Boom 1980–1987
In the 1980s a form of AI program called "expert systems" was adopted by corporations around the world and knowledge became the focus of mainstream AI research. In those same years, the Japanese government aggressively funded AI with its fifth generation computer project. Another encouraging event in the early 1980s was the revival of connectionism in the work of John Hopfield and David Rumelhart. Once again, AI had achieved success.

The rise of expert systems
An expert system is a program that answers questions or solves problems about a specific domain of knowledge, using logical rules that are derived from the knowledge of experts. The earliest examples were developed by Edward Feigenbaum and his students. Dendral, begun in 1965, identified compounds from spectrometer readings. MYCIN, developed in 1972, diagnosed infectious blood diseases. They demonstrated the feasibility of the approach.

Expert systems restricted themselves to a small domain of specific knowledge (thus avoiding the commonsense knowledge problem) and their simple design made it relatively easy for programs to be built and then modified once they were in place. All in all, the programs proved to be useful: something that AI had not been able to achieve up to this point.

In 1980, an expert system called XCON was completed at CMU for the Digital Equipment Corporation. It was an enormous success: it was saving the company 40 million dollars annually by 1986. Corporations around the world began to develop and deploy expert systems and by 1985 they were spending over a billion dollars on AI, most of it to in-house AI departments. An industry grew up to support them, including hardware companies like Symbolics and Lisp Machines and software companies such as IntelliCorp and Aion.
What is an expert system, and when did they first emerge?
An expert system is a program that uses logical rules derived from expert knowledge to answer questions or solve problems in a specific domain of knowledge. The first expert system, called Dendral, was developed in 1965 by Edward Feigenbaum and his students and identified compounds from spectrometer readings.