciding when to change a lane or stop at a traffic light). Moreover, the AI system of a self-driving car can store data about nearby vehicles, pedestrians, and road conditions. This allows it to make better driving decisions i.e., safer and more informed driving.
For example, when the car in front suddenly slows down, its AI will follow you to reduce your speed. However, when the event has passed, it will not have the ability to remember that particular thing- it will still go on with the current data available.
Benefits of Limited Memory AI
The ability to use recent data in decision-making makes limited memory AI systems more general, efficient, and versatile than reactive machines since they can adapt to changes in the dynamic environment and account for real-time data.
For instance, the trading algorithms in financial markets that use market trends and past information to make investment decisions are also a limited memory system; they can dynamically change their policies based on recent observations, but they do not remember all past trades at a constant memory.
Where Are Limited Memory Machines Used?
Limited Memory AI is not only applied in the self-driving car industry, but also has a wide range of applications in different fields. For instance, in the medical sector, AI systems that analyze patient information to give guidance on what could be done or to recommend certain treatments are often memory based. Such systems can take data from past records of similar cases to propose the best options of treatment even if they do not create an overall comprehension of a patient’s full medical history.
Another common application is recommendation systems like the ones used by streaming services (e.g. Netflix or Spotify). They analyze your viewing or listening history in order to suggest content you might like, and even though they do use recent data to better tune their suggestions, they do not have a long term memory of everything you have liked.
3. Theory of Mind Type of AI
What Is Theory of Mind AI?
Theory of Mind type of AI is a more developed and notional kind of artificial intelligence which, like the psychological term, concerns an agent’s ability to attribute mental states, including beliefs, intentions, and desires, to oneself and others. In other words, an AI system with a Theory of Mind would be capable of comprehending and interpreting human emotions, beliefs, and intentions that could revolutionize how we interact with this technology. Example: Emotional Robots (Hypothetical).
Imagine a robot built to be a companion or caregiver. An AI with ToM implemented in such a robot will allow it to recognize when the person is sad or happy and modify its behavior . For example, if a robot realizes that you are in low spirits, it may propose fun activities for you or say some nice words to you. On the other hand, if it detects that you are bored, it may involve more animated and enthusiastic interactions.
This type of AI is far from what science fiction tells us; however, researchers are on their way to developing machines that can recognize and react to human emotions. Some robots, e.g., Softbank’s Pepper, already possess some basic emotional recognition abilities even though they still lack the deeper comprehension that is essential for a true Theory of Mind.
Challenges of Developing Theory of Mind AI
Creating a Theory of Mind AI is an ambitious goal. To really be able to understand and interpret human emotions, beliefs, and intentions, the AI would need high-level pattern recognition as well as a deep understanding of social and cultural nuances. Moreover, we will have to make sure that this AI can generalize these responses and act appropriately across a wide range of scenarios, meaning that simple rules or hard-coded responses won’t be enough.
Also read: Gen AI for Beginners: Understanding its Basics
Where Could We Use This Type of AI?
If/when we do develop Theory of Mind AI, its impacts could be earth-shattering. In healthcare, for example, this might mean using AI to help therapists read and react to a patient’s emotional state in the moment, leading to more nuanced and effective mental health care. It might mean a tutor that can sense when a student is bored or confused, and adjusts its teaching style accordingly.
In customer service, Theory of Mind AI could provide more empathetic and effective support. A customer service AI that knows when a customer is frustrated could offer more tailored solutions or escalate the issue to a human representative sooner.
4. Self-Awareness Type of AI
What Is Self-Awareness AI?
Self-Awareness type of AI is the most advanced and theoretical stage of AI development. A self-aware AI would not only understand and react to human emotions and thoughts, but it would have its own consciousness, emotions, and self-referential thought. These machines would essentially be sentient beings able to contemplate their own existence and make decisions from a self-referential vantage point.
Example: Science Fiction and Speculation
Self-Awareness type of AI is a common theme in science fiction, frequently depicted as a technology with equal potential for transfiguration and doom. Characters such as HAL 9000 from 2001: A Space Odyssey or Skynet from The Terminator are unnerving examples of self-aware AI that formulate their own agendas, often opposed to human concerns.
In the real world, we’re not even remotely close to this. Current AI systems can perform impressively complex tasks; they can even be programmed to seem like they understand conversations. But there’s no actual consciousness or self-awareness in play there, and developing that quality would require both technological capabilities far beyond what we have now and also a level of understanding of consciousness that we simply don’t yet have access to.
Ethical and Philosophical Implications
The transition of AI into the stage of self-consciousness leads to deep ethical and philosophical questions. When a machine, for instance, really is self-aware, should it have rights? Is it to be treated as an autonomous being which has its own interests and desires. What will happen when self-aware AI decides that it doesn’t want to perform the tasks it was created for?
But this isn’t just theoretical. The more advanced AI becomes, the more we’ll have to confront that distinction between machines and being blurring. It’s important to grapple with these ethical questions as we expand the frontiers of AI.
Also read: Supervised vs Unsupervised Learning: Key Differences
Wrapping Up
Artificial Intelligence is a very vast field. From simple reactive machines to self-aware hypothetical entities, each type of AI has different capacity and Potential. The limits of what AI can do, are the limits of what we humans can do. We live in a time with limited memory AI and are expected to evolve later into more complex forms of AI which might revolutionize our lifestyle and how we work with physical things.
Understanding these four types of AI will help you understand what AI really is and where it’s going. From self driving cars, to robots that will know if you’re happy or sad, to robots that indeed know when you are sleeping (true story), in short, AI is here.
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FAQs: Types of AI
1. What is the difference between reactive machines and limited memory AI machines?
Reactive machines can be used in a simple feedback loop, but cannot utilize recent observations of the world to plan the effects of their actions over extended time periods. Conversely, machines with limited memory can use information from the recent past to increase their performance on tasks, but they do not persistently integrate memory into their future plans.
2. Are there any real-world examples of Theory of Mind AI?
Presently, AI of the Theory of Mind kind is a mostly theoretical concept. Robots and AI systems may stop at some level to recognize and respond to human emotions but we have no AI yet that could completely read and interpret complex human mental states.
3. Is Self-Awareness AI possible?
Self-Awareness AI is all theoretical at this point. Interesting as it is, you’re talking about not just technological leaps, but also philosophical and ethical ones.
4. How is AI used in self-driving cars?
Self-driving cars are the best example of limited memory AI. Cars observe the world through sensors, storing this information to decide when to accelerate, stop or turn, but it’s not logged for future use.
5. Can a type of AI have emotions?
Current types of AI can mimic emotions to a certain extent, like chatbots that use natural language processing to detect sentiment in a conversation. However, these machines don’t actually “feel†emotions; they’re simply programmed to respond in ways that humans interpret as emotional.
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3. How Generative AI is Transforming the Job Market: Skills in Demand
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