The focus of this report is on artificial intelligence (AI) and human-computer interface (HCI) technology. Observations, conclusions, and recommendations regarding AI and HCI are presented in terms of six grand challenge areas which serve to identify key scientific and engineering issues and opportunities. Chapter 1 presents the panel's definitions of these and related terms. Chapter 2 presents the panel's general observations and recommendations regarding AI and HCI. Finally, Chapter 3 discusses computer science, AI, and HCI in terms of the six selected "grand challenge" areas and three time horizons, that is, short term (within the next 2 years), midterm (2 to 6 years), and long term (more than 6 years from now) and presents additional recommendations in these areas.