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The papers in this volume comprise the refereed proceedings of the conference ' Artificial Intelligence in Theory and Practice' (IFIP AI 2008), which formed part of the 20th World Computer Congress of IFIP, the International Federation for Information Processing (WCC-2008), in Milan, Italy in September 2008. The conference is organised by the IFIP Technical Committee on Artificial Intelligence (Technical Committee 12) and its Working Group 12.5 (Artificial Intelligence Applications). All papers were reviewed by at least two members of our Program Committee. Final decisions were made by the Executive Program Committee, which comprised John Debenham (University of Technology, Sydney, Australia), Ilias Maglogiannis (University of Aegean, Samos, Greece), Eunika Mercier-Laurent (KIM, France) and myself. The best papers were selected for the conference, either as long papers (maximum 10 pages) or as short papers (maximum 5 pages) and are included in this volume. The international nature of IFIP is amply reflected in the large number of countries represented here. The conference also featured invited talks by Prof. Nikola Kasabov (Auckland University of Technology, New Zealand) and Prof. Lorenza Saitta (University of Piemonte Orientale, Italy). I should like to thank the conference chair, John Debenham for all his efforts and the members of our program committee for reviewing papers to a very tight deadline.