I personally think that the term Artificial Intelligence (AI) is a misleading term. The word intelligence in my opinion should be strictly speaking used only to describe living organisms. A machine no matter how sophisticated it might be is simply a lot of pieces put together to perform a certain function people have designed it to do. The pieces themselves are not living and working intandem with each other do not become alive. A mind is not produced in this way - as some might think, for example, of a computer - especially a super copmuter. To simplify matters lets regard a computer as a number of transistors working together to carry out a lot of calculations per second. Each transistor is simpy on or off and a useful function is performed because humans have placed the transistors in a particular order and written a fixed algorithem. They are in essence similar to a lot of cogs and pulleys working together according to the levers we pull.
A CPU is in stark contrast with a brain in that individual LIVING neurons connect to each other to support what we call the mind.
The one big characteristic of life in my opinion is its ability to adapt to its surrondings and this can be done because it is not rigid, or static like a stone or crystal, but it is dynamic, flexible, and alive.
There is no life in a computer and therfore there is no possibility of awareness, emotions, goals, and such non sense. That is only what people love to imagine. Fear that a massive super copmputer suddenly will come to life and take over the world enslaving or eliminating humans in the process has no grounds in my opinion because the transistor is not alive.
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Articifial Intelligence is named appropriately. As you say, INTELLIGENCE should be resserved for living, breathing creatures.
And it's called ARTIFICIAL intellignce bcause it's MADE; It's fake, not real! It's artificial.
So i believe it's a perfectly acurate therm, because it's used to describe a simulated intelligence.
Do we have a true AI today? Nope, no way in hell. We're far from it.
Can we create a true AI? yes we can. OP, you need to kep in mind that all those "emotions", "tought processes", "goals" and all that going on in your tiny head is just chemistry and elctricity. A coctail of chmical reactions, and electrical impulses. Your brain is simply just a HIGHLY sophisticated biological computer! And I beleive we will at some point have the technology to perfectly replicate the human brain. And when we can that, we can also create Artificial Intelligence.
So, YES AI is a very real posibility!0