As a Computer Science undergrad focusing on AI + Modeling, yes Google definitely employs a large deal of artificial intelligence. It's probably the most artificial intelligence you encounter per day. It's not the type of artificial intelligence that comes to mind when you think AI, but it definitely has recurring self-learning algorithms in play.
while Google is for sure are using some sort of AI, but we are in the very early days of AI, and any thing that is done by 'pc brain' is considered AI, but the self learning algorithms still have major issues now.
I do not think man would be capable of determining artificial intelligence when man seems to be incapable of determining natural intelligence.
Machine learning on the other hand, is a different animal. If you provide enough data that has appropriate statistical relevance, then the information derived from the machine would be indistinguishable from intelligence.
No, it's not artificial intelligence. Just look for artificial neural networks. Sometimes it's quite confusing to use the concept, but if we consider that google algorithm (For the search engine) is built with A.I. then every program that does something is built with A.I.
They use http://en.wikipedia.org/wiki/Machine_learning, you can treat it as a branch of statistics.
Artificial Intelligence is on a totally different level. It includes machine learning, but machine learning is by far not the only thing it includes. For example it deals with things like: reasoning, planing and scheduling, robotics, etc..
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