This book constitutes the thoroughly revised and refereed post-workshop documentation of two international workshops held in conjunction with the Pacific Rim International Conference on Artificial Intelligence, PRICAI'96, in Cairns, Australia, in August 1996. The volume presents 14 revised full papers togehter with two invited contributions and two introductory surveys particularly commissioned for this book. Among the topics addressed are computational learning, commonsense reasoning, constraint logic programming, fuzzy reasoning, vague data, inductive inference, belief revision, action theory, uncertainty, and probabilistic diagnosis.