WHAT WE LEARNT FROM EANN '98 (the 1998 International Conference on Engineering Applications of Neural Networks) R. Parenti, Ansaldo Ricerche srl, Genova, Italy A. Bulsari, Nonlinear Solutions Oy, Turku, Finland It seems, at last, that the neural network technology is approaching the final phase of real industrial applications. That becomes increasingly clear from the past EANN conferences. Noticeably this year, there was hardly any talk of justifying the use of neural networks unlike in the previous years: the participants did not any more sound like they were on the defensive just because they had used neural networks. Moreover it has been declared many times that, nowadays, the biggest problems in applications of neural networks are no longer related to technical issues, but to administrative and managerial aspects. The conference collected many papers in various fields, ranging from biomedical engineering applications to recognition of flying aircraft. Process engineering grew to be the largest category this year; moreover a four-hour session on the Japanese state-of-the-art in neural network applications in engineering fields has been successfully implemented. The Japanese participants presented several interesting papers in that session (as well as in other sessions) on topics including image processing of human faces and nuclear power plant monitoring. There were several participants from industries and a plenary session around an industrial panel discussion was held with panelists from Spain, Italy, Finland, Japan and USA. They represented electronics and telecommunications, process control and automation companies, chemical and petroleum industries. The panelists pointed out a lot of useful considerations, some of which are reported below. While some industries are still practising self-denial, the forward-looking industries have already started using these techniques effectively. As was pointed out in the discussion, the word "benefits" in the title of the proceedings of the conference this year seems timely and appropriate. Some of the industries which are still denying the utility of these techniques have had bad experiences in past, typically because of amateur attempts. Other industries have started deriving benefits from neural networks in real terms in the last couple of years or, especially in Japan, are strongly asking back, in terms of real benefits, the money they had invested in the technology development. People not familiar with soft computing look upon fuzzy logic and neural networks as very similar techniques, which they are not. Fuzzy control seems to require a smaller change in the ways of thinking and gains easier acceptance in the industry. Today many control systems use fuzzy logic, even if in a naïve manner. It has been pointed out that that even PID controllers (in the 1920s) faced difficulties similar to those faced by neural networks today, until Ziegler and Nichols came up with a detailed and a practical way of tuning them. The same kind of practical approach, was said, is the real key point needed in order to gain wide acceptance in the industry for neural networks today. The industries seem to want neural network models which they can tune themselves relatively easily. That is not an easy task, but a solution to it might further advance the uptake of neural networks for control systems in industries. Some of the European companies are working hard in this direction, while some of the Japanese companies seem to focus more on having many applications fully developed and working. On the other hand, some large USA companies tend to wait for reliable technology suppliers and do not seem to be planning hard investments on the technology itself. One panelist pointed out that there had been no major breakthroughs in neural networks' basic technology in the last ten years. It might be partly because all answers are already available for the basic questions about neural networks. Very often people who use neural networks to solve several practical problems in their business, look upon neural networks as just something like a standard statistical technique. Most industries need to increase their knowledge about these techniques and gain a better understanding of how neural networks could be used to their advantage. A better communication between the academia and industries is desirable, but today they do not seem to understand each other well. On the other hand, academics need to increase their knowledge about industrial requirements and environment, both to be able to better educate young engineers about how neural networks could be used in the industries and to drive the basic research a bit more further towards applications. At least, future engineers flowing from universities to the industries, should be able to easily understand when to use neural network techniques and when to use other techniques. For information on the EANN conferences, see http://www.abo.fi/~abulsari/EANN.html