This volume contains the 5 invited papers and 72 selected papers that were presented at the Fifth International Conference on Industrial and Engineering Applications of Artificial Intelligence. This is the first IEA/AIE conference to take place outside the USA: more than 120 papers were received from 23 countries, clearly indicating the international character of the conference series. Each paper was reviewed by at least three referees. The papers are grouped into parts on: CAM, reasoning and modelling, pattern recognition, software engineering and AI/ES, CAD, vision, verification and validation, neural networks, machine learning, fuzzy logic and control, robotics, design and architecture, configuration, finance, knowledge-based systems, knowledge representation, knowledge acquisition and language processing, reasoning and decision support, intelligent interfaces/DB and tutoring, fault diagnosis, planning and scheduling, and data/sensor fusion.