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The main purpose of the research reported here is to show that a new and more powerful type of computer-assisted instruction (CAI), based on extensive application of artificial-intelligence (AI) techniques, is feasible, and to demonstrate some of its major capabilities. A set of computer programs was written and given the name SCHOLAR. Due to its complexity, only the conception and educational aspects of this system (including an actual on-line protocol) are presented in this paper. In what may be called conventional ad hoc-frame-oriented (AFO) CAI, the data base consists of many "frames" of specific pieces of text, questions, and anticipated answers entered in advance by the teacher. By contrast, an information-structure-oriented (ISO) CAI system is based on the utilization of an information network of facts, concepts, and procedures; it can generate text, questions, and corresponding answers. Because an ISO CAI system can also utilize its information network to answer questions formulated by the student, a mixed-initiative dialogue between student and computer is possible with questions and answers from both sides.