Decades ago we used Kalman filtering in naval navigation systems - it was well-established engineering then (Rudolf E. Kalman developed his filter in 1960). The original article's title is somewhat misleading in that Kalman filtering isn't usually considered to be AI.

But it's very nice to see this article anyway, if only to know that those old boat filters are creating Yahoo's home pages. Hey, it might even be the same code!8-)) [Tip to Yahoo: Speed 'er up to 23 knots and, if you start getting significant outliers, you've got a rounding problem in your matrix routines.]