This book constitutes the refereed proceedings of the 16th International Conference on Industrial and Engineering Applications of Artificial Intelligence and Expert Systems, IEA/AIE 2003, held in Loughborough, UK in June 2003. The 81 revised full papers presented were carefully reviewed and selected from more than 140 submissions. Among the topics addressed are soft computing, fuzzy logic, diagnosis, knowledge representation, knowledge management, automated reasoning, machine learning, planning and scheduling, evolutionary computation, computer vision, agent systems, algorithmic learning, tutoring systems, financial analysis, etc.