The 80s saw an explosion in AI in systems that incorporated sophisticated knowledge representation schemes, advanced reasoning capabilities, and the aim of solving real-world problems. Much of this power came through theoretical developments in non-monotonic reasoning, better implementation tools, and steadfast support from the militaryt funding agencies. Mike Coombs (now with PSL at NMSU) and I developed MGR as one such system. Its capabilities can be summarized thus:
A paper describing some of the early work is The MGR algorithm and its application to the generation of explanations for novel events, first published in the International Journal of Man-Machine Studies in 1987. Later work is described in e-MGR: An Architecture for Symbolic Plasticity.
Development of MGR stopped when the Berlin wall came down. Our last application was to predict the behavior of enemy troops in a hypothetical ground-based war in Europe (we built a 'public' version that predicted the behavior of the King the English civil war). The army decided that this was not a viable area for research any more, so our funding dried up. Conceptual Programming, however, continued and this story can be found there.