This work deals with the applications of artificial intelligence in engineering, addressing both the theoretical and practical aspects of developing intelligent systems. Particular emphasis is placed on knowledge-based expert systems and on neural networks, with sections on knowledge representation, searching and solving strategies, blackboard systems, analogical, case-based and qualitative reasoning, and project management. Knowledge-based system building tools are discussed, along with practical tips on building large intelligent systems for solving engineering problems. The key concepts are explained, with relevant examples, and with additional contributions from researchers in the field.