In a hopeless attempt to clear some of the confusion about patterns & concepts, 
here is an excerpt from my recently edited part 4:

A pattern is a set of matching inputs, the same concept as fuzzy cluster in 
terms of unsupervised learning.
In my model, match is quantified by comparison as a measure of compression, so 
a pattern is a compressed representation of multiple inputs. Technically, every 
compared input forms a pattern, but only those with an above-average 
compression count, - they are forwarded to higher levels for extended search. 
Compression is adjusted for overlap in aggregated match & miss representation: 
partial redundancy to previously forwarded cross-compared inputs. This 
adjustment increases selectivity/ sparseness of representation on a higher 
level.

A more "exclusive" definition of a pattern is the recurrent match itself: a 
subset of each input shared across a set thereof. This is actually a 
higher-derivation pattern: an above-average match of a match. Just like 
above-average match selects an input for a higher-level search, above-average 
match of a match selects a common subset to a higher integration vs. 
differentiation level within a pattern itself. That subset also has a priority 
for extended search. The most basic hierarchical sub-differentiation within a 
pattern is by match of a binary sign for relative match, forming continuous 
segments of above | below average match across input queue. 

Selective elevation increases both predictive value & potential syntactic 
complexity of patterns: the number of different variables within it. That's 
because comparison of each input variable adds two new variable types: relative 
match (m) & miss (d) relative to same-type variable of a template pattern. Both 
are signed, as well as aggregated across multiple comparisons within the length 
of a constant sign: L(m) & L(d). Relative match determines comparison vs. 
aggregation for individual differences, forming a queue of ds within positive 
L(m). New types of derivatives are also formed by comparison across different 
types of S-T or derived coordinates.

.....
The patterns I described here are not qualitatively different from our semantic 
concepts, which are either generalized empirical patterns (objects & 
processes), or are strictly relational. There is no other way to define a 
"concept". Given sufficient computational resources & discoverable mathematical 
shortcuts, search over incrementally complex syntax will discover patterns / 
concepts on & beyond the level of natural language.

http://www.cognitivealgorithm.info/2012/01/cognitive-algorithm.html





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AGI
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