Imagine a world where artificial intelligence systems are part of everyday life, where software evolves itself and where communications networks operate free of maintenance. A few years ago, such concepts were in the realms of fantasy: today they are genuine examples of tomorrow's - and the day after's - technology.

Mike Margetts looks at the future world of Applied Research and Technology (ART) - the 550-strong unit working in Systems Engineering (SE) whose key role is to look beyond the horizon and create and develop the technologies that will ensure BT remains at the forefront of the burgeoning information society.

Today, most people would find it difficult to envisage the apparently sophisticated world of the late 1990s in terms of nostalgia.

But for the scientists, engineers, computer and electronics experts working in ART, many current technologies are quickly becoming as quaint and dated as analogue switching and operator-connected phone calls.

They work in a fast moving world where they are encouraged to challenge convention and generate creative tension; a world where there are no barriers to imagination and exploration.

Managed jointly by Richard Nicol on the operational side, and Peter Cochrane, BT's head of research, virtually all their work is undertaken as part of the Corporate Research Programme.

Richard Nicol is in no doubt about the focus of activities.

"We exist to build the competences and the skills which BT will need for the future," he says. "We seek to identify new opportunities for the company through technology and ensure that the company is never wrong footed."

In many ways the unit sees itself as having something of an evangelical mission and Peter Cochrane has already built a worldwide reputation for his ability, and that of ART to educate, inspire and entertain audiences with a vision of the future.

"Our being able to do this is a great differentiator," says Richard. "No other company has this depth of resource."

Most people who work in ART stay for between three and five years before moving on within SE or to other parts of the company. Last year, for instance, 115 people moved to new jobs elsewhere in Systems Engineering.

"Of course, a few people will always remain here as researchers," says Richard. "Many of them are renowned experts in their field and are the top people in the world in their particular area of expertise."

But although many of the people working in ART are highly qualified and gifted, teamworking is very much the order of the day and all projects are geared ultimately towards providing genuine customer benefits, which in turn reflect well on BT and enhance the company's reputation.

A classic example of this principle was Innovation 97 earlier this year. A high proportion of exhibits originated from ART and customers were not only impressed by the products and services themselves, but also by the enthusiasm and commitment of those demonstrating them.

With a number of projects ongoing at any particular time, ART is never a dull place. Currently, some of the most important work being done involves looking at radical forms of operational support system, software that evolves itself, intelligent agents, genetic computing and the concept of a 'lights out' network which would be totally maintenance free. All are concepts that have the potential to make major changes to the company and to the lives of its customers.

Richard believes that it is important that no one is totally comfortable with all the projects because this would leave little room for challenges and questions.

"Obviously if everyone is uncomfortable about a certain aspect, there is something wrong," he says, "but the healthy situation is where there is the opportunity for good, constructive dialogue." Richard is also at pains to point out that everything that ART people do is geared towards providing real benefits to customers.

One of the biggest problems with technology is making sure that it provides what people really want and that they are comfortable using it. For instance, the idea of the videophone was irresistible but, in practice, it has had limited appeal.

"It is to make sure that we understand the impact of technology on people that we have our Human Factors unit," says Richard. "It's no good creating technology and trying to fit people to it; it has to be the other way round."

Having the opportunity to manage some of the top brains in Britain, Richard believes he has one of the best jobs anywhere in BT. "Sometimes I walk around and I am genuinely in awe at some of the things I see," he says.