Squark comments on True numbers and fake numbers - Less Wrong
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I'm sure that in AI research many programs have been written around a specific well-defined utility function. Or, by "utility" you mean utility for a human? The "complexity of value" thesis is that the latter is very hard to define / measure. I'm not sure it makes it a "bad" concept.
The corresponding object in reinforcement learning systems is usually called a reward function, by analogy with behaviorist psychology; the fitness function of genetic programming is also related.