Previously, I have mentioned procedural generation as it pertains to the upcoming computer game Spore.
The April issue of Popular Science has a great overview on the field of genetic programming led by polymath John Koza. In essence, he has created a automated invention system that continually evolves based upon some preordained inputs. In fact, this machine is the first non-human to ever be awarded a patent for something it has created (not that I am a fan of patents myself).
Technology Review’s latest interview with Marvin Minsky is also a good read on this subject matter. He proposes that “layers of purposeful yet mindless ‘agents’ work together to generate consciousness.” This is somewhat similar to how Koza’s machine works at the most basic level.