This volume contains the 5 invited papers and 72 selectedpapers that were presented at the Fifth InternationalConference on Industrial and Engineering Applications ofArtificial Intelligence. This is the first IEA/AIEconference to take place outside the USA: more than 120papers were received from 23 countries, clearly indicatingthe international character of the conference series. Eachpaper was reviewed by at least three referees. The papersare grouped into parts on: CAM, reasoning and modelling,pattern recognition, software engineering and AI/ES, CAD,vision, verification and validation, neural networks,machine learning, fuzzy logic and control, robotics, designand architecture, configuration, finance, knowledge-basedsystems, knowledge representation, knowledge acquisition andlanguage processing, reasoning and decision support,intelligent interfaces/DB and tutoring, fault diagnosis,planning and scheduling, and data/sensor fusion.