Simon was a pioneer in the field of artificial intelligence, creating with Allen Newell the Logic Theory Machine (1956) and the General Problem Solver (GPS) (1957) programs. GPS may possibly be the first method developed for separating problem solving strategy from information about particular problems. Both programs were developed using the Information Processing Language (IPL) (1956) developed by Newell, Cliff Shaw, and Simon. Donald Knuth mentions the development of list processing in IPL, with the linked list originally called "NSS memory" for its inventors. In 1957, Simon predicted that computer chess would surpass human chess abilities within "ten years" when, in reality, that transition took about forty years.  In the early 1960s psychologist Ulric Neisser asserted that while machines are capable of replicating "cold cognition" behaviors such as reasoning, planning, perceiving, and deciding, they would never be able to replicate "hot cognition" behaviors such as pain, pleasure, desire, and other emotions. Simon responded to Neisser's views in 1963 by writing a paper on emotional cognition, which he updated in 1967 and published in Psychological Review. Simon's work on emotional cognition was largely ignored by the artificial intelligence research community for several years, but subsequent work on emotions by Sloman and Picard helped refocus attention on Simon's paper and eventually, made it highly influential on the topic.  Simon also collaborated with James G. March on several works in organization theory.  With Allen Newell, Simon developed a theory for the simulation of human problem solving behavior using production rules. The study of human problem solving required new kinds of human measurements and, with Anders Ericsson, Simon developed the experimental technique of verbal protocol analysis. Simon was interested in the role of knowledge in expertise. He said that to become an expert on a topic required about ten years of experience and he and colleagues estimated that expertise was the result of learning roughly 50,000 chunks of information. A chess expert was said to have learned about 50,000 chunks or chess position patterns.  He was awarded the ACM Turing Award, along with Allen Newell, in 1975. "In joint scientific efforts extending over twenty years, initially in collaboration with J. C. (Cliff) Shaw at the RAND Corporation, and subsequentially [sic] with numerous faculty and student colleagues at Carnegie Mellon University, they have made basic contributions to artificial intelligence, the psychology of human cognition, and list processing."

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With Allen Newell, Simon developed a theory for the simulation of human problem solving behavior using production rules.