How AI and ML Crashed the Simulation Party

The triumph of simulation

The last three decades have experienced rapid growth in the use of simulation tools in product design. Integrated with computer aided design (CAD) tools, simulation software is now a fundamental ingredient in the practice of computer aided engineering (CAE). During this journey, the finite element method (FEM) emerged as the main tool for simulation in many areas of product design such as structural integrity, computational fluid dynamics (CFD), electromagnetic analysis, and structural topology optimization. Because of the success of FEM addressing many design challenges, the complexity of the problems presented in FE simulation has grown rapidly. …..

From credit cards to product design

ML models have been applied on a large scale in other industries and most notably, the credit industry. In fact, ML models have been in production in the financial credit industry for more than three decades. The only difference is that they were not labeled as ML models, they were called “credit scoring” models. The most common format of these models is the “standard credit scorecard” [1]. Scorecards are ML models that are fitted (or trained) on historical data of customers who were awarded some form of credit, such as a credit card or loan. The training data, which contains the default behavior of the customers, is typically extracted from application and transaction history of these customers. The scorecard models are fitted to predict the default behavior of the customers in terms of some variables representing the characteristics of customers and their transaction patterns. These models are then used to score new applicants to determine their credit worthiness. ……..

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