AbstractThis paper describes an application of artificial intelligence to support software reuse. We begin by discussing the characteristics of software engineering that establish dynamic reorganization as a requirement for a repository of software artifacts. We then present an experimental system that uses incremental concept formation as the basis for dynamic reorganization, and the conceptual hierarchy that was generated by the system for a set of 67 artifacts. The hierarchy is compared to a hierarchy produced manually by independent investigators, and the automatic hierarchy is evaluated in terms of retrieval efficiency and retrieval reliability. The paper ends with a discussion of three projects that share similar objectives with our work.